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MANAGEMENT INFORM ATION SYSTEMS

1. Distinguish between DSS and MIS.

Management Information Systems (MIS) Decision Support Systems (DSS)

 MIS provide middle managers with  Decision-support systems (DSS) support
reports on the organization’ s current more non-routine decision making.
performance.
 This information is used to monitor and  They focus on problems that are unique
control the business and predict future and rapidly changing for which the
performance. procedure for arriving at a solutions may
 MIS summarize and report on the not be fully predefined in advance.
company’ s basic operations using data  DSS use internal information from TPS
supplied by TPS. and MIS and external sources.

2. What is the role of computer in MIS?

A computer provides a convenient means to execute the four main operations of an
Information system:
 Entering data into the IS (input)
 Changing and manipulating the data in the IS (data processing)
 Getting information out of the IS (output)
 Storing data and information (storage).
 A computer-based IS also uses a logical process to decide which data to capture and
how to process it.

5 MARKS

1. Describe the types of decision.

Decision Characteristics

Approve capital budget

Unstructured Senior
Decide long-term goals
Management
Design a marketing plan
Semi-structured Middle Management Design a departmental budget

Operational Management Determine overtime eligibility

Structured (Individual Employees and Teams) Restock inventory

There are three types of decisions: Structured, Unstructured and Semi-structured.

Unstructured: Unstructured decisions are those in which the decision maker must provide
judgment, evaluation, and insight to solve the problem. Each of these decisions is novel,
important, and non-routine, and there is no well-understood or agreed-on procedure for
making them. Unstructured decisions are more prevalent at higher organizational levels.
Structured: Structured decisions are repetitive and routine, and they involve a definite
procedure for handling them so that they do not have to be treated each time as if they were
new. Structured decisions are more prevalent at lower organizational levels.
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Semi-structured: Many decisions have elements of both types of decisions and are semi-
structured, where only part of the problem has a clear-cut answer provided by an accepted
procedure. Semi-structured decisions are more prevalent at middle management levels.

2. Discuss about Computers and MIS.

A computer provides a convenient means to execute the four main operations of an
Information system:
 Entering data into the IS (input)
 Changing and manipulating the data in the IS (data processing)
 Getting information out of the IS (output)
 Storing data and information (storage).
 A computer-based IS also uses a logical process to decide which data to capture and
how to process it.
 Networking devices and communications lines transfer data and information over long
distances.
Input: The first step in producing information is collecting data, known as input.
Transactions can be recorded on paper and later entered into a computer system, or directly
recorded through a Transaction Processing System (TPS), such as a cash register, or
captured online when someone transacts through the web.
Input Devices include the keyboard, infrared devices that sense bar codes, voice recognition
systems, and touch screens.
Processing: The computer’ s greatest contribution to ISs is efficient data processing, which is
essential to a robust IS. The computer’ s speed and accuracy let organizations process millions
of pieces of data in several seconds.
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Output: Output is an IS produces and displays in the format most useful to an organization.
The most widely used output device is the video display, or video monitor, which displays
output visually. Another common output device is the printer, used to print hard copies of
information on paper. Computers can communicate output through speakers in the form of
music or speech and also can transmit it to another computer or electronic device in computer-
coded form, for later interpretation.
Storage: One of the greatest benefits of using IT is the ability to store vast amounts of data
and information.
Networking : Communications technology lets user access data and other electronic
resources of many computers, all connected in a network.
Internet : Internet is a public network linking organizations and other external
networks.
Intranet : Intranets are simply internal company (private) web sites that are accessible
only by employees. It uses the same internet technologies and techniques.
Extranet : Extranets are company websites that are accessible to authorized vendors
and suppliers used to coordinate the movement of supplies.

4. W rite short notes on Transaction Processing Systems.

 A transaction processing system is a computerized system that performs and records the
daily routine transactions necessary to conduct business such as sales order entry,
hotel reservations, payroll, employee records keeping, and shipping.
 The principal purpose of systems at this level is to answer routine questions and to track
the flow of transactions through the organizations.
 At the operational level, tasks, resources, and goals are predefined and highly structured.
The decision to grant credit to a customer, for instance, is made by a lower-level supervisor
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 Managers need TPS to monitor the status of internal operations and the firm’ s relations with
the external environment. TPS are also major producers of information for the other systems
and business functions. Fo r example, the payroll system.

5. Describe briefly about System Design.

Design of the system is mainly the logical design that can be sketch on a paper or on a
computer. It includes physical design elements, describes the data to be inputted.
The process involved in manipulation of data & output design represents:-
i. File structure, storage devices etc.
ii. Database is also designed in this phase
iii. Changes to be made in the organizational structure of the firm are outlines
iv. Input, Output, files, forms and procedures are planned
v. Finally standards for testing, documentation, system control are designed.

DATA FLOW DIAGRAMS

A data flow diagrams (DFD) is used to describe the flow of data in a business operation,
using only four symbols for these elements: external entities, process, data store and the direction
in which data flows.

External entities include individuals and

Entity groups of people such as customers,
employees.

A process is any event or sequence of

Process
events in which data is either changed or
Or
acted.

A data store is any form of data at rest,

Data Store Or
such as filing cabinet or a database.

Data flows from an external entity to a

Flow of
process, from a process to data store, from
data
data store to a process, and so on.

Example :

Salesperson I.D. Salesperson Salespeople

Bonus
Sales clerk database
Calculation
Annual sales

Bonus Amount

Bonus file
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6. W rite short notes on Direct File Access Organization.

Direct Access File Organization (or) Random Access (or) Relative File Organization
1. Records are stored in Direct Access Storage Device (DASD) such as Magnetic Disk
(Hard Disk)
2. For direct access, the file is viewed as numbered sequence of blocks or records.
3. These blocks or records are taken as key for accessing the desired information randomly.
4. It allows arbitrary blocks to be read or written.
5. It is useful for immediate access to large amount of information.
Advantages
1. Immediate access of the desired records, No sorting of the records is required.
2. Faster updating of several files.
Disadvantages
1. Data may be accidentally erased or over-written. Backup facility is needed
2. Expensive, less efficient in using storage space.

4. a. Discuss about Marketing System MIS.

 Marketing systems help to find the populations and regions that are most likely to purchase
a new product or service.
 They also help analyze how a new product fares in its first several months on the market.
 Through interviews with consumers and retailers, market researchers collect information
on what customers like and dislike about products.
 When the researcher collects sufficient data, the marketing department uses statistical models
to predict sales volumes of different products and of different designs of the same product.
 This critical information aids in planning manufacturing capacities and production lines. It
is also extremely important for budgeting purposes.
 To save resources, business us IT to promote to people most likely to purchase their
products. This activity is often referred to as targeted marketing.
 Great advances in database technology enable even the smallest and poorest business to use
targeted marketing.
 Use of information technology for targeted marketing has taken sophisticated forms on the
web. More than just targeting a certain demographic group, web technologies enable
retailers to personalize marketing when shopping and buying are conducted online.

7. Discuss about computerized Accounting system

 In Computerized Accounting system, the general ledger, accounts receivable, accounts
payable, and cash flow books are computerized, and can easily generate balance sheets and
profit and loss statements from records.
 Typically, account ISs receives records of routine business transactions, from transaction
processing systems (TPS).
 Such a system automatically routes every purchase of raw materials to the accounts
payable system, which uses it to transfer funds to a vendor’ s bank account.
 Whenever a sale is recorded, the transaction is routed to the accounts receivable system and
other destinations.
 Total of accounts receivable and accounts payable can be automatically transferred to a
balance sheet.
 Data from the general ledger can be automatically compiled to generate cash-flow report ora
profit-and-loss report for the past quarter or year.
 Accounting ISs can generate any of these reports on demand, as well as at scheduled times.
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 Cost accounting systems, used to accumulate data about costs involved in producing
specific products, make excellent use of IT to compile pricing data.
 AIS used for managerial purposes, assisting in organizing quarterly and annual budgets for
department and entire corporations. It is also used to control the budgets.

8. Discuss about the advantages in the Database approach.

 In database approach,
each piece of data islabeled
or categorized, provides a
much more powerful
information
management tool.
 Data in this format can be
easily accessed and
manipulated to create
useful information and
optimize productivity.
 Databases are behind the
successful use of
automatic teller machines,
increased efficiency in
retail stores, every
marketing effort, and the numerous online search engines and electronic storefronts on the
Web.
 Combined with interactive web pages on the Internet, databases have made an immense
contribution to commerce.
 Online banking, online consumer catalogs, online searches for information, online stock
brokerages, online chat rooms are maintained by databases
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9. Explain the three phases of decision making.

DECISION MAKING PROCESS (DECISION MAKING PHASES)
Whenever more than one possible action is available, a decision must be made. Decision
making is a three phase process: Intelligence, Design and Choice.

Intelligence - collect data from inside the organization

- collect data from outside the organization
- collect information on possible ways to solve the problem
Design - organize the data; select a model to process the data
- produce reasonable, potential courses of action
Choice - Select a course of action

Problem discovery
What is the problem?

Solution discovery
What are the
possible solutions?

Choosing Solutions:
What is the best
solution?

10. W hat are the attributes of Information?
Attribute
1. The accuracy in representation
2. The form of presentation
3. The frequency of reporting
4. The scope of reporting
5. The scope of collection
6. The time scale
7. The relevance to decision
making
8. Complete for the decision
considerations
9. The timeliness of reporting
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Explanation
In test of accuracy is how closely it represents a
situation or event the degree of precision will decide
the accuracy in representation
Forms are qualitative or quantitative, numeric or
graphic, printed or displayed, summarized or
detailed. Appropriate form is important.
How often the information is needed? How often it
needs to be updated.
The coverage of information in terms of entities, area
and range and the interest shown by the recipient or
the decision maker.
Internal from organization or the external to
organization
It may relate to the past, the current and the future
and can cover the entire time span
The information has relevance to a situation and also
to a decision making. The irrelevant information is a
data.
The information which covers all the aspects of the
decision situation by way of the scope transactions
and period is complete
The receipt of information on time or when needed is
highly useful. The information arriving late loses its
utility as it is outdated.
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11. Explain the need for system analysis.

Investigation
 Identifying the real problem of the
existing system.
 It defines the user requirements or
what the user expects from the new
system.
 This also includes the resource 
requirements as well as estimated
time for completion and number of
persons expected to be involve in
each phase.
Problem identification helps in:
i. Defining a problem
ii. Setting proper system goal
iii. Determining the boundaries
of the project by considering the limitations of available resources
Feasibility study:
It determines the possibility of either improving the existing system or developing the complete
new system. It helps to obtain an overview of the problem. The purpose of feasibility study is to
determine whether the requested system successfully realizable.
There are four aspects of feasibility study:-
i. Technical feasibility
ii. Economical feasibility
iii. Operational feasibility
iv. Behavioral feasibility
i. Technical feasibility:
It involves the required and existing computer system, hardware, software and to what
extent it can support the proposed application. It answers following questions:-
 Whether the system can be carried out with existing equipments?
 Whether the existing software is enough?
 If a new technology is required how best it can be implemented?
ii. Economic feasibility:
It involves post benefit analysis to determine the benefit and savings that are expected from
new system and compared with costs. It benefits out weight cost then decision is made to
design and implement new system.
iii. Operational feasibility:
It concerns with human, organizational and political aspects. It covers technical
performance as well as acceptance within the organization. It determines the general
attitude and job skills of existing personals and whether any restructuring of jobs will be
acceptable to the current user.
iv. Behavioral feasibility:
It includes how strong the reaction of staff will be towards the development of new system
that involves computer’ s use in their daily work. So resistant to change is identified.

12. Briefly explain the input and output design.

INPUT DESIGN
Input design is important for a system designer. The output of the system greatly affects the input
design of the system.
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Input Design Objectives

 The input design of the system must attempt and try reducing the data requirements.
 It should also avoid capturing unnecessary data such as constant and system-computable
data.
 The input design must avoid processing delays during data entry.
 The input design must avoid data entry errors. This can be achieved by checking the errors in
data entry program. This technique of checking data entry program programs for errors is
known as input validation technique.
 The input design must keep the process simple and easy to use.
Input layout
The layout of the input design must contain the following items.
1. Headings and date of data entry.
2. Data heading and value
3. Data type and width of the column
4. Initials of data entry operator

OUTPUT DESIGN
The term output necessarily implies to information printed or displayed by an information
system. Following are the activities that are carried out in the output design stage:
 Identification of the specific outputs required to meet the information requirements.
 Selection of methods required for presenting information.
 Designing of reports, formats or other documents that acts as carrier of information.
OUTPUT DESIGN SPECIFICATIONS
The main points in the output design specifications are :
 Paper size: It is important for a system designer to specify the size of the paper to be used
for the output. The size of the paper can be A4 or A3 size
 Special forms: Outputs can be designed on the pre-printed form. The pre-printed form
requires the standards print headings or titles for the output design.
 Multiple copies of output: At times, more than one copy of an output is required. Multiple
papers are available in carbon and carbonless forms.
 Turnaround documents: In this specification, the output can be used as an input document
also. The optical scanners are used for reading data from the forms.
Output layout:The layout design guides a programmer in the development of codes.
 Headings and date
 Data and details
 Summaries and totals
 Page title, number and date
 Notes and comments
 Column headings and data type

13. What is manufacturing execution system and explain its contribution?

The data required for manufacturing processes can flow directly from CAD (Computer Aided
Design) systems to CAM (Computer Aided Manufacturing) systems as well as to inventory
control systems and other systems that support planning and execution of manufacturing.
While CAM systems participate in physical activities such as cutting and welding, other
information systems help to plan and monitor manufacturing.
Information technology helps in the following manufacturing activities:
 Scheduling plant activities while optimizing the combined use of all resources—machines,
personnel, tooling, and raw and interim materials.
 Planning material requirements based on current and forecasted demand.
 Reallocating materials rapidly from one order to another to satisfy due dates
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 Letting users manage

inventories in real time,
taking into consideration
demand and the
responsiveness of all
work centers.
 Grouping work orders by
characteristics of items
ordered, such as colorand
width of products.
 Considering the
qualifications of each
resource (such as
qualified labor, set-up
crews, and specialized
tools) to accomplish its task.
 For instance, people and raw materials can be moved from one assembly line to another to
respond to machine breakdown or customer emergency, and design changes can be
implemented quickly to respond to changes in customer wishes.

14. Describe IS organization.

Information Systems in Organizations
 In an organization, an
information system consists of
data, hardware, software,
telecommunications, people,
and procedures.
 An information system has
become synonymous with a
computer-based information
system, a system with one or
more computers at its center.
 In a computer-based
information system,
computers collect, store, and
process data into information according to instructions people provide via computer
programs.
Several trends have made the use of information systems (ISs) very important in business:
 The power of computers has grown tremendously while their prices have dropped. 
 The capacity of data storage devices has grown while their prices have decreased. 
 The variety and ingenuity of computer programs have increased. 
 Quick and reliable communication lines and access to the Internet and the Web have become
widely available and affordable. 
 The fast growth of the Internet has opened opportunities and encouraged competition in
global markets.
 An increasing proportion of the global workforce is computer literate.
 In this environment, organizations quickly lag behind if they do not use information systems
and skills to meet their goals. Moreover, they must continuously upgrade the features of their
information systems and the skills of their employees to stay competitive.
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15. Briefly explain the basic differences of Database model.

Types of Database System Models:
1. Hierarchical database
2. Network database
3. Relational database
4. Object oriented database
Hierarchical database
 A hierarchical database organizes data in a series of levels.
 It uses a top-down structure consisting of nodes and branches.
 Each node can have many branches, but each lower-level (child) is
linked to only one higher-level node (parent).

Network database
 A network database organizes data as a series of nodes linked by
branches.
 Each node can have many branches, and each lower-level node (child)
may be linked to more than one higher level node (parent).
Relational database Management System (RDBMS)
 A relational database organizes data using a series of related tables.
 Relationships are built between the tables to provide a flexible way of manipulating and
combining data. Example : Inventory Table / Relation
Item Number Item Name Unit Price Quantity Total Amount
1 Pepsodent 42.00 5 210.00
2 Colgate 25.00 2 50.00
3 Close up 33.00 4 132.00
Object Oriented Database Management System (OODBMS)
 In object oriented technology, Customer Sales
an object consists of bothdata Data: CustomerID Data: BillNumber
CustomerName ProductID
and the procedures that Mobile CustomerID
manipulate the data.  Address Quantity
Discount
 An object contains Procedure: Objects are related Tax
Add New Customer TotalAmount
relationships with other Get Customer Data Because Sales contains
CustomerID
Procedure:
entities and procedures to Change Customer Data
Save Customer Data Add New Sales Data
manipulate the data. Get Sales Data
Change Sales Data
 Object is an instance of Class Save Sales Data
Products
Data: ProductID
Collection of objects of ProductName Objects are related
similar type is called a Class. UnitPrice
Because Sales contains
StockQty
 Abstraction focuses on the ProductID
Procedure:
essential characteristics of Add New Product Data
objects. Get Product Data
Change Product Data
 The combined storage of data Save Product Data
and procedure into a single
unit is known as encapsulation .

 The mechanism of deriving a new class from an old one is called inheritance.
 The advantage of OODBMS is the reduction of data redundancy. 
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10. Explain the characteristics of Data warehouse.

 A data warehousing is a larger typically relational data base that support management
decision making.

 It contain data or summaries of data from million of transaction over many years and from
national or global transaction match then from a short period single region. 
 It might maintain records of individual transaction or summaries of transaction for
predetermined periods such as hourly, daily web.
 The purpose of data warehousing to let manner produces reports or analyze large amount
of archived data and mate decision.
 Organization often organize their data warehouse as a collection of data mart smaller collection
of data that focus on particular subject or department . 
Phases in building a data warehouse:
Once an organization has ensured that has adequate hardware and software can begin building
the data warehouse. Three phases involved in building data warehouse from transactional data,
Extraction, Transforming and Loading(ETL).
In the Extraction phases the building create the files from transactional data base and save them
on the server and will hold the data warehouse.
 In the Transformation phases the building change the data and modify into a form that
allow insertion into the data warehouse. For example, whether the data contain any
spelling errors and if these are any they like them.
 In the Loading phases
the builders transferthe
transformed files to the
data warehouse.
 Depending on the need
of its users the structure
and content of the data
warehouse is ready,
techniquessuch as data
mining and online
Analytical processing
(OLAP) can be used to
exploit it can then
extract business
intelligence for better
decision.
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11. Explain the attributes of Decision Support

Systems.Decision-support systems(DSS)
 Decision-support systems (DSS) support more non-routine decision making. They focus on
problems that are unique and rapidly changing for which the procedure for arriving at a
solutions may not be fully predefined in advance.
 Although DSS use internal information from TPS and MIS, they often bring in information from
external sources, such as current stock price or product price of competitor. 
 These systems use a variety of models to analyze the data and are designed so that user can
work with them directly. 
 A voyage-estimating system calculates financial and technical voyage details. Financial
calculations include ship/ time costs (fuel, lab or, capital), fright rates for various types of
cargo, and port expenses. 
 The system operates on a desktop personal computer, providing a system of menus that makes
it easy for users to enter data or obtain information. 

12. Explain the role of users in developing management information system.

Systems Analyst
 A systems analyst is responsible for researching, planning, and recommending software and
systems choices to meet an organization’ s business requirements.
 A big part of this job includes developing alternative system plans based on
(1) Analyzing system requirements provided by user input
(2) Documenting development efforts and system features, and
(3) Providing adequate specifications for programmers.
 To succeed, systems analysts must possess excellent communication skills to translate users’
descriptions of business processes into system concepts.
 They must understand a wide range of business processes and ways in which IT can be
applied to support them. 
Database Administrator
 The Database Administrator (DBA) is responsible for the databases and data warehouses of
an organization a very sensitive and powerful position.
 Since access to information often connotes power, this person must be astute not only
technologically but politically as well.
 He or she must evaluate requests for access to data from managers to determine who has a real
“ need to know.” 
 The DBA is responsible for developing or acquiring database applications and must carefully 
consider how data will be used.
In addition, the DBA must adhere to federal, state, and corporate regulations to protect the
privacy of customers and employees.
Network Administrator
 The Network Administrator (NA) is responsible for acquiring, implementing, managing,
maintaining, and troubleshooting local area networks throughout the organization and their
interfaces with the wide area networks such as the Internsset.
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 He or she is also often involved in selecting and implementing network security measures such as
firewalls and access codes.
System Administrator
 A system administrator—often referred to as “ sys admin” —is responsible for managing an
organization’ s computer operating systems.
 System administrators often manage and maintain several operating systems, such as UNIX
and Microsoft Windows Vista, and ensure that the operating systems work together, support end-
users’ business requirements, and function properly.
 System administrators are also responsible for the day-to-day maintenance of an organization’ s
operating systems, including backup and recovery, adding and deleting user accounts, and
performing software upgrades.
Webmaster
 A Webmaster is responsible for creating and maintaining the organization’ s Web site as well
as its intranet and extranet.
 Webmasters are increasingly involved in creatively deciding how to represent the organization
on the Web. These decisions involve elements of marketing and graphic design.
 Since many organizations use the Web for commerce, Webmasters must also be well-versed in
Web transaction software, payment-processing software, and security software. 
Chief Security Officer / Chief Information Officer
 The CIO, (Chief Information
Officer) who is responsible for
all aspects of an organization’ s
ISs, is often, a corporate vice
president. 
 A person who holds the
position of CIO must have both
technical understanding of
current and developing
information technologies and
business knowledge. 
 The CIO plays an important
role in integrating the IS 
strategic plan into the organization’ s overall strategic plan.
 He or she must not only keep abreast of technical developments but also have a keen
understanding of how different technologies can improve business processes or aid in the
creation of new products and services.

13. Discuss about Office Automation System. (OAS)

 Office Automation System (OAS): Aids office workers in the handling and management of
documents, schedules, e-mails, conferences and communications. 
 Data workers process information rather than create information and are primarily involved in
information use, manipulation
or dissemination.
 Typical office automation
systems handle and manage
documents through word
processing, desktop
publishing, document imaging,
and digital filing, scheduling
through electronic calendars, 
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and communication through electronic mail, voice mail, or video conferencing.

 The most easily recognized tool is a word processing program, such as Microsoft Word or
Corel WordPerfect.
Productivity Tools
Productivity tools are software programs used to create an end product, such as letters, e-mails,
brochures, or images.
Word Processing
A word processor enables you to create a document, store it, display it on the computer screen,
modify it, and print it using a printer.
Spreadsheet
A spreadsheet is a computer program that presents data, such as numbers and text, in a grid of
rows and columns.
Desktop Publishing
Desktop publishing is the use of the computer and specialized software to create high quality
documents for desktop or commercial printing.
Calendars and Schedulers
A calendar program enables us to record events and appointments on an electronic calendar.
Paint and Draw Program
A paint program or a graphics program enables the creation of pictures, backgrounds, buttons,
lines, and other creative art.
Electronic Mail
Electronic mail or e-mail is a simple tool for exchanging brief messages between individuals or
among a larger audience.

14. Explain system development life cycle

SDLC(System Development Life Cycle):
It is a well defined process by which a
system is planned, developed and
implemented. The system development
starts with the requirement for improving
their business system.
There are following activities involves in
SDLC :-
 Preliminary Investigation (Problem
Identification)
 System analysis (Feasibility study)
 System designing
 Development of software
 System testing
 Implementation & Evaluation
 Maintenance
1. Preliminary Investigation OR
Problem Identification:
It defines the user requirements or what the
user expects from the new system.
Problem identification helps in :-
 Defining a problem
 Setting proper system goal
 Determining the boundaries of the
project by considering the limitations of
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2. System Analysis:
It involves detailed understanding of all important facts of the business area under investigation.
This requires data collection from a variety of sources such as questionnaires, forms, interviews,
study of existing documents.
Feasibility study:
It determines the possibility of either improving the existing system or developing the
complete new system There are four aspects of feasibility study:
i. Technical feasibility
ii. Economical feasibility
iii. Operational feasibility
iv. Behavioral feasibility
i. Technical feasibility:
It involves the required and existing computer system, hardware, software and to what
extent it can support the proposed application
ii. Economic feasibility:
It involves post benefit analysis to determine the benefit and savings that are expected from
new system and compared with costs.
iii. Operational feasibility:
It concerns with human, organizational and political aspects.
iv. Behavioral feasibility:
It includes how strong the reaction of staff will be towards the development of new system
that involves computer’ s use in their daily work.
3. System designing:
Design of the system is mainly the logical design that can be sketch on a paper or on a
computer. It includes physical design elements, describes the data to be inputted.

15. DATA FLOW DIAGRAMS

A data flow diagrams (DFD) is used to describe the flow of data in a business operation,
using only four symbols for these elements: external entities, process, data store and the direction
in which data flows.
Example :
Salesperson I.D. Salesperson Sales people
Bonus
Sales clerk database
Calculation
Annual sales

Bonus Amount

Bonus file
 18

16. Discuss the main aspects of expert systems.

a. An expert system (ES) is
developed to emulate the
knowledge of an expert to solve
problems and make decisions
in a relatively narrow domain.
b. A domain is a specific area of
knowledge. For example, in
medicine a domain is often a
diagnosis of a specific disease.
c. The purpose of ESs is to
replicate the unstructured and
undocumented knowledge of
the few (the experts), and put it at the disposal of the many other people who need the
knowledge, often novices or professionals in the same domain but with far less expertise.
d. Advanced programs might include neural networks (computer programs that emulate the
way the human brain works) which can learn from new situations and formulate new rules in
their knowledge bases to address events not originally considered in their development.
e. Expert systems and neural networks are two techniques researched and implemented in a
field called artificial intelligence (AI).
f. The field is so called because it focuses on methods and technologies to emulate how
humans learn and solve problems.
g. An ES uses a knowledge base, which is a collection of facts and the relationships among
them. An ES does not use a model module but an inference engine.
h. The inference engine is software that combines data that is input by the user with the data
relationships stored in the knowledge base. The result is a diagnosis or suggestion for the
best course of action. In most ESs, the knowledge base is built as a series of IF-THEN rules.
 19

17. What is knowledge management?

And what are the tools used for
knowledge management? Explain.

Knowledge Management System (KMS)

 Knowledge management involves gathering,
organizing, sharing, analyzing, and disseminating
knowledge that can improve an organization’ s
performance. 




 

 20

 The main challenge in knowledge management is identifying and classifying useful

information to be gleaned from unstructured sources.
 Most unstructured knowledge is textual, both inside an organization and in files available to
the public on the Web.
 Employee knowledge networks are software tools that help employees find other employees
who have expertise in certain areas of inquiry.
 Auto-categorization (automatic taxonomy), the automatic classification of information, is one
important element of knowledge management. 
 Auto-categorization has been used in online customer support Web pages to reduce the labor
involved in helping customers solve problems.
Tools in Knowledge Management
 PolyAnalyst from Megaputer Intelligence, Inc., to sort the text information and create links
between topics.
 Watson, an application developed by Intellext. It can be embedded in Microsoft Word,
PowerPoint, and Outlook as well as the Web browsers Internet Explorer and Firefox.
When using Word, it analyzes a user’ s document as it is being written, creates an automatic
query about the subject, reaches out into the KM program. It works similarly when one uses
Outlook or a Web browser.
 Accenture, developed Online Audience Analysis. The tool searches thousands of Web sites
daily and retrieves predetermined information about specific products and services. It then uses
data-mining techniques to help organizations understand what consumers are saying about
corporate brands and products.
 Factiva is accessible through a Web site and gathers information online from over 10,000
sources—newspapers, journals, market data, and newswires—information that amounts to
millions of documents. The search can be more tailored and specific than searches performed
through free search engines such as Google or Yahoo!
 Auto-categorization
To categorize knowledge into manageable data, companies use auto-categorization software.
Auto-categorization or automatic taxonomy automates the classification (taxonomy) of data into
categories for future retrieval. Practically all search engine sites, such as Google and Yahoo!, use
auto-categorization software, and continue to improve the software to provide more precise and
faster responses to queries. Many companies have installed such software at their corporate Web
sites.
 21

18. What do you mean

by system
implementation?
Briefly discuss the
various activities
involved in it?

SYSTEM IM PLEMENTATION:
The implementation of a new IS,
also called delivery, consists of two
steps: conversion and training.
Conversion takes place when an
operation switches from using an
old system to using a new system.
Conversion can be a difficult time
for an organization.
There are four basic conversion
strategies to manage the transition:
 22

2. Phased
3. Cut Over
4. Pilot

1. Parallel Conversion
In parallel conversion, the old system is used along with the new system for a predetermined
period of time. This duplication minimizes risk because if the new system fails, operations are not
stopped and no damage is caused to the organization. However, parallel conversion is costly because
of the expenses, especially labor costs, associated with running two system.

2. Phased Conversion
ISs, especially large ones, can often be broken into functional modules and phased into
operation one at a time, a process called phased conversion. For example, conversion of an
accounting IS can be phased, with the accounts receivable module converted first, then the accounts
payable, then the general ledger, and so on. This phased approach also reduces risk, although the
benefits of using the entire integrated system are delayed.
3. Cut-Over Conversion
In a cut-over conversion, also called flash cut conversion, the old system is discarded and
the new one takes over the entire business operation for which it was developed. This strategy is
highly risky, but it can be inexpensive.
4. Pilot Conversion
If the new system is to be used in more than one business unit, it might first be introduced for
a period of time in a single unit, where problems can be addressed and the system can be
polished before implementing it in the other business units. Piloting reduces risks because it
confines any problems to fewer units.
Beta Site
A beta site is an organization whose management agrees to test the new system for several
months and provide feedback.

19. Discuss the types of Decision Support Systems.

 Decision Support
Systems (DSS) are a
class of computerized
information system
that supports
decision-making
activities.
There are a number of
Decision Support
Systems. These can be
categorized into five
types:
Communication-driven
DSS
Most ommunications-
driven DSSs are
targeted at internal
teams, including
partners. Its purpose are to help conduct a meeting, or for users to collaborate.
 23

Examples: Chats and instant messaging software, online collaboration and net-meeting
systems.
Data-driven DSS
Most data-driven DSSs are targeted at managers, staff and also product/service suppliers. It is
used to query a database or data warehouse to seek specific answers for specific purposes.
Examples: Computer-based databases that have a query system to check.
Document-driven DSS
Document-driven DSSs are more common, targeted at a broad base of user groups. The
purpose of such a DSS is to search web pages and find documents on a specific set of keywords
or search terms. The usual technology used to set up such DSSs is via the web or a client/
server system.
Knowledge-driven DSS:
Knowledge-driven DSSs or 'knowledgebase' are they are known, are a catch-all category
covering a broad range of systems covering users within the organization setting it up, but
may also include others interacting with the organization.
For example: Consumers of a business. The typical deployment technology used to set up such
systems could be client/ server systems, the web, or software running on stand-alone PCs.
Model-driven DSS
Model-driven DSSs are complex systems that help analyze decisions or choose between
different options. These are used by managers and staff members of a business , or people who
interact with the organization, for a number of purposes depending on how the model is set up
- scheduling, decision analyses etc. These DSSs can be deployed via software/ hardware in stand-
alone PCs, client/ server systems, or the web.

20. Discuss the about Management Information Systems.

 The term Management Information Systems(Mis) also designates a specific category of
information systems serving middle management .
 MIS provide middle managers with reports on the organization’ s current performance. This
information is used to monitor and control the business and predict future performance. 
 MIS summarize and report on the company’ s basic operations using data supplied by
transaction processing systems.
 The basic transactions data from TPS are compressed and usually presented in reports that are 
produced on a regular schedule today many of these reports are delivered online.
 MIS serve managers primarily interested in weekly, monthly, and yearly results. 
Transaction Processing Systems Management Information Systems

Order
File

Production
Master
File
Managers

Accounting
Files
 24

21. Enterprise Resource Planning SYSTEMS (ERP) / ENTERPRISE SYSTEM S

Enterprise applications help businesses become more flexible and productive by coordinating
their business processes more closely and integrating groups of processes so they focus on
efficient management of resources and customer service.
There are four major enterprise applications:
a. Enterprise Systems
b. Supply Chain Management Systems,
c. Customer Relationship Management Systems
d. And Knowledge Management Systems.

Enterprise systems:
 Firms use enterprise systems, also known as enterprise resource planning (ERP) systems to
integrate business processes in manufacturing and production finance and accounting sales
and marketing and human resources into a single software system.
 Information that was previously fragmented in many different systems in stored in a single
comprehensive data repository where it can be used by many different parts of the business.

Supply Chain Management Systems:

 Firms use Supply Chain Management (SCM) Systems to help manage relationships with their
suppliers. 
 These systems help suppliers, purchasing firms, distributors, and logistics companies share
information about orders, production, inventory levels, and delivery of products and services. 
 The ultimate objective is to get the right amount of their products from their source to their
point of consumption in the least amount of time and at the lower cost.
 25

Customer Relationship Management Systems:

 Firms use Customer Relationship Management (CRM) systems to help manage their
relationships with their customers. 
 CRM systems provide information to coordinate all of the business processes and deal with
customers in sales, marketing, and service to optimize revenue, customer satisfaction, and
customer retention.
 This information helps firms directly, attract, and retain the most profitable customers, provide
better service to existing customers; and increase sales.

Knowledge Management System (KMS)

 Knowledge management involves gathering, organizing, sharing, analyzing, and
disseminating knowledge that can improve an organization’ s performance. 
 The main challenge in knowledge management is identifying and classifying useful
information to be gleaned from unstructured sources.
 Most unstructured knowledge is textual, both inside an organization and in files available to
the public on the Web.
 26

Q.WHAT IS FILE ORGANISATION?

I. TRADITIONAL FILE FORMAT

 Digital data can be stored in a variety of ways on different types of media.

 The data can be stored in traditional file format in which the different pieces of information are
stored as continuous strings of bytes.

Advantage
 The chief advantage of this format is the efficient use of space.

Disadvantage
 The data is difficult to locate and manipulate.
 High data redundancy and Low data integrity.

Types of File Organization

1. Sequential Access File Organization
2. Direct Access File Organization
3. Index Sequential File Organization

Sequential Access File Organization

1. All records are stored in sequential order.
2. That is, the records are arranged in ascending or descending order of a key field.
a. In a student information system, the file would contain roll number, name division, marks
obtained in the examination
b. In a payroll application, the records are stored with employee number as a key field.
3. To locate a particular record in such file organization, we have to start searching from the
beginning of the file until it is found in the file.
4. It is time consuming process.
5. Normally created and maintained on magnetic tapes.

Advantages
1. Simple to understand and economical
2. Easier to organize and maintain

Disadvantages
1. Entire file has to be processed, time consuming searching
2. High data redundancy
 27

Direct Access File Organization (or) Random Access (or) Relative File Organization

1. Records are stored in Direct Access Storage Device (DASD) such as Magnetic Disk (Hard Disk)
2. For direct access, the file is viewed as numbered sequence of blocks or records.
3. These blocks or records are taken as key for accessing the desired information randomly.
4. It allows arbitrary blocks to be read or written.
5. It is useful for immediate access to large amount of information.

Advantages
1. Immediate access of the desired records, No sorting of the records is required.
2. Faster updating of several files.

Disadvantages
1. Data may be accidentally erased or over-written. Backup facility is needed
2. Expensive, less efficient in using storage space.

Indexed Sequential Access File Organization

1. Records are stored in randomly on a direct access device such as magnetic disk by a primary key.
Hence, we can access data either sequentially or randomly using the index. The index is stored in
a file and read into memory when the file is opened.
2. It may have multiple keys. The key upon which the data records are ordered is called the primary
key. Other keys are called alternate keys.
Advantages
1. Both sequential and random access is possible.
2. Accessing of records is fast, if the index table is properly organized.

Disadvantages
1. More storage space is needed because of the presence of index
2. Less efficient in the use of storage space.
3. Expensive, it requires special software.

Q. WHAT IS DATABASE APPROACH IN (DATABASE MANAGEMENT SYSTEM)

In the database approach, data pieces are organized about entities.

Entity: An entity is any object about which an organization chooses to collect data. Entities can be
types of people, such as employees, customer, students, etc.,

Character: A smallest piece of data (single letter) is a character. ( Example : s t u d e n t )

Field: Multiple characters make up a field. A field is one piece of information about an entity.
(Example: Rno, name)

Record: Collection of related records make up a record.

(Example: UCCA13A01, ARJUNAN V, 89,98)

File: Collection of related records is called a file. (Example: Student biodata file)

Database: An organized collection of data is called a database. (Example: Student database)

Queries: Data is accessed in a database by sending messages called “queries” which request data
from specific records and/or fields.
 28

Q) What is feasibility study? Types of it.

Feasibility study:
It determines the possibility of either improving the existing system or developing the complete
new system. It helps to obtain an overview of the problem. The purpose of feasibility study is to
determine whether the requested system successfully realizable.
There are four aspects of feasibility study:-
v. Technical feasibility
vi. Economical feasibility
vii. Operational feasibility
viii. Behavioral feasibility
v. Technical feasibility:
It involves the required and existing computer system, hardware, software and to what
extent it can support the proposed application. It answers following questions:-
 Whether the system can be carried out with existing equipment’s?
 Whether the existing software is enough?
 If a new technology is required how best it can be implemented?
vi. Economic feasibility:
It involves post benefit analysis to determine the benefit and savings that are expected from
new system and compared with costs. It benefits out weight cost then decision is made to
design and implement new system.
vii. Operational feasibility:
It concerns with human, organizational and political aspects. It covers technical
performance as well as acceptance within the organization. It determines the general
attitude and job skills of existing personals and whether any restructuring of jobs will be
acceptable to the current user.
viii.Behavioral feasibility:
It includes how strong the reaction of staff will be towards the development of new system
that involves computer’s use in their daily work. So resistant to change is identified.
29