MB0031 Management Information System

ASSIGNMENTS- MBA Sem-IIMB0031 –MANAGEMENT INFORMATION SYSTEMS

SMUASSIGNMENT

SEMESTER – 2

MBO031

MANAGEMENT INFORMATION SYSTEMS

SUBMITTED BY: SIDHARTH RAMTEKE

MBA

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ROLL NO.- 520918813

SET 1


Q.1:- a. Explain the impact of MIS in the area of police Information system.b. What are the functions and disadvantages of MIS?

Ans:- MIS is an Information system which helps in providing the management of an organization with information which is used by management for decision making.

A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

During the period of preindustrial revolution most of the data processing was done manually.It was after the industrial revolution that the computers slowly started replacing manual labour. The modern digital computer was basically designed to handle scientific calculations. During the period 1940 to 1960 computers were commercially used for census and payroll work. This involved large amount of data and its processing. Since then the commercial application exceeded the scientific applications for which the computer were mainly intended for. MIS is an Information system which helps in providing the management of an organization with information which is used by management for decision making.

Impact of MIS MIS has a major impact on the functions of any organization. The organization derives benefits from the systems in the following form:

(a) Speedy access to information, (b) Interpretation of data, (c) Quick decisions, (d) Speedy actions, (e) Increased productivity and thereby increase in the profit (f) Reduced transaction cost

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The usage of Electronic media for data storage and processing the data is an integral part of MIS. The texts and images in electronic forms are effective in communicating ideas from source to destination. It is technology driven in the sense it revolves around wireless electronic gadgets, internet, money cards – credits cards, debit cards, id cards, atm cards etc.

MIS is very significant in modern day education system where we come across usage of LCDs, Smart boards, internet etc in class rooms. In the tourism MIS has led to radical changes in booking system, tourist information system, hotel facilities, accommodation facilities, transportation modes available, images of the facilities that could be provided etc.

Function of MIS The main function of MIS is to help the managers and the executives in the organization in decision making.

1. Large quantities of data like customers information, competitors information, personnel records, sales data, accounting data etc is collected from internal sources like the company records and external sources like annual reports and publications.2. The collected data is organized in the form of a database.3. The data from the database is processed and analysed by using different tools and techniques.4. The results of the analysis is properly presented to the managers to help them in decision making.

Disadvantages of MIS

1. Highly senstive requires constant monitoring.

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MIS

Teaching methodology

Transportation planning

Better Tourists Information Office

automation

Better Banking system

Increased Production


2. Budgeting of MIS extremely difficult.3. Quality of outputs governed by quality of inputs. 4. Lack of flexiblity to update itself. 5. Effectiveness decreases due to frequent changes in top management 6. Takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude of worker etc...

Q.2:- a. Write a scenario which shows the applications of OLAP systems. b. How does Information technology influence the organization’s goals?

Ans:- Online Analytical Processing (OLAP) OLAP refers to a system in which there are predefined multiple instances of various modules used in business applications. Any input to such a system results in verification of the facts with respect to the available instances. A nearest match is found analytically and the results displayed form the database. The output is sent only after thorough verification of the input facts fed to the system.

The system goes through a series of multiple check of the various parameters used in business decision making. OLAP is also referred to as a multi dimensional analytical model. 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, what should be the production quantity to maximize the returns, what should be the stocking policy in order to minimize the wastage etc.

Model of OLAP

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Region

Demand

Sales


IT influences Organizations goals There is always a mention about what IT contributes to corporate strategy. It was recognized that corporation achieved a significant competitive advantage by adopting suitable IT concepts in building

While many people think of decision support systems as a specialized part of a business, most companies have actually integrated this system into their day to day operating activities. For instance, many companies constantly download and analyze sales data, budget sheets and forecasts and they update their strategy once they analyze and evaluate the current results. Decision support systems have a definite structure in businesses, but in reality, the data and decisions that are based on it are fluid and constantly changing.

Types of DSS

Data-Driven DSS take the massive amounts of data available through the company's TPS and MIS systems and cull from it useful information which executives can use to make more informed decisions. They don't have to have a theory or model but can "free-flow" the data. The first generic type of Decision Support System is a Data-Driven DSS. These systems include file drawer and management reporting systems, data warehousing and analysis systems, Executive Information Systems (EIS) and Spatial Decision Support Systems. Business Intelligence Systems are also examples of Data-Driven DSS. Data-Driven DSS emphasize access to and manipulation of large databases of structured data and especially a time-series of internal company data and sometimes external data. Simple file systems accessed by query and retrieval tools provide the most elementary level of functionality. Data warehouse systems that allow the manipulation of data by computerized tools tailored to a specific task and setting or by more general tools and operators provide additional functionality.

Data-Driven DSS with Online Analytical Processing (OLAP) provide the highest level of functionality and decision support that is linked to analysis of large collections of historical data.

Model-Driven DSS A second category, Model-Driven DSS, includes systems that use accounting and financial models, representational models, and optimization models. Model-Driven DSS emphasize access to and manipulation of a model. Simple statistical and analytical tools provide the most elementary level of functionality. Some OLAP systems that allow complex analysis of data may be classified as hybrid DSS systems providing modeling, data retrieval and data summarization functionality. Model-Driven DSS use data and parameters provided by decision-makers to aid them in analyzing a situation, but they are not usually data intensive. Very large databases are usually not needed for Model-Driven DSS.

Model-Driven DSS were isolated from the main Information Systems of the organization and were primarily used for the typical "what-if" analysis. That is, "What if we

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increase production of our products and decrease the shipment time?" These systems rely heavily on models to help executives understand the impact of their decisions on the organization, its suppliers, and its customers.

Knowledge-Driven DSS The terminology for this third generic type of DSS is still evolving. Currently, the best term seems to be Knowledge-Driven DSS. Adding the modifier “driven” to the word knowledge maintains a parallelism in the framework and focuses on the dominant knowledge base component. Knowledge-Driven DSS can suggest or recommend actions to managers. These DSS are personal computer systems with specialized problem-solving expertise. The "expertise" consists of knowledge about a particular domain, understanding of problems within that domain, and "skill" at solving some of these problems. A related concept is Data Mining. It refers to a class of analytical applications that search for hidden patterns in a database. Data mining is the process of sifting through large amounts of data to produce data content relationships.

Document-Driven DSS A new type of DSS, a Document-Driven DSS or Knowledge Management System, is evolving to help managers retrieve and manage unstructured documents and Web pages. A Document-Driven DSS integrates a variety of storage and processing technologies to provide complete document retrieval and analysis. The Web provides access to large document databases including databases of hypertext documents, images, sounds and video. Examples of documents that would be accessed by a Document-Based DSS are policies and procedures, product specifications, catalogs, and corporate historical documents, including minutes of meetings, corporate records, and important correspondence. A search engine is a powerful decision aiding tool associated with a Document-Driven DSS.

Communications-Driven and Group DSS Group Decision Support Systems (GDSS) came first, but now a broader category of Communications-Driven DSS or groupware can be identified. This fifth generic type of Decision Support System includes communication, collaboration and decision support technologies that do not fit within those DSS types identified. Therefore, we need to identify these systems as a specific category of DSS. A Group DSS is a hybrid Decision Support System that emphasizes both the use of communications and decision models. A Group Decision Support System is an interactive computer-based system intended to facilitate the solution of problems by decision-makers working together as a group. Groupware supports electronic communication, scheduling, document sharing, and other group productivity and decision support enhancing activities We have a number of technologies and capabilities in this category in the framework – Group DSS, two-way interactive video, White Boards, Bulletin Boards, and Email.

The five levels Scott Morton proposes five levels of complexity at which reconfiguration can be applied. The following five levels indicates how it is possible to reconfigure strategic information system based on the influence of IT.

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1. Localised exploitation This is part of the Evolutionary level and exists within individual business functions. It addresses the local efficiency and effectiveness of a information system.

2. Internal integration This is part of the evolutionary level and exists between different systems and applications. It evolves out of rationalization using a common IT platform. Efficiency and effectiveness are enhanced by coordination and cooperation within the enterprise;

3. Business process redesign This is part of the revolutionary level. It involves more thorough reevaluation of the enterprise valuechain and the production process.

4. Business network redesign This is also part of the revolutionary level. It involves reconfiguration of the scope and tasks of the business network. It also helps in the creation and delivery of products and services. Coordination and cooperation extend, selectively, beyond the enterprise's boundaries; and

5. Business scope redefinition It is also part of the revolutionary level. It involves migration of functions across the enterprise's boundaries. It may change the organization's conception of the business.

Scott Morton's Five Levels of ITInduced Reconfiguration (Scott Morton 1991)

(b) Software Development Life Cycle (SDLC)India Outsourcing > Software Development Life Cycle

As in any other engineering discipline, software engineering also has some structured models for software development. This document will provide you with a generic overview about different software development methodologies adopted by contemporary software firms. Read on to know more about the Software Development Life Cycle (SDLC) in detail.

Curtain Raiser Like any other set of engineering products, software products are also oriented towards the customer. It is either market driven or it drives the market. Customer Satisfaction was the buzzword of the 80's. Customer Delight is today's buzzword and Customer Ecstasy is the buzzword of the new millennium. Products that are not customer or user friendly have no place in the market although they are engineered using the best technology. The interface of the product is as crucial as the internal technology of the product.

Market Research A market study is made to identify a potential customer's need. This process is also known as market research. Here, the already existing need and the possible

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and potential needs that are available in a segment of the society are studied carefully. The market study is done based on a lot of assumptions. Assumptions are the crucial factors in the development or inception of a product's development. Unrealistic assumptions can cause a nosedive in the entire venture. Though assumptions are abstract, there should be a move to develop tangible assumptions to come up with a successful product.

Research and Development Once the Market Research is carried out, the customer's need is given to the Research & Development division (R&D) to conceptualize a cost-effective system that could potentially solve the customer's needs in a manner that is better than the one adopted by the competitors at present. Once the conceptual system is developed and tested in a hypothetical environment, the development team takes control of it. The development team adopts one of the software development methodologies that is given below, develops the proposed system, and gives it to the customer.

The Sales & Marketing division starts selling the software to the available customers and simultaneously works to develop a niche segment that could potentially buy the software. In addition, the division also passes the feedback from the customers to the developers and the R&D division to make possible value additions to the product.

While developing a software, the company outsources the non-core activities to other companies who specialize in those activities. This accelerates the software development process largely. Some companies work on tie-ups to bring out a highly matured product in a short period.

Popular Software Development Models The following are some basic popular models that are adopted by many software development firms

1. System Development Life Cycle (SDLC) Model 2. Prototyping Model 3. Rapid Application Development Model 4. Component Assembly Model

A. System Development Life Cycle (SDLC) Model This is also known as Classic Life Cycle Model (or) Linear Sequential Model (or) Waterfall Method. This model has the following activities.

1. System/Information Engineering and Modeling As software is always of a large system (or business), work begins by establishing the requirements for all system elements and then allocating some subset of these requirements to software. This system view is essential when the software must interface with other elements such as hardware, people and other resources. System is the basic and very critical requirement for the existence of software in any entity. So if the system is not in place, the system should be engineered and

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put in place. In some cases, to extract the maximum output, the system should be re-engineered and spruced up. Once the ideal system is engineered or tuned, the development team studies the software requirement for the system.

2. Software Requirement Analysis This process is also known as feasibility study. In this phase, the development team visits the customer and studies their system. They investigate the need for possible software automation in the given system. By the end of the feasibility study, the team furnishes a document that holds the different specific recommendations for the candidate system. It also includes the personnel assignments, costs, project schedule, target dates etc.... The requirement gathering process is intensified and focussed specially on software. To understand the nature of the program(s) to be built, the system engineer or "Analyst" must understand the information domain for the software, as well as required function, behavior, performance and interfacing. The essential purpose of this phase is to find the need and to define the problem that needs to be solved.

3. System Analysis and Design In this phase, the software development process, the software's overall structure and its nuances are defined. In terms of the client/server technology, the number of tiers needed for the package architecture, the database design, the data structure design etc... are all defined in this phase. A software development model is thus created. Analysis and Design are very crucial in the whole development cycle. Any glitch in the design phase could be very expensive to solve in the later stage of the software development. Much care is taken during this phase. The logical system of the product is developed in this phase.

4. Code Generation The design must be translated into a machine-readable form. The code generation step performs this task. If the design is performed in a detailed manner, code generation can be accomplished without much complication. Programming tools like compilers, interpreters, debuggers etc... are used to generate the code. Different high level programming languages like C, C++, Pascal, Java are used for coding. With respect to the type of application, the right programming language is chosen.

B. Prototyping Model This is a cyclic version of the linear model. In this model, once the requirement analysis is done and the design for a prototype is made, the development process gets started. Once the prototype is created, it is given to the customer for evaluation. The customer tests the package and gives his/her feed back to the developer who refines the product according to the customer's exact expectation. After a finite number of iterations, the final software package is given to the customer. In this methodology, the software is evolved as a result of periodic shuttling of information between the customer and developer. This is the most popular development model in the contemporary IT industry. Most of the successful software products have been developed using this model - as it is very difficult (even for a whiz kid!) to comprehend all the requirements of a customer in one shot. There are many variations of this model skewed with respect to the project management styles of the

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companies. New versions of a software product evolve as a result of prototyping. Back to top.

C. Rapid Application Development (RAD) Model The RAD modelis a linear sequential software development process that emphasizes an extremely short development cycle. The RAD model is a "high speed" adaptation of the linear sequential model in which rapid development is achieved by using a component-based construction approach. Used primarily for information systems applications, the RAD approach encompasses the following phases:

1. Business modeling The information flow among business functions is modeled in a way that answers the following questions:

What information drives the business process?What information is generated? Who generates it? Where does the information go?Who processes it?

2. Data modeling The information flow defined as part of the business modeling phase is refined into a set of data objects that are needed to support the business. The characteristic (called attributes) of each object is identified and the relationships between these objects are defined.

3. Process modeling The data objects defined in the data-modeling phase are transformed to achieve the information flow necessary to implement a business function. Processing the descriptions are created for adding, modifying, deleting, or retrieving a data object.

4. Application generation The RAD model assumes the use of the RAD tools like VB, VC++, Delphi etc... rather than creating software using conventional third generation programming languages. The RAD model works to reuse existing program components (when possible) or create reusable components (when necessary). In all cases, automated tools are used to facilitate construction of the software.

5. Testing and turnover Since the RAD process emphasizes reuse, many of the program components have already been tested. This minimizes the testing and development time. Back to top

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D. Component Assembly Model Object technologies provide the technical framework for a component-based process model for software engineering. The object oriented paradigm emphasizes the creation of classes that encapsulate both data and the algorithm that are used to manipulate the data. If properly designed and implemented, object oriented classes are reusable across different applications and computer based system architectures. Component Assembly Model leads to software reusability. The integration/assembly of the already existing software components accelerates the development process. Nowadays many component libraries are available on the Internet. If the right components are chosen, the integration aspect is made much simpler.

Q.3:- a. Explain the role of systems analyst in SDLC. Explain with a scenario. b. Draw a data flow diagram for an hospital management system.

Ans:- 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 improves the quality of decisionmaking. The system analyst has to do a lot in this connection. They are confronted with the challenging task of creating new systems an planning major changes in the organization.

The system analyst gives a system development project, meaning and direction. The typical breakdown of an information systems life cycle includes a feasibility study, requirements, collection and analysis, design, prototyping, implementation, validation, testing and operation. It may be represented in the form of a block diagram as shown below:

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1. 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.

2. Requirements, collection and analysis It is concerned with understanding the mission of the information systems, that is, the application areas of the system within the enterprise and the problems that the system should solve.

3. Design It is concerned with the specification of the information systems structure. There are two types of design, database design and application design. The database design is the design of the database design and the application design is the design of the application programs.

4. 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.

5. Implementation It is concerned with the programming of the final operational version of the information system. Implementation alternatives are carefully verifies and compared.

6. 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.

Data Flow Diagram Data flow diagrams represent the logical flow of data within the system. DFD do not explain how the processes convert the input data into output. They do not explain how the processing takes place. DFD uses few symbols like circles and rectangles connected by arrows to represent data flows. DFD can easily illustrate relationships among data, flows, external entities an stores. DFD can also be drawn in increasing levels of detail, starting with a summary high level view and proceeding more detailed lower level views.

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Q.4:- What are the features contributing to success and failures of MIS models?

Ans:- Factors Contributing to Success of MIS The following features contributing a lot for the success of MIS and are listed below:-

1. The MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS focuses on the major issues of the business. Also adequate development resources are provided and the human and organisational barriers to progress are removed.

2. An appropriate information processing technology required to meet the data processing and analysis needs of the users of the MIS is selected.

3. The MIS is oriented, defined and designed in terms of the user’s requirements and its operational viability is ensured.

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4. The MIS is kept under continuous surveillance, so that its open system design is modified according to the changing information needs.

5. MIS focuses on the business results and goals, and highlights the factors and reasons for non-achievement.

6. MIS is not allowed to end up into an information generation mill avoiding the noise in the information and the communication system.

7. The MIS recognises that manager is a human being and therefore, the systems must consider all the human behavioural factors in the process of the management.

8. The MIS recognises that the different information needs for different objectives must be met with. The globalisation of information in isolation from the different objectives leads to information overload and its non-use.

9. The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design.

10. MIS recognises that the information needs become obsolete and new needs emerge. The MIS design, therefore, has a basic potential capability to quickly meet new needs of information.

11. The MIS concentrates on the developing the information support to manage critical success factors. It concentrates on the mission critical applications serving the needs of the top management.

Factors Contributing to Failure of MIS The common observed features which are responsible for the failure of MIS is as follows:-

1. The MIS is conceived as a data processing and not as an information processing system.

2. The MIS does not provide that information which is needed by the managers but it tends to provide the information generally the function calls for. The MIS then becomes an impersonal system.

3. Underestimating the complexity in the business systems and not recognising it in the MIS design leads to problems in the successful implementation.

4. Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS.

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5. The MIS is developed without streamlining the business processing systems in the organisation.

6. Lack of training and appreciation that the users of the information and the generators of the data are different, and they have to play an important responsible role in the MIS.

7. The MIS does not meet certain critical and key factors of its users such as a response to the query on the database, an inability to get the processing done in a particular manner, lack of user-friendly system and the dependence on the system development personnel.

8. A belief that the computerised MIS can solve all the management problems of planning and control of the business.

9. Lack of administrative discipline in following the standardised systems and procedures, wrong coding and deviating from the system specifications result in incomplete and incorrect information.

11. The MIS does not give perfect information to all the users in the organisation. Any attempt towards such a goal will be unsuccessful because every user has a human ingenuity, bias, certain assumptions not known to the designer. The MIS cannot make up these by providing perfect information.

Q.5:- What are the limitations of ERP systems? How do ERP packages help in overcoming theses limitations?

Ans:- Enterprise Resource Planning 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. Around 1980, over frequent changes in sales forecasts, entailing continual readjustments in production, as well as the unsuitability of the parameters fixed by the system, 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)

The initials ERP originated as an extension of MRP (material requirements planning then manufacturing resource planning). ERP systems now attempt to cover all basic functions of an enterprise, regardless of the organization's business or charter.

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Nonmanufacturing businesses, nonprofit organizations and governments now all utilize ERP systems. To be considered an ERP system, a software package must provide the function of at least two systems. For example, a software package that provides both payroll and accounting functions could technically be considered an ERP software package.

However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between systems, and provides additional benefits that range from standardization and lower maintenance to easier and/or greater reporting capabilities.

Some organizations -typically those with sufficient inhouse IT skills to integrate multiple software products - choose to implement only portions of an ERP system and develop an external interface to other ERP or standalone systems for their other application needs. For example, one may choose to use the HRMS from one vendor, and the financials systems from another, and perform the integration between the systems themselves.

Ideally, ERP delivers a single database that contains all data for the software modules, which would include:

Enterprise Resource Planning is a term originally derived from manufacturing resource planning that followed material requirements planning . MRP evolved into ERP when "routings" became a major part of the software architecture and a company's capacity planning activity also became a part of the standard software activity. ERP systems typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. Enterprise Resource Planning or ERP software can aid in the control of many business activities, like sales, marketing, delivery, billing, production, inventory management, quality management, and human resource management.

ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem in their legacy systems. Many companies took this opportunity to replace their legacy information systems with ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time most companies had already implemented their Y2K solution.

ERPs are crossfunctional and enterprise wide. All functional departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, logistics, and information technology, this would include accounting, human resources, marketing, and strategic management.

The Ideal ERP System

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An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:

1. Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc. 2. Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc. 3. Human Resources: Benefits, training, payroll, time and attendance, etc4. Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc. 5. Projects: Costing, billing, activity management, time and expense, etc. 6. Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc. 7. Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.

Limitations of ERP Success depends on the skill and experience of the workforce, including training about how to make the system work correctly. Many companies cut costs by cutting training budgets. Privately owned small enterprises are often undercapitalized, meaning their ERP system is often operated by personnel with inadequate education in ERP in general, such as APICS foundations, and in the particular ERP vendor package being used.

1. Personnel turnover; companies can employ new managers lacking education in the company's ERP system, proposing changes in business practices that are out of synchronization with the best utilization of the company's selected ERP.2. Customization of the ERP software is limited. Some customization may involve changing of the ERP software structure which is usually not allowed.

3. Reengineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage.

4. ERP systems can be very expensive to install often ranging from 30,000 US Dollars to 500,000,000 US Dollars for multinational companies.

5. ERP vendors can charge sums of money for annual license renewal that is unrelated to the size of the company using the ERP or its profitability.

6. Technical support personnel often give replies to callers that are inappropriate for the caller's corporate structure. Computer security concerns arise, for example when telling

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a non programmer how to change a database on the fly, at a company that requires an audit trail of changes so as to meet some regulatory standards.

7. ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies this is cited as one of the main causes of their failure.

8. Systems can be difficult to use.

9. Systems are too restrictive and do not allow much flexibility in implementation and usage. 10. The system can suffer from the "weakest link" problem an inefficiency in one department or at one of the partners may affect other participants.

11. Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, then over time "dirty data" will reduce the reliability of some applications.

12. Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level).

13. The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale.

14. Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.

15. Some large organizations may have multiple departments with separate, independent resources, missions, chainsofcommand, etc, and consolidation into a single enterprise may yield limited benefits.

16. There are frequent compatibility problems with the various legacy systems of the partners.

17. The system may be overengineered relative to the actual needs of the customer.

Before ERP systems, each department in an organization would most likely have their own computer system, data and database. Unfortunately, many of these systems would not be able to communicate with one another or need to store or rewrite data to make it possible for cross computer system communication. For instance, the financials of a company were on a separate computer system than the HR system, making it more intensive and complicated to process certain functions. Once an ERP system is in place, usually all

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aspects of an organization can work in harmony instead of every single system needing to be compatible with each other. For large organizations, increased productivity and less types of software are a result.

Q.6:- Explain the relationship between artificial intelligence and neural networks withthe help of a scenario.

Ans:- Artificial Intelligence is the science and technology based on various functions to develop a system that can think and work like a human being. It can reason, analyze, learn, conclude and solve problems. The systems which use this type of intelligence are known as artificial intelligent systems and their intelligence is referred to as artificial intelligence. It was said that the computer don’t have common sense. Here in AI, 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. More precisely the aim is to obtain a knowledge based computer system that will help managers to take quick decisions in business.

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Artificial Intelligence can be classified into various branches like Natural Language Processing (NLP), Speech Recognition, Automated Programming, Machine Learning, Pattern Recognition and Probabilistic Networks. Most of the software developed for AI have been through Prolog, C++, Java and LISP. These programming languages provide facility of creating various functions of business activity, extension of a function, handling dynamic situations in business, providing uniformity in application etc.

A neuron is a micro cell which is connected to thousands of other micro cells in the brain and all the other parts of the human body containing nerves. It is a system which tries to learn from the database and the manager then decides what the right answer is. The entire neural network is realized in the form of software. The software renders the computer as a problem solver. The neural networks goes on building strong database for problem solving depending upon the decisions taken by the manager in the form of response confirmation given to the system by the manager. Neural networks can be used in various business applications like forecasting, stock analysis, market analysis etc.

Advantages of Neural Networks Neural networks are used to forecast some complex data patterns. When designed properly, they can be used as experts for a particular project. They have the ability to adjust to the changing environment and thus are very flexible. For example, it can forecast net asset values of mutual funds.

Artificial intelligence is a field of science and technology based on disciplines such as computer science, biology, psychology, linguistics, mathematics and engineering. The goal of AI is to develop computers that can simulate the ability to think, see, hear, walk, talk and feel. In other words, simulation of computer functions normally associated with human intelligence, such as reasoning, learning and problem solving. AI can be grouped under three major areas: cognitive science, robotics and natural interfaces. Cognitive science focuses on researching on how the human brain works and how humans think and learn. Applications in the cognitive science area of AI include the development of expert systems and other knowledgebased systems that add a knowledge base and some reasoning capability to information systems. Also included are adaptive learning systems that can modify their behavior based on information they acquire as they operate. Chessplaying systems are some examples of such systems.

Fussy logic systems can process data that are incomplete or ambiguous. Thus, they can solve semi structured problems with incomplete knowledge by developing approximate inferences and answers, as humans do.

Neural network software can learn by processing sample problems and their solutions. As neural nets start to recognize patterns, they can begin to program themselves to solve such problems on their own. Neural networks are computing systems modeled after the human brain’s mesh like network of interconnected processing elements, called

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neurons. The human brain is estimated to have over 100 billion neuron brain cells. The neural networks are lot simpler in architecture. Like the brain, the interconnected processors in a neural network operate in parallel and interact dynamically with each other.

This enables the network to operate and learn from the data it processes, similar to the human brain. That is, it learns to recognize patterns and relationships in the data. The more data examples it receives as input, the better it can learn to duplicate the results of the examples it processes. Thus, 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.

For example, neural network can be trained to learn which credit characteristics result in good or bad loans. The neural network would continue to be trained until it demonstrated a high degree of accuracy in correctly duplicating the results of recent cases. At that point it would be trained enough to begin making credit evaluations of its own.

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SET 2


Q.1:- Explain the different business models that work together in an E-enterprise system. Give example for each.

Ans:- Managing an E-business & Challenges before an E-business -Due to Internet capabilities and web technology, traditional business organization definition has undergone a change where scope of the enterprise now includes other company locations, business partners, customers and vendors. It has no geographic boundaries as it can extend its operations where Internet works. All this is possible due to Internet and web moving traditional paper driven organization to information driven Internet enabled E-business enterprise. E-business enterprise is open twenty-four hours, and being independent, managers, vendors, customers transact business any time from anywhere. Internet capabilities have given E-business enterprise a cutting edge capability advantage to increase the business value. It has opened new channels of business as buying and selling can be done on Internet. It enables to reach new markets across the world anywhere due to communication capabilities. It has empowered customers and vendors / suppliers through secured access to information to act, wherever necessary. The cost of business operations has come down significantly due to the elimination of paper-driven processes, faster communication and effective collaborative working. The effect of these radical changes is the reduction in administrative and management overheads, reduction in inventory, faster delivery of goods and services to the customers.

In E-business enterprise traditional people organization based on 'Command Control' principle is absent. It is replaced by people organization that is empowered by information and knowledge to perform their role. They are supported by information systems, application packages, and decision-support systems. It is no longer functional, product, and project or matrix organization of people but E-organization where people work in network environment as a team or work group in virtual mode. E-business enterprise is more process-driven, Technology-enabled and uses its own information and knowledge to perform. It is lean in number, flat in structure, broad in scope and a learning organization. In E-business enterprise, most of the things are electronic, use digital technologies and work on databases, knowledge bases, directories and document repositories. The business processes are conducted through enterprise software like ERP, SCM, and CRM supported by data warehouse, decision support, and knowledge management systems. Today most of the business organizations are using Internet technology, network, and wireless technology for improving the business performance measured in terms of cost, efficiency, competitiveness and profitability. They are using E-business, Ecommerce solutions to reach faraway locations to deliver product and services. The enterprise solutions like ERP, SCM, and CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN). The business processes across the organization and

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outside run on E-technology platform using digital technology. Hence today's business firm is also called E-enterprise or Digital firm.

The paradigm shift to E-enterprise has brought four transformations, namely:

1. Domestic business to global business. 2. Industrial manufacturing economy to knowledge-based service economy. 3. Enterprise Resource Management to Enterprise Network Management. 4. Manual document driven business process to paperless, automated, Electronically transacted business process.

These transformations have made conventional organization design obsolete.

In E-enterprise, business is conducted electronically. Buyers and sellers through Internet drive the market and Internet-based web systems. Buying and selling is possible on Internet. Books, CDs, computer, white goods and many such goods are bought and sold on Internet. The new channel of business is well-known as Ecommerce. On the same lines, banking, insurance, healthcare are being managed through Internet E-banking, E-billing, E-audit, & use of Credit cards, Smart card, ATM, E-money are the examples of the Ecommerce application. The digital firm, which uses Internet and web technology and uses E-business and Ecommerce solutions, is a reality and is going to increase in number.

MIS for E-business is different compared to conventional MS design of an organization. The role of MIS in E-business organization is to deal with changes in global market and enterprises. MIS produces more knowledge-based products. Knowledge management system is formally recognized as a part of MIS. It is effectively used for strategic planning for survival and growth, increase in profit and productivity and so on. To achieve the said benefits of E-business organization, it is necessary to redesign the organization to realize the benefits of digital firm. The organization structure should be lean and flat. Get rid of rigid established infrastructure such as branch office or zonal office. Allow people to work from anywhere. Automate processes after reengineering the process to cut down process cycle time. Make use of groupware technology on Internet platform for faster response processing. Another challenge is to convert domestic process design to work for international process, where integration of multinational information systems using different communication standards, country-specific accounting practices, and laws of security are to be adhered strictly. Internet and networking technology has thrown another challenge to enlarge the scope of organization where customers and vendors become part of the organization. This technology offers a solution to communicate, coordinate, and collaborate with customers, vendors and business partners. This is just not a technical change in business operations but a cultural change in the mindset of managers and workers to look beyond the conventional organization. It means changing the organization behaviour to take competitive advantage of the E-business technology.

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The last but not the least important is the challenge to organize and implement information architecture and information technology platforms, considering multiple locations and multiple information needs arising due to global operations of the business into a comprehensive MIS. E-COMMERCE is a second big application next to ERP. It is essential deals with buying and selling of goods. With the advent of intent and web technology, E-Commerce today covers an entire commercial scope online including design and developing, marketing, selling, delivering, servicing, and paying for goods. Some E-Commerce application add order tracking as a feature for customer to know the delivery status of the order.

E-Collaboration helps work effectively on applications like calendaring and scheduling tasks, event, project management, workflow application, work group application. E-collaboration system components are internet, Intranet, Extranet and LAN, WAN networks for communication through GroupWare tools, browser.

Let us illustrate the model using an event in the business such as receipt of material for a job to be processed on the shop floor. In this event there is a transaction receipt of material, which needs to be processed, and then a workgroup will use this information of material receipt. Each member of this workgroup has a different goal.

Q.2:- What are the different emerging fields in MIS? Explain with an application of your own for each.

Ans:- A Strategic Information System (SIS) is a system to manage information and assist in strategic decision making. A strategic information system has been defined as, "The information system to support or change enterprise's strategy."

A SIS is a type of Information System that is aligned with business strategy and structure. The alignment increases the capability to respond faster to environmental changes and thus creates a competitive advantage. An early example was the favourable position afforded American and United Airlines by their reservation systems, Sabre and Apollo. For many years these two systems ensured that the two carriers' flights appeared on the first screens observed by travel agents, thus increasing their bookings relative to competitors. A major source of controversy surrounding SIS is their sustainability.

SISs are different from other comparable systems as:

1. they change the way the firm competes. 2. they have an external (outward looking) focus. 3. they are associated with higher project risk. 4. they are innovative (and not easily copied).

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It is mainly concerned with providing and organization and its members an assistance to perform the routine tasks efficiently and effectively. One of the major issue before any organization is the challenge of meeting its goals and objectives. Strategic IS enable such organization in realizing their goals. Strategic Information System (SIS) is a support to the existing system and helps in achieving a competitive advantage over the organizations competitors in terms of its objectives. This unit deals with the critical aspects of the strategic information system. This units indicates the theoretical concepts and the way in which the same are realized in practice. The flow of the unit is in such a way that it starts with the development of contemporary theory about strategic uses of corporations' internal information systems leading to systems which transcend the boundaries of particular organizations. The process whereby strategic information systems are created or identified is then examined. A number of weaknesses in the existing body of theory are identified, and suggestions made as to directions in which knowledge is or may be progressing. A strategic information system is concerned with systems which contribute significantly to the achievement of an organization's overall objectives. The body of knowledge is of recent origin and highly dynamic, and the area has an aura of excitement about it. The emergence of the key ideas, the process whereby strategic information systems come into being is assessed, areas of weakness are identified, and directions of current and future development suggested.

Information system is regarded as a tool to provide various services to different management functions. The tools have been developing year by year and the application of the tool has become more and more diverse. In management it is now a very power means to manage and control various activities and decision making process. The original idea of automating mechanical processes got quickly succeeded by the rationalization and integration of systems. In both of these forms, IS was regarded primarily as an operational support tool, and secondarily as a service to management. Subsequent to the development, it was during the last few years that an additional potential was discovered. It was found that, in some cases, information technology (IT) had been critical to the implementation of an organization's strategy. An organization’s strategy supported by information system fulfilling its business objectives came to be known as Strategic Information System. The strategic information system consists of functions that involved gathering, maintenance and analysis of data concerning internal resources, and intelligence about competitors, suppliers, customers, government and other relevant organizations.

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Q.3:- How is MIS used for decision making in the organization?

Ans.:- Todays managers depend on information systems for decision making. The managers have handful of data around them but manually they cannot process the data accurately and with in the short period of time available to them due to heavy competition in modern world. Therefore mangers depend on information systems.

The concept of MIS Management Management has been defined in a variety of ways, but for our purposes it comprises the process or activities what managers do in the operation of their organization: Plan, Organize, Initiate and Control operations.

Information Data are facts and figures that are not currently being used in a decision processes and usually take the form of historical records that are recorded and filed without immediate intent to retrieve for decision making.

Information consists of data that have been retrieved, processed or otherwise used for information or inference purposes, argument, or as a basis for forecasting or decision making.

System can be described simply as a set of elements joined together for a common objective. A subsystem is is part of a larger system with which we are concerned. All systems are part of larger systems.

The objective of an MIS (Management Information System) is to provide information for decision making on planning, initiating, organizing, and controlling the operations of the subsystems of the form and to provide a synergetic organization in the process.

Decision Support System: It is sometimes described as the next evolutionary step after Management Information Systems (MIS) . MIS support decision making in both structured and unstructured problem environments.. It supports decision making at all levels of the organization .IS (Information Systems) are intended to be woven into the fabric of the organizations , not standing alone. IS support all aspects of the decision making process.MIS are made of people, computers, procedures, databases, interactive query facilities and so on. They are intended to be evolutionary/adaptive and easy for people to use.

Methods of Decision Making MIS is a technique for making programmed decisions. If we include the computer and management science as integral parts or tools of computer –based information systems, the prospects for a revolution in programmed decision making

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are very real. Just as a manufacturing process is becoming more and more automated so is the automation of programmed decisions increasing to support this production and other information needs throughout the organization.

Q.4:- Below is the list of data from a sample project

ActivityMost likely

duration (Days)Immediate

Predecessors toactivity

A 4 E,BB 7 A,EC 5 ---D 11 CE 9 ---

a. Draw the PERT network for the above data. Also draw the critical path for the network.

b. Given the optimistic time estimate as 3, the most likely time estimate as 12 and the pessimistic time estimate as 21, calculate the activity time estimate.

Ans:- (a) The critical path is that path which takes the longest time for start to end. The critical path for the above mentioned network is as follows:-

(b) to the optimistic time estimate = 3tm the most likely time estimate = 12tp the pessimistic time estimate = 21te the activity time estimate = to + 4tm +tp

6 - ,- = 3 + 4(12) + 21

6 -,- = 12

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A

0

3

4

52

C

D B

E


Q.5:- Explain the difference between Intranet and Extranet

Ans:- Information Systems have grown powerful year after year. The role of the traditional MIS has been obscured by newer software applications. Various applications known collectively as enterprise resource planning (ERP) software has taken a dominant position among large business applications. These packages, which typically come in functional modules such as an accounting module, a human resources module, and a manufacturing supply chain module, serve many of the functions that a traditional MIS would, and they tend to be more flexible, integrated, and user-friendly than legacy MIS. While early implementations of ERP suites were largely cross functional databases with minimal high-level management tools, later upgrades have added decision support and data manipulation tools to facilitate a wide range of analyses.

In future, MIS is likely to be verbal and qualitative in nature. It will depend upon the strength of the organizations Information Systems. Most of the enterprises are growing and their systems also have to grow. The ever growing demands of the systems will force out the old conventional systems by newer systems. The next decade is going to witness several fundamental and qualitative changes in the practice of management of commercial enterprises and other types of organizations. These changes would be necessitated by better rates of economic growth, intensification of competition, diversified and rapid technological developments, continuing fluidity in economicpolitical environments, and sociopolitical changes involving the values and attitudes of people working in organizations at all levels.

To support these demands and meet newer challenges in the business, organizations will have to resort to various technologies. This unit is based on such possible technologies which will enable the enterprises to support their MIS.

Extranet An extranet is a private network that uses the Internet protocols and the public telecommunication system to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. An extranet requires security and privacy.

A new buzzword that refers to an intranet that is partially accessible to authorized outsiders. Whereas an intranet resides behind a firewall and is accessible only to people who are members of the same company or organization, an extranet provides various levels of accessibility to outsiders. You can access an extranet only if you have a valid username and password, and your identity determines which parts of the extranet you can view.

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An extranet is somewhat very similar to an intranet. Extranets are designed specifically to give external, limited access to certain files of your computer systems to:

1. Certain large or privileged customers. 2. Selected industry partners.

3. Suppliers and subcontractors... etc.

Therefore, a carefully designed extranet can bring additional business to your company. Intranets and extranets all have three things in common:

1. They both use secured Internet access to the outside world. 2. Both can drastically save your company or organization a lot of money. 3. Both need a user ID & password to control access to the whole system.

The professional development team at My Web Services has the expertise and the right tools to design the right intranet or extranet that will meet your exact needs, both for today and the future.

Intranet An internal use, private network inside an organisation that uses the same kind of software which would also be found on the Internet. Inter-connected network within one organization that uses Web technologies for the sharing of information internally, not world wide. Such information might include organization policies and procedures, announcements, or information about new products.

An intranet is a restricted-access network that works like the Web, but isn't on it. Usually owned and managed by a company, an intranet enables a company to share its resources with its employees without confidential information being made available to everyone with Internet access. A network based on TCP/IP protocols (an internet) belonging to an organization, usually a corporation, accessible only by the organization's members, employees, or others with authorization. An intranet's Web sites look and act just like any other Web sites, but the firewall surrounding an intranet fends off unauthorized access. Like the Internet itself, intranets are used to share information.

An intranet is an information portal designed specifically for the internal communications of small, medium or large businesses, enterprises, governments, industries or financial institutions of any size or complexity. Intranets can be custom-designed to fit the exact needs of businesses no matter where they are situated. Users of intranets consists mainly of:

1. Members of the executive team. 2. Accounting and order billing.

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3. Managers and directors. 4. Sales people and support staff. 5. Customer service, help desk, etc.

Q.6:- Explain the control issues in management information systems.

Ans:- A management control systems (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole considering the organizational strategies. Finally, MCS influences the behavior of organizational resources to implement organizational strategies. MCS might be formal or informal. The term ‘management control’ was given of its current connotations by Robert N. Anthony (Otley, 1994).

According to Maciariello et al. (1994), management control is concerned with coordination, resource allocation, motivation, and performance measurement. The practice of management control and the design of management control systems draws upon a number of academic disciplines. Management control involves extensive measurement and it is therefore related to and requires contributions from accounting especially management accounting. Second, it involves resource allocation decisions and is therefore related to and requires contribution from economics especially managerial economics. Third, it involves communication, and motivation which means it is related to and must draw contributions from social psychology especially organizational behavior

Management control systems use many techniques such as

1. Balanced scorecard The balanced scorecard (BSC) is a strategic performance management tool - a semi-standard structured report supported by proven design methods and automation tools that can be used by managers to keep track of the execution of

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http://en.wikipedia.org/wiki/Performance_management

http://en.wikipedia.org/wiki/Balanced_scorecard

http://en.wikipedia.org/wiki/File:Management_Control_Systems_as_an_interdisciplinary_subject.jpg


activities by staff within their control and monitor the consequences arising from these actions.

2. Total quality management (TQM) Total Quality Management (or TQM) is a management concept coined by W. Edwards Deming. The basis of TQM is to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training. One of the principal aims of TQM is to limit errors to 1 per 1 million units produced. Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes.

3. Kaizen (Continuous Improvement) Kaizen (Japanese for "improvement" or "change for the better") refers to a philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. It has been applied in healthcare, government, banking, and many other industries.

4. Activity-based costing Activity-based costing (ABC) is a costing model that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption by each: it assigns more indirect costs (overhead) into direct costs. In this way an organization can precisely estimate the cost of its individual products and services for the purposes of identifying and eliminating those which are unprofitable and lowering the prices of those which are overpriced.

5. Target costing Target costing is a pricing method used by firms. It is defined as "a cost management tool for reducing the overall cost of a product over its entire life-cycle with the help of production, engineering, research and design". A target cost is the maximum amount of cost that can be incurred on a product and with it the firm can still earn the required profit margin from that product at a particular selling price.

6. Benchmarking and Benchtrending Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper.

JIT: JIT may refer to:-

(a) Various meanings of Just In Time.(b) Just-in-time compilation - a technique for improving the performance of virtual machines in computing. (c) Just-in-time (business) - a business inventory strategy.

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http://en.wikipedia.org/wiki/Inventory

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Just-in-time_(business)

http://en.wikipedia.org/wiki/Computing

http://en.wikipedia.org/wiki/Virtual_machine

http://en.wikipedia.org/wiki/Just-in-time_compilation

http://en.wikipedia.org/wiki/Just_In_Time

http://en.wikipedia.org/wiki/JIT

http://en.wikipedia.org/wiki/Benchmarking

http://en.wikipedia.org/wiki/Profit_margin

http://en.wikipedia.org/wiki/Product_life_cycle

http://en.wikipedia.org/wiki/Pricing

http://en.wikipedia.org/wiki/Target_costing

http://en.wikipedia.org/wiki/Direct_costs

http://en.wikipedia.org/wiki/Overhead_(business)

http://en.wikipedia.org/wiki/Indirect_costs

http://en.wikipedia.org/wiki/Indirect_costs

http://en.wikipedia.org/wiki/Activity-based_costing

http://en.wikipedia.org/wiki/Kaizen

http://en.wikipedia.org/wiki/Supply_chain_management

http://en.wikipedia.org/wiki/W._Edwards_Deming

http://en.wikipedia.org/wiki/Total_quality_management


7. Budgeting A budget (from old French bougette, purse) is generally a list of all planned expenses and revenues. It is a plan for saving and spending.[1] A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.

8. Capital budgeting Capital budgeting (or investment appraisal) is the planning process used to determine whether a firm's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.

9. Program management techniques, etc.

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http://en.wikipedia.org/wiki/Capital_(economics)

http://en.wikipedia.org/wiki/Investment

http://en.wikipedia.org/wiki/Capital_budgeting

http://en.wikipedia.org/wiki/Good_(economics)

http://en.wikipedia.org/wiki/Budget_line

http://en.wikipedia.org/wiki/Microeconomics

http://en.wikipedia.org/wiki/Budgeting#cite_note-0

http://en.wikipedia.org/wiki/French_language

http://en.wikipedia.org/wiki/Budgeting

MB0031 Management Information System

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information technology

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executive information

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competitors information

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