ASSIGNMENT Subject code: MB0031 (3 credits) Set 1 Marks 60 SUBJECT NAME: MANAGEMENT INFORMATION SYSTEMS
Answer the following questions. Each Question carries 10 marks
1. Define Define MIS? MIS? What are are the object objectives ives and and characte characterist ristics ics of MIS MIS ?
Answer: MIS can be defined as a system that 1. Provides information to support managerial functions like Planning, organizing, directing,
controlling. 2. Collects Collects information information in a systemati systematicc and a routine routine manner which is in accordance accordance with a
well defined set of rules. 3. Includes files, hardware, software and operations research models of Processing, storing,
retrieving and transmitting information to the users.
OBJECTIVES OF MIS:-
An effective MIS has the following objectives 1. Facilitate the decision - making process by furnishing information in the proper time
frame. This helps the decision - maker to select the best course of action. 2. Provide requisite information at each level of management to carry out their functions. 3. Help in highlighting the critical factors to the closely monitored for successful functioning
of the organization. 4. Support decision-making in both structured and unstructured problem environments. 5. Provide a system of people, computers, procedures, interactive query facilities, documents
for collecting, sorting, retrieving and transmitting information to the users.
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CHARACTERISTICS OF MIS:Management Oriented
The system is designed from the top to work downwards. It does not mean that the system is designed to provide information directly to the top management. Other levels of management are also provided with relevant information. For example, in the marketing information system, the activities such as sales order processing, shipment of goods to customers and billing for the goods are basically operational operational control activities. activities. A salesman salesman can also track this informati information, on, to know the sales territory, size of order, geography and product line, provide the system has been designed accordingly. However, if the system is designed keeping in mind the top management, then data on external competition, market and pricing can be created to know the market share of the company's product and to serve as a basis of a new product or market place introduction.
Management Directed
Because of management orientation of MIS, it is necessary that management should actively direct the system development efforts. In order to ensure the effectiveness of system designed, management should continuously make reviews.
Integrated
The world "integration" means that the system has to cover all the functional areas of an organi organizati zation on so as to produce produce more more meanin meaningfu gfull manage management ment inform informati ation, on, with with a view view to achiev achieving ing the object objectives ives of the organi organizat zation ion.. It has to conside considerr variou variouss sub-s sub-syst ystem em their their objectives, information needs, and recognize the interdependence, that these subsystem have amongst amongst themselves themselves,, so that common areas of information information are identifie identified d and processed without repetition and overlapping
Common Data Flows
Because of the integration concept of MIS, common data flow concept avoids repetition and overlap overlappin ping g in data data collec collectio tion n and storag storagee combin combining ing simil similar ar functi functions, ons, and simpli simplifyi fying ng
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A management information system cannot be established overnight. It takes almost 2 to 4 years to establish it successfully in an organization. Hence, long-term planning is required for MIS development in order to fulfill the future needs and objectives of the organization. The designer of an information system should therefore ensure that it will not become obsolete before it actually gets into operation.
Flexibility and Ease Of Use
While building an MIS system all types of possible means, which may occur in future, are added to make it flexible. A feature that often o ften goes with flexibility is the ease of use. The MIS should be able to incorporate all those features that make it readily accessible to the wide range of users with easy usability.
2. Explain strategic MIS categories categories in in detail. detail. Give illustration illustrationss for each each category. category.
Answer: Strategic Information System - 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 favorable 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:
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3. they are associated with higher project risk. 4. they are innovative (and not easily copied).
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 challenge of meeting its goals and objectives. objectives. Strategic Strategic IS enable such organizatio organization n 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 critical aspects of the strategic information information system. 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 uses of corpor corporati ations ons'' intern internal al inform informati ation on system systemss leadin leading g to syste systems ms which which transc transcend end 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 control variou variouss activi activitie tiess and decisio decision n making making proces process. s. The origin original al idea idea of automa automati ting ng 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
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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 functi functions ons that that involv involved ed gather gathering ing,, mainte maintenanc nancee and analys analysis is of data data concer concernin ning g intern internal al resour resources ces,, and intell intellige igence nce about about compet competito itors, rs, suppli suppliers ers,, custom customers ers,, govern governmen mentt and other other relevant organizations.
3. Write a detailed note on the planning planning and and development development of of Management Management Informati Information on Systems.
Answer: Information is a corporate resource, as important as the cap ital, labour, know-how etc.
and is being used for decision-making. Its quality, therefore, is required to be very high.
A low quality information would adversely affect the organizational performance as it affects decisi decisionon-mak making ing.. The quality quality of inform informati ation on is the result result of the quality quality of the input input data, data, processing design, system design, system and procedures which generate such a data, and the management of the data processing function. Quality, unlike any other product, is not an absolute concept. Its level is determined with reference to the context and its use, and the user. Perfect quality just as perfect information is nonachievable and has cost-benefit implications.
However, it is possible to measure the quality of information on certain parameters. All these parameters need not have a very high value. Some parameters may have lesser importance in the total value on account of their relevance in the information and its use.
The quality parameters which are generally considered are shown in the table
Individual Differences
Effect on Explanation
information
Examples
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The degree of perception in
The production
Locus of control
assessing the control
More information
decisions, selection
internal or external
which is internal to
gathering and
of tools and
to the situation.
the organization or
analysis, if internal.
materials
external to the
etc.
organization. Personal dogmatism.
The degree of faith in beliefs, opinions and past experience.
Low dogmatism,
The pricing,
then more
advertising in a
information
Competitive
collection and
environment.
processing. The ability to take Risk propensity.
the risk.
Level of clarity Tolerance for ambiguity.
required in the information. The ability to read through the
Higher, then more
The top
information
management
gathering
decision-making in
and analysis.
a strategic planning.
Tight tolerance then more information collection and analysis.
information. The ability to Manipulative intelligence.
manipulate the data and information visà-vis the stored information and knowledge.
Manager Constantly asking for more information.
Experienced and High ability, then less information and more self analysis.
Skillful managers rely on the manipulative intelligence.
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High, then correct Experience in decision-making.
Extent of experience filtering of data and at particular level of appropriate choice decision making.
of decision making process.
The managers with a wide experience in the different fields of management call for precise and less but pertinent information.
The extent of Knowledge of the
knowledge in the
task, tools and
application of the
technology.
tools and technology.
Higher, then less
The Technocrat
information relevant
scientists, and
to and tools correct
managers of
analysis.
technology have definite information.
The quality of these important parameters is ensured by conducting a proper systems analysis, designing a suitable information system and ensuring its maintenance from time to time, and also subjecting it to audit checks to ensure en sure the system integrity.
The quality of the parameters is assured if the following steps are taken.
con trolled, as input and process design. 1. All the input is processed and controlled, 2. All updating and corrections are completed before the data processing begins.
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9. The system modifications are approved by following a set procedure which begins with
authorization of a change to its implementation followed by an audit. 10. Systems are developed with a standard specification of design and development. 11. Information system processing is controlled through programme control, process control
and access control. 12. Ensure MIS model confirms consistency to business plan satisfying information needs to
achieve business goals.
The assurance of quality is a continuing function and needs to be evolved over a period and requires to be monitored properly. It cannot be assessed in physical units of measure. The user of the information is the best judge of the quality.
4. Explain in detail the necessity and importance of Systems Design in MIS.
Answer: The business application system demands designing of systems suitable to the
application in project. The major steps involved in the design are the following:
Input Design - Input design is defined as the input requirement specification as per a format
required. Input design begins long before the data arrives at the device. The analyst will have to design source documents, input screens and methods and procedures for getting the data into the computer.
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Testing – Exhaustive and thorough testing must be conducted to ascertain whether the system
produces the right results. Testing is time consuming: Test data must be carefully prepared, results reviewed and corrections made in the system. In some instances, parts of the system may have to be redesigned. Testing an information system can be broken down into three types of activities: unit testing, system testing and acceptance testing. Unit testing or program testing consists of testing each program separately in the system. The purpose of such testing is to guarantee that programs are error free, but this goal is realistically impossible. Instead, testing should be viewed as a means of locating errors in programs, focusing on finding all ways to make a program fail. Once pinpointed, problems can be corrected. System testing tests the functioning of the information system as a whole. It tries to determine if discrete modules will function together as planned and whether discrepancies exist between the way the system actually works and the way it was conceived. Among the areas examined are performance time, capacity for file storag storagee and handlin handling g peak loads, loads, recove recovery ry and restar restartt capabi capabili litie tiess and manual manual proced procedure ures. s. Acceptance testing provides the final certification that the system is ready to be used in a production setting. Systems tests are evaluated by users and reviewed by management. When all parties are satisfied that the new system meets their standards, the system is formally accepted for installation.
Implementation and Maintenance
Conversion – Conversion is the process of changing from the old system to the new system. Four main conversion strategies can be employed. They are the parallel strategy, the direct cutover strategy, the pilot strategy and the phased strategy.
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a very risky approach that can potentially be more costly than parallel activities if serious problems with the new system are found. There is no other system to fall back on. Dislocations, disruptions and the cost of corrections are enormous. The pilot study strategy introduces the new system to only a limited area of the organization, such as a single department or operating unit. When this version is complete and working smoothly, it is installed throughout the rest of the organization, either simultaneously or in stages.
The phased approach strategy introduces the new system in stages, either by functions or by organizational units. If, for example, the system is introduced by functions, a new payroll system might begin with hourly workers who are paid weekly, followed six months later by adding salari salaried ed employ employees ees(( who are paid monthl monthly) y) to the system. system. If the system system is introd introduce uced d by organi organizati zational onal units, units, corpor corporate ate headqua headquarte rters rs might might be conver converted ted first, first, follow followed ed by outlyi outlying ng operating units four months later.
Moving from an old system to a new system requires that end users be trained to use the new system system.. Detail Detailed ed docume documenta ntatio tion n showin showing g how the system system works works from from both both a techni technical cal and enduser enduser standpo standpoint int is final finalize ized d during during conver conversio sion n time time for use in train training ing and everyd everyday ay operations. Lack of proper training and documentation contributes to system failure, so this portion of the systems development process is very important.
Production and maintenance
After After the new syste system m is installe installed d and conversio conversion n is complete complete,, the system system is said to be in
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learning curve. Personnel who operate and use the system will make mistake simply because they are familiar withit. Though such errors usually diminish as experience is gained with a new system, they do point out areas where a system may be improved.
Maintenance is also necessary for other failures and problems that arise during the operation of a system. Endusers and information systems personnel then perform a troubleshooting function to determine the causes of and solutions to such problems.
Maintenance also includes making modifications to an established system due to changes in the business organizations, and new ebusiness and ecommerce initiatives may require major changes to current business systems.
5. Explain in detail about e-business, e-business, e-commerce e-commerce and e-collaboration. e-collaboration. Give Give suitable suitable examples.
Answer: Answer: Managing Managing an E-bu E-busine siness ss & Challeng Challenges es before before an E-bu E-busine siness ss - Due to Internet
capabilities and web technology, traditional business organization definition has undergone a change where scope of the enterprise enterprise now includes other company company locations, locations, business partners, 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 twenty-fo -four ur hours, hours, and being being indepen independent dent,, manage managers, rs, vendor vendors, s, custom customers ers trans transact act
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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. Ebusiness 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 most of the busine business ss organi organizat zation ionss are using using Intern Internet et techno technolog logy, y, networ network, k, and wirele wireless ss technol technology ogy for improv improving ing the busine business ss perfor performan mance ce measur measured ed in terms terms of cost, cost, effici efficienc ency, y, competitive competitiveness ness and profitabil profitability. ity. They are using E-business, E-business, Ecommerce Ecommerce solutions solutions to reach faraway faraway locations locations to deliver deliver product and services. services. The enterprise enterprise solutions solutions like ERP, SCM, and
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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 MIS design of an organization.
The role of MIS in E-business organization is to deal with changes in global market and enterprise enterprises. s. MIS produces more knowledge-based knowledge-based products. products. Knowledge Knowledge management management system 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
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The last but not the least important is the challenge to organize and implement information architectur architecturee and informatio information n technology technology platforms, platforms, considering considering multiple multiple locations locations and multiple 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.
The entire model successfully works on web platform and uses internet technology.
Ecommerce process has two participants, namely Buyer and Seller, like in traditional business model. model. And unique unique and typica typicall to E-comm E-commerc ercee there there is one more partic participa ipant nt to seller seller by authorization and authentication of commercial transaction.
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In B2B Model, buyer and seller seller are busine business ss organi organizat zation ions. s. They They exchang exchangee techni technical cal & Model, buyer commercial through websites and portals. Then model works on similar line like B2C. More advanced B2B model uses Extranet and Conducts business transaction based on the information status displayed on the buyer’s application server.
In C2B Model, customer initiates actions after logging on to seller’s website or to server. On the server server of the sellin selling g organi organizat zation ion,, E-Comm E-Commerc ercee applic applicati ation on are presen presentt for the use of the customer. The entire Internet banking process work on C2B model where account holders of the bank transact a number of requirements such as seeking account balance, payment and so on.
In C2C model, Customer Participates in the process of selling and buying through the auction webs websit ite. e. In this this mode model, l, websi website te is used used for for pers persona onall adver adverti tisi sing ng of prod product uctss or serv servic ices es.. ENewspaper website is an Example of advertising and selling of goods to customer.
In B2B Model, the participants in E-business are two organisation with relations as buyer=seller, distributor-dealer and so on.
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the group to share information, invoke an application and work together to create documents and share them and so on.
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.
6. What is an internet? internet? Explain Explain the differences differences between between internet, internet, intranet intranet and extranet. extranet.
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business, and government networks of local to global scope that are linked by copper co pper wires, fiberoptic cables, wireless connections, and other technologies.
Difference between internet, intranet and extranet as follow:
Extranet :
An extr extran anet et is a pri private vate net network work that hat uses uses the Int Interne ernett prot protoc ocol olss and and the publ publiic telecommuni telecommunicatio cation n system system to securely securely share part of a business's business's information information or operations 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
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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.
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Managers and directors.
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Sales people and support staff.
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Customer service, help desk, etc..
Internet:
An electronic electronic network of computers computers that includes includes nearly nearly every university, university, government, government, and research facility in the world. Also included are many commercial sites. It started with four interconnected computers in 1969 and was known as ARPAnet. A network of computer networks which operates world-wide using a common set of communications protocols. The vast collection
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ASSIGNMENT Subject code: MB0031 (3 credits) Set 2 Marks 60 SUBJECT NAME: MANAGEMENT INFORMATION SYSTEMS
Answer the following questions:
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•
MIS is not allowed to end up into an information generation ν mill avoiding the noise in the information and the communication system.
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The MIS recognizes that a manager is a human being and ν therefore, the systems must consider all the human behavioral behav ioral factors in the process of the management.
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The MIS recognizes recognizes that the different information information needs for different objectives must ν be met with. The globalization of information in isolation from the different objectives leads to too much information and information and its non-use.
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The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design.
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•
The MIS does not meet certain critical and key factors of ν ν its users such as a response to the query on the database, an inability inability to get the processing processing done in a particular particular manner, lack of user-friendly system and the dependence o n the system personnel.
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tran transa sact ctio ions ns among among supp suppli lier ers, s, manu manufa fact ctur urer erss and and reta retail iler ers. s. Expe Expert rt syst system emss can enab enable le organizational changes by providing expertise to non experts. It is difficult to carry out BPR calculations using ordinary programs like spreadsheets etc. Experts make use of applications with
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such such as price, price, produc productt positi positioni oning, ng, or staff staff skills skills,, and "extern "external" al" factor factorss such such as economi economicc indicators indicators,, competition competition,, and customer customer demographics. demographics. And, it enables enables them to determine determine the impact on sales, customer satisfaction, and corporate profits. Finally, it enables them to "drill
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1) System analysis
It includ includes es system system's 's study study in order order to get facts facts about about busine business ss activi activity. ty. It is about about getti getting ng information and determining requirements. Here the responsibility includes only requirement
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Feasibility study is a preliminary study which investigates the information needs of prospective users and determines the resource requirements, costs, benefits and feasibility of a proposed project. The data is first collected for the feasibility study. Later on, the findings of the study are
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