Spring 2012 Master of Computer Application (MCA) Semester IV MC0076 Management Information Systems (Book ID: B0901) Assignment

nt Set 1
1) What do you understand by Information processes data? Data are generally considered to be raw facts that have undefined uses and application; information is considered to be processed data that influences choices, that is, data that have somehow been formatted, filtered, and summarized; and knowledge is considered to be an understanding derived from information distinctions among data, information, and knowledge may be derived from scientific terminology. The researcher collects data to test hypotheses; thus, data refer to unprocessed and unanalysed numbers. When the data are analysed, scientists talk about the information contained in the data and the knowledge acquired from their analyses. The confusion often extends to the information systems context, and the three terms maybe used interchangeably 2) How do you retrieve information from manual system? Retrieving desired data from manual systems can be time consuming and expensive executives spend approximately six weeks a year on average looking for misplaced material. Secretaries may spend as much as 30 percent of their time looking for paper documents and approximately 20 percent of that time searching for misfiled items. Because paper files require large amounts of space, managers may store the data on a different floor or even in a different building. The labour costs of retrieving even small amounts of information exceed those for retrieving information electronically unless the organization can create small and compact storage for its paper records. Electronic systems provide rapid and inexpensive access to information stored electronically in an organized fashion. The costs incurred are only those of using the computer equipment for a fraction of a second, particularly when retrieval is part of ongoing processing. If an individual requests the retrieval, it may require additional processing to translate the retrieval request from a form understood by the person to a form understood by the computer. Then the information is stored in a different place from where it is requested, the request must be transmitted electronically to where the data are stored, and the retrieved data must be transmitted back. Communication costs are relatively low for small amounts of information, but the communication equipment and infrastructure can be expensive unless amortized over a sufficiently large volume of data communication. Companies that have small communication needs can pay to use the infrastructure of third parties, such as telephone companies. 3) What are the challenges of information management? In identifying their information management requirements, individuals face four major challenges in addition to securing the most appropriate information. First, they must deal with large quantities of information that may create overload. Second, they may face insufficient or conflicting information.

Third, they must find ways to enhance their personal productivity. Fourth, they must acquire and maintain the technical skills needed for effective personal information management. Dealing with Quantities of Information The gap between the amount of information that an organization can collect and the ability of its employees to make sense of that information has been widening rather than narrowing. The early fear that computers would so improve a persons ability to process and manage information that a job holder would need only one-third to one-half the time to do his or her job has been dispelled The reverse has occurred. Often employees face an infoglut, an overload of information. As individuals move higher in the organizational hierarchy and assume more managerial responsibility, information overload become an even more significant challenge. To avoid such overload individuals must carefully asses their information needs and then find effective ways of managing the required and available information. They must also find ways to manage data better. Facing Insufficient or Conflicting Information Although computers can make large quantities of information available to individuals, such information may not address their needs. Ramesh, ASM of Airtel, may wish to do some library research about competitors products. In spite of the large amount of information in the librarys electronic catalog, she may not be able to secure the precise information she needs. Because computers process input from diverse sources, users may also obtain conflicting information if one source updates information more frequently than another does. Enhancing Personal Productivity Employees in any organization increasingly use information technology to improve their personal productivity. To ensure high productivity, employees must know how to use computers to facilitate, not hinder, their performance. They must know how to access the information they require and recognize when manual data collection and processing is adequate. Often employees must lobby their employers to add new technology that will help increase personal productivity. The ability to show the cost-effectiveness of additional expenditures for diagnosing and meeting information needs is critical. Employees must also understand and demonstrate when advanced technology is a detriment rather than an asset. Maintaining Technical Skills Finally, using information technology effectively requires continuous updating of technical skills. Although many companies provide training to their employees, others do not. Ensuring that employees have the appropriate skills has both financial and time cost implications. As a result, employees may find their mobility and productivity limited by the extent to which they can learn new technical skills independently of their employer.

4) Explain the different components of MIS. The physical components of MIS comprise the computer and communications hardware, software, database, personnel, and procedures. Almost all organizations employ multiple computer systems, ranging from powerful mainframe machines (sometimes including supercomputers) through minicomputers, to widely spread personal computers (also known as microcomputers). The use of multiple computers, usually interconnected into networks by means of telecommunications, is called distributed processing. The driving forces that have changed the information processing landscape from centralized processing, relying on single powerful mainframes, to distributed processing have been the rapidly increasing power and decreasing costs of smaller computers. Though the packaging of hardware subsystems differs among the three categories of computers (mainframes, minicomputers, and microcomputers), all of them are similarly organized. Thus, a computer system comprises a central processor (though multiprocessors with several central processing units are also used), which controls all other units by executing machine instructions; a hierarchy of memories; and devices for accepting input (for example, a keyboard or a mouse) and producing output (say, a printer or a video display terminal). The memory hierarchy ranges from a fast primary memory from which the central processor can fetch instructions for execution; through secondary memories (such as disks) where on-line databases are maintained; to the ultra high capacity archival memories that are also employed in some cases. COMPONENT DESCRIPTION Hardware Multiple computer systems: mainframes, minicomputers, personal computers Computer system components are: central processor(s), memory hierarchy, input and output devices Communications: local area networks, metropolitan area networks, and wide area networks Systems software and applications software Organized collections of data used by applications software Professional cadre of computer specialists; end users in certain aspects of their work Specifications for the use and operation of computerized information systems collected in user manuals, operator manuals, and similar documents

Software Database Personnel Procedures

Multiple computer systems are organized into networks in most cases. Various network configurations are possible, depending upon an organizations need. Fast local area networks join machines, most frequently clusters of personal computers, at a particular organizational site such as a building or a campus. The emerging metropolitan area networks serve large urban communities. Wide area networks connect machines at remote sites, both within the company and in its environment. Through networking, personal-computer users gain access to the broad computational capabilities of large machines and to the resources maintained there, such as large databases. This connectivity converts personal computers into powerful workstations.

Computer software falls into two classes: systems software and applications software. Systems software manages the resources of the system and simplifies programming. Operating systems (UNIX, for example) control all the resources of a computer system and enable multiple users to run their programs on a computer system without being aware of the complexities of resource allocation. Even if you are just using a personal computer, a complex series of actions takes place when, for example, you start the machine, check out its hardware, and call up a desired program. All of these actions fall under the control of an operating system, such as DOS or IBM OS/2. Telecommunications monitors manage computer communications; database management systems make it possible to organize vast collections of data so that they are accessible for fast and simple queries and the production of reports. Software translatorscompilers or interpreters, make it possible to program an application in a higher-level language, such as COBOL or C. The translator converts program statements into machine instructions ready for execution by the computers central processor. Many categories of applications software are purchased as ready-to-use packages. Applications software directly assists end users in their functions. Examples include general-purpose spreadsheet or word processing programs, as well as the so-called vertical applications serving a specific industry segment (for example, manufacturing resource planning systems or accounting packages for small service businesses). The use of purchased application packages is increasing. However, the bulk of applications software used in large organizations are developed to meet a specific need. Large application systems consist of a, number of programs integrated by the database. To be accessible, data items must be organized so that individual records and their components can be identified and, if needed, related to one another. A simple way to organize data is to create files. A file is a collection of records of the same type. For example, the employee file contains employee records, each containing the same fields (for example, employee name and annual pay), albeit with different values. Multiple files may be organized into a database, or an integrated collection of persistent data that serves a number of applications. The individual files of a database are interrelated. Professional MIS personnel include development and maintenance managers, systems analysts, programmers, and operators, often with highly specialized skills. The hallmark of the present stage in organizational computing is the involvement of end users to a significant degree in the development of information systems. Procedures to be followed in using, operating, and maintaining computerized systems are a part of the system documentation. 5) Mention different characteristics of MRS. 1) MRS are usually designed by MIS professionals, rather than end users, over an extensive period time, with the use of life-cycle oriented development methodologies (as opposed to first building a simpler prototype system and then refining it in response to user experience). Great care is exercised in developing such systems because MRS is large and complex in terms of the number of system interfaces with various users and databases.

2) MRS is built for situations in which information requirements are reasonably well known and are expected to remain relatively stable. Modification of such systems, like their development, is a rather elaborate process. This limits the informational flexibility of MRS but ensures a stable informational environment. 3) MRS does not directly support the decision-making process as a search for alternative solutions to problems. Naturally, information gained through MRS is used in the managers decision-making process. Well-structured decision rules, such as economic order quantities for ordering inventory or accounting formulas for computing various forms of return on equity, are built into the MRS itself. 4) MRS is oriented towards reporting on the past and the present, rather than projecting the future. 5) MRS generally has limited analytical capabilities-they are not built around elaborate models, but rather rely on summarization and extraction from the database according to given criteria. Based on simple processing of the data summaries and extracts, report information is obtained and printed (or, if of limited size, displayed as a screen) in a prespecified format. 6) MRS generally report on internal company operations rather than spanning the companys boundaries by reporting external information. 6) List down the Potential External Opportunities, potential internal Weaknesses. Potential External Opportunities Serve additional customer groups Enter new markets or segments Expand product line to meet broader range of customer needs Diversify into related products Vertical integration Falling trade barriers in attractive foreign markets Complacency among rival firms Faster market growth Potential Internal Weaknesses No clear strategic direction

 Obsolete facilities Lack of managerial depth and talent Missing key skills or competence Poor track record in implementing strategy Plagued with internal operating problems Falling behind in R&D Too narrow a product line Weak market image Weaker distribution network Below-average marketing skills Unable to finance needed changes in strategy Higher overall unit costs relative to key competitors

7) What are the technology evaluation factors that need to be considered during ERP selection. 1) Client server architecture and its implementation-two tier or three tier. 2) Object orientation in development and methodology. 3) Handling of server and client based data and application logic. 4) Application and use of standards in all the phases of development and in the product. 5) Front end tools and back end data based management system tools for the data, process presentation management. 6) Interface mechanism: Data transfer, real time access, OLE/ODBC compliance. 7) Use of case tool, screen generators, report writers, screen painter and batch processor. Support system technologies like bar coding, EDI, imaging, communication, network.

9) Down loading to PC based packages, MS-Office, lotus notes, etc. 10) Operating system and its level of usage in the system. 11) Hardware-software configuration management.

8) What are the common business exposures and risk of using internet by organization. Common Business Exposures Business Exposure Some of the Possible Causes Erroneous record keeping Incomplete or inaccurate processing of transactions Unacceptable accounting Improper interpretation or Willful disregard for accounting practices Business interruption Many factors including irreparable damage to organizational databases Erroneous management Misleading information or failing to acquire decisions necessary information Fraud or embezzlement Deliberate communication of wrong information Statutory sanctions Violation of laws or reporting regulations Failure to acquire approvals for high-value Excessive costs expenditures Loss or destruction of Lack of adequate safeguards over resources organizational resources Loss of competitive Many factors including use of poor IS/IT to advantage satisfy customer requirements Risks of Internet to Organizations Contracting viruses Interception of passwords by hackers Interception of sensitive/commercial data Illegal/objectionable use of site by users Inability to effectively disconnected Internet to own employees Misrepresentation of identity by site visitors

 Legal loopholes in electronic contracts No security against eavesdropping No security against interception Misuse of supplied/captured information Misrepresentation of identity of site 9) Explain with relevant example the concept of business process. Also mention their elements. Ans: For initiating business re-engineering, one is required to make some very basic and fundamental changes in ones conventional thinking. The business is re-engineered through process reengineering and the business has a number of processes which together produce the business results. You concentrate on the process and not on the task when it comes to reengineering. The business process is defined as a set of activities performed across the organization creating an output of value to the customer. Every process has a customer who may be internal or external to the organization. The scope of the process runs across the departments and functions and ends up in substantial value addition which can be measured against the value expectation of a customer. For example, the order processing scope in the traditional sense is within the marketing department. But when it comes to re-engineering, the scope expands to manufacturing, storing, delivering and recovering the money. Likewise, the scope of the bill payment is not limited to the accounts and finance departments but it covers ordering the vendors, receipt and acceptance or goods and paying the bill amount. In a classical organizational set-up, the different processes are handled in parts within the four walls of the department and the functions are limited to the responsibility assigned to them. When the bill payment process is to be re-engineered, it will be re-engineered right from the purchase ordering to cheque payment to the vendor. The reason for covering the purchase ordering as a part of the bill payment process, is that the purchase order information decides the number of aspects of bill payment. The basic element of the processes is motivation to perform certain activities. In the process execution, the data is gathered, processed and stored. The data is used in the process to generate the information which would be checked, validated and used for decision making. The decision is then communicated. The process is executed through the basic steps such as receiving the input, measuring the input, analysing the document, performing, processing, recording, accessing data, producing the results and communicating them. Basic elements of business process are:

 Motivation to perform Data gathering, processing and storing Information processing Checking, validating and control Decision making Communication All these relate to human initiative. A business process in any area of the business organization performs through basic steps, such as, receive input, measure, analyze, document, perform, process, record / store, access, produce and communicate. When the process is performed, it consumes resources and time. The re-engineering approach attempts to eliminate or shorten the steps so that resource consumption is reduced and time of process execution is shortened. It eliminates redundancy by eliminating the steps, which do not contribute, to the value customer is looking for. A business process defined for re-engineering has a clear cut start and end, resulting into a business result. In organization, there are long processes and short processes. There are critical processes and non critical processes. The critical business processes are those, which contribute to the value significantly. While the non-critical processes do not contribute much to the value, the customer is looking for. For example, the process of receiving a visitor in the organization could be considered as noncritical. But the process of new product development from the concept to the prototype is critical as it is expected to contribute high value to the customer. If the external customer focus is taken as a criterion for process selection, then all the processes which generate and add value to the customer are called the value stream processes. The value stream processes are critical and become the immediate candidates for reengineering. The other processes in the organization contribute to the overheads of performing the business function. For example, the processes involving attendance, leave, payment of wages, security, travelling and accounting are not value stream processes as the resources employed in them do not create a value or improve a value to the customer. Such processes are a second priority as far as re-engineering is concerned. Every process is made of a series of activities. In each activity some work is done which produces some result for processing into the next activity. If the work done under any activity is analyzed, it will be seen that the people are moving papers and products to achieve some result. In the process they collect the information for decision making and then carry out a physical activity of pushing the product or the output using the paper for record, document and communication.

Work model comprising six elements. The people who manage the business are engaged in the series of such work modules distributed across the organization. When such work modules are viewed together as a single entity, it is a business process. In such process, participating people are considered as a team working with the sole objective of achieving the customer expectation on value. In re-engineering exercise all the six entities, viz., people, paper, activity, information, decision and product stand to scrutiny through a fundamental rethinking for radical redesign to produce dramatic results. 10) Explain the link between MIS and BPR. Any exercise towards building design of the management information system will be preceded by an exercise of business process re-engineering. Building the MIS is a long-term project. It is, therefore, essential to have a relook at the organisation where the mission and goals of the organisation are likely to be replaced. The business itself would undergo a qualitative change in terms of the business focus, work culture and style and the value system. This would change the platform of business calling for a different MIS. The MIS will concentrate more on the performance parameter evaluation which is different in the re-engineered organisation. The data capture, processing, analysis and reporting would be process central and performance efficiency would be evaluated in relation to the value generated by the processes. The decision support systems will be integrated in the business process itself, where triggers are used to move the process. The triggers could be business rules and stored procedures, enabling the process to become automotive in its execution. The MIS in the re-engineered organisation would be more of a performance monitoring tool to start with and then a control for the performance. The traditional MIS is function-centered like finance, production, material, etc. The Management Information System in a re-engineered organisation would be process centred, evaluating customer satisfaction, expectations and perceptions. The role of Management Information System will be raised to a level where the following activities would be viewed for the management action: Control of process cycle time

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 Work group efficiency Customer satisfaction index Process efficiency and effectiveness Effectiveness of the Management in enterprise management and not in enterprise resource The strength of the organisation in terms of knowledge, learning and strategic effectiveness The traditional role of the MIS as a decision supporter will continue, however.

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Spring 2012 Master of Computer Application (MCA) Semester IV MC0076 Management Information Systems (Book ID: B0901) Assignment Set 2
1) Explain the needs for information in the following areas a) Cost leadership b) Global corporation c) ERP architecture d) Technology Evaluation Factor a)A cost leadership strategy seeks to achieve competitive advantage by allowing the business unit to make more profit than its competitors when selling to customers at the same price. Complete information about costs makes costs easier to control and creates a competitive advantage. The company requires quality internal information to reduce costs by achieving efficiencies in production, distribution, and sales. Even hospitals can use information technology to reduce costs by eliminating paperwork and improving services. Bedside terminals can store patient records; electronic conferencing can bring the expertise of a team of physicians in remote locations to a single problem; home health terminals allow patients to consult with doctors online; and diagnostic systems can support physicians diagnoses, identify preferred treatments, and specify their cost benefits. b) Prior to the 1980s, the inability of a company to obtain information about its foreign operations time to compete with foreign companies operating in their own countries prevented organizations from operating globally. Most global corporations were holding companies that bought and sold regional companies in different parts of the world; each remote company, after acquisition, would continue to operate in its own realm with minimal management by the holding company. Todays competitive technology has reduced the barrier of distance. Now companies operating around the globe can exchange information with nearly the same ease as if they were in the same country. Toys "R" Us has expanded globally into Canada, England, Singapore, Hong Kong, and other locations since 1984. Its overseas stores are identical to American stores and rely on the same information processing systems as they do in the United States. Although language differences, regulation of information flows, and lack of a communication infrastructure remain barriers to the exchange of information, in general, companies of all sizes now have the resources and information systems to allow them to operate globally. Information systems meet the need for coordination of diverse enterprises in distant locations. Going global remains one of the easiest ways for a company to expand its market. A company pursuing the strategy of rapid growth and high market share increases its opportunities for success by considering the entire world as its market and using information systems to help it attain the information it requires functioning internationally. Information technology helps multinational companies compete internationally by supporting foreign subsidiaries, better integrating worldwide operations, allowing greater flexibility in responding to local market needs, and serving clients more innovatively. Creating a mature technological environment abroad helps

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meet customer needs for new products and managements needs for consistency and control in worldwide locations. c) Any information system has three basic components, viz., the Data Management, the Application Logic, and the Presentation. These components can be built with the client server role definitions. The client is a user and the server provides the services required by the user the to run the system. Since, the information needs are dynamically changing, the architecture required is to separate the data and its management from its application. The user requires the choice of using the data as it suits him the most. Hence, the application logic has to be separate from the data. There is also variability in the manner how the application logic is developed and presented. The architecture could be a two tier or three tier as shown in Fig 6.2 below.

d) 1) Client server architecture and its implementation-two tier or three tier. 2) Object orientation in development and methodology. 3) Handling of server and client based data and application logic. 4) Application and use of standards in all the phases of development and in the product. 5) Front end tools and back end data based management system tools for the data, process presentation management. 6) Interface mechanism: Data transfer, real time access, OLE/ODBC compliance. 7) Use of case tool, screen generators, report writers, screen painter and batch processor. Support system technologies like bar coding, EDI, imaging, communication, network. 9) Down loading to PC based packages, MS-Office, lotus notes, etc. 10) Operating system and its level of usage in the system.

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11) Hardware-software configuration management.

2) How information is selected and organized? Acquiring Information The acquisition of information is a first step in its use. We can obtain information from either formal or informal sources. Formal sources provide information in a relatively organized and predictable fashion, for example, business forms; electronic monitoring equipment such as digital thermometers; and machine-readable purchased data such as an encyclopaedia (Personal records, corporate annual reports, summarized transaction histories) on a compact disc. Informal sources provide information in a less structured way and include conversations with customers, suppliers, and other employees, as well as general observations of personal and organizational activities. Generally, acquiring information through informal sources costs less, but the information acquired may be harder to organize and use effectively. Data acquisition can occur manually or electronically. Managers often hand-write evaluation reports or salespeople maintain written records of customer orders. Increasingly, managers can enter evaluation data directly into the computer, and salespeople can use point-ofsale terminals to record detailed sales information electronically. Experts estimate that electronic forms for capturing data cost at least 70 percent less to design, purchase, use, carry, and revise than the equivalent paper forms. Processing Information Processing information describes transforming it into a usable form. Processing typically occurs at two times: first, between the acquisition and storage of information, and second, between its retrieval and communication. The processing that occurs between acquisition and storage generally requires a large amount of personal labor. Manual processing, involves duplicating, sorting, and filing data. Electronic processing, such as with electronic scanners, involves transforming and entering the data into an electronic form. Although both manual and computerized processing may require significant clerical time and incur high costs, electronic processing can reduce these costs. Processing occurs between storing and communicating information for both manual and computerized systems. In manual systems, filing clerks typically perform the processes of retrieval, formatting, and display. When summaries or special analyses are required, analysts with special skills, such as skills in finance or accounting, may process the data. Manual information processing involves high labour and time costs but low equipment costs. Manual processing of large volumes of data tends to be more expensive than computer processing. In computerized systems the processing between retrieval and communication allows more analysis and display possibilities in a shorter time. The costs of computerized processing include rental or depreciation of computer equipment, the labor costs of operating the equipment, and the costs associated with programming software to retrieve, format, and display information. Computerized processing involves lower labour and time costs but higher equipment costs than manual processing.

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Storing Information The primary cost of storing information is the cost of the storage medium and space oncomputerized storage uses paper, microform, or both. These media require much more physical storage space than electronic media and typically incur a greater cost for leasing or buying space than do electronic media. Computerized storage uses a variety of media, including hard disks, diskettes, pen drives and CD-ROM, depending on the amount of information to be stored and the desired speed of retrieval. The organizational overhead to monitor and control information storage, including staff salaries and physical equipment, adds to the cost of information storage. Most large companies keep duplicates of their electronically stored information at a secure site remote from their processing facilities to ensure that the data can be retrieved in the event of a disaster such as a fire or flood or terrorist strikes. In addition, most companies keep duplicate paper or microform copies of much of their data. The cost of the media, physical facilities, and staff for these backup systems also contributes to the storage costs. Both document and electronic storage have an ancillary cost for storing the documentation needed to locate information. Storing large amounts of data calls for simultaneously developing and storing an index or map that assists in locating the data. 3) Briefly explain components of MIS. The physical components of MIS comprise the computer and communications hardware, software, database, personnel, and procedures. Almost all organizations employ multiple computer systems, ranging from powerful mainframe machines (sometimes including supercomputers) through minicomputers, to widely spread personal computers (also known as microcomputers). The use of multiple computers, usually interconnected into networks by means of telecommunications, is called distributed processing. The driving forces that have changed the information processing landscape from centralized processing, relying on single powerful mainframes, to distributed processing have been the rapidly increasing power and decreasing costs of smaller computers. Though the packaging of hardware subsystems differs among the three categories of computers (mainframes, minicomputers, and microcomputers), all of them are similarly organized. Thus, a computer system comprises a central processor (though multiprocessors with several central processing units are also used), which controls all other units by executing machine instructions; a hierarchy of memories; and devices for accepting input (for example, a keyboard or a mouse) and producing output (say, a printer or a video display terminal). The memory hierarchy ranges from a fast primary memory from which the central processor can fetch instructions for execution; through secondary memories (such as disks) where on-line databases are maintained; to the ultra high capacity archival memories that are also employed in some cases. COMPONENT DESCRIPTION Hardware Multiple computer systems: mainframes, minicomputers, personal computers

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Computer system components are: central processor(s), memory hierarchy, input and output devices Communications: local area networks, metropolitan area networks, and wide area networks Systems software and applications software Organized collections of data used by applications software Professional cadre of computer specialists; end users in certain aspects of their work Specifications for the use and operation of computerized information systems collected in user manuals, operator manuals, and similar documents

Software Database Personnel Procedures

Multiple computer systems are organized into networks in most cases. Various network configurations are possible, depending upon an organizations need. Fast local area networks join machines, most frequently clusters of personal computers, at a particular organizational site such as a building or a campus. The emerging metropolitan area networks serve large urban communities. Wide area networks connect machines at remote sites, both within the company and in its environment. Through networking, personal-computer users gain access to the broad computational capabilities of large machines and to the resources maintained there, such as large databases. This connectivity converts personal computers into powerful workstations. Computer software falls into two classes: systems software and applications software. Systems software manages the resources of the system and simplifies programming. Operating systems (UNIX, for example) control all the resources of a computer system and enable multiple users to run their programs on a computer system without being aware of the complexities of resource allocation. Even if you are just using a personal computer, a complex series of actions takes place when, for example, you start the machine, check out its hardware, and call up a desired program. All of these actions fall under the control of an operating system, such as DOS or IBM OS/2. Telecommunications monitors manage computer communications; database management systems make it possible to organize vast collections of data so that they are accessible for fast and simple queries and the production of reports. Software translatorscompilers or interpreters, make it possible to program an application in a higher-level language, such as COBOL or C. The translator converts program statements into machine instructions ready for execution by the computers central processor. Many categories of applications software are purchased as ready-to-use packages. Applications software directly assists end users in their functions. Examples include general-purpose spreadsheet or word processing programs, as well as the so-called vertical applications serving a specific industry segment (for example, manufacturing resource planning systems or accounting packages for small service businesses). The use of purchased application packages is increasing. However, the bulk of applications software used in large organizations are developed to meet a specific need. Large application systems consist of a, number of programs integrated by the database.

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To be accessible, data items must be organized so that individual records and their components can be identified and, if needed, related to one another. A simple way to organize data is to create files. A file is a collection of records of the same type. For example, the employee file contains employee records, each containing the same fields (for example, employee name and annual pay), albeit with different values. Multiple files may be organized into a database, or an integrated collection of persistent data that serves a number of applications. The individual files of a database are interrelated. Professional MIS personnel include development and maintenance managers, systems analysts, programmers, and operators, often with highly specialized skills. The hallmark of the present stage in organizational computing is the involvement of end users to a significant degree in the development of information systems. Procedures to be followed in using, operating, and maintaining computerized systems are a part of the system documentation. 4) Explain with relevant examples the ascertaining the class of
information need for the business execution. Ascertaining the information needs of the management

for the business execution is a complex task. The complexity can be handled if the information is classified on the basis of its application and the user, which becomes the basis for the ascertainment. The classification could be as shown in table below. Class Example of information User The number of employees. products, services, locations, the Many users at all the Organisational type of business, turnover and levels. variety of the details of each one of these entities. Purchases, sales. production, stocks. receivables, payables, Functional Functional heads. outstanding, budgets, statutory information. The trends in sales, production technology. The deviations from the budgets, targets, norms etc. Middle and-the Top Knowledge Competitor s information, industry Management. and business information plan performance and target; and its analysis. Status information on a particular aspect, such as utilisation, profitability standard, requirement Middle Management versus availability. Information for Decision support and Operations problem solving and modelling. Management. Quantitative information on the business status. Non-moving inventory, overdue payments and

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Operational

receivables. Information on the production, sales. Purchase, despatches consumptions, etc. in the form of planned versus actual. The information for monitoring of execution schedules.

Operational and Management Supervisor, Section officer

The design of the MIS should consider the class of information as a whole and provide suitable information system architecture to generate the information for various users in the organisation. Let us now proceed to ascertain the information needs of each class 5) How do you define Management Reporting Systems? Management reporting systems (MRS) are the most elaborate of the management-oriented MIS components. Indeed, some writers call MRS management information systems, the name we reserve for the entire area of informational support of operations and management. The main objective of MRS is to provide lower and middle management with printed reports and inquiry capabilities to help maintain operational and management control of the enterprise. Characteristics of MRS 1) MRS are usually designed by MIS professionals, rather than end users, over an extensive period time, with the use of life-cycle oriented development methodologies (as opposed to first building a simpler prototype system and then refining it in response to user experience). Great care is exercised in developing such systems because MRS is large and complex in terms of the number of system interfaces with various users and databases. 2) MRS is built for situations in which information requirements are reasonably well known and are expected to remain relatively stable. Modification of such systems, like their development, is a rather elaborate process. This limits the informational flexibility of MRS but ensures a stable informational environment. 3) MRS does not directly support the decision-making process as a search for alternative solutions to problems. Naturally, information gained through MRS is used in the managers decision-making process. Well-structured decision rules, such as economic order quantities for ordering inventory or accounting formulas for computing various forms of return on equity, are built into the MRS itself. 4) MRS is oriented towards reporting on the past and the present, rather than projecting the future. 5) MRS generally has limited analytical capabilities-they are not built around elaborate models, but rather rely on summarization and extraction from the database according to given criteria.

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Based on simple processing of the data summaries and extracts, report information is obtained and printed (or, if of limited size, displayed as a screen) in a prespecified format. 6) MRS generally report on internal company operations rather than spanning the companys boundaries by reporting external information.

6) Explain with relevant examples the concept of business process. Also mention their elements. Ans: For initiating business re-engineering, one is required to make some very basic and fundamental changes in ones conventional thinking. The business is re-engineered through process reengineering and the business has a number of processes which together produce the business results. You concentrate on the process and not on the task when it comes to re- engineering. The business process is defined as a set of activities performed across the organization creating an output of value to the customer. Every process has a customer who may be internal or external to the organization. The scope of the process runs across the departments and functions and ends up in substantial value addition which can be measured against the value expectation of a customer. For example, the order processing scope in the traditional sense is within the marketing department. But when it comes to re-engineering, the scope expands to manufacturing, storing, delivering and recovering the money. Likewise, the scope of the bill payment is not limited to the accounts and finance departments but it covers ordering the vendors, receipt and acceptance or goods and paying the bill amount. In a classical organizational set-up, the different processes are handled in parts within the four walls of the department and the functions are limited to the responsibility assigned to them. When the bill payment process is to be re-engineered, it will be re-engineered right from the purchase ordering to cheque payment to the vendor. The reason for covering the purchase ordering as a part of the bill payment process, is that the purchase order information decides the number of aspects of bill payment. The basic element of the processes is motivation to perform certain activities. In the process execution, the data is gathered, processed and stored. The data is used in the process to generate the information which would be checked, validated and used for decision making. The decision is then communicated. The process is executed through the basic steps such as receiving the input, measuring the input, analysing the document, performing, processing, recording, accessing data, producing the results and communicating them. Basic elements of business process are:

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 Motivation to perform Data gathering, processing and storing Information processing Checking, validating and control Decision making Communication All these relate to human initiative. A business process in any area of the business organization performs through basic steps, such as, receive input, measure, analyze, document, perform, process, record / store, access, produce and communicate. When the process is performed, it consumes resources and time. The re-engineering approach attempts to eliminate or shorten the steps so that resource consumption is reduced and time of process execution is shortened. It eliminates redundancy by eliminating the steps, which do not contribute, to the value customer is looking for. A business process defined for re-engineering has a clear cut start and end, resulting into a business result. In organization, there are long processes and short processes. There are critical processes and non critical processes. The critical business processes are those, which contribute to the value significantly. While the non-critical processes do not contribute much to the value, the customer is looking for. For example, the process of receiving a visitor in the organization could be considered as noncritical. But the process of new product development from the concept to the prototype is critical as it is expected to contribute high value to the customer. If the external customer focus is taken as a criterion for process selection, then all the processes which generate and add value to the customer are called the value stream processes. The value stream processes are critical and become the immediate candidates for reengineering. The other processes in the organization contribute to the overheads of performing the business function. For example, the processes involving attendance, leave, payment of wages, security, travelling and accounting are not value stream processes as the resources employed in them do not create a value or improve a value to the customer. Such processes are a second priority as far as re-engineering is concerned. Every process is made of a series of activities. In each activity some work is done which produces some result for processing into the next activity. If the work done under any activity is analyzed, it will be seen that the people are moving papers and products to achieve some result. In the process they collect the information for decision making and then carry out a physical activity of pushing the product or the output using the paper for record, document and communication.

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Work model comprising six elements. The people who manage the business are engaged in the series of such work modules distributed across the organization. When such work modules are viewed together as a single entity, it is a business process. In such process, participating people are considered as a team working with the sole objective of achieving the customer expectation on value. In re-engineering exercise all the six entities, viz., people, paper, activity, information, decision and product stand to scrutiny through a fundamental rethinking for radical redesign to produce dramatic results. 7) What are the uses of Executive Information Systems? Executive information systems (EIS), are becoming the primary tools of top-level control in some organizations. They can be best understood by contrasting them with DSS, which they complement. The feature of EIS is to access to a large variety of internal and external data, terse presentation of information with colorful graphics, the ability to "drill down" on more and more detailed data, and the ability to control the system in a very easy way. Speaking tersely: while DSS are primarily used by middle- and lower-level managers to project the future, EIS primarily serve the control needs of higher-level management. They help an executive to spot a problem, an opportunity, or a trend. EIS also have forecasting capabilities that can be used in an "automatic pilot" fashion; in addition to their other features, these capabilities make EIS a strategic planning tool. The relationship between these two types of information systems, EIS and DSS, is shown in figure 10.6.

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Fig. 10.6 Seen in the light of the structure of a decision-making process, EIS primarily assist top management in uncovering a problem or an opportunity. Analysts and middle managers can subsequently use a DSS to suggest a solution to the problem. More recently, EIS-type applications are coming into use by middle managers as well At the heart of an EIS lies access to data. EIS may work on the data extraction principle, as DSS do, or they may be given access to the actual corporate databases. The first kind of EIS can fully reside on personal workstations; EIS of the second kind need the power of minis or mainframes to access corporate data. The technical problems of EIS data access pale in comparison with the problem of potential resistance from managers below the top level. Once an EIS has been set up, its executive users are able to obtain virtually instantly any information supported by the EIS data-unfiltered and unable to know their subordinates. In the design of EIS, developers frequently rely on the critical success factors (CSF) methodology developed by John Rockart of MIT. He defined CSFs as "those few critical areas where things must go right for the business to flourish." With the use of this methodology, executives may define just the few indicators of corporate performance they need. Many executives have already fallen into the habit of reviewing these indicators on a regular, sometimes daily, basis. With the drilldown capability, they can obtain more detailed data behind the indicators. An executive who is experienced with such a system can perceive a trend (and a problem) in seconds. As opposed to the CSF methodology, which relies on the individual critical success factors, the strategic business objectives methodology of EIS development takes a company-wide perspective. Following the identification of the strategic business objectives of a firm, the critical business processes are identified and prioritized, and then the information needed to support these processes is defined-to be obtained with the EIS that is being planned. This methodology avoids the frequent pitfall of aligning an EIS too closely to a particular sponsor.

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In the United States, Commander EIS (by Comshare of Ann Arbor, Michigan) and Pilot EIS (by Pilot Executive Software of Boston) lead the EIS field. RE SOLVE from Metapraxis (New York and of Kingston upon Thames, England) is a leader in Europe. All of these systems are actually EIS generators, which help to configure a specific EIS. In general, organizational DSS are conceptually more complex than the rather well-structured EIS, primarily due to the model-management component of DSS. 8) Explain various Organizational limits to Relational Decision Making. The rational model of organizational decision making reflects only some aspects of the decisionmaking environment: those that lend themselves most readily to receiving support from information systems. Other aspects include incrementalism, chance-driven choice making, political/competitive behavior, and programmed choice making. As you shall see, most of these decision-making behaviors are rooted in the divergent interests of the people involved in making a decision. Therefore, various types of group decision support systems (GDSSs) can help these groups to negotiate, foresee, and manage a crisis, or to look at a broad array of alternatives before arriving at a decision. Charles Lindblom analyzed how the decision-making process, particularly in large organizations (including governments), differs from the rational model. He contended that decision making in large organizations under ordinary circumstances is a process of "muddling through"-making small, incremental changes from existing actions and policies. The important criteria in this decision-making mode are avoiding the uncertainty of major changes and maintaining the consensus of all involved. Making a decision is not concluded by the "choice" of an alternative; it is rather a continuous process, during which any chosen course of action may be modified as it is implemented. The more recent, and most pessimistic, so-called garbage can theory of organizational decision making is based on the premise that not all organizations are destined to succeed-many companies (even those considered excellent at some point) will fail. These firms are unable to adapt to the changing environment, and much of their decision making consists of attaching solutions to problems in a rather random manner. In one sense, "garbage-can" decision making is present to some extent in all companies: because of the difficulty in forecasting outcomes, chance does playa role in providing a solution to many an organizational problem. Other aspects of organizational decision making are reflected by what George Huber called the political/competitive model. A decision process generally includes several participants, each of whom may seek to influence the decision in a direction favorable to themselves or to the unit they represent. For example, several studies of budget development clearly point to it being a political process. The need to reconcile the diverging interests of various stakeholders (for example, senior management, labor, government, and others) often leads participants to avoid making major departures from current policies-and is thus one of the reasons for incremental decision making.

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Rational decision making in organizations is also limited by programmed behavior. When decision makers engage in this type of behavior, they follow standard operating procedures, which constrains their choices and prevents creative problem solving as they opt for the "safe and tried." An analysis of the results of previous choices, assisted by information systems, may help decision makers relax the constraints of programmed choice making. 9) Explain different components of DSS. The three principal DSS subsystems and their principal capabilities are shown in figure 10.1. Various commercial systems support DSS development and package these DSS capabilities in a variety of ways by distributing them among a series of optional modules.

Components of DSS Data Management Subsystem The data management subsystem of a DSS relies, in general, on a variety of internal and external databases. Indeed, we have said that the power of DSS derives from their ability to provide easy access to data. This is not to say that a simple, usually spreadsheet-based DSS for the personal use of a manager cannot rely on the managers limited personal database. It is simply that maintaining the currency and integrity of a significant database of this kind is usually a daunting task. Proliferation of personal databases also contradicts the principles of information resource management.

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Data Management Subsystem On the other hand, it is usually undesirable to provide a DSS with direct access to corporate databases. The performance of the transaction processing systems that access these databases, as well as the responsiveness of the DSS, would both be degraded. Usually, therefore, the database component of DSS relies on extracts from the relevant internal and external databases. The user is able to add to these data at will. This is shown in figure 10.2. The extraction procedure itself is generally specified by a specialist rather than an end user. The specialist needs to pay particular attention to data consistency across multiple decision support systems that extract data from the corporate databases. If extracts for the DSS serving the same functional area are made at different times, the extracted databases will differ and "battles of the printout" may result. The Model Management Subsystem The power of DSS rests on the users ability to apply quantitative, mathematical models to data. Models have different areas of application and come from a variety of sources. Software

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packages for developing DSS (so-called DSS generators) contain libraries of statistical models. These models include tools for the exploratory analysis of data-tools designed to obtain summarized measures such as mean and median values, variances, scatter plots, and so forth. Other statistical models help analyze series of data and forecast future outcomes by approximating a set of data with a mathematical equation, by extending the trend of a curve by extrapolation techniques, or by providing for seasonal adjustment. The capabilities of the model management component of DSS are summarized in figure 10.3. Other models help establish (or reject) causal relationships between various factors (for example, whether the drop in sales volume is caused by the aging of our target market segment). Market response models show how sales depend on such factors as price and promotion. Simulation models that generate input values randomly from a certain probability distribution (also called Monte Carlo models-after the city where the famous casino is, of course) are employed for waiting-line problems, such as establishing the number of operators needed for order taking or deciding on staffing levels for a service center.

Model Management Subsystem Optimization models, developed by management scientists, are available for use in DSS. These models aim to allocate resources to maximize profit or minimize cost or time. A number of such models are based on a linear programming technique. These include models that allocate input resources (labor, materials, capital) among various products; models that assign activities to personnel or equipment; and models that determine the best shipping schedules from several points of origin to several destinations. Other models optimize inventory levels or determine

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optimal network configurations. Specialized model libraries are available for financial modeling, risk analysis, or marketing. A particular advantage of DSS is the decision makers ability to use a model to explore the influence of various factors on outcomes (a process known as sensitivity analysis). Two forms of such analysis are the what-if analysis and goal seeking. When doing what-if analysis, the decision maker creates multiple scenarios by assuming various realistic values for input data, Thus, the decision maker asks "What if these are the values of the inputs?" The model recomputes outputs for each case. Here are some examples of questions that can be directed toward appropriate models: What will be the cost of goods sold if the cost of raw materials increases by 10 percent? What will be the effects on the company bonus program if sales increase by 3 percent and direct expenses increase by 5 percent? When goal seeking, the decision maker works backward from the assumed results to the needed input values. Thus, the decision maker asks "What will it take to achieve this goal?" Some examples of questions asked in this mode are: What sales volume will be necessary to ensure a revenue growth of 10 percent next year? How many service center employees will it take to ensure that every order is handled within three minutes? What quarterly revenues will we need from each of our three products to generate the desired profits during these quarters? The actual form in which these questions may be asked depends on the options offered by the dialog management subsystem of the DSS, which we shall discuss next. There is significant research interest in providing a degree of automated model management. The user would be able to present the problem in a system of this kind, and the system would automatically select an appropriate model or construct one from the existing models and "building blocks." The Dialog Management Subsystem Along with DSSs ability to apply models to large volumes of data from a variety of sources, a single advantage of DSS is the user-friendly and flexible interface between the human decision maker and such a system. This stands in contrast to management reporting systems. The notable feature is support of multiple forms of input and output. By combining various input and output capabilities of a DSS, users can engage in the individual dialog styles that best support their decision-making styles. The field of artificial intelligence has made some notable contributions to dialog management, such as the ability to specify what is wanted in a subset of natural

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language or to activate the system by voice. The window capability enables the user to maintain several activities at the same time, with the results displayed in screen windows (the user employs a mouse to move between the windows). A variety of help and even training-byexample capabilities may be offered. Significant attention has been devoted by researchers to the effectiveness of computer graphics, as opposed to the tabular display of data. Gary Dickson and his colleagues found that, in general, one cannot claim an advantage (however intuitively appealing it may he) for graphics throughout all decision-related activities. They did find, however, that graphs outperform tables when a large amount of information must be presented and a relatively simple impression is desired. This is very often the case-and the main reason why executive information systems, discussed later in this chapter, rely heavily on graphics. By analyzing the results of research in this area, Ali Montazemi and Shuohong Wang, concluded that line graphics have time-saving effects on decision making for more complex decision tasks only, and are less defective at providing precise information. Color graphics were found to improve decision quality, but they did not reduce the time necessary to arrive at a decision. Graphic representation of quantitative information requires considerable care to prevent distorted perception; Edward Tufte gives a thorough and exciting presentation of the subject. 10) Write a note on Ethical and Social issues with E-Commerce 1. Internet can be used in illegal ways, as there are no laws related to its use. Many servers contain illegal, immoral, defamatory information (which cannot be legally communicated using facilities like TV, radio, etc.). 2. There is minimal or no control over the Internet (unlike telephone, radio, TV, etc.). Limited banning of material in Internet is not possible i.e. all-or-none rule. 3. Free speech advocates say that screening of incoming material is the responsibility of the receiving end 4. There is no law against Spamming i.e. sending unsolicited mail 5. Massive flaming of large quantity of e-mail to one address. The question arises Is sending/receiving large quantity of mail ethical?

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