The discipline of MIS can be categorized in the following 6 classes:

i)
ii)
iii)
iv)
v)
vi)

Transaction Processing System (TPS)

Management Information System (MIS)
Decision Support System (DSS)
Executive Support System (ESS)
Office Automation Systems (OASs), and
Business Expert Systems (BESs)

Transaction Processing System

TPS processes transaction and produces reports. It represents the automation of
the fundamental, routine processing used to support business operations. It
does not provide any information to the user to his/her decision-making. TPS
uses data and produces data as shown in the following diagram.

Previously, TPS was known as Management Information System. Prior to

computers, data processing was performed manually or with simple machines.
The domain of TPS is at the lowest level of the management hierarchy of an
organization.
Management Information System (MIS)
MIS is an information system, which processes data and converts it into
information. A management information system uses TPS for its data inputs. The
information generated by the information system may be used for control of
operations, strategic and long-range planning. Short-range planning,
management control, and other managerial problem solving. It encompasses
processing in support of a wide range of organizational functions & management
processes. MIS is capable of providing analysis, planning & decision making
support. The functional areas of a business may be marketing, production,
human resource, finance and accounting.
Decision Support System (DSS)
A decision support system (DSS) is an information system application that
assists decision-making. DSS tends to be used in planning, analyzing
alternatives, and trial and error search for solution. The elements of the decision
support system include a database, model base & software. The main application
areas of DSS are Production, finance and marketing.

DSS can be differentiated from MIS on the basis of processing the information.
MIS processes data to convert it into information. DSS processes information to
support the decision making process of a manager.
Executive Support System (ESS)
Executive Support System (ESS) is an extension of the management information
system, which is a special kind of DSS; An ESS is specially tailored for the use of
chief executive of an organization to support his decision-making. It includes
various types of decision-making but it is more specific and person oriented.
Office Automation Systems (OAS)
Office automation refers to the application of computes and communication
technology to office functions. Office automation systems are meant to improve
the productivity of managers at various levels of management of providing
secretarial assistance and better communication facilities.
Office activities may be grouped under two classes, namely
i)
Activities performed by clerical personnel (clerks, secretaries, typist,
etc.,) and
ii)
Activities performed by the executives (managers, engineers or
other professionals like economist, researches etc.)
In the first category, the following is a list of activities.
a)
Typing
b)
Mailing
c)
Scheduling of meetings and conferences,
d)
Calendar keeping, and
e)
Retrieving documents
The following is a list of activities in the second category (managerial
category)
a)
Conferencing.
b)
Production of information (messages, memos, reports, etc.) and controlling
performance

Business Expert Systems: These systems are one of the main types of
knowledge-based information systems. These systems are based on artificial
intelligence, and are advanced information systems. A business expert system is
a knowledge based information system that uses its knowledge about a specific,
complex application area to act as an expert. The main components of an expert
system are:
a. Knowledge Base
b. Interface Engine
c.
User Interface

MIS is set up by an organization with the prime objective to obtain management

information to be used by its managers in decision-making. Thus, MIS must perform the
following functions in order to meet its objectives.
1)

2)

3)

4)

5)

Data Capturing:
MIS captures data from various internal and external sources of an
organization. Data capturing may be manual or through computer
terminals. End users, typically record data about transactions on some
physical medium such as paper form or enter it directly into a computer
system.
Processing of data:
The captured data is processed to convert it into the required
management information. Processing of data is done by such activities as
calculating, comparing, sorting, classifying and summarizing.
Storage of information:
MIS stores processed or unprocessed data for future use. If any
information is not immediately required, it is saved as an organizational
record. In this activity, data and information are retained in an organized
manner for later use. Stored data is commonly organized into fields,
records, files and databases.
Retrieval of information:
MIS retrieves information from its stores as and when required by various
users. As per the requirements of the management users, the retrieved
information is either disseminated as such or it is processed again to meet
the exact demands.
Dissemination of MI:
Management information, which is a finished product of MIS, is
disseminated to the users in the organization. It could be periodic, through
reports or on-line through computer terminals

Quality of information refers to its fitness for use or its reliability. Some of the attributes
of information which influence the quality of information are as follows:
1) Timeliness
Timeliness means that information must reach the recipients within the prescribed time
frame. Timely information can ensure correct executive action at an early stage. The
characteristic of timeliness, to be effective, should also include current information.
2) Accuracy
Accuracy is another key-attribute of management information. It means that
information is free from mistakes and errors, is clear and accurately reflects the
meaning of data on which it is based. It conveys an accurate picture to the
recipient, who may require a presentation in graphical form rather than tabular
form.
3) Relevance
Relevance is yet another key attribute of management information. Information is
said to be relevant if it answers specifically for the recipient what, why, where,
who and why? In other words, the MIS should serve reports to managers, which
are useful, and the information helps them make decisions.
4) Adequacy
Adequacy means information must be sufficient in quantity. MIS must provide
reports containing information, which is required in deciding processes of
decision-making.
5) Completeness
The information, which is provided to a manager, must be complete and should
meet all his needs. Incomplete information may result in wrong decisions and
thus may prove costly to the organization.
6) Explicitness
A report is said to be of good quality if it does not require further analysis by the
recipient for decision-making. Thus the reports should be such that a manager
does not waste any time on the processing of the report, rather he should be able
to extract the required information directly.
7) Exception based.
Top managers need only exception reports regarding the performance of the
organization. Exception reporting principle states that only those items of
information, which will be of particular interest to a manager, are reported. This
approach results in saving precious time of the top management and enables the
managers to devote more time in pursuit of alternatives for the growth of the
organization.
A management information system has the following characteristics:
1). System approach:
The information system follows a Systems approach. The systems
approach implies a wholistic approach to the study of the system and its
performance to achieve the objective for which it has been formed.

2). Management oriented:

For designing of MIS top-down approach should be followed. Top-down
approach suggests that the system development starts from the
determination of the management needs and overall business objectives.
Management oriented characteristic of MIS also implies that the
management actively directs the system development efforts.
3). Need based:
MIS design and development should be as per the information needs of
managers at different levels that are strategic planning level, management
control level and operational control level.
1)
Exception based:
MIS should be developed on the exception based reporting principle,
which means an abnormal situation, that is the maximum, minimum or
expected values vary beyond the limits. In such cases there should be
exception reporting to the decision-maker at the required level.
2)
Future oriented:
Besides exception based reporting, MIS should also look at the future. In
other words MIS should not merely provide past or historical information,
rather it should provide information on the basis of projections based on
which actions may be initiated.
3)
Integrated:
Integration is significant because of its ability to produce more meaningful
information. For example, in order to develop an effective production
scheduling system, it is necessary to balance such factors as: set-up
costs, work force, overtime rates, production capacity, inventory level,
capital requirements and customer services. Integration means taking a
comprehensive view of the subsystems that operate within the company.
4)
Common data flows:
Because of the integration concept of MIS, there is an opportunity to avoid
duplication and redundancy in data gathering, storage and dissemination.
System designers are aware that a few key source documents account for
much of the information flow. For example, customers orders are the
basis for billing the customer for the goods ordered, setting up accounts
receivables, initiating production activity, sales analysis, sales forecasting
etc.
What is the difference between traditional marketing and
modern marketing

Traditional Marketing: In traditional marketing, more importance is given on selling the

product. They start with production and marketing is done while selling and
promoting the product to attain sales at profit. In this technique, the existing
products are imposed on the market through aggressive selling and promotional
pressures.
Modern Marketing: Its main motive is customer satisfaction that is building a
relationship with MIS customer and is achieved through an integrated, corporate

wide set of marketing activities. This technique understands the needs and
desires of the customer and product is designed accordingly.
What are the main managerial functions
The main managerial functions are:
i)

Planning: It includes laying down policies, procedures, rules, programs

after setting goals and objectives to achieve them.
ii)
Organizing: organization of tasks is done by dividing activities, assigning
duties and delegating authorities.
iii) Staffing: it is the process of putting the right person at the right job.
iv) Directing: directing the people in order to achieve pre-determined goals
and objectives.
v)
Controlling: Managers control the performance of work by setting
performance standards.
Discuss the Prerequisites of an Effective MIS
(i) Qualified System and Management Staff : The prerequisite of an effective MIS is
that it should be managed by qualified officers. These officers should have a mutual
understanding about the roles and responsibilities of each other and be understand
clearly the view of their fellow officers. For this, each organization should have two
categories of officers :
(a) System and Computer Experts who in addition to their expertise in their subject
area , they should also be capable of understanding management concepts to facilitate
the understanding of problems asked by concern. They should also be clear about the
process of decision making and
information requirements for planning.
(b) Management experts who should also understand quiteclearly the concepts and
operations of a computer. This basic knowledge of computer will be useful will place
them in a comfortable position, while working with systems, technicians in designing or
other wise, of the information system.
(ii) Futuristic Perspective : An effective MIS should be capable of meeting the future
requirements of its executives as well. This capability can be achieved by regular
monitoring and updating the MIS.
(iii) Support of Top Management : For a management information system to be
effective, it must receive the full support of top management. The Reasons for this are :
(a) Subordinate managers are usually lethargic about activities which do not receive the
support of their superiors.

(b) The resources involved in computer based information system are larger and are
growing larger and larger in view of importance gained by management information
system.
(iv) Common Database : It is an integrated collection of data and information which is
utilized by several information subsystems of an organization. A common database may
be defined as a super file which consolidates and integrates data records formerly
stored in a separate data file. Such a database can be organized as an integrated
collection of data records into a single super file or it can be organized as an integrated
collection of several data file.
(v) Control and maintenance of MIS : Control of the MIS means the operation of the
system as it was designed to operate. Some times, users develop their own procedures
or short cut methods to use the system which reduces its effectiveness.

Factors responsible for Development of MIS

Factors Responsible for the development of MIS are numerous and have been a prime
concern for many Researchers and Practitioners. Both Inter and external factors must
be taken into account when trying to understand and organizations criteria for deciding
about technology. The following are the factors which are responsible for development
of MIS :
1. External
2. Internal
External Factors : External Factors are conditions that exist in organizations external
environment. The factors can be found at the industry level or in national policies.
(a) Industry level : At the industry level, we are looking at characteristics as degree of
diffusion of certain technologies, the availability of external know-how, for example,
technology suppliers, the degree of innovativeness of the industry, the requirements
imposed by major customers and external markets and overall levels of competition and
technology sophistication in the industry.
(b) National Policies : For the external factors the national policies also affect the
organization that indirectly affects the subsystems of the organization.
Internal Factors : Internal factors internal of the firm that may affect the development of
MIS can be grouped into three categories:
i) Past Experience with Technology : The organizations past experience about the
technology in terms of exposure and organizational learning ultimately affects its future
in developing technology.

ii) Organizational Characteristics : An organizations characteristic like size, influence

the adoption of MIS application in organization. The adoption of certain technologies
may appear more appropriate for the larger firms because of the large capital
investments and the skilled human resources involve in the implementation and
operation of such technologies. Smaller firms are less affected by organizational inertia
and they show a greater degree of involvement of organizational members especially
top management during implementation. Ready to use software and less expensive
equipments of MIS application are more attractive to smaller firms.
iii) Organizational Pursued strategy : Internal factors deal with the organizations
pursued strategy on both orientation and technology policy. An organizations strategy
reflects its action with market and technology, which ultimately modify its experience
and consequently its overall characteristics and capabilities. The need for a strong
technology has been advocated by a number of authors and investments in MIS should
therefore be closely aligned with
overall corporate strategy.
Other Factors:
Customer Satisfaction: Development of MIS is affected by customer satisfaction.
Customer of the services should be satisfied by the presented system.
Effective: Development should be effective in terms of organizational benefit & user
satisfaction.
Efficient: Development should use all the resources, organization values efficiently.
Explain briefly the different functional information systems
Functional Information System is based on the various business functions such
as Production, Marketing, Finance and Personnel etc. These departments or
functions are known as functional areas of business. Each functional area
requires applications to perform all information processing related to the function.
The popular functional areas of the business organization are:
(i)
(ii)
(iii)
(iv)

Financial Information System

Marketing Information System
Production/Marketing Information System
Human Resource Information System

Financial Information System:

Financial information system is a sub-system of organizational management
information system. This sub-system supports the decision-making process of
financial
functions
at
the
level
of
an
organization.
Marketing Information System

This sub-system of management information system provides information about

various functions of the marketing system of an organization. Marketing is another
functional area of the business organization, which is engaged in marketing (selling) of
its products to its customers.
Important functions of the marketing process include the following.
The marketing identification function
The purchase motivation function.
The product adjustment function
The physical distribution function
The communication function
The transaction function
The post-transaction function
Production /manufacturing Information System
Manufacturing or production information system provides information on production
/operation activities of an organization and thus facilitates the decision-making process
of production managers of an organization. The main decisions to be taken in
manufacturing system are:
Product Design
Human Resources Information System

This functional information system supports the functions of human resource

management of an organization. The human resource management function, in
its narrow sense, it also known as personnel management .The function involves:
Manpower planning.
Staffing
Training and development
Performance evaluation, and
Separation activities

A business has several information systems :

a) Formal Information System
b) Informal Information System
c) Computer Based Information System
Formal Information System : It is based on organizational chart represented by the
organization.

Informal Information System : it is an employee based system designedto meet

personal and vocational needs and to help in the solution of workrelatedproblems. It
also funnels information upward through indirectchannels. It works within the framework
of the business and its stated policies.
Computer Based Information System (CBIS) : This category of information system
depends mainly on the computer for handling business applications. System analyst
develops different types of information systems to meet variety of business needs.
There is a class of system collectively known as computer based information system.
They can be classified as

Transaction Processing System (TPS)

Management Information System(MIS)
Decision Support System (DSS)
Office Automation System (OAS)
Transaction Processing System (TPS) : The most fundamental computer based
system in an organization pertains to the processing of business transactions. A
transaction processing system can be defined as a system that captures, classifies,
stores, maintains, updates and retrieves transaction data for record keeping and input to
the other types of CBIS.
Transaction Processing System is aimed at improving the routine business activities. A
transaction is any event or activity that affects the whole organization. Placing order,
billing customers, hiring of employees and depositing cheques are some of the common
transactions. Types of transactions that occur vary from organization to organization but
this is true that all organizations process transaction as a major part of their daily
business activities. Transaction Processing System provides speed and accuracy and
can be programmed to follow routines without any variance.
Management Information System (MIS) : Data processing by computers has been
extremely effective because of several reasons. The main reason is that huge amount
of data relating to accounts and other transactions can be processed very quickly. MIS
are more concerned with levels of management with information essential to the running
of smooth business. This Information must be as relevant, timely, accurate, complete
and concise as is economically feasible.
Decision Support System (DSS) : It is an information system that offers the kind of
information that may not be predictable. Business professionals may need such
information only once. These systems do not produce regularly scheduled management
reports. Instead, they are designed to respond to wide range of requests. It is true that
all the decisions in an organization are not of a recurring nature. Decision support
systems assist managers, who make decisions that are not highly structured, often
called unstructured or semi structured decision. The decision support systems support,
but do not replace, judgments of managers.

Office Automation System (OAS) : Office Automation Systems are among the newest
and most rapidly expanding computer based information systems. They are being
developed with the hope and expectation that they will increase the efficiency and
productivity of office workers, typists, secretaries, administrative assistants, staff
professionals, managers and others.
Open Vs Closed System
An open system is one that interacts with its environment and thus exchanges
information, material, or energy with the environment, including random and undefined
inputs. Open systems are adaptive in nature as they tend to react with the environment
in such a way organizing', in the sense that they change their continued existence. Such
systems are self organizing, because they change their organization in response to
changing conditions
A closed system is one, which doesnt interact with its environment. Such systems, in
business world, are rare. Thus the systems that are relatively isolated from the
environment but not completely closed are termed closed systems.
Describe the MIS structure based on the physical components
Structure of MIS may be understood by looking at the physical components of
the information system in an organization. The physical components of an
organizational information system may be hardware, software, database, manual
procedures and operating persons. A brief description of these components has
been outlined in the following paragraphs:
Hardware
Hardware refers to the physical data processing equipment and peripheral
devices, For example, CPU, monitor, keyboard, printer, drives, tapes,
communication devices, etc.
Software
Software is a broad term given to the instructions or programs that direct the
operating of the hardware. Software could be of two types, i.e. system software
and application software.
Database
The database consists of all data utilized by application software. Data is stored
in files.
Procedures
Formal operating procedures, which are required to operate a system, such as
manuals, are also regarded as physical elements.
Operating Personnel
Personnel like Computer Operators, Computer Programmers, System Analysts,
System Managers, etc., are the operating people of the information systems.
Input and Output
Various physical inputs and outputs from the information system, existing in
forms like printout, reports etc.

Discuss an Organizational Need for MIS in a Company

To facilitate the management decision making at all levels of company, the MIS must be
integrated. MIS units are company wide. MIS is available for the Top management. The
top management of company should play an active role in designing, modifying and
maintenance of the total organization wide management information system.
Information system and Information technology have become a vital component of any
successful business and are regarded as major functional areas just like any other
functional area of a business organization like marketing, finance, production and HR.
Thus it is important to understand the area of information system just like any other
functional area in the business. MIS is important because all businesses have a need
for information about the tasks which are to be performed. Information and technology is
used as a tool for solving problems and providing opportunities for increasing
productivity and quality.
Information has always been important but it has never been so available, so current
and so overwhelming. Efforts have been made for collection and retrieval of information,
However, challenges still remain in the selection analysis and interpretation of the
information that will further improve decision making and productivity.
MIS for a Business Organization :
Support the Business Process : Treats inputs as a request from the customer and
outputs as services to customer. Supports current operations and use the system to
influence further way of working.
Support Operation of a Business Organization : MIS supports operations of a
business organization by giving timely information, maintenance and enhancement
which provides flexibility in the operation of an organizations.
To Support Decision Making : MIS supports the decision making by employee in their
daily operations. MIS also supports managers in decision making to meet the goals and
objectives of the organization. Different mathematical models and IT tools are used for
the purpose evolving strategies to meet competitive needs.
Strategies for an Organization : Today each business is running in a competitive
market. MIS supports the organization to evolve appropriate strategies for the business
to assented in a competitive environment.
What is Black Box system
The transformation process in certain sub-system, especially at the lowest
level may not be defined. However, the inputs and outputs are

known. Such a sub-system, whose processes are not defined, is

called a black box system.

What is DSS? What is the purpose of Decision Support System in MIS

Decision Support System refers to a class of systems which support in the process of
decision making and does not always give a decision it self.
Decision Support Systems (DSS) are a specific class of computerized information
system that supports business and organizational decisionmaking activities. A properly
designed DSS is an interactive softwarebased system intended to help decision makers
compile useful information from raw data, documents, personal knowledge, and/or
business models to identify and solve problems and make decisions
DSS is an application of Hebert Simon model, as discussed, the model has three
phases :
i) Intelligence
ii) Design
iii) Choice
The DSS basically helps in the information system in the intelligence phase where the
objective is to identify the problem and then go to the design phase for solution. The
choice of selection criteria varies from problem to problem.
It is therefore, required to go through these phases again and again till satisfactory
solution is found. In the following three phase cycle, you may use inquiry, analysis, and
models and accounting system to come to rational solution.
These systems are helpful where the decision maker calls for complex manipulation of
data and use of several methods to reach an acceptable solution using different
analysis approach. The decision support system helps in making a decision and also in
performance analysis. DSS can be built around the rule in case of programmable
decision situation. The rules are not fixed or predetermined and requires every time the
user to go through the decision making cycle as indicated in Herbert Simon model.
Attributes :
i) DSS should be adaptable and flexible.
ii) DSS should be interactive and provide ease of use.
iii) Effectiveness balanced with efficiency (benefit must exceed cost).

iv) Complete control by decision-makers.

v) Ease of development by (modification to suit needs and changing
environment) end users.
vi) Support modeling and analysis.
vii) Data access.
viii) Standalone, integration and Web-based
DSS Characteristics :
i) Support for decision makers in semi structured and unstructured problems.
ii) Support managers at all levels.
iii) Support individuals and groups.
iv) Support for interdependent or sequential decisions.
v) Support intelligence, design, choice, and implementation.
vi) Support variety of decision processes and styles

What are different approaches to Development of MIS

There are two basic approaches for development of MIS :
a) System development life cycle : The system development life cycle have following
steps of development :
i) Systems Planning
ii) Systems Analysis
iii) Systems Design
iv) Systems Implementation
v) Systems Operation and Support (System Maintenance)
b) Prototyping : Prototyping is the process of creating an incomplete model of the
future full-featured system, which can be used to let the users have a first idea of the
completed program or allow the clients to evaluate the program.
Advantages :
i) The designer and implementer can obtain feedback from the users early in the project
development.
ii) The client and the contractor can compare that the developing system matches with
the system specification, according to which the system is built.
iii) It also gives the engineer some idea about the accuracy of initial project estimates
and whether the deadlines can be successfully met.
The process of prototyping involves the following steps :
i) Identify basic requirements.
ii) Develop initial prototype.

iii) Review : The customers, including end-users, examine the prototype and provide
feedback for additions or changes.
iv) Revise and Enhance the Prototype : Using the feedback both the specifications
and the prototype can be improved. If changes are introduced then a repetition of steps
3 and 4 may be needed.
Types of prototyping : System prototyping are of various kinds. However, all the
methods are in some way based on two major types of prototyping :

Throwaway Prototyping : Throwaway or Rapid Prototyping refers to the

creation of a model that will eventually be discarded rather than becoming part of the
finally delivered system. After preliminary requirements gathering is accomplished, a
simple working model of the system is constructed to visually show the users what their
requirements may look like when they are implemented into a finished system. The
most obvious reason for using Throwaway Prototyping is that it can be done quickly.

Evolutionary
Prototyping
: Evolutionary
Prototyping
(also
known
as Breadboard Prototyping) is quite different from Throwaway Prototyping. The main
goal when using
Evolutionary Prototyping is to build a very good prototype in a structured manner so that
we can refine it or make further changes to it. The reason for this is that the
Evolutionary prototype, when built, forms the heart of the new system, and the
improvements and further requirements will be built on to it. It is not discarded or
removed like the Throwaway Prototype. When developing a system using Evolutionary
Prototyping, the system is continually refined and rebuilt.

Incremental Prototyping : The final product is built as separate prototypes. At

the end the separate prototypes are merged in an overall design.
Advantages of Prototyping :
i)
Reduced Time and Costs : Prototyping can improve the quality of
requirements and specifications provided to developers. Early determination of what the
user really wants can result in faster and less expensive software.
ii) Improved and Increased User Involvement : Prototyping requires user involvement
and allows them to see and interact with a prototype; allowing them to provide better
and more complete feedback and specifications. Since users know the problem better
than anyone, the final product is more likely to satisfy the users desire for look, feel and
performance.
Disadvantages of Prototyping :

i) Insufficient Analysis : Since a model has to be created, developers will not properly
analyse the complete project. This may lead to a poor prototype and a final project that
will not satisfy the users.
ii) User Confusion of Prototype and Finished System : Users can begin to think that
a prototype, intended to be thrown away, is actually a final system that merely needs to
be finished or polished. Users can also become attached to features that were included
in a prototype for consideration and then removed from the specification for a final
system.
iii) Excessive Development Time of the Prototype : A key property to prototyping is
the fact that it is supposed to be done quickly. If the developers forget about this fact,
they will develop a prototype that is too complex.
iv) Expense of Implementing Prototyping : The start up costs for building a
development team focused on prototyping may be high. Many companies have to train
the team for this purpose which needs extra expenses.

Explain the waterfall model

The model states that the phases are organized in a Linear Order. In other words, the
output of one phase becomes the input for the next phase. Various phases have
already been explained under a general model of system development. The
different phases of the waterfall model are:

Proposal Definition
Feasibility Study
Requirement Analysis
System Design
Coding & Testing
Implementation
System Maintenance

Limitations of the Waterfall Model.

1.

2.

The waterfall model assumes that the requirements of a system can

be frozen (i.e. baseline) before the design begins. This is possible for
systems designed to automate an existing manual system. But for new
systems, determining the requirements is difficult, as the user does not
even know the requirements. Hence, having unchanging requirements is
unrealistic for such projects.
Freezing the requirements usually requires choosing the hardware
(because it forms a part of the requirements specification). A large project
might take a few years to complete. If the hardware is selected early, it is
likely that the final software will use a hardware technology on the verge of

3.

becoming obsolete. It is a document driven process that requires formal

documents at the end of each phase.
This model stresses that the requirements should be completely
specified before the beginning of the next phase. But it is not possible in
all the systems.

Discuss the changing concept of IS

Changing concept of IS
Information as a necessary evil: - Information was regarded as a necessary
evil, associated with the development, production and marketing of products or
services. Information was thus merely considered as a by-product of transactions in the
organizations. As a result, information systems of 1950s were primarily designed with
the aim to reduce the cost of routine paper processing in accounting areas. The term
Electronic Data Processing (EDP) was coined in this period.
Information for General Management Support: - By mid-sixties, organizatio ns
began recognizing information as an important tool, which could support general
management tasks. The information systems corresponding to this period were known
as management information system (MIS) and were thought of as system processing
data into information.
Information for decision making: -In early eighties, information was regarded
as providing special-purpose, tailor-made management controls over the organization.
Decision support systems and executive support systems were important
advancements, which took place during this period. The purpose of such information
systems was to improve and speed-up the decision-making process of top-level
managers.
Information as a strategic resource: - In the revolutionary change pattern, the
concept of information changed again by the mid-eighties and information has since
then been considered as a strategic resource, capable of providing competitive
advantage or a strategic weapon to fight the competition. Latest information systems
which are known as strategic systems, support this concept of information

What is ESS
Executive Support System (ESS) is an extension of the management information
system, which is a special kind of DSS; An ESS is specially developed for the use of
chief executive of an organization to support his decision-making.

It involves various types of decision-making systems but it is more specific and person
oriented. It is designed to cater to the information needs of the chief executive.

Discuss in detail the business expert systems

A Business Expert System (BES) is a knowledge based information system,
which is based on artificial intelligence. A Knowledge Based information
system adds a knowledge base that uses its knowledge about a specific,
complex application area to act as an expert.
Also, BES provides decision support to managers in the form of advice from an expert in a
specific problem area such as medical, engineering and business. BES is interactive in
nature and it is able to answer the questions asked by a user. For answering the
questions, an expert system searches its knowledge base for facts and rules and
explains its reasoning process and results in the expert advice to the end user. The main
components of BES are:
1) Knowledge base
2) Inference engine
3) User interface

Knowledge base contains the facts about the specific expert area and heuristics
that describe the reasoning procedures of an expert on the subject.
The inference engine contains the logic of reaching an inference from the stored
data and from the knowledge base.
Expert systems may be developed by using either the programming language like LISP,
PROLOG or C or by using the expert system packages. Using the expert system
packages, one can design an expert system that combines the features of DSS and
expert systems. This integration makes the application development process easier and
faster for the end users.

Explain the following models in brief

a) Prototyping
In the prototyping approach, prototype of the system is developed, instead of the
complete system. A prototype is a comprehensive system and does not include all the
requirement of the user. This model is based on the evolutionary method of system
development. Prototyping is used in those systems, in which identification of
requirement is difficult and requirement may change during the development process.
The steps followed during this model are:
i)

Identify the users basic information requirements-

The user identifies his requirements in the form of outputs

required from system.
ii)
Develop the initial prototype systemInitial prototype of the system is developed which meets the
users basic information requirements. It is developed in the
minimum possible time.
iii)
Use of the prototype system to refine the users
requirementsThe initially developed prototype is checked to identify
further refinements/changes in the prototype.
iv)
Revise and enhance the prototype systemThe designer makes the necessary changes/refinements pointed out by the
user after using the prototype. Prototyping approach may not be cost effective
in
small
organizations.

Fig: Prototype Model

b) Iterative Enhancement Model
In an iterative enhancement model, the system is developed in increments and each
increment adds some functional capabilities to the system, until the full system is
developed. Additions and modifications can be done at each step. The iterative
enhancement process model has three phases:
o
Analysis
o
Implementation
o
Design

What are the different stages of system investigation?

Explain
Preliminary investigation is the first step in the system development project. It is a way of
handling the users request to change, improve or enhance an existing system. System
investigation includes the following two stages:
1. Problem definition:
The first responsibility of a system analyst is to prepare a written statement of the
objectives of the problem. Based on interviews with the user, the analyst writes a
brief description of his/her understanding of the problem and reviews it with both the
groups. People respond to written statements. They ask for clarifications and they
correct obvious errors or misunderstandings. That is why a clear statement of
objectives is important. In other words, proper understanding of the problem is
essential to discover the cause of the problem and to plan a directed investigation by
asking questions like what is being done. Why? Is there an underlying reason
different from the one the user identifies? Following are some possible definitions of
problems:
a. The existing system has a poor response time
b. It is unable to handle the workload.
c. The problem of cost, that is the economic system is not feasible.
d. The problem of accuracy and reliability
e. The required information is not produced by the existing system
f. The problem of security.
2. Feasibility study:
The actual meaning of feasibility is viability. This study is undertaken to know the
likelihood of the system being useful to the organization. The aim of feasibility study
is to assess alternative systems and to propose the most feasible and desirable
system for development. Thus, feasibility study provides an overview of the problem
and acts as an important checkpoint that should be completed before committing
more resources. The feasibility of a proposed system can be assessed in terms of
four major categories as given below:
a) Organizational feasibility: the extent to which a proposed information system
supports the objective of the organizations strategic plan for information
systems determines the organizational feasibility of the system project.
b) Economic feasibility: In this study, costs and returns are evaluated to know
whether returns justify the investment in the system project.

c) Technical feasibility: whether reliable hardware and software, capable of

meeting the needs of the proposed system can be acquired or developed by
the organizations in the required time is a major concern of the technical
feasibility.
d) Operational feasibility: the willingness and ability of the management,
employees, customers, suppliers, etc to operate, use and support a proposed
system come under operational feasibility. In other words, the test of
operational feasibility asks if the system will work when it is developed and
installed.

What are the stages of Development of MIS

In order to develop a system successfully, it is managed by breaking the total
development process into smaller basic activities or phases. Any system development
process, in general, is understood to have the following phases
i) Systems Planning
ii) Systems Analysis
iii) Systems Design
iv) Systems Implementation
v) Systems Operation and Support
Explain the Simons model of decision-making
Decision-making, in organizations, is regarded as a rational process Herbert A. Simon
has given a model to describe the decisionmaking process. The model comprises of
three major phases, namely.
i)
Intelligence
ii)
Design, and
iii)
Choice
Intelligence Phase:
In this phase, the decision maker scans the environment & identifies the problem or
opportunity. The scanning of environment may be continuous or non-continuous.
Intelligence phase of decision-making process involves:
a.
Problem Searching
b.
Problem Formulation
Problem Searching: For searching the problem, the reality or actual is
compared to some standards. Differences are measured & the differences are
evaluated to determine whether there is any problem or not.
Problem Formulation: When the problem is identified, there is always a risk of
solving the wrong problem. In problem formulation, establishing relations with
some problem solved earlier or an analogy proves quite useful.
Design Phase:
In this phase, the decision maker identifies alternative courses of action to solve the
problem. Inventing or developing of various alternatives is time consuming and crucial
activity, as the decision maker has to explore all the possible alternatives.

Choice Phase:
At this stage, one of the alternatives developed in design phase is selected & is called a
decision. For selecting an alternative, detailed analysis of each and every alternative is
made. Having made the decision, it is implemented. The decision maker in choice
phase may reject all the alternatives and return to the design phase for developing more
alternatives.

What is ERP
Enterprise resource planning involves procuring and accumulating the
resources for their optimum utilization through integrating them at one
place and giving multiple accesses to these resources.
The broad sets of activities are supported by multi module application
software.