Final-Term Exam, Spring 2020

Course Title: Management Information System________

Final Term Examination
Spring Semester- 2020

CASE STUDY # 1

Question No 1
In the light of the system, describe the decisions to be made in the area of strategic Planning,

managerial control and operational control? What information would you require to make such

decisions?

Answer:
A management information system (MIS) is an organized combination of people, hardware,

communication networks and data sources that collects, transforms and distributes information in an

organization. An MIS helps decision making by providing timely, relevant and accurate information

to managers. The physical components of an MIS include hardware, software, database, personnel

and procedures.

Management information is an important input for efficient performance of various managerial

functions at different organization levels. The information system facilitates decision

making. Management functions include planning, controlling and decision making. Decision making

is the core of management and aims at selecting the best alternative to achieve an objective. The

decisions may be strategic, tactical or technical. Strategic decisions are characterized by uncertainty.

They are future oriented and relate directly to planning activity. Tactical decisions cover both

planning and controlling. Technical decisions pertain to implementation of specific tasks through

appropriate technology. Sales region analysis, cost analysis, annual budgeting, and relocation

analysis are examples of decision-support systems and management information systems.

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Question No 2
What would make the system a more complete MIS rather than just doing transaction processing?

Answer:
If the management provides sufficient incentive for efficiency and results to their customers, it

would make the system a more complete MIS and so the MIS should support this culture by

providing such information which will aid the promotion of efficiency in the management services

and operational system. It is also necessary to study the keys to successful Executive Information

System (EIS) development and operation. Decision support systems would also make the system a

complete MIS as it constitutes a class of computer-based information systems including knowledge-

based systems that support decision-making activities. DSSs serve the management level of the

organization and help to take decisions, which may be rapidly changing and not easily specified in

advance.

Improving personal efficiency, expediting problem solving (speed up the progress of problems

solving in an organization), facilitating interpersonal communication, promoting learning and

training, increasing organizational control, generating new evidence in support of a decision.

Question No 3
Explain the probable effects that making the system more formal would have on the customers and
the management.
Answer:
The management system should be an open system and MIS should be so designed that it highlights

the critical business, operational, technological and environmental changes to the concerned level in

the management, so that the action can be taken to correct the situation. To make the system a

success, knowledge will have to be formalized so that machines worldwide have a shared and

common understanding of the information provided. The systems developed will have to be able to

handle enormous amounts of information very fast.

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An organization operates in an ever-increasing competitive, global environment. Operating in a

global environment requires an organization to focus on the efficient execution of its processes,

customer service, and speed to market. To accomplish these goals, the organization must exchange

valuable information across different functions, levels, and business units. By making the system

more formal, the organization can more efficiently exchange information among its functional areas,

business units, suppliers, and customers.

As the transactions are taking place every day, the system stores all the data which can be used later

on when the hotel is in need of some financial help from financial institutes or banks. As the

inventory is always entered into the system, any frauds can be easily taken care of and if anything

goes missing then it can be detected through the system.

CASE STUDY # 2
Question # 1
Identify the main capabilities of the DSS software from the narrative?
Answer
A decision support system (DSS) is a specific class of computerized information system that

supports business and organizational decision-making activities. Properly designed decision support

systems are interactive software-based systems 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 business decisions.

With WebFOCUS, companies can accelerate the delivery of comprehensive and intuitive BI,

analytics, and decision support systems by:

 Combining core BI and analytics seamlessly to satisfy every information need

 Performing deeper data exploration, so analysts and other users can uncover critical patterns,

trends, anomalies, and outliers

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 Deploying comprehensive self-service tools for non-technical users to create, analyze, and

share findings

 Operationalizing insights by embedding analytics into existing processes, workflows, and

applications for greater impact

 Leveraging true “build once, deploy anywhere” mobile BI capabilities with responsive
design, giving users information on any device

Question # 2
Why should DSS support data integration as mentioned?
Answer
DSS Support Data Integration Like Wise:
Multiple perspectives of integration
As the decision making environment has become more complex and decentralized, support provided

to decision makers by traditional one function or single user focused DSS has evolved from simple

predefined reports to complex and intelligent agent-based analysis, suggestion and judgment [47].

This is because modern IDSS have been expanded and upgraded through integration of new

technologies, processes and business environments into decision support paradigm to enable

improved performance.

Model integration
The central role of models and provision of mechanisms for the management of models have been

regarded as what distinguish a DSS from more traditional information processing systems [19].

According to Mallach [79] a model is a computer representation of reality that lets us investigate the

impact of a possible decision. It has been proved in practice that a DSS should create multiple

models rather than a single larger model for the benefit of DSS implementation, maintenance and

flexibility.

Process integration
Thomas [108] defined three dimensions for understanding process integration: process unit, process

event and process constraint. A process unit is a unit of work that yields a result. A process event is a

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condition that arises during a process step that may result in the execution of an associated action. A

process constraint imposes constraints on some aspects of the process.

Service integration
Service integration is essential to support flexible function combinations in an integrated decision

support environment (IDSE) [68]. Ideally, all the functions offered by all the components should be

accessible (as appropriate) to all other components, and the components need not to know what

components will be constructed to use their functions [73]. This can be seen from two different

views: first view is service integration with respect to provision, i.e. components offer services that

other components in the environment require and use. Second view is service integration with

respect to use, i.e. components appropriately use the services offered by other components in the

environment.

Presentation integration
Presentation integration aims at reducing user’s cognitive load and applies to individual

components, subsystems and IDSS environment as a whole [73]. This can be achieved through

appearance and behaviour integration, as well as interaction-paradigm integration. Appearance and

behaviour integration answers the questions of how easy is it for users to interact with one

component, having already learned to interact with another, by addressing the similarities of

component screen appearance and interaction behavior.

Question # 3
The Vanguard System™ has been dubbed also as a KMS and an Expert System. Why do you think a

DSS should also be a KMS / Expert System?

Answer
A decision support system can be a valuable tool. However, in order to be able to provide the

information that each expert would find relevant, the user must be involved in the development and

the post audit evaluation of the decision support system (Liebowitz 1999). This involvement must

span not just the content issues, but also the presentation and the organization of the information.

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This is necessary to ensure that the system fulfills the three criteria that determine its success,

namely compatibility, understandability, and effectiveness

Knowledge management (KM) is involved in two ways here. Normally the area that is emphasized is

that decision support systems can enhance the manager's knowledge through knowledge

discovery and supply of relevant information. However, knowledge and KM activities are key

components in how the manager uses the system, i.e. the direction of the analysis that he carries out,

and the knowledge that he is looking for. Kiku (2006) emphasizes that a decision support system

must be designed in light of KM. An effective decision support system thus requires that the

organization:

 Investigates the decisions made within their firm

 Compares these decisions with KM activities

 Evaluates any current decision support system in light of this

Modifies said system if necessary

Question # 4
Based on the information provided, write a brief as to how can the functional areas of HR,

Marketing and Finance leverage the capabilities and functionalities of a DSS?

Answer

Functional Areas Of HR Leverage The Capabilities And Functionalities Of A

DSS?
An integration of Human Resource Information System (HRIS) with Decision Support Systems

(DSS) technology will support decision makers throughout an organization. The development of

Human Resource Decision Support Systems (HRDSS) will complement the capabilities of existing

HRIS, and provide a means for a more complete utilization of the massive amounts of information

available. HRDSS will extend the capabilities of the HRIS from its present task of recordkeeping

and generating routine reports. Through the Model Base and sophisticated Interactive User Interface

of the HRDSS, along with the database of the HRIS, managers will be able to gain support in

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making their human resource decisions, thereby providing gains in organizational productivity,

competitive advantage, and managerial effectiveness.

Functional Areas Of Marketing Leverage The Capabilities And Functionalities

Of A DSS?
Marketing activities are directed toward planning, promoting, and selling goods and services to

satisfy the needs of customers and the objectives of the organization.

The product subsystem helps to plan the introduction of new products. Continually bringing new

products to market is vital in today's competitive environment of rapid change. The product

subsystem should support balancing the degree of risk in the overall new-product portfolio, with

more aggressive competitors assuming higher degrees of risk for a potentially higher payoff.

Although decisions regarding the introduction of new products are unstructured, information systems

support this process in several ways:

1. Professional support systems assist designers in their knowledge work

2. DSSs are used to evaluate proposed new products

3. With a DSS, a marketing manager can score the desirability of a new product.

4. Electronic meeting systems help bring the expertise of people dispersed in space and time to bear

on the problem

5. Information derived from marketing intelligence and research is vital in evaluating new product

ideas.

Pricing decisions find a degree of support from DSSs and access to databases that contain industry

prices. These highly unstructured decisions are made in pursuit of the companys pricing objectives.

General strategies range from profit maximization to forgoing a part of the profit in order to increase

a market share.

Information systems provide an opportunity to finely segment customer groups, and charge different

prices depending on the combination of products and services provided, as well as the circumstances

of the sale transaction.

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Functional Areas Of Finance Leverage The Capabilities And Functionalities Of

A DSS?

Financial Information System provides financial information to all financial managers within an

organization and a broader set of people who need to make better decisions. Financial MIS performs

the following functions:

•Makes financial data available on a timely basis to shorten analysis turnaround time.

•Provides easy access to data for both financial and non-financial users, often through the use of

corporate intranet.

•Integrates financial and operational information from multiple sources, including the Internet, into a

single MIS.

•Enables analysis of financial data along multiple dimensions- time, geography, product, plant,

customer etc.

•Analyzes historical and current financial activity.

•Monitors and controls the use of funds over time.

•For adhering to legal requirements.

Financial MIS aids managers in:

•Capital Budgeting Decisions

•Financing decisions

•Dividend decisions

•Current asset management Financial Information System

Financial Information System Financial MIS composes of the Inputs

1. Transaction Data: This data includes credit applications, billing, payment vouchers, stock

transfers, cheques, journal and ledger entries etc.

2. Financial Intelligence : This data is collected from banks, government, stock markets, etc. which

is processed to determine its impact on the company’s economy.

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3. Organizational Plan: Another important input to Financial MIS that portrays the objectives of the

company.

This needs to be reflected in the output of Financial MIS, which may be in the form of financial

plans. Financial Information System Business Transactions Transaction Processing System Database

of External Data Database from TPS Data warehouse FINANCIAL MIS •Sorted Data •Forecasts

•Management Ratios •Audit & Control •Other Financial Decisions& Plans •Financial DSS/EIS

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