AIT-Open University

ASSIGNMENT:

MCA ONE(1)

COURSE CODE AND TITLE:

CBMS 4203

MANAGEMENT OF INFORMATION SYSTEM

LECTURER:

MR. ERNEST ACHEAMPONG

NAME OF STUDENT:

COURAGE GABIENU

STUDENT ID NUMBER:

BSCM13BITN0067Y

1.Explain why information systems are so essential in business today.

Operational excellence
Business improve the efficiency of their operations in order to achieve higher profitability.
Information systems are important tools available to managers for achieving higher levels of
efficiency and productivity in business operations. A good example is Wal-Mart that uses a
RetailLink system , which digitally links its suppliers to every one of Wal-Mart's stores. as
soon as a a customer purchase an item , the supplier is monitoring the item , knows to ship a
replacement to the shelf.

New products, services, and business models

Information system is a major tool for firms to create new products and services, and also an
entirely new business models. A business model describe how a company produces, delivers,
and sells a product or service to create wealth.
Example: Apple inc transformed an old business model based on its iPod technology
platform that included iPod, the iTunes music service, and the iPhone.

Competitive advantage
When firms achieve one or more of these business objectives( operational excellence, new
products, services, and business models, customer/supplier intimacy, and improved decision
making) chances are they have already achieved a competitive advantage. Doing things
better than your competitors, charging less for superior products, and responding to
customers and suppliers in real time all add up to higher sales, and higher profits. Example:
Toyota Production System focuses on organizing work to eliminate waste, making continues
improvements, TPS is based on what customers have actually ordered.

Improved decision making

Many managers operate in an information bank, never having the right information at the
right time to make an informed decision. These poor outcomes raise costs and lose
customers. Information system made it possible for the managers to use real time data from
the marketplace when making decision. Example: Verizon Corporation uses a Web-based
digital dashboard to provide managers with precise real -time information on customer
complains, network performance.. Using this information managers can immediately allocate
repair resources to affected areas, inform customers of repair efforts and restore service fast.

Customer/supplier intimacy.
When a business serves its customers well, the customers generally respond by returning and
purchasing more. this raises revenue and profits. The more a business engage its suppliers,
the better the suppliers can provide vital inputs. This lower costs. Example: The Mandarin
Oriental in manhattan and other high-end hotels exemplify the use of information systems
and technology to achieve customer intimacy. they use computers to keep track of guests'
preferences, such as their preferred room temperature, check-in time, television programs.

2.Describe what is meant by a management information system (MIS). Include in your answer
three example of how an MIS can be used.
Management information system (MIS) provides management information in the supporting,
planning, controlling and decision-making functions by generating special and periodic reports.

Managers use an MIS to create reports that provide them with a comprehensive
overview of all the information they need to make decisions ranging from daily
minutiae to top-level strategy.
MIS can also be used for strategic planning (eg Hospital Supply used MIS to change
the perspective and direction of the company)improved customer service and
communication.
MIS can be used as part of the interpersonal and organizational communication
systems. For eg. managers can get on their firm's intranet or the internet to ask others
for information about solving problems or can use the system to monitor the literature
on particular technological developments.

3.Describe the relationship between TPS, MIS, DSS, and EIS.

Decision Support System (DSS) is an information system which assists managers to solve
problems and make decisions on very specific issues. DSS answers questions such as "suitable
location for the firm to open a new branch".
A Senior Executive Officer usually uses the Executive Information System (EIS).
Executive Information System (EIS) is a system that provides the latest information, history and
some anticipation about the status and environment of the company to support administration
tasks and the process of decision making of executives. An EIS usually uses qualitative graphic
techniques, communication technology and the latest processing, all types of input and output
mechanisms, which include storage media, to provide the facilities
Transaction Processing System (TPS) is a type of system which usually helps an organization to
handle its daily business operations and transactions in an efficient and effective manner by
processing and recording each operation. A TPS is therefore responsible for collecting, storing,
modifying and retrieving data pertaining to the transactions that have taken place in an
organization and finally generate reports which are used by other levels of management. The
characteristics of a TPS include performance, reliability and consistency. Transaction Processing
Systems are usually used at the operational level (by employees who are at the bottom level)
Management Information System (MIS) is a system which brings together people (the
management), information as well as the systems (both hardware and software). This type of
system is important in an organization as it provides information that is essential to operations,
management and decision making functions. Some of these functions include planning,

controlling, decision making, organizing, and staffing. Management Information Systems are
usually used at the tactical level (by employees who are at the middle level)
The relationship between TPS, MIS,DSS and ESS
The TPS is the major source of data for other systems in an organization. Since they record daily
routine transactions in an organization, they aid managers in monitoring the status of the
operations and thus help in structured decision-making. MIS usually receive and utilize the data
they get from the TPS. The ESS is the major recipient of data from the lower-level systems
which is mainly used in unstructured decision-making
4.Describe the factors which make a good or a poor MIS using examples to illustrate your
answer.
A head teacher in a school analyzing those pupils who are failing behind in their work as
evidence by test results and whose attendance is poor so that interviews with parents can be
arranged.
A production manager of a company using MIS to make predictions as to how many of a certain
product to make based on the sales from the same quarter in previous years.
Features of good MIS
Accuracy of the information (usually dependent on the accuracy of the data input)
Ability to allow managers to set up their own queries flexibly
Presents the data in an appropriate form to make it easy to understand.
Avoids the giving of any information that is not necessary.
Able to be used by managers who have their differing experience and skills in the use of ICT.
Ability to be transferred to other packages for further processing/analysis such as a spreadsheet
package.
Factors which lead to poor MIS
Inadequate consultation with managers during the analysis of the system to find out what their
requirements from the system are.
Lack of training for managers means many managers do not use the system as they should.
Inappropriate hardware of software being used. For example the netwok may run slowly when
processing the information needed when producing MIS reports.
Poor communication between professionals. Staff have failed to cooperate during the setting up
of the MIS.
Inadequate initial analysis. The system does not do exactly what it should do

5.System approach is the guide to solving a problem step-by-step to ensure the problem can be
understood, an alternative solution is identified and the solution chosen is effective.
Explain how to apply the system approach to solve a problem.
The careful application of systems analysis leads to a better understanding and a more
disciplined, scheduled approach to the solution of the problem. But unless the context within
which the problem is being approached is sufficiently flexible so that systems analysis can be
applied well, it may not lead to any particularly valuable results. The particular problem must
have sufficient flexibility and resources to allow for a serious implementation, evaluation and
revision. If these steps are not possible, then neither systems analysis nor any other technique can
be particularly helpful in trying to solve the problem. In summary, systems analysis is a point of
view and a set of procedures which enable decision makers and developers to examine carefully
and systematically the way in which an attack on a social or educational problem might be made,
It lays out a schedule of activities and emphasizes the areas in which problems may arise. But
systems analysis as a tool does not in itself assure the successful outcomes of an attack on a
problem. Systems analysis represents the formalization and the procedural expression of the
approach that wise, systematic and successful men have always taken in trying to solve their
problems.

6.What is a system? Differentiate between Open Loop and Closed Loop Systems. Explain two
management techniques that help managers to execute their tasks efficiently and
effectively.

A system is An organized, purposeful structure that consists of interrelated and

interdependent elements (components, entities, factors, members, parts etc.). These
elements continually influence one another (directly or indirectly) to maintain their
activity and the existence of the system, in order to achieve the goal of the system.

An open system is a system that is connected to its environment through the flow of
resources. Most of the systems that exist are open systems. An example is the election

voting system which counts voting input from voters around the country and declares the
results back to them.

A closed system is not connected to its environment. You might have conducted a science
experiment in the lab during your school days. Was the experiment connected to any
environmental elements outside the lab? If the answer is no, then, the system conducted
in the closed and remote lab is a good example of a closed system.

MANAGEMENT TECHNIQUE

Management by Exception
This technique is applied when a manager takes an action only if an activity occurs out of
fixed performance and norms. Therefore, as long as the firms activity is within the
performance parameter, the firm can be considered as being stable. This technique is
implemented by comparing the actual standard and performance of the system produced
by the information processor.

Critical Success Factors (CSF)

The management technique that uses the same concept as the management by exception
technique is known as the critical success factor (CSF). CSF is the technique used by
managers to identify several main factors which bring success to a particular function.
Usually the organisation determines several CSFs that need to be completely fulfilled.

7.What are the characteristics of DSS? How do they differ from those of EIS?
Characteristics of DSS
All management level support, from operations to the executive level, is provided.
Individual and group support are also available.
All four phase of decision-making are supported by DSS: intelligence, design, decision
and justification.
All types of processes and styles of development of decisions are supported by DSS.
DSS is very adaptive, so it will always be relevant to current demand.
DSS has an interesting graphical user interface.

 The end user can modify DSS easily.

.
DSS allows the user to obtain data from a database.
Web-based.
Characteristics of EIS
Provides trend analysis, exception reporting and drill-down capabilities. Drill down a
facility such as a button or link that when clicked will display the detail data from public
records that had been clicked.
Can integrate external and internal data.
Easy to use. This is the main thing that distinguishes the EIS with the other systems. Ease
of use is set in stone in the manufacture of the EIS, both system design and interface
design
Presenting information in a variety bentu report. This system generally display the data in
the form of graphs and reports.
Some of the executive information system has features that beraga facilities. EIS Each
has its own differences, tergantun EIS maker itself and the user desires (the executive).

8.Describe how the information systems function supports a business. What roles are played by
programmers, systems analysts, information systems managers, and the chief information
officer (CIO)?
Three major use of information system function to support a business:
1. Information storage and analysis
2. Assist with making decisions
3. Assist with business processes
Through the application of information system, companies can make use of sophisticated and
comprehensive databases that can contain all imaginable pieces of data. Information systems
store, update and even analyze the information that use to pinpoint solutions to current or future

problems. Moreover, These systems can integrate data from various sources, inside and outside
the company, keeping the company up to date. For instance, an organizations management team
uses information systems to formulate strategic plans and make decisions for the organization's
longevity and prosperity.
The business uses information systems to evaluate information from all sources.
Furthermore, Information systems aid businesses in developing a larger number of value addedsystems in the company. Adoption of information systems simplifies business processes and
removes unnecessary activities. (security)Information systems add controls to employee
processes, ensuring that only users with the applicable rights can perform certain tasks. Plus,
information systems eliminate repetitive tasks and increase accuracy
Roles

Programmers are highly trained technical specialists who write the software instructions
for computers.
Systems analysts constitute the principal liaisons between the information systems groups
and the rest of the organization. The systems analysts job is to translate business
problems and requirements into information requirements and systems.
Information systems managers lead teams of programmers and analysts, project
managers, physical facility managers, telecommunications mangers, or database
specialists.
Chief information officer (CIO) is a senior manager who oversees the use of information
technology in the firm.

9.Identify and describe the three dimensions of information systems.

Dimensions of Information Systems
There are three dimensions of information systems namely
a) organization
b) Management
c) Information technology

a)Organization
Most organizations business processes include formal rules that have been developed over
a long time for accomplishing tasks. These rule guide employees in a variety of procedures
from writing an invoice to responding to customer complaints thus some of these
procedures have been formalized and written down but others are informal work practices
such as a requirement to return a telephone call from co-workers or customers these are
normally not documented
b) Management
Management's job is to make sense out of the many situations faced by organization's

make decisions and formulate action plans to solve organizations problems. The
Management perceives business challenges in the environment, they set the organization
strategy for responding to those challenges and allocate human and financial resources to
coordinate the work and achieve success. Throughout they must exercise responsible
leadership
c)Information technology
The technology dimensions consist of computer hardware, software, data management
technology, and networking/telecommunications technology (including the Internet).
Management uses technology (hardware, software, storage, and telecommunications) to carry out
their functions. It is one of the many tools managers use to cope with change.

10.With the aid of a diagram, describe the general model system of a firm.
ENVIRONMENT
STANDARD
ResultInformation
Information & Data
DATA
PHYSICAL
PHYSICAL INFORMATION PROCESSOR
MANAGEMENT
RESOURCER
RESOURCE

INPUT

TRANSFORMATIO
RESOURCE

PROCESS
OUTPUT RESOURCE

In the general system model, resource flow into the firm from the environment and will return to
the environment after the transformation process. The environment completes the general system
model. Physical resources enter the physical process and conceptual resources (Information and

data) enter the information processor to be stored or used by the manager. It can also flow to or
from the environment