BCA 604 (MANAGEMENT INFORMATION SYSTEM)

Q-1. What is system boundary?

Ans. A system is a group of interacting or interrelated entities that form a unified whole.A
system is delineated by its spatial and temporal boundaries, surrounded and influenced by
its environment, described by its structure and purpose and expressed in its functioning.
Systems are the subjects of study of systems theory.
Environment and boundaries
Systems theory views the world as a complex system of interconnected parts. One scopes a
system by defining its boundary; this means choosing which entities are inside the system and
which are outside—part of the environment. One can make simplified representations (models)
of the system in order to understand it and to predict or impact its future behavior. These
models may define the structure and behavior of the system.
Natural and human-made systems
There are natural and human-made (designed) systems. Natural systems may not have an
apparent objective but their behavior can be interpreted as purposeful by an observer. Human-
made systems are made with variable purposes that are achieved by some action performed by
or with the system. The parts of a system must be related; they must be "designed to work as a
coherent entity" — otherwise they would be two or more distinct systems.
Open systems have input and output flows, representing exchanges of matter, energy or
information with their surroundings.
Theoretical framework
Most systems are open systems, exchanging matter and energy with its surroundings; like a car,
a coffeemaker, or Earth. A closed system exchanges energy, but not matter, with its
environment; like a computer or the project Biosphere 2. An isolated system exchanges neither
matter nor energy with its environment. A theoretical example of such system is the Universe.
Process and transformation process
An open system can also be viewed as a bounded transformation process, that is, a black box
that is a process or collection of processes that transforms inputs into outputs. Inputs are
consumed; outputs are produced. The concept of input and output here is very broad. For
example, an output of a passenger ship is the movement of people from departure to
destination.
System model
A system comprises multiple views. Man-made systems may have such views as concept,
analysis, design, implementation, deployment, structure, behavior, input data, and output data
views. A system model is required to describe and represent all these views.
Systems architecture
A systems architecture, using one single integrated model for the description of multiple views,
is a kind of system model.
Subsystem
A subsystem is a set of elements, which is a system itself, and a component of a larger system.
The IBM Mainframe Job Entry Subsystem family (JES1, JES2, JES3, and their HASP/ASP
predecessors) are examples. The main elements they have in common are the components that
handle input, scheduling, spooling and output; they also have the ability to interact with local
and remote operators.
A subsystem description is a system object that contains information defining the
characteristics of an operating environment controlled by the system. The Data tests are
performed to verify the correctness of the individual subsystem configuration data (e.g. MA
Length, Static Speed Profile, …) and they are related to a single subsystem in order to test its
Specific Application (SA)
Q-2. How does the internet facilities the integrating systems?
Ans. System integration is defined in engineering as the process of bringing together the
component sub-systems into one system (an aggregation of subsystems cooperating so that the
system is able to deliver the overarching functionality) and ensuring that the subsystems
function together as a system, and in information technology as the process of linking together
different computing systems and software applications physically or functionally, to act as a
coordinated whole.
The system integrator integrates discrete systems utilizing a variety of techniques such as
computer networking, enterprise application integration, business process management or
manual programming.
System integration involves integrating existing, often disparate systems in such a way "that
focuses on increasing value to the customer" (e.g., improved product quality and performance)
while at the same time providing value to the company (e.g., reducing operational costs and
improving response time). In the modern world connected by Internet, the role of system
integration engineers is important: more and more systems are designed to connect, both
within the system under construction and to systems that are already deployed.

Methods of integration
Vertical integration (as opposed to "horizontal integration") is the process of integrating
subsystems according to their functionality by creating functional entities also referred to as
silos. The benefit of this method is that the integration is performed quickly and involves only
the necessary vendors, therefore, this method is cheaper in the short term. On the other hand,
cost-of-ownership can be substantially higher than seen in other methods, since in case of new
or enhanced functionality, the only possible way to implement (scale the system) would be by
implementing another silo. Reusing subsystems to create another functionality is not possible.
Star integration, also known as spaghetti integration, is a process of systems integration where
each system is interconnected to each of the remaining subsystems. When observed from the
perspective of the subsystem which is being integrated, the connections are reminiscent of a
star, but when the overall diagram of the system is presented, the connections look like
spaghetti, hence the name of this method. The cost varies because of the interfaces that
subsystems are exporting. In a case where the subsystems are exporting heterogeneous or
proprietary interfaces, the integration cost can substantially rise. Time and costs needed to
integrate the systems increase exponentially when adding additional subsystems. From the
feature perspective, this method often seems preferable, due to the extreme flexibility of the
reuse of functionality.
Horizontal integration or Enterprise Service Bus (ESB) is an integration method in which a
specialized subsystem is dedicated to communication between other subsystems. This allows
cutting the number of connections (interfaces) to only one per subsystem which will connect
directly to the ESB. The ESB is capable of translating the interface into another interface. This
allows cutting the costs of integration and provides extreme flexibility. With systems integrated
using this method, it is possible to completely replace one subsystem with another subsystem
which provides similar functionality but exports different interfaces, all this completely
transparent for the rest of the subsystems. The only action required is to implement the new
interface between the ESB and the new subsystem.
The horizontal scheme can be misleading, however, if it is thought that the cost of intermediate
data transformation or the cost of shifting responsibility over business logic can be avoided.
A common data format is an integration method to avoid every adapter having to convert data
to/from every other applications' formats, Enterprise application integration (EAI) systems
usually stipulate an application-independent (or common) data format. The EAI system usually
provides a data transformation service as well to help convert between application-specific and
common formats. This is done in two steps: the adapter converts information from the
application's format to the bus's common format. Then, semantic transformations are applied
on this (converting zip codes to city names, splitting/merging objects from one application into
objects in the other applications, and so on).
Q-3. Define inventory control?
Ans. Inventory control or stock control can be broadly defined as "the activity of checking a
shop’s stock." However, a more focused definition takes into account the more science-based,
methodical practice of not only verifying a business' inventory but also focusing on the many
related facets of inventory management (such as forecasting future demand) "within an
organization to meet the demand placed upon that business economically. “Other facets of
inventory control include supply chain management, production control, financial flexibility,
and customer satisfaction. At the root of inventory control, however, is the inventory control
problem, which involves determining when to order, how much to order, and the logistics
(where) of those decisions.
An extension of inventory control is the inventory control system. This may come in the form of
a technological system and its programmed software used for managing various aspects of
inventory problems, or it may refer to a methodology (which may include the use of
technological barriers) for handling loss prevention in a business.
Inventory control systems
Wireless barcoder reader with docking station
An inventory control system is used to keep inventories in a desired state while continuing to
adequately supply customers, and its success depends on maintaining clear records on a
periodic or perpetual basis.
Inventory management software often plays an important role in the modern inventory control
system, providing timely and accurate analytical, optimization, and forecasting techniques for
complex inventory management problems. Typical features of this type of software include:
inventory tracking and forecasting tools that use selectable algorithms and review cycles to
identify anomalies and other areas of concern
inventory optimization
purchase and replenishment tools that include automated and manual replenishment
components, inventory calculations, and lot size optimization
lead time variability management
safety stock calculation and forecasting
inventory cost management
shelf-life and slow-mover logic
multiple location support
Mobile/Moving Inventory Support
Through this functionality, a business may better detail what has sold, how quickly, and at what
price, for example. Reports could be used to predict when to stock up on extra products around
a holiday or to make decisions about special offers, discontinuing products, and so on.
Inventory control techniques often rely upon barcodes and radio-frequency identification
(RFID) tags to provide automatic identification of inventory objects—including but not limited
to merchandise, consumables, fixed assets, circulating tools, library books, and capital
equipment—which in turn can be processed with inventory management software. A new
trend in inventory management is to label inventory and assets with a QR Code, which can then
be read with smart-phones to keep track of inventory count and movement. These new
systems are especially useful for field service operations, where an employee needs to record
inventory transaction or look up inventory stock in the field, away from the computers and
hand-held scanners.
Advantages and disadvantages
Inventory control systems have advantages and disadvantages, based on what style of system is
being run. A purely periodic (physical) inventory control system takes "an actual physical count
and valuation of all inventory on hand ... at the close of an accounting period," whereas a
perpetual inventory control system takes an initial count of an entire inventory and then closely
monitors any additions and deletions as they occur. Various advantages and disadvantages, in
comparison, include:
1. Periodic is technically the more accurate as it considers both counted and valued inventory.
2. Periodic is more time-consuming than perpetual.
3. Perpetual can lower the cost of carrying inventory vs. periodic.
4. Perpetual is typically more costly to run than periodic.
5. Perpetual needs to be verified from time to time against an actual physical count, due to
scrap, human error, theft, and other variables.
Q-4. What is TPS?
Ans. Transaction Processing System
Consider for a moment all the events that take place on a daily basis in an organization. Let's
take an electronics store as an example. A single store can easily carry 10,000 different items.
Throughout the day, customers come into the store, select a product and pay for it at the
checkout counter. Staff is continuously taking items from the stock room and placing them on
the shelves. When the stock runs low, new shipments are ordered. Other customers come in to
exchange items and deal with warranty issues.
All of these events are referred to as transactions, and keeping track of them requires a
transaction processing system. A transaction processing system, or TPS, is a system to capture
and process the detailed information necessary to update data on the fundamental operations
of an organization.
A transaction is essentially a single event that changes something. There are many different
types of transactions. For example, customer orders, receipts, invoices, payments, etc. The
actual processing of transactions includes the collection, editing, manipulation and storage of
data. The result of processing a transaction is that the records of an organization are updated to
reflect the new conditions at the time of the last processed transaction.
Consider the example of the electronics store. A customer buys a video game and pays for it
with cash at the register. This event is recorded as a sale transaction. However, it also triggers
other transactions.
First, the amount of cash at the register has just gone up. Second, the inventory of the particular
video game has gone down by one. These transactions are logically linked - they occur on the
same day at the same time and involve the same item. Linking the transactions provides
improved data consistency since one cannot exist without the other. The amount of cash in the
register cannot go up unless some transaction makes this happen.
There are many different types of transaction processing systems, such as payroll, inventory
control, order entry, accounts payable, accounts receivable and others. Transaction processing
produces valuable input into many other systems in an organization, such as management
information systems and decision support systems. A TPS serves as the foundation for these
other systems. A TPS tracks routine operations but does not provide much support for decision
making.
For example, in the case of a bank account, a TPS keeps track of all the events associated with a
single account: deposits, withdrawals, transfers, fees, interest paid, etc. This provides a good
description of the account activity.
Now let's say the customer comes into the bank and requests a car loan. The account activity is
useful information but not enough for the bank to make a decision on the car loan. This
requires combining information from different sources and analyzing the financial profile of
the customer.
Q-5. Briefly write the benefits of ESS with relevant examples?
Ans. An Executive information system (EIS), also known as an Executive support system
(ESS),[1] is a type of management support system that facilitates and supports senior executive
information and decision-making needs. It provides easy access to internal and external
information relevant to organizational goals. It is commonly considered a specialized form of
decision support system (DSS).[2]
EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong reporting
and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level
executives analyze, compare, and highlight trends in important variables so that they can
monitor performance and identify opportunities and problems. EIS and data warehousing
technologies are converging in the marketplace.
In recent years, the term EIS has lost popularity in favor of business intelligence (with the sub
areas of reporting, analytics, and digital dashboards).

EIS components can typically be classified as:

1. Hardware
2. Software
3. User interface
4. Telecommunications
Hardware
When talking about computer hardware for an EIS environment, we should focus on the
hardware that meets the executive's need. The executive must be put first and the executive's
needs must be defined before the hardware can be selected. The basic hardware needed for a
typical EIS includes four components:
Input data-entry devices. These devices allow the executive to enter, verify, and update data
immediately
The central processing unit (CPU), which is the most important because it controls the other
computer system components
Data storage files. The executive can use this part to save useful business information, and this
part also helps the executive to search historical business information easilyOutput devices,
which provide a visual or permanent record for the executive to save or read. This device refers
to the visual output device such as monitor or printerIn addition, with the advent of local area
networks (LAN), several EIS products for networked workstations became available. These
systems require less support and less expensive computer hardware. They also increase EIS
information access to more company users.
Software
Choosing the appropriate software is vital to an effective EIS.[citation needed] Therefore, the
software components and how they integrate the data into one system are important. A typical
EIS includes four software components:
Text-handling software—documents are typically text-based
Database—heterogeneous databases on a range of vendor-specific and open computer
platforms help executives access both internal and external data
Graphic base—graphics can turn volumes of text and statistics into visual information for
executives. Typical graphic types are: time series charts, scatter diagrams, maps, motion
graphics, sequence charts, and comparison-oriented graphs (i.e., bar charts)
Model base—EIS models contain routine and special statistical, financial, and other quantitative
analysis
User interface
An EIS must be efficient to retrieve relevant data for decision makers, so the user interface is
very important. Several types of interfaces can be available to the EIS structure, such as
scheduled reports, questions/answers, menu driven, command language, natural language, and
input/output.
Telecommunication
As decentralizing is becoming the current trend in companies, telecommunications will play a
pivotal role in networked information systems. Transmitting data from one place to another has
become crucial for establishing a reliable network. In addition, telecommunications within an
EIS can accelerate the need for access to distributed data. It can be both by scientific and
business means.

Advantages and disadvantages-

Advantages of EIS:
Easy for upper-level executives to use, extensive computer experience is not required in
operations
Provides strong drill-down capabilities to better analyze the given information.
Information that is provided is better understood
EIS provides timely delivery of information. Management can make decisions promptly.
Improves tracking information
Offers efficiency to decision makers
Disadvantages of EIS:
System dependent
Limited functionality, by design
Information overload for some managers
Benefits hard to quantify
High implementation costs
System may become slow, large, and hard to manage
Need good internal processes for data management
May lead to less reliable and less secure data
Excessive cost for small company