Management Information System Question Bank 1
Management Information System Question Bank 1
Subject with Code : Management Information System (18MB712) Course & Branch: MBA
Year & Sem: I-MBA & II-Sem Regulation: R18
UNIT-I
Introduction to MIS
UNIT-II
Structure of MIS
1. What is called structure of MIS? Discuss?
2. What are the Basic structural concepts?
3. Write down the differences between public and private information system?
4. What is MIS Office automation?
5. Describe the functionality of Decision Support System?
6. How Knowledge Work Systems works?
7. Artificial Intelligence menace what? Explain with definition?
8. A. What is Formal information? Example?
B. What is Informal information? Example
9. What is called Group Decision Support Systems (GDSS)?
UNIT-V
Enterprise Resource Planning
1. Explain CRM system?
2. Differentiate between EPR and Conventional package?
3. What are the objectives of ERP?
4. What is ERP? Explain?
5. What is the relation between MIS & Enterprise Resource Planning?
6. What is need of maintenance in MIS?
Management Information System Page 2
QUESTION BANK 2019
This might sound hard to believe, but a bit more than a decade ago, Apple was on the brink of bankruptcy.
Apple Computer Inc., now back from near oblivion, is blazing a trail through the digital world with innovation
and creativity that has been missing from the company for the past 20 years. The unique feature of Apple‘s
competitive advantages is that they come from customers and users, not Apple employees. That‘s right; the
company welcomes products created by consumers to sell to consumers, a trend new to business.
With millions of iPods in the hands of consumers, many people are finding ways to capitalize on the product.
John Lin created a prototype of a remote control for the iPod and took his prototype to Macworld, where he
found success. A few months later, Lin‘s company had Apple‘s blessing and a commitment for shelf space in its
retail stores. ―This is how Apple supports the iPod economy,‖ Lin said. In the iPod-dominated market, hundreds
of companies have been inspired to develop more than 500 accessories—everything from rechargers for the car
to $1,500 Fendi bags.
Eric Tong, vice president at Belkin, a cable and peripheral manufacturer, believes that 75 percent of all iPod
owners purchase at least one accessory—selling over 30 million accessories to date. With most of the products
priced between $10 and $200, that puts the iPod economy well over $300 million and perhaps as high as $6
billion. Popular iPod accessories include:
Apple—socks set in six colors: green, purple, blue, orange, pink, and gray ($29).
Looking at someone using an iPhone is an interesting experience because there is a good chance they are not
making a phone call. They could be doing a number of things from playing a game to trading stocks, watching a
TV show, or even conducting business with a mobile version of salesforce.com ‘s customer-management
software. In a brilliant strategic move, Apple let outsiders offer software for the iPhone and in less than six
months, more than 10,000 applications had been created. In fact, more than 15,000 applications are available at
its app store section of iTunes, and they have been downloaded a total of 500 million times. Now, many of the
iPhone apps are available for the iPad. The iPhone and iPad app store market is getting so huge relative to other
smartphone markets that some developers argue there is little point adapting applications for Google‘s Android
or any other iPhone competitor. According to Jeff Holden, CEO of Pelago Inc., when he created his social
networking company he fully intended to follow the conventional wisdom for how to build a sizable, fast-
growing software company: Get your programs on as many platforms and devices as possible. But when he
crunched the numbers he came to an interesting business conclusion: The 13 million iPhone owners had already
downloaded more applications than the 1.1 billion other cell phone owners! To entrepreneurs, developing a
program for the iPhone automatically provides a significantly larger market—almost 94 times larger than its
competitors. ―Why would I ever build for anything but the iPhone?‖ Holden asked
Questions:
1) Why are data, information, business intelligence, and knowledge important to Apple? Give an example of
each type in relation to the iPad.
2) Explain how Apple achieved business success through the use of information, information technology, and
people.
3) Evaluate how Apple can gain business intelligence through the implementation of a customer relationship
management system.
With the advent of science and technology, technological innovations have become a pre-requisite to achieve
operational and strategic excellence. Organizations by using state-of-the-art systems, are striving for their best to
achieve sustainable and long-term competitive advantage. It has become sine qua non to use modern tools for
the effective achievement of goals and objectives. Its importance can also be observed from the increased
spending on Research & Development in order to pace up with the todays dynamic business environment. Wal-
Mart, founded by Sam Walton in 1962, is the world's largest retailer that employs about 2.1 million associates
worldwide, in more than 8,400 stores, including 8, discount stores, 3,100 combination discount and grocery
stores.
Wal-Mart is serving its customers and members more than 200 million times per week at more than 8,613 retail
units under 55 different banners in 15 countries. Wal-Mart has ranked first among retailers in Fortune
Magazine's 2010 Most Admired Companies survey with fiscal year 2010 sales of $405 billion. Sam Walton's
belief was to build an empire by providing value to its customers and empowering employees, also known as
associates. The way the Wal-Mart operates is so fascinating and impressive that Jack Welch, CEO of General
Electric once said: "Many of our management teams spent time there observing the speed, the bias for action, the
utter customer fixation that drives Wal-Mart." The use of high-tech Information technology has always been an
essential ingredient for WalMart's growth. Since its inception, it has used the IT systems well enough for the
Inventory, administrative, customers and suppliers management.
Wal-Mart's investment in technology started with the computerized accounting systems and since then the
continuous adoption of latest technologies has made Wal-Mart a market leader in the whole retail industry. Wal-
Mart developed a well-equipped computerized Point of Sale (POS) system capable of identifying each unit sold,
creation of accurate sales receipt and storing all the information itemby-item for sales analysis and inventory
reordering purposes. It helped company to avoid overstocking of merchandize through effective information
usage and also assisted them in investing in only those merchandize that were profitable. It has also helped them
figure out best selling products and prospective products that customers want. Analysts say that it is Wal-Mart's
Management Information System Page 4
QUESTION BANK 2019
Point of Sale system that has helped them achieve the world's largest market share and revenues in retail
industry. Wal-Mart, in 2004, was the first in retail industry to adopt electronic radio frequency identification
(RFID) tags for inventory distribution management. RFID technology, which is still being used, helps them keep
track of inventory movement across its supply chain. Wal-Mart was trailing KMart in 1980's but with the
adoption of latest technologies, it has now become the trend setter in retail industry all over the world. Wal-Mart
is currently working on a project to make best out of wireless technology. In near future, they have plans to
develop a remote system that would allow customers to just walk into their store and use their own devices
(Phones or PDA's) to get whatever they want. i.e. they might go online to their website, while at the store, and
find things for themselves or just compare the products' prices etc.
Customer service, best shopping environment and experience, one-stop shopping, best value products, customer
convenience of online shopping, good customer relations are the blessings that Wal-Mart provides using cutting-
edge technology. Latest wireless system at their stores, online web-retailing, vast width and hierarchy of product
items, and stores at multiple remote sites are the benefits customers of Wal-Mart cherish. Wal-Mart is
considered to be a trend setter in retail industry and it's all due to its inclination towards achieving impossible
through modern technology. For example, Wal-Mart once tried to develop three experimental stores in
McKinney, Aurora and Las Vegas that were equipped with latest technologies or concepts like wind turbines,
photovoltaic solar panels, bio-fuel-capable boilers and water-cooled refrigerators. Irrespective of the criticism it
had on environmental issues, Wal-Mart's initiative was considered to be a positive step towards change and
innovation and it provided them with an opportunity to become the biggest seller of organic milk and the biggest
buyer of organic cotton in the world, as well as reducing packaging and energy costs. It has been quoted in
2006's annual report of Wal-Mart that in order to compete against upscale and appealing store, such as 'Target',
they have launched a new Supercenter concept in Plano, Texas. The new store had wood floors, wider aisles, a
sushi bar, a coffee shop with free Wi-Fi Internet access, and more expensive beers, wines and other electronics
goods.
By using advance forecasting techniques and integrating different technologies, Wal-Mart is planning to deploy
simulation software that would help them simulate business events that are yet to happen.
Wal-Mart has got a strategic plan of introducing a concept of self-service. Self-service technology,
aimed at eliminating paper and paper forms, will be provided to their associates, prospective
associates, customers and members. It was said by Kevin Turner, CEO of Wal-Mart's subsidiary
corporation, in his interview with 'CIO' personnel that "having an associate portal and devices on
our sales floors will let customers and members get product information, and let us do computerassisted selling".
Wal-Mart has been outstanding in its investments in Information technology from all prospects.
IT systems at Wal-Mart allow them to reduce transactional as well as operational costs at their
distribution centers and it has also helped them to support Wal-Mart's long-term strategy of owning
the distribution centers and maintaining long-term relationships with their suppliers. Also,
improvement in productivity due to IT systems is dramatic at Wal-Mart. It has helped them offer
products at such a nominal cost that a small town merchant is unable to provide and this is
remarkable achievement of Wal-Mart. It has become a sustainable competitive advantage for them
over their competitors and a reason of their growth and profitability. We are aware of a fact that
every benefit is accompanied with some problem but Wal-Mart has successfully defied its
weaknesses and have used its strength well to take advantage from the prospective opportunities
and avoiding possible threats
Questions:
1) How IT and IS may be used to help the company operate and achieve its objective
2) Discuss the challenges faced by the CIO - which are the most important and why?
3) What role does information technology play in the business? How is it helping Walmart refine its
business strategies?
4) Summarize the main purposes of information systems in organizations
Case Study: 3
A new on-line teller system design for a medium size bank was approved by the president, signaling
the beginning of implementation. The project leader devised a master plan to specify who is to perform
each task and in what order. New deposit slips and withdrawers were ordered and delivered three
weeks before implementation. In the interim, copies of the user manual were prepared for the lobby
and drive-in-tellers. Soon after the terminals were installed, the tellers begin to learn how to enter
various transactions. After training sessions were over, they had a chance to ask questions and enquire
about the new system. Once completed, the telephone company and the computer service
representative hooked up the terminal on-line with the master system.
The following Monday (a week before actual conversion), the analyst asked the head teller whether
the tellers would come in on Saturday to catch up on their work and run test data to reinforce recent
training. The head teller agreed to overtime, but on Saturday, only 12 of 17 tellers showed up. During
that time, the entire system was checked out and functioned as expected.
The bank opened the following Monday, the online system operated normally. Customers were
greeted at the door by the president. Coffee and cake were served in the lobby. At the end of the day,
the analyst sent a report to the board directors informing them that the system was now in operation
and all user requirements had been met.
Three weeks later the analyst was called to the board meeting. The chairman criticized the analyst for
exceeding the budgeted amount approved by the board. Furthermore the authorization the analyst gave
the terminal vendor to bring in two CRT screens to expedite information retrieval exceeded his
authority to implement the system. The bank‘s auditor also estimated that it would take 3.8 years rather
than the initial estimate of 2.1 years to break even on the total cost of the installation. Not knowing
what to say, the analyst left the board room with a feeling of total failure.
(a) What are the major problems in the case? Who is to blame? Why?
(b) Was the board chairman justified in his criticism of the analyst? Explain.
Case Summary:
A waiter takes an order at a table, and then enters it online via one of the six terminals located in the
restaurant dining room. The order is routed to a printer in the appropriate preparation area: the cold
item printer if it is a salad, the hot-item printer if it is a hot sandwich or the bar printer if it is a drink. A
customer‘s meal check-listing (bill) the items ordered and the respective prices are automatically
generated. This ordering system eliminates the old three-carbon-copy guest check system as well as
any problems caused by a waiter‘s handwriting. When the kitchen runs out of a food item, the cooks
send out an ‗out of stock‘ message, which will be displayed on the dining room terminals when waiters
try to order that item. This gives the waiters faster feedback, enabling them to give better service to the
customers. Other system features aid management in the planning and control of their restaurant
business. The system provides up-to-the-minute information on the food items ordered and breaks out
percentages showing sales of each item versus total sales. This helps management plan menus
according to customers‘ tastes. The system also compares the weekly sales totals versus food costs,
allowing planning for tighter cost controls. In addition, whenever an order is voided, the reasons for the
void are keyed in. This may help later in management decisions, especially if the voids consistently
related to food or service. Acceptance of the system by the users is exceptionally high since the waiters
and waitresses were involved in the selection and design process. All potential users were asked to give
their impressions and ideas about the various systems available before one was chosen.
Questions:
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?
2. What would make the system a more complete MIS rather than just doing transaction
processing?
3. Explain the probable effects that making the system more formal would have on the customers
and the management.
MBA Semester – 2
Module 1
1. Define Information System. What are the main dimensions of Information System?
2. What are the strategic business objectives of Information system?
3. Differentiate between Data & Information & write attributes of information.
4. Explain the behavioral and economic impact of information system on organization.
5. Discuss the various job opportunities in the field of IT.
6. Using Michael Porter’s 5 forces model describe how business can use information system to
apply competitive strategies.
Module 2
Module 3
Module 4
1. Explain in detail computer crime & hacking as the biggest issue to the information system.
2. What are the security measures that a company can use to manage their security?
3. What are the key digital networking technologies? Explain in detail.
4. Define ERP system. Discuss its importance and limitation.
5. Piracy & Privacy are the biggest issues created by the information technology – Justify.
6. Write a note on: (a) Intranet (b) Extranet (c) Customer relationship management system
(d) Supply chain management system (e) E-commerce
MCQ on Management Information System. Answer Key
4. system design
5. feasibility analysis
6 If a university sets up a web-based information system that faculty could access to record
student grades and to advise students, that would be an example of a/an
1. CRM
2. intranet
3. ERP
4. extranet
5. none of the above
7 Which of the following is not a technology driver for an information system?
1. enterprise applications
2. object technologies
3. knowledge asset management
4. collaborative technologies
5. networks and the Internet
8 Which of the following is a deliverable of the system implementation phase in a formal
system development process?
1. technical hardware and software solution for the business problem
2. business problem statement
3. statement of the system users’ business requirements
4. technical blueprint and specifications for a solution that fulfills the business requirements
5. none of the above
9 An information system that supports the planning and assessment needs of executive
management is
1. DSS
2. TPS
3. ERP
4. MIS
5. none of the above
10 Decision makers who are concerned with tactical (short-term) operational problems and
decision making are
1. middle managers
2. executive managers
3. supervisors
4. mobile managers
5. none of the above
11 The application of information to scan an organisation’s environment is:
1. external communication.
2. information overload.
3. sensing.
4. internal communication.
5. none of the above.
12When a bank uses information to launch a personalised credit card product this:
1. manages risks.
2. creates a new opportunity.
3. adds value.
4. reduces costs.
5. none of the above.
13 When a bank uses business performance management software to monitor its performance in
differences regions this:
1. reduces costs.
2. manages risks.
3. adds value.
4. creates a new opportunity.
5. none of the above.
14 When a bank offers web self-service for customers to answer their questions, the primary
outcome is:
1. adds value.
2. manages risks.
3. reduces costs.
4. creates a new opportunity.
5. none of the above.
15 The general transformation cycle for information is:
1. information to data to knowledge.
2. knowledge to data to information.
3. data to knowledge to information.
4. data to information to knowledge.
5. none of the above.
16 The most important attribute of information quality that a manager requires is:
1. relevance.
2. media.
3. presentation.
4. timeliness.
5. none of the above.
17 To improve the performance of a business process, which of the following is most relevant?
1. Input.
2. Processing.
3. All of the above.
4. Control and feedback
5. Output.
18 Monitoring the legal constraints which a company operates under requires review of:
1. a company’s customers.
2. a company’s outputs.
3. a company’s macro-environment.
4. a company’s micro-environment.
5. all of the above.
19 The majority of publically available Internet information sources are:
1. created in XML.
2. structured information.
3. normal information.
4. unstructured information.
5. none of the above.
20 Records management:
1. is a discipline limited to digitised paper documents.
2. is a discipline limited to library books.
3. is a discipline limited to paper documents.
4. is a discipline limited to information contained in databases.
5. none of the above.
1. data
2. Objects
3. Entities
4. Actors
30 Which of the following is part of a static view of information?
1. Logical data model
2. Meta data
3. Data flow model
4. Information process model
31Contemporary Information Systems are interfacing with customers and suppliers using :
1. BPR
2. CRM
3. SCM
4. Both A and B
5. Both B and C
32 Information systems that support the business functions that reach out to suppliers are known
as:
1. back office information systems
2. decision support systems
3. expert information systems
4. front office information systems
5. none of the above
33 Which of the following is not a class of information system applications?
1. database management system
2. decision support system
3. expert system
4. management information system
5. office automation system
34 Who are the people that actually use the system to perform or support the work to be
completed?
1. system analysts
2. system designers
3. system owners
4. system builders
5. none of the above
35 Which is not a typical business function?
1. Sales
2. Service
3. Manufacturing
4. Accounting
5. Benefits and Compensation
36 The flow of transactions through business processes to ensure appropriate checks and
approvals are implemented is called:
1. procedures
2. work flow
3. process flow
4. process requirements
5. procedures
37 Language-based, machine-readable representations of what a software process is supposed to
do, or how a software process is supposed to accomplish its task is known as:
1. prototyping
2. software specifications
3. application programs
4. human engineering
5. none of the above
38 A specification of how the user moves from window to window, interacting with the
application programs to perform useful work is called:
1. interface specifications
2. software specifications
3. user dialog
4. prototyping specifications
5. navigation specification
39 Examples of keyless interfaces include:
1. bar coding, OCR, pen, and voice recognition
2. mouse, OCR, pen, and voice recognition
3. keyboard, OCR, pen, and voice recognition
4. all of the above
5. none of the above
40 Open database connectivity (OBDC) tools are an example of:
1. layerware
2. tool kit
3. interfaceware
4. middleware
5. none of the above
2. summary
3. external
4. exception
5. none of the above
92 A list of the names of all customers who purchased only one product within a six-month
period would be an example of a(n):
1. detailed report
2. summary report
3. exception report
4. external report
5. none of the above
93 A listing of the names and addresses of all the employees for an organization would be an
example of a(n):
1. detailed report
2. summary report
3. external report
4. exception report
5. none of the above
94 The most common medium for computer outputs is:
1. screen
2. paper
3. e-mail
4. microfilm
5. none of the above
95 Which of the following reports categorizes information for managers who are not interested
to wade through the details?
1. external
2. detailed
3. exception
4. supplemental
5. none of the above
96 A turnaround output is an example of
1. internal output
2. external output
3. summary output
4. exception output
5. none of the above
97 A count of the number of students who earned A, B, C, D, and F grades in a given course
would be an example of a(n):
1. external report
2. summary report
3. detailed report
4. exception report
5. none of the above
98 Which kind of chart is useful for comparing series or categories of data, each in its own bar?
1. line chart
2. pie chart
3. scatter char
4. bar chart
5. none of the above
99 Which of the following is NOT a general principle for output design?
1. The distribution of (or access to) computer outputs must be sufficient to assist all relevant
users.
2. The computer outputs should be designed with automated tools.
3. The computer outputs must be acceptable to the system users.
4. Computer outputs should be simple to read and interpret.
5. The timing of computer outputs is important. Output information must reach recipients
while the information is pertinent to transactions or decisions.
100 Which of the following is(are) the step(s) in the output design process?
1. specify physical output requirements
2. identify system outputs and review logical requirements
3. design, validate, and test outputs
4. design any preprinted forms
5. all of the above
MANAGEMENT INFORMATION SYSTEMS
UNIT-1
Section-A
DEFINITION:
MEANING:
Management:
Management is the art of getting things done through and with the people in formally
organised groups.
Managerial function:
Planning
Organising
Staffing
Directing and
Controlling
Management hierarchy:
strategic
management(top
management)
management
control(middle
management)
operational control(bottom
management)
Information:
Information is data that is processed and is presented in a form which assists decision-
making.it may contain an element of surprise, reduce uncertainty or provoke a manager to
initiate an action.
Data usually take the form of historical records. In contrast to information, raw data
may not be able to surprise us, may not be organised and may not add anything to our
knowledge.
DATA-------→PROCESSING-------→INFORMATION
System:
The term system is the most loosely held term in management literature because of its
use in different contexts. However, a system may be defined as a set of elements which are
joined together to achieve a common objective. The elements are interrelated and
interdependent.
The set of elements for a system may be understood us input, process and output. A
system has one are multiple inputs; these inputs are processed through a transformation
process to convert these input into outputs. The three elements of a system are
INPUT------→PROCESS--------→OUTPUT
2. What are the various functions of information systems?
One of the mostly widely used bases for organising activities in almost every
organisation is the business function. Business activities are grouped around functions
such as production, marketing, finance and personnel etc... Resulting in the respective
department or an area of the business organisation. These departments or functional areas
are commonly known as the functional areas of business.
Production
Marketing
Finance and accounting
Materials and
Personnel systems
Production:
Marketing:
Sales order
Forecasting
Sales analysis
Billing
Distribution
Stock availability
Sales quota control
Pricing
Product promotion
Finance and accounting:
Financial planning
Budgeting
Cost accounting
Asset accounting
Accounts receivable
Payroll
Accounts payable, etc...
Materials:
Material planning
Bill of material
Cost estimate
Warehousing planning etc...
Personnel:
Employee recruitment
Employee selection
Employee development
Employee transfers
Employee retirements etc...
3. Discuss about information system resources.
Section-B
MIS is an information system which process data and converts it into information.
A MIS 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.
Marketing
Production
Human resources
Finance
Accounting etc...
TPS------→DATA------→INPUT------→PROCESSING-------→OUTPUT-----
---→INFORMATION
The Decision support system (DSS) is an information system application that assist
decision making. Decision support systems tend to be designed primarily to serve
management control level and strategic planning level managers.
↘user interface ↙
User
These systems include a wide range of support facilities, which include word
processing, electronic filing, electronic mail, message switching, data storage, data and voice
communication etc...
Typing
Mailing
Scheduling of meetings and conferences
Calendar keeping and
Retrieving documents
In the secondary category,
Conferencing
Production of information
Controlling performance
Business expert system (BES) is a knowledge based information system that uses its
knowledge about a specific, complex application area to act as an expert. This system is
one of the knowledge based information system.
Expert system provides decision support to managers in the form of advice from an
expert in a specific problem area. Expert systems find application in diverse areas,
ranging from medical, engineering and business.
↘user interface ↙
Every legitimate solution will have some advantages is benefits and some
disadvantages or costs. These advantages and disadvantages are identified when each
alternative solution is evaluated. This process is typically called cost/benefit analysis.
Once all alternative solutions have been evaluated the process of selections the best
solution can begin. Alternative solutions can be compared to each other because they have
been evaluated using the same criteria. It is possible that to decide to select the best solution
to the problem.
Implementing a solution:
The final step of the system approach recognized that an implemented solution can
fail to solve the problem for which it was developed. The results of implementing a solution
should be monitored and evaluated. This is called a post implementation review process.
MNC is a firm that operates across products, markets, nations and cultures. It consists
of the parent company and a group of subsidiaries. They are geographically disresed and each
one may have its own unique goals, policies and procedures.
Multinational strategies:
It was a type of “hands off” strategy in which the parent allowed the subsidiaries to
develop their own products and practise. The information flows are primarily from the
subsidiaries to the parent in the form of financial reports.
Global strategy and international strategy is also comes under cost/benefit analysis.
Software resources:
Data resources:
As a consumer you have to deal regularly with the information systems that support
the business processes and operations at the many retail stores where you shop. Example:
most retail stores now use computer based information systems help them record customer
purchase, keep track of inventory, pay employees, buy new merchandise and evaluate sales
trends.
IS also help store managers and other business professionals make better decisions
and attempt to gain a competitive advantage.
Support strategies for competitive advantage:
DIMENSIONS:
Section-A
customer research
market research
competitor intelligence
Competitor’s products.
“ Operating strengths and weaknesses.
“ Customer service level and customer
policies.
“ New product line.
2. Discuss manufacturing information system.
Marketing
Production/operations
Accounting
Finance
Human resource management
Section-B
Transaction processing systems are information system that process data resulting
from the occurrence of business transactions. Transactions are events that occur as part of
doing business such as sales, purchase, deposits, withdrawals, refunds and payments.
For example:
The data generated whenever the business sells something to a customer on credit.
Data about the customer, product, salesperson, and store and so on must be captured and
processed. This in turn causes additional transactions such as credit checks, customer billing,
inventory changes, and increases in accounts receivable balances, which generate even more
data. Thus, transaction processing activities are needed to capture and process such data, or
the operations of a business world grind to a halt. Therefore, transaction processing systems
play a vital role in supporting the operations of an organisation.
Batch processing:
In a batch processing system transaction data is accumulated over a period of time and
processed periodically. Batch processing usually involves.
Conclusion:
A brief description of each of the financial decisions that a financial manager has
to take is given below.
Capital budgeting decision----in this decision funds are allocated to long term asset
which would yield benefits in the future. Example: funds allocated for land, building,
machinery, etc...
Financial decision----the financial manager has to decide about the proportion of
equity and debt capital.
Dividend decision-----this decision relates to the dividend policy of the organisation.
A decision whether the organisation should distribute all profits or retain them or
distribute a portion and retain the balance has to be taken by the financial managers.
Current asset management-----in order to safeguard the org against liquidity or
insolvency current assets of the organisation are also required to be efficiently
managed.
Manpower planning:
Procedures manual
Management accounts / balance sheets
Financial data
Accounting policies
Tax details
Working capital
Types of accounting information system:
Section-A
Data management sub system: Data management sub system includes a database that
contains relevant data for the situation and is managed by software called Database
management system (DBMS).
DSS database
Database management system
Data directory
Query facility
Model management sub system: this is a software packages that includes financial,
statistical, management science or quantitative models that provide the systems analytical
capabilities and appropriate software management
Model
Model base management system
Modelling language
Model directory
Model execution, integration and command processor.
User interface sub system: the user communicates with and commands the DSS through the
sub system. The user is considered part of the system.
Knowledge base management sub system: this sub system can support any of the other sub
systems or act as an independent component.
1. Discuss the role of DSS in business?
The roles of DSS are as follows:
What if analysis: in what if analysis an end user makes changes to variables or
relationships among variables and observes the resulting changes in the values of
other variable.
Goal oriented: it is a process of determining the input values required to achieve a
certain goal.
Risk analysis: risk is important factor which affects the business enterprises. It can be
classified as low, medium and high risk. A DSS is particularly useful in medium risk
and high risk environments.
Model building: DSS allows decision markets to identify the most appropriate model
for solving the problems.
Graphical analysis: this helps managers to quickly digest larger volumes of data and
visualize the impact of various courses of action. They recommend the use of graph
when:
Seeking a quick summary of data.
Forecasting activities
Detecting trends overtime
Composing points and patterns at different variables.
Advantages:
Ability to analyze trends
Augmentation of managers leadership capabilities
Enhanced personal thinking and decision making
Contribution to strategic control flexibility
Ease access to existing information
Instruments of change
Better reporting system
Better understanding of enterprise operations.
Disadvantages:
Functions are limited cannot perform complex calculations.
Hard to quantify benefits and to justify implementation of an
EIS.
Executives may encounter information overload.
System may become slow, large, and hard to manage.
Difficult to keep current data.
May lead to less reliable and insecure data.
Small companies may encounter excessive costs for
implementation.
Section-B
1. What do you mean decision support systems (DSS)? What are the characteristics of
decision support systems?
Meaning:
The term DSS refers to a class of systems, which supports the process of making
decisions. The Emphasis is on “support” rather than on automation of decision. DSS allow
the decision maker to retrieve data and test alternative solutions during the process of
problem solving.
Definition:
According to Scott Morton, “DSS as interactive computer based systems, which help
decision makers utilize data and model to solve unstructured problems”.
Examples of DSS:
Group DSS
Computer support Co-operative work
Logistics systems
Financial planning system
Provide rapid access to information: some DSS provides fast the dashboard of a
car or truck are used to see how the vehicle is running.
Handle large amount of data from different sources: advanced database
management systems and data warehouses have allowed decision makers to search
for information with a DSS even when some data resides in different databases on
different computer systems or network.
Provide report and presentation flexibility: managers can get the information they
want presented in a format that suits their needs. Produce text, tables, line
drawings, pie charts, trend lines, and more.
Support drill down analysis: a manager can get more levels of detail when needed
by drilling down through data.
Perform complex, sophisticated analysis and comparisons using advanced
software packages: marketing research surveys.
Classification of DSS:
File drawer systems: these allow immediate access to data item. They are
basically online mechanized versions of manual filing systems.
Data analysis systems: these allow the manipulation of data by means of either
analysis operations tailored to the task or setting or general analysis operations.
Analysis information systems: these provide access to a series of data base and
small models.
Accounting models: these calculate the consequences of planned actions on the
basis of accounting definitions. They typically generate estimates of income,
balance sheets, etc., based on variation in input values to the definitional
formulas.
Representational models: these estimate the consequences of action on the basis
of models that represents some non-definitional characteristics of the systems
such as probabilities of occurrence.
Optimization models: these provide guidelines for action by generating the
optimal solution consistent with a series of constraints.
Suggestion models: these compute a specific suggested decision for a fairly
structured and repetitive decision.
Steps in constructing a DSS:
Advantages:
Limited storage capability: due to its small memories and limited storage
capabilities, DSS has definite computational constraints.
Slow: it is slow compared to the speed of large mainframes.
Limited information sharing: most DSSs are designed for individual use
but they can be designed so that several computers can be linked for
limited information sharing.
Difficult: it is difficult to know interdependencies of functions provided by
system.
Require extensive knowledge: there are applications that require
extensive knowledge of specific problem domain or technical knowledge.
Translation problems: users have to deal with several databases and
model each with different data models and resulting translation problems.
Confliction: users may have to work on several decision scenarios at same
time. As a consequence they have to keep track of what they done for each
of them.
Meaning:
ESI are information systems that combine many of the features of MIS and DSS. When
they were first developed their focus was on meeting the strategic information needs of top
management. In some cases and EIS also called executive support system.
Definition:
According to Matthews and Shoe Bridge, “EIS is a computer based information delivery
and communication system designed to support the needs of top executives”.
Characteristics of EIS:
Section - A
Differentiate:
Innovate:
Promote growth:
Differentiation strategy:
Innovation strategy:
Finding a new ways of doing business. this may involves the development of
unique products and services or entry into unique markets or market niches.
Alliance strategy:
Lower costs:
Use IT to substantially reduce the cost of business process.
Use IT to lower the costs of customer’s suppliers.
Differentiate:
Innovate:
Section - A
The planning process can be quite difficult and time consuming. That’s what gives
organisations the “we don’t have time to plan” excuse for using a formal planning process. So
vendors have developed CAP tools to help ease the burden of planning.
Integration of the enterprise has emerged as critical issues for organisations in all
business sectors striving to maintain competitive advantage. Integration is the key to success.
it is the key to unlocking information and making it available to any user, anywhere, anytime.
4. Explain about enterprise resource planning (ERP).
Operating system, the equivalent of the windows operating systems for back office
operations. ERP is a cross functional enterprise system that serves as a framework to
integrated and automate many of the business processes that must be accomplished within
the manufacturing, logistics, distribution, accounting finance and human resources functions
of a business. Companies are finding major business values in installing ERP software in two
ways:
IRM has become a popular way to emphasize a major change in the management
and mission of the information systems function in many organisations. managing the
information system resources of an organisation is a vital concepts in today’s business
environment, because of three major developments that are affecting how corporate
management views the information systems function.
Section-B
IRM has become a popular way to emphasize a major change in the management
and mission of the information systems function in many organisations. Managing the
information system resources of an organisation is a vital concept in today’s business
environment, because of three major developments that are affecting how corporate
management views the information systems function.
Resource management
Technology management
Distributed management
Functional management
Strategic management.
Resource management:
IRM views data, information, and computer hardware, software and personnel as
valuable resources that should be effectively and efficiently managed for the benefit of the
entire organisation. If plant and equipment, money, and people are considered valuable
organisational resources so should its data, information, and other information system
resources.
Technology management:
IRM emphasizes that all technologies that process and deliver data and information
must be managed as an integrated system of organisational resources. Such technology
includes telecommunications and office system as well as computer based information
processing. These “island of technology” are bridged by IRM and become a primary
responsibility of the executive in charge of all information services, sometimes called the
chief information officer (CIO) of the organisation.
Functional management:
The IRM concept stresses that the management of an organisation must apply
common managerial functions and techniques to the management of information resources.
Managers must be managerial techniques just as they do with other major resources and
activities of the business.
Strategic management:
Finally the IRM concepts stresses that the information services function in the firm
must be more than a provider of computer services. It must also make major contributes to
the profitability and strategic objectives of the firm. Information resources management
focuses on developing and managing information system that significantly improve
operational efficiency promote innovative products and services and build a strategic
information resources base that can enhance the competitiveness of the organisation.
2. Explain about customer relationship management (CRM).
Meaning:
Definition:
Processes in CRM:
Advantages of CRM:
Disadvantages of CRM:
Record loss
Overhead
Training
Objectives of e-governance:
Domains of e-governance: