MBA- II Year

Maximum Marks : 20

Course Title – Management Information System Course Code : MP-203

Section-A

(Very Short Answer Type Questions)

Note : Answer all four questions. As per the question you delimit your answer in one word, one

sentence or maximum up to 30 words. Each question carries 1 Mark. 4 Q x 1 = 04

Q.1 Explain DBMS system.

A database management system (DBMS) is a software system for creating and managing databases. A DBMS enables
end users to create, protect, read, update and delete data in a database. It also manages security, data integrity and
concurrency for databases.

Q.2 Write down the characteristics of ERP.

The scale, scope, and functionality of ERP systems vary widely, but most ERP systems offer the following
characteristics:

 Enterprise-wide integration. Business processes are integrated end to end across departments and
business units. ...
 Real-time (or near real-time) operations. ...
 A common database. ...
 Consistent look and feel.

Q.3 What do you understand by Information security?

Information security, often referred to as InfoSec, refers to the processes and tools designed and deployed to protect
sensitive business information from modification, disruption, destruction, and inspection.

Q.4 What are the steps of Finance Information System?

Functions of Financial Information System

 Collection of Data: ...

 Monitoring and Controlling the funds: ...
 Analyze Past and Current Activities: ...
 Helps in Decision Making: ...
 Generating Financial Statement: ...
 Recording of Data:

Section-B

(Short Answer Questions)

Note : Answer any 2 questions. Each answer should not exceed 200 words. Each question carries
4 marks. 2 Q x 4 = 08

Q.1 Explain Information System Model.

Elements of Information System Model

The elements of an information system are customers, business processes, product services and
communication technology. Design of an information system is done based on elements of the model.

1. Customers

Every information system has end users or customers. An information system can have internal as well
as external. Customers are beneficiaries of products and services provided by an information system.
Here external customers could be people visiting a website for shopping or e-commerce transaction,
people searching for cooking recipe, searching for tax saving tools, etc.

Internal customer of an information system could be employee receiving salary from payroll system,
employee checking inventory and stock, etc. Sometimes these employees could be the customer for the
product and services, for example, employee working with a computer manufacturer could be customer
of manufactured product.

For a manufacturing organization, production department would be customer for supply department.
Therefore, information system requirements of each department would be different. Information systems
are design to service what is best for external customers. However, information systems should be
flexible enough to support internal requirements also.

2. Products and Services

The result of data transformation is products and services. An information system can generate products
as well as service depending upon industry it is developed for. In clothing industry designer clothes are
produced based customer’s requirement. Here completed garments are product and custom design is a
service. In internet banking, customer can accomplish the entire banking task, without visiting the bank.
Internet banking, therefore, is a service.

An information system can generate various types of services and products based on its design. An
effective information system needs to satisfy customer expectation. An information system should
provide product and service based on customer’s needs and requirements.

3. Business Processes

Business activity consists of various processes. These processes include talking to customer,
understanding her requirements, manufacturing product as per requirement, provide post sales service,
etc. A business process may not be structured all the time and may not be formal. An improvement in
the business process directly impacts business performance. An information system can improve a
business process, by providing relevant information, increasing a step in business process or eliminating
a step in a business process.

4. Communication Technology

Communication technology and computers are the central pieces of an information system model. Their
presence is required to deliver efficient business process and customer delighting products and services.
 Infusion of technology within business creates win-win situations. Technology improves internal
communication via email chat, etc. and improve external communication through website, webinar etc.
Access to valuable information is quicker through information system, and this can provide a
competitive edge in digital age.

Q.2 What are the effects of ERP on various stakeholders of organizations?

Q.3 Write about the Theft of Information and Identity.

Identity theft, as it states, is when someone steals another person’s identity, i.e. personal information such as a social
security number, with the intent to commit fraud, usually for economic gain. Obviously aware that they have stolen
another person’s identity, the offender’s intention is to use it to create new accounts or tamper with existing accounts
under the stolen identity.

All sensitive personal information is at risk, as the person committing the crime will have access to a list of resources
connected to the stolen identity. These resources can then be used to create accounts in industries such as medical,
financial, insurance, gaming and so on.

Whatever an individual might have, that is beneficial to the identity thieves, is up for grabs once an identity has been
stolen.

Identity theft is a major problem worldwide, but specifically in Europe with one in five Europeans having experienced
identity fraud in the last couple of years. Furthermore, living in a more digitized world, identities can be easily stolen
with a new victim of identity theft occurring every two seconds.

Section-C

(Long Answer Questions)

Note : Answer any one question. You have to delimit your each answer maximum up to 800

words. Each question carries 8 marks. 1 Q x 8 = 08

Q.1 Critically explain the Information System model.

An information system (IS) is an interconnected set of components used to collect, store, process and transmit
data and digital information. At its core, it is a collection of hardware, software, data, people and processes that
work together to transform raw data into useful information. An IS supports a variety of business objectives
such as improved customer service or increased efficiency.

People often use the term "information system" interchangeably with "computer system," but these systems are
not the same. While computer systems are part of an IS, they do not encompass all the components and
processes that make up an IS, such as people and processes. "Information technology" (IT) is another similar
term, but IT focuses on the technical aspects of the hardware and software that support enterprise computing.
An IS, on the other hand, focuses on how people use IT and data to manage and make decisions within an
organization.
In addition to decision-making, IS supports knowledge management and communication. IT allows data sharing
to take place between different departments, providing consistent data for analysis by a variety of teams. An IS
supports various business functions such as accounting, finance, marketing, human resources, operations and
supply chain management. It can also enable new business models and opportunities, such as e-commerce,
social media and artificial intelligence (AI).

How does an information system work?

An IS is a powerful tool that can bring many different functions together. By connecting system components, it
enables IT departments to collect, store and process information in an efficient way and distribute it for a
variety of purposes. The system can also produce reporting in different formats and to a variety of devices.
Reports can include text files, spreadsheets, graphics and complex data visualizations. This comprehensive
platform streamlines internal operations and allows businesses to access data quickly and accurately.

The basic process an IS follows includes the following steps:

1. Input. The system collects data and information from various sources, such as sensors, keyboards, scanners or
databases.
2. Processing. The system transforms the raw data into meaningful information by applying various operations,
such as sorting, classifying, calculating, analyzing or synthesizing.
3. Storage. The system stores the processed information in a structured and secure way, such as in a database, a
file system or in cloud storage.
4. Output. The system presents the information to the users in a usable format, such as reports, graphs, charts or
dashboards.
5. Feedback. The system collects feedback from users and other stakeholders to evaluate its performance and
improve its design and functionality.

The effectiveness of an IS depends on its alignment with the organization's goals, reliability, security and
usability.

Typical components of information systems

An IS is composed of a variety of components, from physical hardware to software and data. Each component
serves an important role in the overall functioning of the system.

Hardware for an IS includes computers and servers. Computer hardware is essential for providing users with
access to the system, while servers provide storage space for data, programs and applications that make up the
system.

Networks such as local area networks (LANs), wide area networks (WANs), intranets and cloud networks are
important for interconnecting different components and allowing user access from anywhere in an organization.

Software is an integral part of an IS. Operating systems such as Windows or Linux provide underlying
platforms, while databases allow users to store and retrieve large amounts of data. An enterprise may run on
hundreds of different software applications, as well as large software packages that integrate multiple
applications.

Data is another important component. This includes structured data stored in databases, as well as unstructured
data such as text documents, images or audio files. Users can access this data through various applications
within the system for reporting or analysis purposes.
People play a key role in any IS, from administrators who manage the system itself to users who interact with it
daily. Administrators must understand how to configure hardware and software and troubleshoot issues.
Meanwhile, end users must become familiar with interfaces and learn to perform tasks within the system to get
work done.

Processes governing how components work together within an IS are critical. IT leaders must define procedures
for everything from setting up secure user accounts to creating emergency backup plans. Understanding how all
these pieces fit together is essential for an IS to meet a company's needs effectively.

Types of information systems

Businesses can optimize their operations with five types of IS.

Management information systems (MIS) are computerized systems that collect, store, process and present
data to support management decision-making. For example, an MIS in a hospital may collect data on patient
admissions, treatments and outcomes to help its administrators make decisions about resource allocation and
process improvements.

Knowledge work systems (KWS) are computer-based systems that support knowledge workers, such as
researchers, analysts and consultants, by helping them create reports and presentations. For example, a KWS
used by a marketing team may help create marketing materials, analyze customer data and track marketing
campaigns.

Decision support systems (DSS) and business intelligence (BI) provide users with the ability to explore and
analyze data to gain insights into business performance. For example, a system used by a retail chain may
collect and analyze data on customer demographics, buying behavior and sales performance to guide changes in
inventory management and marketing campaigns.

Transaction processing systems (TPS) support operational processes that produce and consume data. For
example, a TPS used by a bank may process customer transactions, such as deposits and withdrawals, and
maintain account balances.

Executive information systems (EIS), a type of DSS, provide senior executives with access to high-level
information about the organization. EIS provides executives with real-time information and analytical tools to
support strategic decision-making. For example, an EIS intended for a CEO may provide information on the
company's financial performance, market trends and competitive landscape.