Solved Questions from Group A to D

Group A: Brief Answer Questions (2 Marks Each)

1. What is an Information System?
An Information System (IS) is a combination of
hardware, software, data, people, and processes that
work together to collect, process, store, and distribute
information, helping organizations make decisions and
manage operations.
2. Define business process reengineering.
Business Process Reengineering (BPR) is a strategy for
redesigning business processes to improve efficiency,
reduce costs, and enhance productivity by eliminating
redundancies and leveraging technology.
3. What is a competitive advantage?
A competitive advantage is the ability of a business to
outperform its competitors by offering unique value,
such as lower costs, superior products, or innovative
services.
4. What is knowledge management?
Knowledge management is the process of collecting,
organizing, sharing, and analyzing knowledge within an
organization to improve efficiency and decision-making.
5. How does IT impact organizations?
IT improves business efficiency by automating tasks,
enhancing communication, supporting decision-making,
and enabling better data management for strategic
growth.
6. What is the societal importance of information
systems?
Information systems contribute to economic growth,
improve education, enhance healthcare, enable e-
governance, and connect people through digital
communication networks.
7. What is big data?
Big data refers to extremely large and complex datasets
generated from various sources, such as social media,
business transactions, and IoT devices, which require
advanced technologies for analysis.
8. How does big data differ from traditional data?
Big data is characterized by high volume, velocity, and
variety, while traditional data is structured, smaller in
size, and easier to process using conventional database
systems.

9. What is a data mart?

A data mart is a subset of a data warehouse focused on a
specific business function or department, allowing
faster and more efficient access to relevant data for
analysis.
10. How can information technology help in gaining a
competitive advantage?
IT helps businesses gain a competitive advantage by
improving efficiency, reducing costs, enabling
innovation, enhancing customer service, and facilitating
data-driven decision-making.
Group B: Short Answer Questions (5 Marks Each)
1. How can information systems improve organizational
efficiency?
Information systems improve efficiency by automating
repetitive tasks, reducing human errors, and
streamlining operations. For example, Enterprise
Resource Planning (ERP) systems integrate various
departments, ensuring real-time data sharing and
improving workflow. Customer Relationship
Management (CRM) systems enhance customer
interactions, leading to better service and retention.
Additionally, IS enables predictive analytics, helping
organizations optimize resource allocation and
decision-making.

2. How do computer-based information systems

support decision-making?
Computer-based information systems (CBIS) support
decision-making by collecting, processing, and
analyzing vast amounts of data. Decision Support
Systems (DSS) provide insights using data modeling and
simulations. Executive Information Systems (EIS) offer
real-time dashboards for top management, while
Artificial Intelligence (AI) and Business Intelligence (BI)
tools provide predictive analytics. These systems help
managers make informed, data-driven decisions to
improve business performance.
3. How can information systems support business
process management?
Information systems support Business Process
Management (BPM) by automating workflows,
monitoring performance, and optimizing processes.
BPM software helps organizations model, execute, and
improve business activities. For instance, workflow
automation reduces manual effort, and data analytics
provide insights for process improvements. Information
systems also ensure compliance and enhance
communication across departments, leading to
operational excellence.

4. What are the key characteristics of big data?

Big data is defined by the 3Vs:
Volume: Large amounts of data generated daily.
Velocity: High-speed data generation and processing.
Variety: Different types of data, including structured,
semi-structured, and unstructured.
Other important characteristics include Veracity (data
accuracy and reliability) and Value (usefulness of data
in decision-making). Big data analytics helps businesses
identify patterns, improve customer experiences, and
enhance operational efficiency.

5. Describe the role of knowledge management in

organizations.
Knowledge management (KM) enables organizations to
capture, store, and share valuable information. It
enhances employee productivity by providing access to
best practices and previous solutions. KM fosters
innovation by encouraging collaboration and
knowledge sharing among employees. It also helps in
reducing redundancy, improving customer service, and
maintaining a competitive advantage. Tools like
intranets, document management systems, and AI-
driven knowledge bases support effective KM
6. What are the benefits of implementing a knowledge
management system?
A Knowledge Management System (KMS) provides
several benefits:
Improves decision-making by offering easy access to
critical knowledge.
Enhances productivity by reducing time spent searching
for information.
Fosters innovation by encouraging collaboration and
knowledge sharing.
Reduces redundancy and prevents loss of
organizational knowledge.
Improves customer service by providing employees
with accurate information.

Group C: Long Answer Questions (10 Marks Each)

1. Evaluate the concepts of business process
improvement, business process reengineering, and
business process management.
Business Process Improvement (BPI):
Business Process Improvement is a systematic
approach to making incremental changes in an
organization’s existing processes. The goal is to increase
efficiency, reduce costs, and improve service quality.
BPI techniques include Lean, Six Sigma, and Total
Quality Management (TQM). These methods help
organizations analyze their processes and identify
bottlenecks, redundancies, or inefficiencies.
Business Process Reengineering (BPR):
BPR is a more radical approach compared to BPI.
Instead of making small improvements, it involves
completely redesigning core business processes to
achieve significant gains in productivity, quality, and
customer satisfaction. BPR eliminates unnecessary
steps, automates workflows, and restructures the
organization’s operations to maximize efficiency. For
example, a company replacing manual order processing
with an automated supply chain system is an example of
BPR.
Business Process Management (BPM):
BPM is a continuous process that focuses on managing
and optimizing business operations using technology
and data-driven insights. BPM involves process
modeling, execution, monitoring, and optimization. BPM
software helps organizations automate workflows,
track key performance indicators (KPIs), and improve
decision-making.
Integration with Information Systems:
Enterprise Resource Planning (ERP): ERP systems help
integrate all business processes into a single platform,
reducing duplication and inefficiencies.
Business Intelligence (BI): BI tools analyze business
processes, track performance metrics, and provide
insights for decision-making.
Automation and AI: AI-powered automation can
streamline repetitive tasks, improve accuracy, and
speed up workflows.
By integrating these concepts with information systems,
organizations can enhance efficiency, reduce costs,
improve customer service, and gain a competitive
advantage in their industry.

2. Discuss how organizations can use information

systems to support strategic decision-making and
achieve a competitive edge. Provide detailed examples
of how strategic information systems are implemented
in different industries.

Strategic Decision-Making and Information Systems:

Strategic decision-making involves long-term planning
and resource allocation to achieve business goals.
Information systems support this by providing real-
time data, predictive analytics, and business intelligence
to help leaders make informed decisions.

Key Roles of IS in Strategic Decision-Making:

1. Data Analytics: Businesses use data-driven insights

to predict market trends and customer behavior.
 Example: Netflix uses big data to recommend
shows based on viewing history.

2. Business Intelligence (BI): BI tools like Tableau and

Power BI help managers analyze sales trends,
customer feedback, and operational performance.

3. Customer Relationship Management (CRM): CRM

software like Salesforce helps businesses
understand customer preferences and improve
marketing strategies.

4. Supply Chain Management (SCM): Companies like

Amazon use AI-driven logistics systems to optimize
delivery times and inventory management.

5. Enterprise Resource Planning (ERP): ERP systems

like SAP and Oracle integrate business processes
for better coordination and decision-making.
Industry Examples:

Retail: Walmart uses big data analytics to optimize

inventory and pricing strategies.

Healthcare: Hospitals use electronic health records

(HER) to improve patient care and reduce errors.

Banking: Banks use AI for fraud detection and

personalized financial recommendations.

By leveraging information systems, organizations can

improve efficiency, reduce costs, and create a
competitive advantage in their industry.

3. Examine the role of data management and knowledge

management systems in modern organizations. How do
these systems work together to support organizational
goals and decision-making?

Data Management:
Data management refers to the collection, storage, and
processing of data to ensure its accuracy, security, and
accessibility. Organizations generate vast amounts of
data from transactions, customer interactions, and
business operations. Proper data management ensures
that this information is organized and useful for
decision-making.

Knowledge Management:
Knowledge management focuses on capturing,
organizing, and sharing knowledge within an
organization. It includes explicit knowledge
(documented processes, manuals) and tacit knowledge
(employee experience, best practices). Effective
knowledge management prevents knowledge loss and
improves efficiency.

Integration of Data and Knowledge Management:

Business Intelligence Systems: BI tools analyze data and
convert it into actionable insights for strategic decision-
making.

Artificial Intelligence & Machine Learning: AI helps in

pattern recognition, automating knowledge sharing, and
decision support.

Collaboration Tools: Platforms like Microsoft

SharePoint and Google Drive enable knowledge sharing
across teams.

Benefits to Organizations:

Faster decision-making based on accurate data.

Improved collaboration and innovation.

Better risk management and problem-solving.

Increased productivity and operational efficiency.

Organizations that effectively manage data and
knowledge gain a competitive edge by making smarter,
data-driven decisions.

Group D: Comprehensive Answer Questions (10 Marks

Each)
1. In the light of the restaurant system, describe the
decisions to be made in strategic planning, managerial
control, and operational control.
Strategic Planning Decisions:
Strategic planning focuses on long-term goals and
growth opportunities. For a restaurant using an MIS,
strategic decisions include:

Expanding to new locations based on customer demand.

Adjusting menu items based on sales trends and

customer preferences.

Implementing digital ordering systems for better

customer experience.
Pricing strategy to remain competitive in the market.

Managerial Control Decisions:

Managerial control focuses on ensuring efficient
restaurant operations. Key decisions include:

Inventory management: Ensuring enough ingredients

are available.

Cost control: Analyzing food costs versus sales revenue.

Employee performance: Monitoring staff productivity

and customer satisfaction.

Customer feedback analysis: Adjusting services based

on reviews.

Operational Control Decisions:

Operational control involves day-to-day restaurant
activities. Decisions include:
Assigning tables and managing staff schedules.

Monitoring kitchen efficiency to reduce order delays.

Handling order cancellations and modifications

efficiently.

Required Information:

Daily and weekly sales reports.

Customer preferences and feedback.

Inventory stock levels.

Employee performance metrics.

By using an MIS, the restaurant can improve efficiency,
reduce waste, and enhance customer satisfaction.

2. What would make the system a more complete MIS

rather than just doing transaction processing?

A Transaction Processing System (TPS) only records

and processes basic transactions like order taking and
billing. To make it a Management Information System
(MIS), the system needs:

1. Data Analysis & Reporting:

Generating daily sales reports.

Analyzing customer preferences.

Monitoring staff performance.

 2. Decision Support System (DSS) Integration:

AI-driven recommendations for menu changes.

Predictive analytics for demand forecasting.

3. Customer Relationship Management (CRM)

Features:

Personalized promotions based on customer history.

Loyalty programs and feedback tracking.

4. Inventory and Supply Chain Management:

Real-time tracking of ingredient stock.

Automated ordering system to prevent shortages.

5. Integration with Online Ordering & Delivery

Platforms:

Connecting with food delivery apps like UberEats and

Zomato.

Streamlining online and in-store operations.

By implementing these features, the restaurant’s system

can evolve from a basic TPS to a comprehensive MIS,
improving decision-making, efficiency, and profitability.
3. Explain the probable effects that making the system
more formal would have on the customers and the
management.

Effects on Customers:

Faster service due to streamlined ordering and

processing.

Improved order accuracy, reducing complaints.

Personalized recommendations based on past orders.

Enhanced customer satisfaction due to efficient service.

Effects on Management:

Better data tracking for decision-making.

Reduced wastage through precise inventory control.

Improved staff performance monitoring.

Enhanced financial management with accurate sales

forecasting.

Challenges of Formalization:

Initial costs of implementing the system.

Training employees to adapt to new technology.

Possible resistance from staff accustomed to manual

processes.

By making the system more formal, the restaurant can

significantly improve efficiency, customer satisfaction,
and profitability, despite initial implementation
challenges.