Unit Ii


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Unit Ii

  1. 1. Extra Questions and Answers Unit II An Overview of Management Information System Ques 1.What is Data Resource management? Ques 2.Discuss different types of databases Ques 3.What is the difference between data and information? Ques 4.Differentiate between data warehousing and data mining Ques 5.Discuss database structures. Which is the most suitable structure for any database? Ques 6.What is Management Information System? Discuss its components Ques 7.What is OLAP? Ques 8.What is transaction processing? Ques 9.What is Information resource management? Ques 10.What is a decision support system? Ques 11.What is the difference between a DSS and MIS? Ques 12.What is the difference between MIS and Information resource management? Ques 13.What is the difference between MIS and TP? Ques 14.What is end user computing? Ques 15.Discuss end user resistance and involvement. Ques 16.How has end user development helps solve business problems? Ques 17.Discuss various marketing systems and how are they helping business Ques 18.Discuss various manufacturing systems and how are they helping business Ques 19.Discuss various Human resource systems and how are they helping business Ques 20.Discuss various accounting systems and how are they helping business Ques 21.Discuss various financial management systems and how are they helping business Ques 22.Write a short note on IS operations management Ques 23.What is the impact of IT on business organizations? Ques 24.Discuss software available for end user computing Ques 25.Discuss various file organization techniques Ques 26.Discuss humans as information processors
  2. 2. Answers Ans 1.Data Resource management is a managerial activity that applies information systems technologies like database management, data warehousing, and other data management tools to the task of managing an organization’s data resources to meet the information needs of their business stakeholders. Database management reduces duplication of data and integrated data so that they can be accessed by multiple programs and users. The challenge arises due to technological complexity and vast amount of data that needs to be managed. To solve the problem we use DBMS. Database Management System (DBMS) is a software tool that controls the creation, maintenance, and use of the databases of an organization and its end users. It has interrogation capability that helps retrieve information using a query or report generator. Various maintenance utilities are available. Applications can also be built using DBMS tools which are easy to use. Data resource management includes the tasks of Data administration (standards and utility of data), data planning and database administration. Database administrators improve the integrity and security of organizational databases. The developer, using DDL specifies the data contents, relationships and structure and stores them in data dictionary or metadata. During data planning, taking enterprise plan as model, data elements are identified that are needed to perform their specific business activities. This involves creation of ER diagrams. Data relationships are identified and represented in a data model called schema or logical view of data. Ans 2.There are four types of databases. a. Operational databases store detailed data needed to support the business processes and operations of a company. They are also called subject area databases, transaction databases and production databases. Examples are customer databases b. Distributed databases are replicated copies or parts of databases residing on network servers on the world-wide-web, corporate intranets or extranets. c. Hypermedia Databases stores information consisting of hyperlinked pages of multimedia. d. External Databases are available for a fee from commercial online services from many sources on the internet. Data is stored in statistical data banks in hypermedia databases. Ans 3. Information is different from data. Data is the plural of ‘datum’. Data are raw facts and figures or observations, typically about physical phenomena or business transactions e.g. the sale transaction. Data may not currently be used in a decision process and usually takes the form of historical records that are recorded and filed without immediate intent to retrieve for decision making. Information is data that has been converted into a meaningful and useful context for specific end users. It consists of data that have been retrieved, processed, or otherwise used for informative or inference purposes, argument, or as a basis for forecasting or decision making. It is placed in a context that gives its value for specific end users. The value added process for data is where (i) Its form is aggregated, manipulated, and organized (ii) Its content is analyzed and evaluated (iii) It is placed in a proper context for human user Processing of data into information can involve anything from calculating, comparing, sorting, classifying, and summarizing to updating existing data. The input for processing is data the output is information Ans 4.Data warehouse stores data that have been extracted from the various operational, external and other databases of an organization. Subdivisions of warehouse focusing on specific aspects are called data marts. Data mining is a major use of data warehouse databases, which analyzes data to reveal hidden patterns and trends in historical business activities. It can discover correlations, patterns, and trends in vast amounts of business data. Ans 5. The relationships among the many individual data elements stored in databases are based on one of several logical data structures, or models. There are five basic structures used by databases.
  3. 3. a. Hierarchical structure stores records in the form of tree structure. The data element in the highest level is called root element. b. Network structure allows many-to-many relationships and any record can be traced to the other following a network path. c. Relational structure assumes that all data elements are stored as simple tables which are related to each other in some form. d. Multidimensional structure database is a variation of relational structure that uses multidimensional structures to organize data and express the relationships between data. e. Object-oriented structure is used in web-based applications. An object consists of data values describing attributes and operations that can be performed upon the data. The concepts of encapsulation and inheritance can be implemented in OODBMS Database Suitability Hierarchical For general purpose transaction processing Network For databases with many types of business operations Relational Easier for programmers to work with Multidimensional OLAP and web-based Object-oriented OLAP and web-based Ans 6. The objective of an MIS is to provide information for decision making on planning, initiating, organizing and controlling the operations of subsystems of the firm and to provide a synergistic organization in the process. Management Information System consists of a group of people, a set of manuals, and data processing equipment (a set of elements) select, store, process and retrieve data (operate on data and matter) to reduce the uncertainty in decision- making (seek a common goal) by yielding information for managers at the time they can most efficiently use it (yield information in a time reference). Operating Elements of an Information System • Physical Components – Hardware relates to physical computer equipment for input, output, storage, processing and communication – Software – Database – Procedures such as User instructions, data preparation for input and operating the instructions – Operations personnel such as computer operators, system analysts, programmers, data administrators etc. • Processing Functions – Process transactions such as purchase or sale – Maintain master files – Produce reports – Process inquiries – Process interactive support applications • Outputs for the user – Transaction documents – Preplanned reports – Preplanned inquiry responses – User-machine dialog results Reports can be used for information, action description or for investigational purposes Ans 7. Online Analytical processing (OLAP) enables managers and analysts to interactively examine and manipulate large amounts of detailed and consolidated data from many perspectives. It helps discover patterns, trends and exception conditions. An OLAP session takes place online in real time. OLAP involves several basic operations like consolidation, drill down, slicing and dicing. Consolidation involves the aggregation of data Drill down involves detailing for any data i.e showing consolidated details about data
  4. 4. Slicing and dicing is the ability to look at the database from different viewpoints OLTP (Online transaction processing) on the other hand allows interaction with customers and suppliers online through internets, extranets and other networks, and process transactions immediately. Thus adding superior service to customers and trading firms and adding strategic advantage to business Ans 8. When a transaction is recorded manually, a copy of the document is usually used for data preparation. Special data preparation methods are keydisk (i.e. through a keyboard), optical character recognition (OCR) or magnetic ink character recognition (MICR) The data is validated to determine its correctness and completeness. Subsequently the machine-readable stored data (master file) related to or affected by the transaction is updated and outputs are prepared in the form of documents and reports. Reasons for preparing transaction documents are:- (1) Informational: To report, confirm, or explain proposed or completed action (2) Action: To direct a transaction to take place (e.g. shipping orders etc) (3) Investigational: for background information or reference by recipient Transaction can be processed in batch or in real-time. One advantage of real-time processing is that the error checking or validation is done immediately, causing early detection and tracing or error. The time delay in case of batch processing can make tracing of error difficult. Ans 9. Information Resource management • The management of IS in many organizations is experiencing a transition from computers and data-based information processing to information as a strategic resource and to an expanded role for Information technology termed as information resource management. • Reasons for such shifts are the stage of development, and technology. In the six-stage NOLAN model, the maturity stage replicates organizational processes and there is a joint information-systems-user accountability for information resources. There is also a match between organizational and IS structure. The technology is highly integrated with organizational processes and thus should be managed by single authority. Information Resource functions • Data processing • Telecommunications • Office Automation Information resource executive His responsibilities include: • Operational responsibility for central data processing • Coordination of information wide information system planning • Maintaining infrastructure for technical services • Acquisition and dissemination of knowledge • Establishment and enforcement of standards and guidelines for all major IS applications • Aiding of adequate placement of information systems expertise and responsibilities Organization of the information resource function There are three alternatives, centralization, decentralization or combined forms such as function and matrix Information cost Information cost scan be handled as per the following: • Overhead • Allocation of expense • Standard resource rates • Standard rate per unit processed • Fixed price • Charges are based on CPU utilization and disk storage costs. Ans 10. Decision support systems are computer based systems that provide interactive information support to managers and business professionals during the decision-making process. Decision support systems use analytical models, specialized databases, an interactive computer based modelling process for making decisions, and the decision makers own judgement.
  5. 5. Ans 11. DSS Vs. MIS MIS DSS Support Info about performance Info and modelling to analyze problems Report Form Periodic reports or On Demand Interactive Inquiries Format Pre-specified Fixed format Flexible and Adaptable Processing Extract and manipulate data Analytical modelling of data Ans 12. MIS Vs IRM •While MIS deals with the business as a whole, Information resource management deals with information as a resource. •IRM allocates, stores and plans the information and its use. MIS uses IRM for implementation. •It also helps in IRM by allocation information across the organization through the central database. It also preserves information in the central repository (database) and uses this information for taking decisions. Thus MIS has a larger perspective than IRM. •IRM is the responsibility of Chief information officer. Similarly MIS development is his responsibility but not sole responsibility. •IRM focuses on data as resource, MIS is correct utilization of that data Ans 13. TP Vs MIS •TP processes daily activities, stores transactions and creates reports for analysis. MIS uses these reports for decisions and distribution. It uses the processed transactions and makes analysis. It stores these transactions in an organized form for further use. •TP is operated at lower levels but MIS is operated by higher level management. •TP helps in the control process and thus planning. MIS is utilized at all levels and for all management activities. Ans 14. End user computing is a term used for the development done by the end users for building applications using 4GLs and software tools. It enables users to create more effective applications and saves development time. Applications suitable for end-user development can be grouped into the following 5 categories: • One time enquiries • Simple Reports • Minor Changes to Reports or Enquiries • Presentation of Data in Alternate Forms • 'What if' Analyses
  6. 6. Ans 15. One of the benefits of allowing users to develop their own applications (or end user involvement) is in getting change into the organization. This helps end users get ownership for change or new system and that its design meets their needs. Ans 17. Marketing System •Product pricing •Interactive marketing •Targeted marketing includes five components namely community, content, context, Online behavior, demographic •Sales force automation •Market research •Order processing •Sales planning •Inventory management • Warehouse management Ans 18. Manufacturing Information Systems •Quality control and testing •Just-in-time inventory and manufacturing •Computer integrated Manufacturing simplifies, automates and integrates all production and support processes. It also uses CAD, MES •Process control •Machine control using PLCs Ans 19. Human Resource System •Corporate Intranet •Staffing or recruitment management • Personnel Management includes personnel administration, employee master data, travel management, benefits administration, salary administration • Payroll Accounting • Time Management includes shift planning • Personnel Development includes training and event management Ans 20. Financial Management Systems •Profit planning/ Profit Centre Accounting •Cash management •Online investment management •Capital budgeting, Funds management • Enterpise controlling •Financial Forecasting and planning Ans 21. Accounting Information System
  7. 7. •Cost accounting, activity based costing, product cost controlling, overhead cost controlling •Online accounting System •Order processing •Inventory control •Accounts receivable/payable •Payroll •General Ledger Ans 22. IS operations management is concerned with the use of hardware, software, network and personnel resources in the corporate or business unit data centres of an organization. Operation activities to be managed include system operations, network management, production control, and production support. The system performance monitors monitor the processing of computer jobs, help develop a planned schedule of computer operations, supply information needed by chargeback systems, they also control computer operations Ans 23. Nowdays most of the business activities are conducted using IT. IT has become a part of organization and new managerial positions for the same have been created. It is important for every business professional to have knowledge about IT. The clerical work has been computerized and technology based. The clerical work can now be combined with IT up in the hierarchy. The management role has been refined by providing better and filtered communication channels. Electronic supervision can be provided. Information mediator between the organization and customer exists in the new organization. Ans 24. Classification of software 1. Application software which performs processing for end user 2. System software that supports operations of computer networks and systems Types of software 1. Software suites are two or more packages bundled together e.g. Microsoft office, Lotus notes suite 2. Software packages are a combination of some functions of several programs e.g. Microsoft works 3. Web browsers enable easy use of internet 4. E-mail is a way of communicating with people 5. Word processors e.g. Microsoft word 6. Electronic spreadsheets e.g. Microsoft excel 7. Presentation graphics e.g. Microsoft PowerPoint 8. Database management systems (DBMS) 9. Technologies for multimedia 10. Personal information managers e.g. lotus notes 11. Operating systems 12. Model generators facilitate the development of models and DSS. It includes programming language, spreadsheets, and statistical packages. A good model generator should have easy usability, access t o wide variety of data and analysis capability. 13. Model Base Management Systems (MBMS) manage models and analysis programs in much the same way as the DBMS manages data. Ans 25. Traditional types of files 1. Master file is relatively permanent 2. Transaction file contains details 3. Report file is an extraction of data File organization Sequential file organization: When the data is accessed in sequence. Hashed file organization: Storage address Identification numbers help identifying records.
  8. 8. Indexed file organization: An index is created that helps search record. Ans 26. Humans receive input through sensory receptors (eyes, ears, nose etc) transmit them to processing unit (brain with storage) and output is in the form of responses (words, actions). Information is filtered for relevance before being processed by brain. Human is a serial processor. It has three types of memory, long term which is unlimited, short term which he forgets after some time and is limited and external memory which consist of media like writing pad, reminders etc. Humans use past experience for judgement. Humans have a limited capacity for rational thinking. They generally construct a simplified model of the real situation in order to deal with it. To overcome these limitations human use concreteness (using the available information over the information required to be retrieved) and anchoring and adjustment (creating anchor and adjusting around it thus reducing information requirements). Humans need feedback for psychological reasons. Decision making involves personal bias and judgement. They also have limited processing capabilities. All the above should be overcome by IS and IS should provide feedback and summarized data. The biasing factors such as recency and correctness should be overcome by systems, short term memory loss, completeness and correctness should be met.