The document outlines key concepts in management information systems, emphasizing their transformative role in business by enhancing efficiency, decision-making, and customer relations. It discusses trends like mobile platforms, big data, and cloud computing, and highlights the importance of complementary assets for maximizing IT investments. Additionally, the document explores business processes, the impact of disruptive technologies, and strategic frameworks for leveraging information systems to gain competitive advantage.

1. MPMIS Program
July-December 2024
Final Examination Short note
A Review on MPMIS 511: Management Information
Systems
Apurbo Datta (MPMIS 2 nd Batch) - University of Dhaka
Chapter 1: Information Systems in Global Business Today
1. How are information systems transforming business and why are they so essential?
Information systems (IS) are fundamentally changing how businesses operate. They automate
processes, provide real-time data for decision-making, connect businesses with customers and
suppliers globally, and enable new business models. They are essential because they:
 Increase operational efficiency: Automating tasks, streamlining workflows.
 Improve decision-making: Providing accurate, timely information for analysis.
 Enhance customer relationships: Enabling personalized service, targeted marketing.
 Create competitive advantage: Offering unique products/services, better pricing.
 Facilitate globalization: Connecting businesses across borders.
2. Identify three major new information system trends.
 Emerging mobile digital platform: Growing reliance on smartphones, tablets, and
mobile apps for business operations, communication, and customer interaction.
 Big data: Exponential growth in data volume, velocity, and variety, requiring new tools
for analysis and insights.
 Cloud computing: On-demand access to computing resources (servers, storage,
software) over the internet, reducing IT infrastructure costs and increasing flexibility.

2. 3. Describe the characteristics of a digital firm.
A digital firm is one where nearly all significant business processes and relationships with
customers, suppliers, and employees are digitally enabled and mediated. Key characteristics
include:
 Core business processes are accomplished through digital networks.
 Key corporate assets are managed digitally.
 Agile response to environmental changes.
 Time shifting (24/7 operations) and space shifting (global operations).
4. Describe the challenges and opportunities of globalization in a “flattened” world.
Thomas Friedman's "flattened" world describes increased global interconnectedness due to
technology.
 Opportunities: Larger markets, access to global talent, lower production costs.
 Challenges: Increased competition, cultural differences, regulatory complexities,
managing global supply chains, geopolitical risks.
5. List and describe six reasons why information systems are so important for business
today.
 Operational excellence: Improving efficiency, productivity, and profitability.
 New products, services, and business models: Enabling innovation and differentiation.
 Customer and supplier intimacy: Building strong relationships for loyalty and
collaboration.
 Improved decision making: Providing accurate data for informed choices.
 Competitive advantage: Gaining an edge over rivals through unique offerings or better
processes.
 Survival: Essential for staying competitive and adapting to changing market conditions.
6. What is an information system? How does it work? What are its components?
An information system is a set of interrelated components that collect, process, store, and
distribute information to support decision-making, coordination, control, analysis, and
visualization in an organization.
 How it works: Input (data) -> Processing (transformation) -> Output (information).
 Components:
o Management: Setting strategic direction, allocating resources.
o Organization: Structure, processes, culture, and people.
o Technology: Hardware, software, data management, networking, and
telecommunications.

3. 7. Why are complementary assets essential for ensuring that information systems provide
genuine value?
Investing in IT alone doesn't guarantee success. Complementary assets – organizational,
managerial, and social – are necessary to realize the full potential of IT investments. Without
them, IT can be underutilized or even detrimental.
8. Distinguish between data and information and between information systems literacy and
computer literacy.
 Data: Raw, unprocessed facts and figures.
 Information: Data that has been processed and organized in a meaningful way.
 Computer literacy: Knowledge of how to use computers and related technologies.
 Information systems literacy: Understanding of how information systems work, their
role in organizations, and how to use them effectively to achieve business objectives.
9. Define complementary assets and describe their relationship to information technology.
Complementary assets are assets required to derive value from a primary investment. In the
context of IT, they are the organizational, managerial, and social investments that support and
enhance the effectiveness of IT systems. IT investments require corresponding investments in
these complementary assets to yield positive returns.
10. Describe the complementary social, managerial, and organizational assets required to
optimize returns from IT investments.
 Organizational assets:
o Supportive organizational culture that values efficiency and effectiveness.
o Appropriate business models.
o Efficient business processes.
o Decentralized authority.
 Managerial assets:
o Strong senior management support for IT investments.
o Incentives for management innovation.
o Teamwork and collaborative work environments.
o Training programs.
 Social assets:
o The Internet and telecommunications infrastructure.
o IT-enriched educational programs raising the labor force’s computer literacy.
o Standards (both government and private sector).
o Laws and regulations creating a fair, stable market environment.
By understanding these concepts, you'll have a solid foundation for further exploration of
information systems in business.

4. Chapter 2: Global E-business and Collaboration
1. What are business processes? How are they related to information systems?
 Business processes are sets of logically related tasks and behaviors that organizations
develop over time to produce specific business results. They represent how a business
does its work. Examples include fulfilling a customer order, hiring an employee, or
developing a new product.
 Relationship to Information Systems: Information systems automate and support
business processes. They provide the platform for executing the steps in a process, collect
data related to the process, and provide information to manage and improve the process.
Without information systems, many modern business processes would be impossible to
execute efficiently or at scale.
2. How do systems serve the different management groups in a business, and how do
systems that link the enterprise improve organizational performance?
Different management groups require different types of information and systems:
 Operational Management: Needs transaction-level data to monitor day-to-day
activities. (TPS)
 Middle Management: Needs summarized information and reports to monitor
performance and make tactical decisions. (MIS)
 Senior Management: Needs aggregated information and external data to make strategic
decisions. (ESS)
Systems that link the enterprise (like ERP systems) improve organizational performance by:
 Integrating data: Breaking down information silos and providing a holistic view of the
organization.
 Improving communication and coordination: Facilitating information sharing and
collaboration across departments.
 Streamlining business processes: Automating tasks and reducing inefficiencies.
 Enhancing decision-making: Providing timely and accurate information to support
better decisions.
3. Describe the characteristics of transaction processing systems (TPS) and the roles they
play in a business.
 Characteristics:
o Record and process daily routine transactions (e.g., sales, purchases, payroll).

5. o Handle large volumes of data.
o Require high processing speed and accuracy.
o Are essential for basic business operations.
 Roles:
o Foundation for other types of information systems.
o Provide data for management reporting and analysis.
o Support operational efficiency and control.
4. Describe the characteristics of management information systems (MIS) and explain how
MIS differ from TPS and from DSS.
 Characteristics:
o Provide routine reports and summaries based on data from TPS.
o Support middle management in monitoring performance and making tactical
decisions.
o Focus on internal information.
 Differences:
o MIS vs. TPS: MIS uses data from TPS to create reports, while TPS focuses on
processing individual transactions.
o MIS vs. DSS: MIS provides structured, routine reports, while DSS supports non-
routine, ad-hoc analysis and decision-making.
5. Describe the characteristics of decision-support systems (DSS) and how they benefit
businesses.
 Characteristics:
o Support non-routine decision-making.
o Use analytical models and data analysis tools.
o Allow "what-if" analysis and scenario planning.
o Can use both internal and external data.
 Benefits:
o Improve the quality of decisions.
o Enable faster and more informed decision-making.
o Support complex problem-solving.
6. Describe the characteristics of executive support systems (ESS) and explain how these
systems differ from DSS.
 Characteristics:
o Support strategic decision-making by senior management.
o Provide highly aggregated information and external data.
o Use sophisticated graphics and visualization tools.
o Focus on long-term trends and strategic issues.
 Differences:

6. o ESS vs. DSS: ESS focuses on strategic issues and external information, while
DSS focuses on specific problems and can use more detailed internal data. ESS is
also often more visually oriented and less analytical than DSS.
7. Why are systems for collaboration and social business so important, and what
technologies do they use?
 Importance: In today's interconnected and globalized business environment,
collaboration and social business are crucial for:
o Sharing knowledge and expertise.
o Improving communication and coordination.
o Fostering innovation.
o Engaging with customers and partners.
 Technologies: Email, instant messaging, wikis, blogs, social networking platforms, video
conferencing, collaboration platforms (e.g., Slack, Microsoft Teams), and enterprise
social networks.
8. Define collaboration and social business and explain why they have become so important
in business today.
 Collaboration: Working with others to achieve shared goals.
 Social Business: Using social networking platforms, both internally and externally, to
engage with employees, customers, and partners.
 Importance: Increased globalization, distributed workforces, and the need for faster
innovation have made collaboration and social business essential for competitiveness.
9. List and describe the business benefits of collaboration and social business.
 Increased innovation: By facilitating knowledge sharing and idea generation.
 Improved productivity: By streamlining communication and coordination.
 Enhanced customer engagement: By providing new channels for interaction and
feedback.
 Faster time to market: By accelerating product development and launch processes.
 Reduced costs: By improving efficiency and reducing travel.
10. List and describe the various types of collaboration and social business tools.
 Email and instant messaging: For basic communication.
 Wikis: For collaborative document creation and knowledge sharing.
 Blogs: For sharing information and engaging in discussions.
 Social networking platforms: For connecting with people and building relationships.
 Video conferencing: For virtual meetings and presentations.
 Collaboration platforms (e.g., Slack, Microsoft Teams): For team communication, file
sharing, and project management.
 Enterprise social networks: Internal social networking platforms for employee
communication and collaboration.

7. 11. Positions in information system department. Compare the roles played by
programmers, systems analysts, information systems managers, the chief information
officer (CIO), chief security officer (CSO), chief data officer (CDO) and chief knowledge
officer (CKO).
 Programmers: Write the code that makes software applications work.
 Systems Analysts: Analyze business problems and design information systems solutions.
 Information Systems Managers: Manage teams of IS professionals and oversee IT
infrastructure.
 CIO (Chief Information Officer): Oversees all IT activities in the organization and
aligns IT strategy with business goals.
 CSO (Chief Security Officer): Responsible for the security of IT systems and data.
 CDO (Chief Data Officer): Responsible for managing and leveraging the organization's
data assets.
 CKO (Chief Knowledge Officer): Responsible for managing the organization's
knowledge and intellectual capital.
This breakdown should provide a comprehensive overview of the key concepts from Chapter 2.
Remember to consult your textbook for more detailed information and examples.

8. Chapter 3: Information Systems, Organizations, and
Strategy
1. Which features of organizations do managers need to know about to build and use
information systems successfully?
Managers need to understand the following organizational features:
 Structure: Hierarchy, division of labor, procedures, rules, and business processes.
 Culture: Shared assumptions, values, and ways of doing things.
 Politics: Power relationships, conflicts, and resource allocation.
 Business Processes: Standard operating procedures for accomplishing specific tasks.
 Environment: External factors like competitors, customers, and regulatory agencies.
Understanding these features allows managers to design and implement information systems that
align with organizational goals, processes, and culture, leading to successful adoption and use.
2. Define an organization and compare the technical definition of organizations with the
behavioral definition.
 Technical Definition: A stable, formal social structure that takes resources from the
environment and processes them to produce outputs.
It emphasizes structure, processes, and resource utilization.
 Behavioral Definition: A collection of rights, privileges, obligations, and responsibilities
that are delicately balanced over a period of time through conflict and conflict resolution.
It focuses on internal social dynamics, power relationships, and conflict.
The technical definition is more objective and structured, while the behavioral definition is more
subjective and considers the human element within organizations.
3. Identify and describe the features of organizations that help explain differences in
organizations’ use of information systems.
 Organizational Structure: Different structures (e.g., hierarchical, flat) require different
types of information systems.
 Business Processes: Organizations with well-defined processes can more easily integrate
information systems.
 Culture: A culture that embraces technology is more likely to adopt and use information
systems effectively.
 Politics: Power struggles and resistance to change can hinder information system
implementation.

9.  Management: Management's vision and support are crucial for successful information
system implementation.
4. Describe the impact of the Internet and disruptive technologies on organizations.
The Internet and disruptive technologies have:
 Reduced transaction costs: Making it cheaper and easier to conduct business.
 Increased information availability: Empowering customers and creating new business
models.
 Created new market spaces: Enabling businesses to reach global markets and offer new
products/services.
 Disrupted existing business models: Forcing organizations to adapt or become obsolete.
Examples include the impact of e-commerce on traditional retail and streaming services
on video rental stores.
5. How do Porter’s competitive forces model, the value chain model, synergies, core
competencies, and network economics help companies develop competitive strategies using
information systems?
These concepts help identify opportunities for using information systems to gain a competitive
advantage:
 Porter's Competitive Forces Model: Helps analyze industry structure and identify
threats and opportunities.
 Value Chain Model: Helps analyze internal activities and identify areas where
information systems can add value.
 Synergies: Using information systems to link different parts of the organization can
create efficiencies and cost savings.
 Core Competencies: Information systems can help organizations leverage their core
competencies to create new products and services.
 Network Economics: In a network economy, the value of a product or service increases
as more people use it. Information systems can help build networks and create network
effects.
6. Describe what the competitive forces model explains about competitive advantage.
Porter's model explains that competitive advantage comes from:
 Lowering costs: By streamlining operations or using information systems to improve
efficiency.
 Differentiating products/services: By offering unique features or using information
systems to personalize customer experiences.
 Focusing on a niche market: By using information systems to target specific customer
segments.

10. The five forces are:
 Threat of new entrants: How easy is it for new competitors to enter the market?
 Bargaining power of suppliers: How much power do suppliers have to raise prices?
 Bargaining power of buyers: How much power do customers have to demand lower
prices?
 Threat of substitute products or services: How easily can customers switch to
alternatives?
 Rivalry among existing competitors: How intense is the competition among existing
players?
7. List and describe four competitive strategies enabled by information systems that firms
can pursue.
 Low-cost leadership: Using information systems to reduce operational costs and offer
lower prices (e.g., Walmart's efficient supply chain).
 Product differentiation: Using information systems to create unique products or
services (e.g., Amazon's personalized recommendations).
 Focus on niche markets: Using information systems to target specific customer
segments (e.g., online retailers specializing in specific products).
 Strengthening customer and supplier intimacy: Using information systems to build
strong relationships with customers and suppliers (e.g., CRM and SCM systems).
8. Describe how information systems can support competitive strategies and give examples.
 Low-cost leadership: Supply chain management systems to optimize inventory and
logistics (Walmart).
 Product differentiation: Customer relationship management (CRM) systems to
personalize customer experiences (Amazon).
 Focus on niche markets: Data analytics to identify and target specific customer
segments (online retailers).
 Strengthening customer/supplier intimacy: Extranets to collaborate with suppliers and
share information (automotive industry).
9. Define and describe the value chain model. Explain how the value chain model can be
used to identify opportunities for information systems.
The value chain model identifies primary and support activities that add value to a firm's
products or services.
 Primary activities: Directly related to production and distribution (inbound logistics,
operations, outbound logistics, marketing & sales, service).
 Support activities: Support the primary activities (firm infrastructure, human resources,
technology, procurement).

11. By analyzing each activity, organizations can identify opportunities to use information systems
to improve efficiency, reduce costs, or enhance differentiation.
10. Explain how the value web helps businesses identify opportunities for strategic
information systems.
A value web is a network of independent firms that use information systems to coordinate their
value chains and collectively produce a product or service. It emphasizes collaboration and
information sharing across multiple organizations. Analyzing the value web helps identify
opportunities for using information systems to improve collaboration, streamline processes, and
create new value propositions.
11. Explain how information systems promote synergies and core competencies and
enhances competitive advantage.
 Synergies: Information systems can link different business units, creating efficiencies
and economies of scale.
 Core Competencies: Information systems can help organizations leverage their core
competencies by sharing knowledge and expertise across the organization.
 Competitive Advantage: By promoting synergies and leveraging core competencies,
information systems can help organizations achieve lower costs, differentiation, or focus
strategies, leading to competitive advantage.
12. Explain how to perform a strategic systems analysis.
Strategic systems analysis involves:
 Analyzing the organization's industry and competitive environment: Using Porter's
model.
 Analyzing the organization's internal value chain: Identifying primary and support
activities.
 Identifying opportunities to use information systems to support competitive
strategies: Based on the analysis of the industry and value chain.
 Evaluating the potential benefits and costs of implementing new information
systems: Conducting a cost-benefit analysis.
This comprehensive approach helps organizations align their information systems strategy with
their overall business strategy.
Sources and related content

12. Chapter 5: IT Infrastructure and Emerging Technologies
1. What is IT infrastructure and what are the stages and drivers of IT infrastructure
evolution?
IT infrastructure provides the foundation for serving customers, working with vendors, and
managing internal firm business processes. It consists of a set of physical devices and software
applications that are required to operate the entire enterprise. It also includes services such as
consulting, education, and training.
IT infrastructure evolution occurs in eras, each characterized by a dominant computing
configuration:
 Mainframe and Minicomputer Era (1959-Present): Characterized by centralized
computing using large mainframe computers and later smaller minicomputers.
 Personal Computer Era (1981-Present): Marked by the rise of personal computers,
leading to decentralized computing.
 Client/Server Era (1983-Present): Networked client computers connected to powerful
server computers, enabling distributed computing.
 Enterprise Computing Era (1992-Present): Linking disparate networks and
applications across the enterprise using enterprise resource planning (ERP) systems and
other enterprise applications.
 Cloud and Mobile Computing Era (2000-Present): Accessing computing resources
and applications over the internet and using mobile devices for computing.
The drivers of IT infrastructure evolution include Moore's Law (the doubling of computing
power for the same price every 18 months), Metcalf's Law (the value of a network growing
exponentially with the number of users), declining communication costs, and the impact of
standards and network effects.
2. Define IT infrastructure from both a technology and a services perspective.
 Technology Perspective: IT infrastructure is the set of physical hardware, software, data
management, networking, and telecommunications facilities required to support an
organization's IT.
 Services Perspective: IT infrastructure includes the human expertise and services
required to operate and manage the physical technology, including consulting, education,
and training.
3. What are the components of IT infrastructure?
The components of IT infrastructure include:

13.  Computer Hardware Platforms: Client machines (PCs, mobile devices) and server
machines.
 Operating Systems Platforms: Operating systems for client and server computers.
 Enterprise Software Applications: ERP, CRM, SCM, and other business applications.
 Data Management and Storage: Database software, physical storage devices.
 Networking/Telecommunications Platforms: Network hardware and software,
telecommunications services.
 Internet Platforms: Hardware, software, and management services to support company
websites, intranets, and extranets.
 Consulting and System Integration Services: Expertise to integrate and manage the
various components.
4. List and describe the components of IT infrastructure that firms need to manage.
Firms need to manage all the components listed in the previous answer. Managing these
components involves:
 Hardware and Software Acquisition: Purchasing, leasing, or subscribing to hardware
and software.
 Installation and Maintenance: Setting up, configuring, and maintaining hardware and
software.
 Security and Data Integrity: Protecting systems and data from unauthorized access and
ensuring data accuracy.
 Capacity Planning: Determining future IT resource needs.
 Scalability: Ensuring systems can handle increased workloads.
5. Explain how businesses can benefit from virtualization, green computing, and multicore
processors.
 Virtualization: Allows a single physical resource (e.g., a server) to emulate multiple
resources (e.g., multiple virtual servers), increasing hardware utilization, reducing costs,
and improving flexibility.
 Green Computing: Practices and technologies for designing, manufacturing, using, and
disposing of computers, servers, and associated subsystems such as monitors, printers,
storage devices, and networking and communications systems to minimize impact on the
environment. Benefits include reduced energy consumption and lower costs.
 Multicore Processors: Integrate two or more processor cores on a single chip, improving
performance and energy efficiency compared to single-core processors.
6. What are the challenges of managing IT infrastructure and management solutions?
Challenges of managing IT infrastructure include:
 Dealing with Platform and Infrastructure Change: Keeping up with rapidly evolving
technologies.

14.  Management and Governance: Establishing clear responsibilities and processes for
managing IT resources.
 Making Wise Infrastructure Investments: Balancing cost and performance when
investing in IT.
Management solutions include:
 Establishing clear IT governance structures and processes.
 Using cloud computing and other outsourced services to reduce management
burden.
 Implementing robust security and data management policies.
7. Name and describe the management challenges posed by IT infrastructure.
Key management challenges posed by IT infrastructure include:
 Complexity: Managing a diverse and interconnected set of hardware, software, and
services can be complex.
 Cost: IT infrastructure can be expensive to acquire, maintain, and upgrade.
 Scalability and Flexibility: Ensuring the infrastructure can handle future growth and
changing business needs.
 Security and Reliability: Protecting data and ensuring system uptime.
 Governance and Control: Establishing clear responsibilities and processes for
managing IT resources.

15. Chapter 6: Foundations of Business Intelligence: Databases
and Information Management:
1. Business Intelligence Infrastructure
 Definition: A set of tools and technologies used to collect, store, analyze, and provide
access to data for decision-making.
 Components:
o Data warehouses
o Data marts
o Online Analytical Processing (OLAP)
o Data mining tools
o Reporting and visualization tools
2. Problems of Managing Data Resources in a Traditional File Environment
1. Data Redundancy and Inconsistency: Duplicate data across files leads to discrepancies.
2. Lack of Data Integration: Independent files make it hard to combine data for analysis.
3. Data Dependence: Changes to data formats or structures require changes in application
programs.
4. Limited Data Sharing: Data stored in silos is inaccessible to other departments.
5. Poor Security: Difficult to enforce consistent access controls.
3. Components of the Data Hierarchy
1. Bit: Smallest unit of data.
2. Byte: Group of 8 bits representing a character.
3. Field: A single piece of data, like a name or ID.
4. Record: A collection of related fields, such as all data for one customer.
5. File: A collection of related records, like a customer list.
6. Database: A collection of files organized for easy access and analysis.
4. Major Capabilities of DBMS and Why Relational DBMS is Powerful
 Capabilities:
o Data storage and retrieval.
o Data manipulation (e.g., adding, deleting, updating).
o Query processing (e.g., SQL queries).
o Security and access controls.
o Backup and recovery.
 Power of Relational DBMS:
o Organizes data in tables with rows and columns.
o Uses relationships between tables to minimize redundancy and enhance data
integrity.
o Supports powerful querying through Structured Query Language (SQL).

16. 5. Define Database and Database Management System (DBMS)
 Database: A structured collection of related data stored electronically for easy access and
management.
 DBMS: Software used to create, manage, and interact with databases.
6. Capabilities of a DBMS
1. Data Definition: Define database structure (tables, fields, constraints).
2. Data Manipulation: Insert, update, delete, and query data.
3. Data Retrieval: Generate reports and extract data.
4. Security Management: Restrict unauthorized access.
5. Backup and Recovery: Ensure data availability and protection.
6. Concurrency Control: Manage simultaneous data access by multiple users.
7. Relational DBMS and How It Organizes Data
 Definition: Organizes data into tables (relations) with rows (tuples) and columns
(attributes).
 Organization:
o Rows represent individual records.
o Columns represent attributes of those records.
o Relationships between tables are defined using keys (primary and foreign).
8. Usefulness of Non-Relational Databases
 Handles unstructured or semi-structured data like images, videos, and social media
content.
 Suitable for big data applications.
 Scales horizontally across distributed systems (e.g., NoSQL databases like MongoDB,
Cassandra).
9. Normalization and Referential Integrity
 Normalization:
o Organizes data into tables to eliminate redundancy and dependencies.
o Ensures efficient updates and reduces data anomalies.
 Referential Integrity:
o Ensures consistency by maintaining valid relationships between tables (e.g., a
foreign key in one table matches a primary key in another).
10. Entity-Relationship Diagram (ERD)
 Definition: A graphical representation of entities, attributes, and relationships within a
database.
 Role in Design:

17. o Visualizes the structure and relationships of data.
o Assists in creating a logical schema for database design.
11. Components of a Contemporary Business Intelligence Technology
Infrastructure
1. Data Warehouses: Centralized repositories of integrated data.
2. Data Marts: Subsets of data warehouses for specific business functions.
3. OLAP: Tools for multidimensional analysis.
4. Data Mining: Tools to discover patterns and insights.
5. Reporting Tools: Dashboards and visualization software.
12. Analytical Tools in Business Intelligence
1. Data Mining:
o Analyzes large datasets to find hidden patterns, trends, and relationships.
o Types of insights:
 Association (e.g., product bundling).
 Classification (e.g., customer segmentation).
 Clustering (e.g., identifying customer groups).
 Forecasting (e.g., predicting future trends).
2. OLAP:
o Allows users to analyze data from multiple dimensions.
o Provides fast insights using data cubes.
3. Reporting Tools:
o Generate summaries, dashboards, and visual reports for decision-making.
13. Data Mining vs. OLAP
 Data Mining:
o Discovers unknown patterns in data.
o Predictive and exploratory.
 OLAP:
o Summarizes data for analysis.
o Multidimensional and descriptive.