1. Extra Questions
Unit I
Foundation of Information Systems
Ques 1.What is a system?
Ques 2.Differentiate between an open and closed system
Ques 3.Why Information Systems are important?
Ques 4.What is an Information System?
Ques 5.What are the components of an Information System?
Ques 6.What are Information System resources?
Ques 7.Trends in Information systems
Ques 8.Classifications of Information systems
Ques 9.Success and failure with IT
Ques 10.What is business process reengineering (BPR)?
Ques 11.What is an Agile company?
Ques 12.What is a Virtual company? What are the strategies involved?
Ques 13.What is Knowledge management system?
Ques 14.What is Enterprise collaboration system?
Ques 15.What is GIS?
Ques 16.What is an Executive information System?
Ques 17.What is an Enterprise Information system?
Ques 18.What is an Expert System? Discuss its components.
Ques 19.Discuss MIS as a system
Ques 20.Draw the structure of MIS and explain
Ques 21.What is office automation system?
Ques 22.What are the characteristics of good information?
Ques 23.Discuss the types of Information requirements for an MIS?

2. Answers
1. A system is a group of interrelated or interacting elements forming a unified whole, and working
together towards a common goal by accepting inputs and producing outputs in an organized
transformation process.
Such a system has three basic (it can become more useful by including others) interacting
components or functions namely:
• Inputs
• Processing
• Output
It could also include:
• Feedback / Storage as the case may be
• Control (monitoring and evaluating feedback or information) to maintain
performance
Terms used in the system’s concept.
1. A system’s purpose is the reason for its existence and the reference point for
measuring its success e.g. the purpose of Dell’s order fulfillment system is to
efficiently produce and deliver what the customer ordered.
2. A system’s boundary defines what is inside the system and what is outside e.g.
ordering system might consider delivering outside its boundary.
3. A system’s environment is everything pertinent to the system that is outside of its
boundaries.
4. A system’s inputs are the physical objects and information that cross the boundary
to enter it from its environment.
5. A system’s outputs are physical objects and information that go from the system
into its environment.
Work systems in businesses need to change frequently to accommodate to changing
conditions in their environments and changing customer needs.
2. An open system interacts with other systems, whereas a closed system does not interact with
other systems. A system that has the ability to change itself or its environment in order to survive is
an adaptive system e.g. organization as a system.
5. 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

3. • 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
8. Information systems can be classified on the following basis
1. By function
a. Operations (Resources, processes, products)
b. Administrative (support functions)
c. Planning and control (management use)
d. Environmental (e.g. competition)
2. By type of processing
a. Batch
b. Online, real-time
c. Distributed
3. By usage
a. Transaction processing
b. Management Information
c. Decision support
d. Expert system
4. By application
a. Manufacturing
b. Warehousing
c. Distribution
d. Marketing
e. Retailing
f. Services
g. Banking
h. Insurance
i. Transportation
j. Governmental
k. Defence
l. GIS
5. By levels of management
a. For operational control
b. For management control
c. For strategic control
6. By resources
a. Financial information resource
b. Marketing information resource
c. Personnel information resource
13. A Knowledge Management System or an Enterprise Knowledge Portals share and disseminate
knowledge in support of business decision making by managers and business professionals.
Hypermedia databases become the knowledge base for these systems.
14. Enterprise collaboration system (ECS) are cross-functional e-business systems that enhance
communication, coordination, and collaboration among the members of business teams and

4. workgroups. Such systems may use e-mail, videoconferencing, net meeting, discussion forums,
multimedia database, network servers, groupware, calendaring, scheduling etc. These can be
grouped under three categories, electronic communication tools, electronic conferencing tools and
collaborative work management tools (schedules, workflow systems, knowledge management tools
etc.).
15. A GIS is a DSS that uses geographic databases to construct and display maps and other graphics
displays that support decisions affecting the geographic distribution of people and other resources.
Data visualizations systems on the other hand use interactive three dimensional graphical
forms to represent complex data. This helps users discover patterns, links and anomalies in business
or scientific data
16. Executive information systems are information systems that combine features of MIS and DSS.
18. Expert systems are built using an expert system shell (knowledge base for expert system without
kernel, consisting of facts and heuristics) coupled with inference and user interface capabilities. But
it has a limitation in terms of learning of system, development cost and maintenance.
User Expert User Interface Knowledge
Advice/ Interface Engine Base
Workstation programs program
Knowledge Knowledge Expert/
Acquisition Engineering/ Knowledge
Program Workstation Engineer
19. MIS is a system because it has input, processing and output as shown in question 5

5. 20.
M H
A a u
M L n m Model Base
Strategic planning c
a o u a
c
r g f n
o
k i a
Tactical planning u
e s c R Common
n
t t t e software
t
i i u s
Operational management i
n c r o
n
g s i u
g
Operations (TP) n r
g c
Database Management system

6. 23. The management process and information needs
(1) Performance against plan
Recognition of a problem or (2) Environmental, competitive and internal information
an opportunity concerning problems and opportunities
Define problem or opportunity
Evaluation of (1) and (2) in order to make a prediction or estimate
and develop alternative course
of alternative courses
of action
Decision
Implementation of Plan
Prediction or results for alternative courses of action
Control performance against
plan
Environmental information consists of:
(1) Political and governmental considerations
(2) Demographic and social trends
(3) Economic trends
(4) Technological environment
(5) Factors of production such as source, cost, location, availability, accessibility, and
productivity of the major production factors of labor, materials and parts and capital
Competitive information considers:
(1) Industry demand
(2) Firm demand
(3) The competition:-
a. Past performance
b. Present activity (price strategy, advertising, campaigns etc)
c. Future plan (new products)
Internal Information such as
(1) Sales Forecast
(2) Financial Plan
(3) Supply factors (labor, capital, plant and equipment, organization etc)
(4) Policies