JuIy 2011

Master of Computer AppIication (MCA) - Semester 4

MC0076 - Management Information Systems- 4 Credits
(Book ID: B0901)
Assignment Set - 1 (60 Marks)




Q1 What do you understand by Information processes data?
Ans: lnformaLlon ls a complex concepL LhaL has a varleLy of meanlngs dependlng on lLs conLexL and Lhe
perspecLlve ln whlch lL ls sLudled lL could be descrlbed ln Lhree ways
1 As processed daLa
2 As Lhe opposlLe of uncerLalnLy and
3 As a meanlngful slgnalLo lllusLraLe Lhe rlchness of Lhe concepL of lnformaLlon
Information as Processed Data
uaLa are generally consldered Lo be raw facLs LhaL have undeflned uses and appllcaLlon lnformaLlon ls
consldered Lo be processed daLa LhaL lnfluences cholces LhaL ls daLa LhaL have somehow been
formaLLed fllLered and summarlzed and knowledge ls consldered Lo be an undersLandlng derlved
from lnformaLlon dlsLlncLlons among daLa lnformaLlon and knowledge may be derlved from sclenLlflc
Lermlnology 1he researcher collecLs daLa Lo LesL hypoLheses Lhus daLa refer Lo unprocessed and
unanalysed numbers When Lhe daLa are analysed sclenLlsLs Lalk abouL Lhe lnformaLlon conLalned ln
Lhe daLa and Lhe knowledge acqulred from Lhelr analyses 1he confuslon ofLen exLends Lo Lhe
lnformaLlon sysLems conLexL and Lhe Lhree Lerms maybe used lnLerchangeably
Information as the Opposite of Uncertainty
A dlfferenL perspecLlve on lnformaLlon derlves from economlc Lheory and deflnes lnformaLlon as Lhe
negaLlve measure of uncerLalnLy LhaL ls Lhe less lnformaLlon ls avallable Lhe more uncerLalnLy
exlsLs and conversely Lhe more lnformaLlon ls avallable Lhe less uncerLalnLy exlsLs? ln
mlcroeconomlc Lheory Lhe equlllbrlum of supply and demand depends on a markeL known as a
perfecL markeL where all buyers and sellers have compleLe knowledge abouL one anoLher and where
uncerLalnLy does noL exlsL lnformaLlon makes a markeL perfecL by ellmlnaLlng uncerLalnLles abouL
supply and demand ln macroeconomlc Lheory flrms behave accordlng Lo how Lhey read Lhe
economlc cllmaLe Lconomlc slgnals LhaL measure and predlcL Lhe dlrecLlon of Lhe economy provlde
lnformaLlon abouL Lhe economlc cllmaLe 1he flrm reduces lLs uncerLalnLy by decodlng Lhese slgnals
1aklng an example of lederal Lxpress ln uSA each lncomlng alrcrafL has a scheduled arrlval Llme
Powever lLs acLual arrlval depends on unforeseen condlLlons uaLa abouL when an alrcrafL deparLed
from lLs desLlnaLlon ls lnformaLlon ln Lhe economlc sense because lL reduces uncerLalnLy abouL Lhe
alrcrafL's arrlval Llme Lhereby lncreaslng lederal Lxpress's ablllLy Lo handle arrlvlng packages
Managers also deflne lnformaLlon ln Lerms of lLs reduclng uncerLalnLy 8ecause managers musL
pro[ecL Lhe ouLcomes of alLernaLlves ln maklng declslons Lhe reducLlon of uncerLalnLy abouL Lhe
ouLcomes of varlous alLernaLlves lmproves Lhe effecLlveness of Lhe declslon maklng process and Lhe
quallLy of Lhe declslon
Information as a MeaningfuI SignaI
lnformaLlon Lheory a branch of sLaLlsLlcs concerned wlLh measurlng Lhe efflclency of communlcaLlon
beLween people and/or machlnes deflnes lnformaLlon as Lhe lnpuLs and ouLpuLs of communlcaLlon
LlecLronlc audlLory vlsual or oLher slgnals LhaL a sender and recelver lnLerpreL slmllarly convey
lnformaLlon lor example ln Lhe recrulLmenL scenarlo abouL Lhe resumes and appllcaLlons for Lhe
open poslLlons are lnformaLlon because Lhey are slgnals senL by Lhe appllcanLs and lnLerpreLed
slmllarly by boLh
1he Managers ln Lhelr roles as communlcaLors boLh generaLe and recelve lnformaLlon 1hey recelve
reporLs LhaL organlze slgnals or daLa ln a way LhaL conveys Lhelr meanlng 8eporLs of sales Lrends
become lnformaLlon so do reporLs abouL hazardous wasLe slLes Managers derlve meanlng from Lhe
lnformaLlon Lhey see and hear as parL of communlcaLlon and use lL Lo make declslons 1hls deflnlLlon
of lnformaLlon requlres a manager Lo lnLerpreL a glven slgnal as lL was lnLended lor example a
manager's lncorrecL lnLerpreLaLlon of body language ln a negoLlaLlon would noL be consldered Lo be
lnformaLlon from Lhls perspecLlve alLhough we know LhaL managers use boLh correcL and lncorrecL
percepLlons as lnformaLlon ln declslon maklng and oLher managerlal funcLlons Agaln Lhls vlew of
lnformaLlon suggesLs Lhe complexlLy of Lhe concepL and Lhe value of a mulLlfaceLed deflnlLlon

Q2 Discuss the Components of an OrganizationaI Information System?

Ans Components of an DrganIzatIonaI InformatIon System
The environment in which organizations operate from the informational perspective in terms
proposed by George Huber of the University of Texas, who has studied the organizational
design required by an information society. His conclusions provide a framework for determining
what is required of an organizational information system.
These, according to Huber, are the hallmarks of an information society:
1) Dramatic Increase of AvaiIabIe KnowIedge
Whether measured in terms of the number of scholarly journals, patents and copyrights, or in
terms of the volumes of corporate communications, both the production and the distribution of
knowledge have undergone a manifold increase.
2) Growth of CompIexity
Huber characterizes complexity in terms of numerosity, diversity, and interdependence. A
growing world population and the industrial revolution combined to produce numerosity, or a
growing number of human organizations. To succeed, people and organizations learned to
specialize: they do things differently and organize themselves differently to accomplish
specialized tasks. These differences lead to diversity.
Two principal factors have led to increased interdependence. The first as been the revolution in
the infrastructure of transportation and communication. The second factor is specialization in
firms that make narrowly defined products, as opposed to the self-sufficiency of companies
producing a complex product down to its minute elements. A company's product is typically a
part of a larger system, produced with contributions from a number of interdependent firms
(consider a car or a computer). Moreover, interdependence has increased on a global scale.
Even the most isolated of countries participates in some way in the international division of
labor.
Organizations operating in the public sector, while rarely in a competitive situation, are still
governed by the demands of society. Pressures on the public sector in democratic societies,
along with the pressures conveyed from the private sector, also make the environment in which
public organizations operate more complex.
3) Increased TurbuIence
The pace of events in an information society is set by technologies. The speeds of today's
computer and communication technologies have resulted in a dramatic increase in the number

of events occurring within a given time. Consider the volumes and speed of trades in the
securities and currency markets. Widespread use of telefacsimile, as another example, has
removed the "float"-the lag between sending and receiving-in written communications. Equally
important, because of the infrastructure discussed earlier, the number of events that actually
influence an organization's activities (effective events) has also grown rapidly.
The great amount of change and turbulence pressuring organizations today thus calls for rapid
innovation in both product and organizational structure. To thrive, an organization must have
information systems able to cope with large volumes of information in a selective fashion.
Huber concludes that these factors an increase of available knowledge, growth of complexity,
and increased turbulence-are not simply ancillary to a transition to the new societal form.
Rather, they will be a permanent characteristic of the information society in the future.
Moreover, we should expect that these factors would continue to expand at an accelerating rate
(a positive feedback exists). Barring some catastrophic event, we expect that the rapidly
changing environment will be not only "more so" but also "much more so." To succeed in an
information society, organizations must be compatible with this environment.


Q.3 What are the features contributing to success and faiIures of MIS modeIs?

Ans:Factors contributing to success oI MIS: II MIS is to be success, then it should have all the
Ieatures listed below: 1) MIS is integrated into the management Iunction. It sets clear objectives
to ensure that MIS Iocuses on the major issues oI the business. Also adequate development
resources are provided and human & organizational barriers to progress are removed 2) An
appropriate inIormation processing technology required to meet the data processing and analysis
needs oI the users oI MIS is selected. 3) MIS is oriented, deIined and designed in terms oI the
user's requirements and its operational viability is ensured. 4) MIS is kept under continuous
surveillance, sot that its open system is modiIied according to the changing inIormation needs 5)
MIS Iocuses on results and goals, and highlights the Iactors and reasons Ior non achievements. 6)
MIS is not allowed to end up into and inIormation generation mill avoiding the noise in the
inIormation and the communication system. 7) MIS recognizes that a manager is a human being
and thereIore, the systems must consider all the human behavioral aspects in the process oI
management. 8) MIS is easy to operate and thereIore, the design oI MIS has such good Ieatures
which make up a user Iriendly design. 9) MIS recognizes that the inIormation needs become
obsolete and new needs emerge. The MIS design, thereIore, has a potential capability to quickly
meet newer and newer needs oI inIormation. 10) MIS concentrates on developing the
inIormation support to manage critical success Iactors. It concentrates on the mission critical
applications serving the needs oI the top management.
Factors contributing to Iailures: Many times, MIS is a Iailure. The common Iactors which are
responsible Ior this are as Iollows:
1) MIS is conceived as a data processing and not as an inIormation system. 2) MIS does not
provide that inIormation which in needed by managers but it tends to provide the
inIormation generally the Iunction calls Ior. MIS then becomes an impersonal Iunction.
3) Understanding the complexity in the business systems and not recognizing it in the
MIS design leads to problems in the successIul implementation. 4) Adequate attention is
not given to the quality control aspects oI the inputs, the process and the outputs leading
to insuIIicient checks and controls in MIS. 5) MIS is developed without streamlining the
transaction processing systems in the organizations. 6) Lack oI training and appreciation
that the users oI the inIormation and the generators oI the data are diIIerent, and they
have to play an important role in the MIS. 7) MIS does not meet certain critical and key
Iactors oI its users, such as a response to the query on the database, an inability to get the
processing done in a particular manner, lack oI user Iriendly system and the dependence
on the system personnel. 8) A belieI that the computerized MIS can solve all the
management problems oI planning and control oI the business. 9) Lack oI administrative
discipline in Iollowing the standardized systems and procedures, wrong coding and
deviating Irom the system speciIications result in incomplete and incorrect inIormation.
10) MIS does not give perIect inIormation to all users in the organization. Any attempt
toward such a goal will be unsuccessIul because every user has a human ingenuity, bias
and certain assumptions not known to the designer. MIS cannot make up these by
providing perIect inIormation.

Q 4 List down the PotentiaI ExternaI Opportunities, potentiaI internaI Weaknesses
Ans: orporate level strategy addresses which lines oI business a company should pursue. It views an
organization as a portIolio, agglomeration, Iederation, or amalgam oI businesses or subunits.
Strategic management at the corporate level Iocuses on decisions about acquiring new businesses,
divesting old businesses, establishing joint ventures, and creating alliances with other organizations.
Determining its corporate-level strategy requires top management to obtain inIormation about
business growth rate-the speed oI industry growth-and market share-the portion oI the industry
market captured by the business unit, among other inIormation. InIormation on industry growth and
market share is oIten public, due to the disclosures required oI companies issuing stocks and bonds.
Industry lobbyists, stock market researchers, trade magazine journalists, and other researchers also
act as sources oI this inIormation. InIormation systems can regularly provide organizations with such
inIormation by tapping into commercially sold databases that oIIer extensive economic,
technological, demographic, and even legal inIormation. This ongoing availability oI inIormation
allows organizations to determine their strategic position as well as the appropriate actions Ior
maintaining or changing this position.
InIormation systems can provide the inIormation Ior making resource allocation and other
investment decisions. InIormation about market share, proIit margins, patent ownership, technical
capability, competitive strengths and weaknesses, quality oI the management team, ability to
compete on price and quality, customer requirements, and markets helps management determine its
investment strategy. For example, business units with high ratings on both industry attractiveness and
business strength make good Iinancial investments; those low on both dimensions have no growth
potential, and managers should consider divesting or liquidating them.
Strategic management also involves business-level strategy, matching the strengths and weaknesses
oI each business unit or product line to the external environment to determine how each unit can
best compete Ior customers. Strategic decisions include what products or services the company
should oIIer, what customers it should service, and how it will deploy resources Ior advertising,
research and development, customer service, equipment, and staIIing.
Potential External Opportunities
Serve additional customer groups
Enter new markets or segments
Expand product line to meet broader range oI customer needs
DiversiIy into related products
Vertical integration
Falling trade barriers in attractive Ioreign markets
omplacency among rival Iirms
Faster market growth
Potential Internal Weaknesses
No clear strategic direction
Obsolete Iacilities
Lack oI managerial depth and talent
Missing key skills or competence
Poor track record in implementing strategy
Plagued with internal operating problems
Falling behind in R&D
Too narrow a product line
Weak market image
Weaker distribution network
Below-average marketing skills
Unable to Iinance needed changes in strategy
Higher overall unit costs relative to key competitors





Q.5 What do you understand by MuItinationaI corporation, GIobaI corporation,
InternationaI corporation, TransnationaI corporation

Ans:
Mu|t|nat|ona| Corporat|on
A 2:9na94na c47547a94n has built or acquired a portIolio oI national companies that it operates and
manages with sensitivity to its subsidiaries` local environments. The subsidiaries operate autonomously,
oIten in diIIerent business areas. A company that Iollows a multinational strategy has little need to share
data among its subsidiaries or between the parent and subsidiaries except to consolidate Iinancial
positions at year`s end.
G4-a C47547a94n
A g4-a c47547a94n has rationalized its international operations to achieve greater eIIiciencies through
central control. Although its strategy and marketing are based on the concept oI a global market, a
headquarters organization makes all major decisions. A company pursuing a global strategy needs to
transIer the operational and Iinancial data oI its Ioreign subsidiaries to headquarters in real time or on a
Irequent basis. A high level oI inIormation Ilows Irom subsidiary to parent, while limited data move Irom
parent to subsidiary.
n907na94na C47547a94n
An n907na94na c47547a94n exports the expertise and knowledge oI the parent company to
subsidiaries. Here subsidiaries operate more autonomously than in global corporations. Ideally,
inIormation Ilows Irom the parent to its subsidiaries. In practice, subsidiaries oIten rely on the parent to
exercise its knowledge Ior the subsidiaries` beneIit rather than simply to export it to the subsidiaries. For
example, a subsidiary without a great deal oI human resources expertise may "pay" its parent to operate
its human resources Iunction. Although the inIormation theoretically should stay within the subsidiary, in
this case it may Ilow back and Iorth between the parent`s location and the subsidiary`s location.
T7ansna94na C47547a94n
A 97ansna94na c47547a94n incorporates and integrates multinational, global, and international
strategies. By linking local operations to one another and to headquarters, a transnational company
attempts to retain the Ilexibility to respond to local needs and opportunities while achieving global
integration. Because transnational operate on the premise oI teamwork, they demand the ability to share
both inIormation and inIormation services
; What are the ||m|tat|ons of Lk systems? now Lk packages he|p |n overcom|ng
theses ||m|tat|ons
Ans
n90757s0 70s4:7c0 5annng (#!) is an Integrated computer-based system used to manage
internal and external resources including tangible assets, Iinancial resources, materials, and
human resources. It is a soItware architecture whose purpose is to Iacilitate the Ilow oI
inIormation between all business Iunctions inside the boundaries oI the organization and manage
the connections to outside stakeholders. Built on a centralized database and normally utilizing a
common computing platIorm, ERP systems consolidate all business operations into a uniIorm
and enterprise wide system environment
An ERP system can either reside on a centralized server or be distributed across modular
hardware and soItware units that provide "services" and communicate on a local area network.
The distributed design allows a business to assemble modules Irom diIIerent vendors without the
need Ior the placement oI multiple copies oI complex, expensive computer systems in areas
which will not use their Iull capacity

L8 whlch ls an abbrevlaLlon for LnLerprlse 8esource lannlng ls prlnclpally an lnLegraLlon of buslness
managemenL pracLlces and modern Lechnology lnformaLlon 1echnology (l1) lnLegraLes wlLh Lhe core
buslness processes of a corporaLe house Lo sLreamllne and accompllsh speclflc buslness ob[ecLlves
ConsequenLly L8 ls an amalgamaLlon of Lhree mosL lmporLanL componenLs 8uslness ManagemenL
racLlces lnformaLlon 1echnology and Speclflc 8uslness Cb[ecLlves

ln slmpler words an L8 ls a masslve sofLware archlLecLure LhaL supporLs Lhe sLreamlng and dlsLrlbuLlon
of geographlcally scaLLered enLerprlse wlde lnformaLlon across all Lhe funcLlonal unlLs of a buslness
house lL provldes Lhe buslness managemenL execuLlves wlLh a comprehenslve overvlew of Lhe compleLe
buslness execuLlon whlch ln Lurn lnfluences Lhelr declslons ln a producLlve way

AL Lhe core of L8 ls a well managed cenLrallzed daLa reposlLory whlch acqulres lnformaLlon from and
supply lnformaLlon lnLo Lhe fragmenLed appllcaLlons operaLlng on a unlversal compuLlng plaLform

lnformaLlon ln large buslness organlzaLlons ls accumulaLed on varlous servers across many funcLlonal
unlLs and someLlmes separaLed by geographlcal boundarles Such lnformaLlon lslands can posslbly
servlce lndlvldual organlzaLlonal unlLs buL fall Lo enhance enLerprlse wlde performance speed and
compeLence

1he Lerm L8 orlglnally referred Lo Lhe way a large organlzaLlon planned Lo use lLs organlzaLlonal wlde
resources lormerly L8 sysLems were used ln larger and more lndusLrlal Lypes of companles Powever
Lhe use of L8 has changed radlcally over a perlod of few years 1oday Lhe Lerm can be applled Lo any
Lype of company operaLlng ln any klnd of fleld and of any magnlLude

1odays L8 sofLware archlLecLure can posslbly envelop a broad range of enLerprlse wlde funcLlons and
lnLegraLe Lhem lnLo a slngle unlfled daLabase reposlLory lor lnsLance funcLlons such as Puman
8esources Supply Chaln ManagemenL CusLomer 8elaLlonshlp ManagemenL llnance ManufacLurlng
Warehouse ManagemenL and LoglsLlcs were all prevlously sLand alone sofLware appllcaLlons generally
housed wlLh Lhelr own appllcaLlons daLabase and neLwork buL Loday Lhey can all work under a slngle
umbrella Lhe L8 archlLecLure

ln order for a sofLware sysLem Lo be consldered L8 lL musL provlde a buslness wlLh wlde collecLlon of
funcLlonallLles supporLed by feaLures llke flexlblllLy modularlLy openness wldespread flnesL buslness
processes and global focus
lnLegraLlon ls an excepLlonally slgnlflcanL lngredlenL Lo L8 sysLems 1he lnLegraLlon beLween buslness
processes helps develop communlcaLlon and lnformaLlon dlsLrlbuLlon leadlng Lo remarkable lncrease ln
producLlvlLy speed and performance

1he key ob[ecLlve of an L8 sysLem ls Lo lnLegraLe lnformaLlon and processes from all funcLlonal
dlvlslons of an organlzaLlon and merge lL for efforLless access and sLrucLured workflow 1he lnLegraLlon
ls Lyplcally accompllshed by consLrucLlng a slngle daLabase reposlLory LhaL communlcaLes wlLh mulLlple
sofLware appllcaLlons provldlng dlfferenL dlvlslons of an organlzaLlon wlLh varlous buslness sLaLlsLlcs and
lnformaLlon

AlLhough Lhe perfecL conflguraLlon would be a slngle L8 sysLem for an enLlre organlzaLlon buL many
larger organlzaLlons usually deploy a slngle funcLlonal sysLem and slowly lnLerface lL wlLh oLher
funcLlonal dlvlslons 1hls Lype of deploymenL can really be Llmeconsumlng and expenslve