Question:-1 Explain the importance of technology in any business with the

real time examples.

Answer:-1
Introduction:-

Technology plays a vital role in business. Over the years businesses have become dependent on
technology so much so that if we were to take away that technology virtually all business operations
around the globe would come to a grinding halt. Almost all businesses and industries around the
world are using computers ranging from the most basic to the most complex of operations.
Technology played a key role in the growth of commerce and trade around the world. It is true that we
have been doing business since time immemorial, long before there were computers; starting from the
simple concept of barter trade when the concept of a currency was not yet introduced but trade and
commerce was still slow up until the point when the computer revolution changed everything. Almost
all businesses are dependent on technology on all levels from research and development, production
and all the way to delivery. Small to large scale enterprises depend on computers to help them with
their business needs ranging from Point of Sales systems, information management systems capable
of handling all kinds of information such as employee profile, client profile, accounting and tracking,
automation systems for use in large scale production of commodities, package sorting, assembly lines,
all the way to marketing and communications. It doesnt end there, all these commodities also need to
be transported by sea, land, and air. Just to transport your commodities by land already requires the
use of multiple systems to allow for fast, efficient and safe transportation of commoditie.

Example :-

Now, as an example we are taking the importance of information technology in Financial Services.
Information technology focuses on the development of electronic networks that exchange
information. Because all financial transactions involve the exchange of information, the increasing
popularity of online finance coincided with advances in information technology. According to
Professor Jane K. Winn of the University Of Washington School Of Law, "Financial institutions were
at the forefront in creating the global information economy as it exists today." Finance today relies on
information technology.

History :In the 1960s, the New York Stock Exchange shortened its trading days because the volume of trades
was too high to process manually. The development of information technologies such as computers
and local networks in the 1970s brought fast and affordable information access to the finance
industry. Increasingly affordable computers encouraged the development of numerous small financial
firms that handled electronic data processing. At the same time, the speed and reliability of
information technology supported the creation of nationwide financial services, including electronic
check and credit card processing.
The Internet :The open, public nature of the Internet threatens the closed information networks developed by the
financial industry in the late 20th century. As a result of this conflict, banks are at the forefront of both
information sharing and information security technology. Online commercial transactions began in
1995, and by 1998 the Internet was processing more than $50 billion worth of transactions. In the 21st
century, the annual worth of Internet transactions is higher and requires more networks, more
computers and more security programs. Financial institutions cannot compete without a broad but
secure information network, so information technology is essential to their success.
Global Financing :Information technology allows finance to function on a global level. "Financial markets can be
thought of as the first organized, global information markets operating through networked
computers," Winn says. Without information technology, financial markets couldn't react to global
developments and finance companies couldn't consistently acquire information at the same time as
their competitors. For example, the Internet allows continuous access to credit scores and credit
ratings to all lenders, insurance companies and businesses that need financially responsible customers.
Social Media :The information technology that runs social media on the Internet provides financial institutions with
valuable information on their customers. By encouraging online communities associated with their
products, finance companies not only acquire information but also encourage brand loyalty. For
example, websites such as TradeKing allow online stock traders to discuss their picks and advise
newcomers. Socially driven information technology allows finance companies to contact the younger
demographics that will be their future customers.

 5 ways technology is transforming business of finance industry:-

1.
2.
3.
4.
5.

Theyre deploying highly focused products and services.

They are automating and commoditizing high-margin processes.
They are using data strategically.
They are platform based and capital light.
They are collaborating with incumbents.

John Brogden, CEO of the Financial Services Council said: Improved technologies and
innovation will help the financial services industry to operate more efficiently and to meet
complex regulatory changes encompassed by the Stronger Super and FoFA reforms.
The financial services industry has a major opportunity to harness new technology to develop
leading services and products that will give it a competitive edge for its next growth phase.

Question:-2 Explain the usefulness of information system in different level

of management.

Answer:-2

Some of the important types of information that are required at different levels of management
are as follows:
A more functional classification of information is on the basis of types of decisions.
Information, as required at different levels of management can be classified as operational, tactical
and strategic.
1. Operational information:
Operational information relates to the day-to-day operations of the organisation and thus, is useful in
exercising control over the operations that are repetitive in nature. Since such activities are controlled
at lower levels of management, operational information is needed by the lower management.

For example, the information regarding the cash position on day-to-day basis is monitored and
controlled at the lower levels of management. Similarly, in marketing function, daily and weekly sales
information is used by lower level manager to monitor the performance of the sales force.

It may be noted that operational information pertains to activities that are easily measurable by
specific standards. The operational information mainly relates to current and historical performance,
and is based primarily on internal sources of data. The predictive element in operational information
is quite low and if at all it is there, it has a short term horizon.
2. Tactical information:
Tactical information helps middle level managers allocating resources and establishing controls to
implement the top level plans of the organisation. For example, information regarding the alternative
sources of funds and their uses in the short run, opportunities for deployment of surplus funds in
short- term securities, etc. may be required at the middle levels of management.

The tactical information is generally predictive, focusing on short-term trends. It may be partly
current and partly historical, and may come from internal as well as external sources.
3. Strategic information:
While the operational information is needed to find out how the given activity can be performed
better, strategic information is needed for making choices among the business options.

The strategic information helps in identifying and evaluating these options so that a manager makes
informed choices which are different from the competitors and the limitations of what the rivals are
doing or planning to do. Such choices are made by leaders only.

Strategic information is used by managers to define goals and priorities, initiate new programmes and
develop policies for acquisition and use of corporate resources. For example, information regarding
the long-term needs of funds for on-going and future projects of the company may be used by top
level managers in taking decision regarding going public or approaching financial institutions for term
loan.

Strategic information is predictive in nature, relies heavily on external sources of data, has a long-term
perspective, and is mostly in summary form. It may sometimes include what if scenarios. However,
the strategic information is not only external information.

For long, it was believed that strategic information are basically information regarding the external
environment. However, it is now well recognised that the internal factors are equally responsible for
success or failures of strategies and thus, internal information is also required for strategic decision
making.

Figure 1.2 represents the types of information required at different levels of managerial hierarchy.

It may be remembered that each type of information has its role to play in managerial effectiveness.
Each type of information is needed with varying degree by the managers at all levels. Thus, a part of
operational information may be used even by the chief executive officer of a company.

The difference lies in the proportion of each type of information in the total information needs of
managers at different levels of managerial hierarchy.

Question:-3 Explain different Information System Like TPS, MIS, DSS and
EIS with example.

Answer:-3
The most common is probably a four level model based on the people who use the systems. Basing
the classification on the people who use the information system means that many of the other
characteristics such as the nature of the task and informational requirements are taken into account
more or less automatically.

1. Transaction Processing Systems

Transaction Processing System is operational-level systems at the bottom of the
pyramid. They are usually operated directly by shop floor workers or front line staff,
which provide the key data required to support the management of operations. This
data is usually obtained through the automated or semi-automated tracking of lowlevel activities and basic transactions.

Functions of a TPS
TPS are ultimately little more than simple data processing systems.
Functions of a TPS in terms of data processing requirements
Processing
Outputs

Inputs

Transactions
Events

Validation
Sorting
Listing
Merging
Updating
Calculation

Lists
Detail reports
Action reports
Summary reports?

Some examples of TPS

o
o
o
o
o

Payroll systems
Order processing systems
Reservation systems
Stock control systems
Systems for payments and funds transfers

The role of TPS

o
o
o
o

Produce information for other systems

Cross boundaries (internal and external)
Used by operational personnel + supervisory levels
Efficiency oriented

2. Management Information Systems

For historical reasons, many of the different types of Information Systems found in
commercial organizations are referred to as "Management Information Systems".
However, within our pyramid model, Management Information Systems are
management-level systems that are used by middle managers to help ensure the
smooth running of the organization in the short to medium term. The highly
structured information provided by these systems allows managers to evaluate an
organization's performance by comparing current with previous outputs.

 Functions of a MIS
MIS are built on the data provided by the TPS

Inputs

Functions of a MIS in terms of data processing requirements

Processing
Outputs

Internal Transactions
Internal Files
Structured data

Sorting
Merging
Summarizing

Summary reports
Action reports
Detailed reports

Some examples of MIS

o
o
o
o
o

Sales management systems

Inventory control systems
Budgeting systems
Management Reporting Systems (MRS)
Personnel (HRM) systems

The role of MIS

o
o
o
o
o
o

Based on internal information flows

Support relatively structured decisions
Inflexible and have little analytical capacity
Used by lower and middle managerial levels
Deals with the past and present rather than the future
Efficiency oriented?

3. Decision Support Systems

A Decision Support System can be seen as knowledge based system, used by senior
managers, which facilitates the creation of knowledge and allow its integration into
the organization. These systems are often used to analyse existing structured
information and allow managers to project the potential effects of their decisions into
the future. Such systems are usually interactive and are used to solve ill structured
problems. They offer access to databases, analytical tools, allow "what if"
simulations, and may support the exchange of information within the organization.

 Functions of a DSS
DSS manipulate and build upon the information from a MIS and/or TPS to generate insights
and new information.

Inputs

Functions of a DSS in terms of data processing requirements

Processing
Outputs

Internal Transactions
Internal Files
External Information?

Modelling
Simulation
Analysis
Summarizing

Summary reports
Forecasts
Graphs / Plots

Some examples of DSS

o
o
o
o
o

Group Decision Support Systems (GDSS)

Computer Supported Co-operative work (CSCW)
Logistics systems
Financial Planning systems
Spread sheet Models?

The role of DSS

o
o
o
o
o

Support ill- structured or semi-structured decisions

Have analytical and/or modelling capacity
Used by more senior managerial levels
Are concerned with predicting the future
Are effectiveness oriented?

4. Executive Information Systems

Executive Information Systems are strategic-level information systems that are found
at the top of the Pyramid. They help executives and senior managers analyze the
environment in which the organization operates, to identify long-term trends, and to
plan appropriate courses of action. The information in such systems is often weakly
structured and comes from both internal and external sources. Executive Information
System are designed to be operated directly by executives without the need for
intermediaries and easily tailored to the preferences of the individual using them.
Functions of an EIS
EIS organizes and presents data and information from both external data sources and internal
MIS or TPS in order to support and extend the inherent capabilities of senior executives.

Inputs
External Data
Internal Files
Pre-defined models

Functions of a EIS in terms of data processing requirements

Processing
Outputs
Summarizing
Simulation
"Drilling Down"

Summary reports
Forecasts
Graphs / Plots

 Some examples of EIS

Executive Information Systems tend to be highly individualized and are often custom made
for a particular client group; however, a number of off-the-shelf EIS packages do exist and
many enterprise level systems offer a customizable EIS module.
The role of EIS
o
o
o
o
o
o
o

Are concerned with ease of use

Are concerned with predicting the future
Are effectiveness oriented
Are highly flexible
Support unstructured decisions
Use internal and external data sources
Used only at the most senior management levels

Question:-4 Suppose you are going to establish the new start-up with online
e-commerce site. So how you are going to use technological information
system in different department (Finance, HR, logistic, marketing, selling,
legal, etc.) to maximize the profit?
Answer:-4
Generally, Technological Information System is very important to start-up new business as specially
E-commerce. The followings are the usefulness of technological information system in different
departments.

1) Finance:With the help of technological information system you are able to know that
a) Change in price of products in day to day life.
b) You can also know about the economic policy for your business.
c) You can take the suggestion from the people to decide the price of your product or
services.
d) You can prepare the different ratio for your future plan on the basis of data available with
you from the information system.
e) You can maintain the data of different transaction for your business.
f) You can do financial management through the use of technological information system
like Financial forecasting and planning, financial control, Funds management

2) Human Resource:Human capital is very important thing for any business.

a)
b)
c)
d)

For the recruitment purpose itself you can use technology in very well manner.
To analyse the profile of any person I can use information technology.
I can also do work on the interview through technology.
Employees availing themselves of the computer-assisted training and evaluation
opportunities.
e) Corporate executives involved in tactical and strategic planning and control.
f) All the employees of the firm wishing ti inspect their own records.
g) The employees of the Human Resources department in performance of their
duties
3) Logistic:a)
b)
c)
d)
e)

To know the logistic expenses.

Customers can track their order easily.
Management can control the whole process.
To save from lost or theft.
To get product faster as they can.

4) Marketing:-

Marketing activities are directed toward planning, promoting, and selling goods and
services to satisfy the needs of customers and the objectives of the organization.
Marketing information systems support decision making regarding the marketing
mix. These include:
1. Product
2. Price
3. Place
4. Promotion
In e-commerce Company you should consider all these factors with the help of
technology information system.
5) Selling:-

Sales activities are involves equipping salespeople with portable computers tied into the
corporate information systems. This gives the salespeople instantaneous access to
information and frees them from the reporting paperwork. This increases selling time and
the level of performance. Access to corporate databases is sometimes accompanied by
access to corporate expertise; either by being able to contact the experts or by using
expert systems that help specifies the product meeting customer requirements.

Based on the planned marketing mix and outstanding orders, sales are forecast and a full
marketing plan is developed. Sale forecasting is an area where any quantitative methods
employed must be tempered with human insight and experience. The actual sales will
depend to a large degree on the dynamics of the environment.
Qualitative techniques are generally used for environmental forecasting - an attempt to
predict the social, economic, legal, and technological environment in which the company
will try to realize its plans. Sales forecasting uses numerous techniques, which include:
1. Group decision making techniques are used to elicit broad expert opinion
2. Scenario analysis in which each scenario in this process is a plausible future
environment
3. Extrapolation of trends and cycles through a time-series analysis.

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