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Q.1 What is MIS ? Define the characteristics of MIS ? What are the basic functions of MIS ?

Give some disadvantage of MIS ? Ans. Ma na g em en t I nform a tio n System ( MI S) :


C om pu t e r Ba s e d Inform a tion s ys te ms are of v ita l im porta nc e in m ode rn orga n iz a t ion . Sy s te m s profe s s iona ls a na ly z e , de s ign, de v e lop, im ple m e n t an d ma n a ge sta te -of- the - art te le c om m unic a tions , m ulti- m e dia an d ot h e r c om pu t e r- bas e d inform a tion s ys te m s . In addition to m a in t a in in g

t ra dit ion a l t ra ns a c tion proc e s s ing s ys te m s , toda y s IS profe s s ion a ls a re in v olv e d in e x c iting de v e lopm e nts in c om puting s ys te ms , suc h as de c is ion su pport an d ex pe rt s ys te ms , da ta bas e de v e lopm e nt a nd e nha n c e m e n t , de v e lopm e n t and us e of G ra phic a l U s e r Inte rfa c e s ( G U I) , s ys te m s des ign us in g obje c t orie nte d progra m m ing, a nd de s ign and m a na ge m e n t of of

t e le c om m u n ic a tions

s ys te m s ,

the

m a na ge m e nt

e n d- us e r

c om pu t in g. So y ou ca n de fine M IS is a m e thod of ge ne ra ting inform a t ion w h ic h is us e d by ma na ge me nt or orga niz a tion for de c is ion ma k ing, c on t rol of ac t iv it ie s and ope ra tions etc . Im p a c t of MI S : E le c t ron ic c om m unic a tion inc re as es the ov e ra ll a m ount of c om m u n ic a t ion w it h in t h e orga niz a tion. You ca n find the follo wing a dv a nta ge s obt a in e d from M IS. Qu ic k e r inform a ti on a va ila bility An y t im e a ny whe re a c c es s to inform a ti on
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Prom ot e s non re dunda nc y Qu ic k de c is ion- m ak ing Fa s t a c tions unde rta k e n E ffe c t iv e produc tiv ity Re du c e d tra nsa c tion ra te In form a t ion ca n be store d, re trie v e d, a nd c om m unic a te d fa r m ore ea s ily an d e ffe c t iv e ly . The re is a n e norm ous role of inform a tion te c hnology ( IT) on ope ra t ions . The follow ing ca n be the ex a m ple s y ou ca n lis t for t h e a re as in w h ic h MIS is us e d. W he n y ou go to a ny v e ndor and a sk for ca t a logu e s of the produc t t he n s ma rt ca ta logue s a nd da ta bas e s for

s im ple r c us t om e r/ v e ndor will he lp y ou and the v e ndor in c oord in a t ion . W he n y ou a re tra ve lling or driv ing, the tra ns ponde r- e quippe d v e h ic le s c a n re -rou t e y ou in re a l tim e . Voic e - re c ogniti on s ys te m s for gre a te r wa re h ou s e in v e n t ory a c c ura c y , c olla bora tiv e e diting of gra phic s doc um e n t s by

ge ogra ph ic a lly - re m ote indiv idua ls , a nd e v e n e le c tronic s tora ge /re t rie v a l of doc u m e n ts to re duc e v olum e . You will s ee the te x ts a nd im a ge s in e le c t ron ic form s a re e ffe c tiv e in c om m unic a ting ide as from s ou rc e t o des t in a t ion . Whe n y ou a c ce ss m one y through y our c re dit c a rds , ATM ca rds , sm a rt c a rds y ou c a n find tha t it is te c hnology driv e n whic h re v olv e s a rou n d w ire le ss e le c tronic ga dge ts , inte rne t and m one y ca rds . Wh e n y ou us e it for y our ide ntity proof it is y our ide ntity ca rds tha t de te c t y ou from t h e lis t of u s e rs . A c om pu t e riz e d m a na ge m e nt inform a ti on s ys te m ( M IS) in a ll re gis t e re d c lie n t s , c ou n s e ling s es s ions , and a ll m e dic a l v is its prov ide d to th e c lie n t s
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w it h re s pe c t to hos pita l ma na ge m e nt s ys te m of a ny m a jor hos pita ls . N on c om pu t e riz e d da ta from pre v ious y e a rs only doc um e nte d the num be r a n d loc a t ion of c ouns e ling s es s ions while the ne w M IS prov ide s m u c h m ore spe c ific an d de ta ile d da ta . The im pa c t of c om pute r- ba se d inform a t ion sy s t e ms on ma na ge rs work re fle c ts de c is ions m a de by m a na ge rs

t h e ms e lv e s a bout how the te c hnology is us e d. The im pa c t of M IS is n ot an in div idu a lly sta ble a nd pre dic ta ble . As a ma na ge r a t any orga niz a t ion y ou ca n u se n on line a r on- going proc e s s of c ha nge tha t ev olv e s ov e r t im e a n d s it ua t ion s . In an orga niz a tion y ou ca n de v e lop a sy s te m , s ha pe it an d a ls o rea c t it t o a ny diffe re nt wa y . MI S c ha ra cter isti cs : It s u pports tra ns a c tion ha ndling and re c ord k ee ping. It is a ls o c a lle d as inte gra te d da ta ba s e Ma na ge m e nt Sys te m w h ic h su pport s in ma jor func tiona l a re as . It prov ide s ope ra tiona l, ta c tic a l, and stra te gic le v e l m a na ge rs w it h ea s t ac c e ss to tim e ly but, for the m os t, s truc ture d inform a tion . It s u pports de c is ion ma k ing func tion whic h is a v ita l role of M IS. It is fle x ible whic h is ne e de d to ada pt to the c ha nging ne e ds of t h e orga n iz a tion. It prom ote s s e c urity s ys te m by prov id ing only ac c es s to au t h oriz e d us e rs . M IS n ot only prov ide s sta tis tic a l and da ta a na ly s is but a ls o w ork s on t h e ba s is on M BO ( ma na ge m e nt by obje c tiv e s ) . M IS is suc c e ss fu lly us e d for me as uring pe rform a nc e a nd m ak ing ne c es sa ry c ha nge in t h e
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orga n iz a tiona l pla ns and proc e dure s . It he lps to build re le v a n t a n d m ea s u ra ble obje c tiv e s , m onitor res ults , and s e nd a le rts . C oordin a tion : M IS prov ide s inte gra te d inform a tion s o tha t a ll t h e de pa rt m e nts a re a wa re of the proble m a nd re quire m e nts of t h e ot h e r de pa rt m e nts . This he lps in e qua l inte ra c tion of the diffe re nt c e n t e rs an d c onne c ts de c is ion c e nte rs of the orga niz a tion. Du plic a tion of da ta is re duc e d s inc e da ta is store d in the ce n t ra l pa rt an d sa me da ta c a n be use d by a ll the re la te d de pa rtm e nts . M IS e lim ina te s re dunda nt da ta . It h e lps in m a inta ining c ons is te nc y of da ta . It is div ide d in t o

su bs y s te m s . Ha ndlings w ith sm a ll s ys te m s a re m uc h ea s ie r t h a n a n e n t ire s ys te m . This he lps in giv ing ea s y ac c e ss of da ta , ac c u ra c y a n d be t t e r inform a tio n produc ti on. M IS a ss em ble s , proc e s s , store s , Re trie v e s , e va lua t e s an d

diss e m ina tes the inform a tion. F unc ti o n of MI S : Th e m a in fu nc tions of M IS a re : Da ta P roces sing : Ga the ring, stora ge , tra ns m is s ion, proc e s s in g a n d ge t t in g output of the da ta . Ma k ing the da ta into inform a t ion is a ma jor t a sk . P red i c tion: Pre dic ti on is ba s e d on the his toric a l da ta by apply in g t h e prior knowle dge m e thodol ogy by us ing m ode rn ma th e m a t ic s , st a t is t ic s or s im ula tion. Prior knowle dge va rie s on the applic a t ion an d w it h diffe re nt de pa rtm e nts .
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P l a nni ng : Pla nning re ports a re produc e d bas e d on the e n t e rpris e res t ric t i on on the c om pa nies a nd he lps in pla nning ea c h fu n c t ion a l de pa rt m e nt to work re as ona bly . C ontrol: M IS he lps in m onitorin g the ope ra tions and ins pe c t s t h e pla ns . It c ons is ts of diffe re nc e s be twe e n ope ra tion and pla n w it h res pe c t to da ta be longing to diffe re nt func tiona l de pa rt m e n t . It

c on t rols the tim e ly a c tion of the pla ns and a na ly z e s the re as on s for t h e diffe re nc e s be twee n the ope ra tions and pla n. The re by h e lps ma n a ge rs to a c c om plis h the ir de c is ion ma k ing tas k s uc ce ss fu lly . A ssi sta nc e: It s tore s the re la te d proble m s a nd fre que n t ly u s e d in form a tion to a pply the m for re la tiv e e c onom ic be ne fits . Th rou gh t h is it ca n de riv e ins ta nt ans we rs of the re la te d proble m . Da ta b a se: This is the m os t im porta nt func tion of MIS. All the

in form a tion is nee ds a s tora ge s pa c e whic h ca n be ac c e ss e d w it h ou t ca u s in g a ny a nom a lie s in the da ta . Inte gra te d Da ta bas e av oids t h e du plic a tion of da ta and the re by re duc e s re dunda nc y and hence

c on s is t e nc y will be inc re a s e d. Th e m a jor func tion of M IS lie s in a pplic a tion of the a bov e fun c t ion s t o su pport the ma na ge rs and the e x e c utiv es in the orga niz a t ion in de c is ion- ma k ing. D i sa d va nta g es of MI S : Th e follo w in g a re s ome of the disa dv a nta ge s of M IS: M IS is highly se ns itiv e : M IS is ve ry he lpful in m a inta ining loggin g in form a tion of an a uthoriz e d us e r. This ne e ds to m onitor c ons ta n t ly .
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Qu a lit y of outputs is gov e rne d by qua lity of inputs . M IS bu dge ting: The re is diffic u lty in ma inta ining indire c t c os t a n d ov e rh e a ds . C a pturing the a c tua l c os t ne e ds to ha v e an ac c ru a l sy s t e m ha v ing true c os ts of outputs whic h is ex tre m e ly diffic u lt . It ha s be e n diffic ult to es ta blis h de finite findings . M IS is n ot fle x ible to upda te itse lf for the c ha nge s . Th e c h a nges in the de c is ion of top le v e l m a na ge m e nt de c re a se its e ffe c t iv e ne ss . In form a tion a c c ounta bility is ba se d on the qua lita tiv e fa c tors an d t h e fa c t ors lik e m ora lity , c onfide nc e or attitude will not ha ve any bas e .

Q.2 Explain knowledge based system ? Explain DSS and OLAP with example? Ans.
K now led g e Ba sed System (K BS) :

K BS are t h e sy s tem s ba s e d on knowle dge ba s e . Knowle dge bas e is t h e da t a bas e ma inta ine d for knowle dge m a na ge m e nt whic h prov ide s the

m ea n s of da ta c olle c tions , orga niz a tion a nd re trie v a l of knowle dge . Th e kn ow le dge ma na ge m e nt ma na ges the dom a in whe re it c re a t e s and

e na ble s orga niz a tion for adopt ion of ins ights a nd e x pe rie nc e s . Th e re a re t w o ty pe s of knowle dge bas e s . a. Ma c hi n e rea d a b le k now led g e b a ses: The k nowle dge ba s e h e lps t h e c om pu t e r t o proc e s s through. It ma ke s the da ta in the c om pute r re a da ble c ode w h ic h m ak es the ope ra tor to pe rform ea s ie r. Suc h inform a t ion s a re us e d by se m a ntic we b. Se ma ntic we b is a we b tha t will ma k e a des c ript ion of t h e sy s t e m tha t a s ys te m c a n unde rs ta nd.

b. Hum a n rea d a b le k now led g e b a ses: The y a re des igne d to he lp pe ople t o re t rie v e k nowle dge . The inform a ti on ne e d to be proc e s s e d by t h e rea de r. Th e rea de r ca n a c c es s the inform a tion a nd sy nthe s iz e the ir ow n . K BS re fe rs t o a sy s te m of da ta a nd inform a tion us e d for de c is ion ma k in g. Th e sy s t e m is autom a te d to work on the k nowle dge bas e d da ta a n d in form a t ion re quire d in a pa rtic ula r dom a in of ma na ge m e nt ac tiv it y . Th e proc e s s in g is done ba se d on the pas t de c is ions ta k e n unde r su it a ble c on dit ion s . De c is ion ma k ing is bas e d on the fa c t tha t the c on dit ion is s im ila r t o t h e pas t s itua tion he nc e the de c is ion is a ls o is s im ila r. E xa m ple s of K BS a re inte llige n t sy s te ms , robot ic s , ne ura l ne twork s e t c . D ec i si on Sup p ort System s (D SS) : DSS is an inte ra c tiv e c om pute r ba s e d s ys te m des igne d to h e lp the

de c is ion m ak e rs to us e all l the re s ourc e s av a ila ble and m ak e us e in t h e de c is ion m ak ing. In ma na ge me nt m a ny a tim e proble m s a ris e ou t of s it ua t ion s for whic h s im ple s olution ma y not be pos s ible . To solv e su c h proble m s y ou m a y ha v e to us e c om ple x the orie s . The m ode ls th a t w ou ld be re qu ire d to s olv e s uc h proble m s ma y ha v e to be ide ntifie d. DSS re qu ire s a lot of ma na ge ria l abilitie s a nd m a na ge rs judgm e nt. You m a y ga the r a nd pre s e nt the followin g inform a tion by us ing de c is ion su pport applic a tion : Ac c es s ing da ta m a rts
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a ll

of

y our

c urre nt

inform a tion

a ss e ts ,

in c lu din g

le ga c y a nd re la tiona l da ta s ourc e s , c ubes , da ta wa re hou s es , a n d

C om pa ra tiv e sa les figure s be twe e n one we ek a nd the ne x t Proje c te d re v e nue figure s ba s e d on ne w produc t s a le s as sum ptions Th e c ons e que nc e s of diffe re nt de c is ion a lte rna tiv e s , giv e n pas t e x pe rie nc e in a c onte x t tha t is de s c ribe d. Ma na ge r m a y s om e tim e s find it diffic ult to s olv e s uc h proble m s . E . g. In a sa les proble m if the re is m ultiple de c is ion va ria ble s m ode le d a s a s im ple lin e a r proble m but ha v ing m ultiple optim a , it be c om es diffic ult t o ta k e a de c is ion . Sinc e a ny of the m ultiple optim a would giv e optim um re s u lt s . Bu t the st ra te gy to se le c t the one m os t s uita ble unde r c on dit io n s

pre v a ilin g in the ma rk e t, re quire s sk ills be y ond the m ode l. It w ou ld ta k e s om e tria ls to se le c t a be s t stra te gy . U nde r such

c irc u m s t a n ce s it would be e as y to ta k e de c is ion if a re a dy s ys t e m of da t a bas e s of va rious m a rke t c onditi ons a nd c orre s ponding a ppropria t e de c is ion is av a ila ble . A sy s te m whic h c ons is ts of da ta bas e pe rta in in g t o de c is ion m ak ing bas e d on c e rta in rule s is k nown a s de c is ion s u pport sy s t e m . It is a fle x ible sy s te m whic h c a n be c us tom iz e d to s u it t h e orga n iz a t ion nee ds . It c a n work in the inte ra c tiv e m ode in orde r t o e n a ble ma n a ge rs t o ta ke quic k de c is ions . You c a n c ons ide r de c is ion s u pport sy s t e ms as t he be s t whe n it inc lude s high- le v e l s um ma ry re ports or c h a rts an d a llow t h e us e r to drill down for m ore de ta ile d inform a tio n. A DSS h as the c a pa bility to upda te its de c is ion da ta ba s e . W h e n e ve r ma n a ge r fe e ls tha t a pa rtic ula r de c is ion is unique a nd not av a ila ble in t h e sy s t e m , the m a na ge r can c hos e to upda te the da ta ba se wit h such

de c is ion s . This will s tre ngthe n the DSS to tak e de c is ions in future .
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Th e re is n o s c ope for e rrors in de c is ion ma k ing whe n suc h s ys t e m s a re us e d as a id to de c is ion m ak ing. DSS is a c ons is te nt de c is ion ma k in g sy s t e m . It ca n be us e d to ge ne ra te re ports of v a rious le v e r m a na ge m e n t ac t iv it ie s . logic a l It is c a pa ble of pe rform ing upon the m a the ma tic a l m ode l c a lc ula tion s to s olv e an d the

ca lc ula tion

de pe nding

adopte d

proble m . You c a n s umm a riz e the be ne fits of DSS into follow ing: Im prov e s pe rs ona l e ffic ie nc y E x pe dite s proble m s olv ing Fa c ilita te s inte rpe rs ona l c om m unic a tion Prom ote s lea rning or tra ining In c re as e s orga niz a tiona l c ontrol G e ne ra te s ne w e v ide nc e in s upport of a de c is ion C rea te s a c om pe titiv e adv a nta ge ov e r c om pe titio n E n c oura ge s e x plora tion a nd dis c ov e ry on the pa rt of the de c is ion ma ke r Re v ea ls ne w approa c he s to think ing about the proble m spa c e

O nl i ne A na lytica l P roces sing (OLA P ) : OL AP re fe rs to a s ys te m in whic h the re a re pre de fine d m ultiple in s t a n c es of v a riou s m odule s us e d in bus ine ss a pplic a tions . Any input to su c h a sy s t e m res u lts in v e rific a tion of the fa c ts with re s pe c t to the av a ila ble in s ta n c e s . A ne a re s t m a tc h is found ana ly tic a lly a nd the res ults dis pla y e d form t h e da t a bas e . The output is se nt only afte r thorough ve rific a tio n of t h e in pu t fa c ts fe d t o the sy s te m . The s ys te m goe s through a s e rie s of m u lt iple c h e ck s of t h e va rious pa ra me te rs us e d in bus ine s s de c is ion ma k in g. OL AP
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is a ls o re fe rre d to a s a m ulti dim e ns iona l ana ly tic a l m ode l. Ma n y big c om pa n ie s us e OL AP to ge t good re turns in bus ine ss . Th e qu e ry in g proc e s s of the OL AP is ve ry s trong. It he lps the m a na ge m e n t ta k e de c is ions lik e whic h m onth would be a ppropria te to la unc h a produ c t in t h e ma rk e t, wha t s hould be the produc tion qua ntity to ma x im iz e t h e re t u rn s , w h a t s hould be the s tock ing polic y in orde r to m inim iz e t h e wa s t a ge e t c . A m ode l of OL AP ma y be we ll re pre s e nte d in the form of a 3D box . Th e re a re six fa c e s of the box . Ea c h a djoining fa c es with c om m on v e rte x m a y be c on s ide re d t o re pre s e nt the va rious pa ra m e te r of the bus ine s s s it u a t ion u n de r c on s ide ra tion. E .g.: Re gion, Sa le s & de ma nd, Produ c t etc.

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Q.3 What

are

Value

Chain

Analysis

&

describe

its

significance in MIS ? Explain what is meant by BPR ? What is its significance ? How Data Warehousing & Data Mining is useful in terms of MIS ? Ans.
V a lue Cha in A na lysis :

Th e a c t iv it ie s pe rform e d by a pa rtic ula r e nte rpris e c a n be a na ly z e d in t o prim a ry ac t iv itie s , whic h dire c tly a dds v a lue to the e nte rpris e s fa c t ors of produ c t ion , whic h a re toge the r re fe rre d to as the v a lue c ha in , an d su pport in g a c tiv itie s .

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P orter s E nterp ris e V a lue- Cha in (P orter 19 80 ) Va lu e - a ddit ion ac tiv itie s lik e produc ti on, ma rk e ting de liv e ry , a nd s e rv ic in g of the produc t. The se a c tiv itie s a re c onne c te d in a c ha in. Su pport

ac t iv it ie s in c lude thos e prov iding purc ha s e d inputs , te c hnology , h u ma n res ou rc e s , ac t iv it ie s . It is pos s ible to re duc e the tra nsa c tion c os t by prope r c oordina ti on of a ll t h e a c t iv it ie s . It s hould be pos s ible to ga the r be tte r inform a t ion for va riou s c on t rols a nd a ls o re pla c e the sa me by le ss c os tlie r a c tiv it ie s . It w ill als o be poss ible to re duc e the ov e ra ll tim e re quire d to c om ple t e an ac t iv it y . Th e re fore c oordina tion is v e ry im porta nt to ac hie v e c om pe t it iv e or ov e ra ll infra s truc ture func tions to s upport the prim a ry

adv a n t a ge . For this it is ne c es sa ry to ma na ge the va lue c ha in as a sy s t e m ra t h e r t h a n a s s e pa ra te pa rts . An e nte rpris e s va lue c ha in for c om pe t in g in a pa rt ic u la r indus try is e m be dde d in a la rge r s tre am of a c tiv itie s . W h a t Port e r t e rm e d as v a lue sy s te m , ma y be re fe rre d to a s the in du s t ry va lu e - c ha in . This c ha in c ons is ts of m a inly the supplie rs a nd dis t ribu t i on

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c ha n n e ls . Any ac tiv ity of a n orga niz a tion is s ubje c te d to one or m ore of t h e follow in g New techn olog ies N e we r te c hnologie s c ha nges the dire c t ion of t h e va lue c ha in. Shi fti ng b uyer need s The buy e rs ha v e be e n inc re a s in g t h e ir de ma n ds to sa tis fy the ir ne e ds in the form c onv e nie nc e an d be t t e r pric e a nd fea ture s . This de ma nd influe nc e s a c ha nge in the re la t e d ma rk e t s e gme nts ; V a ri a ti on in ind us try seg m en ta ti on The va lue sy s te m un de rgoe s a c h a n ge de pe nding upon the e x is te nc e of old a nd ne w s ys t e ms a n d it s c om pone nts in the v a lue c ha in. Orga niz a tions , whic h fa il t o adju s t w ill h a v e to c los e down the ir bus ine ss . C ha ng es in the costs It is poss ible to ga in c om pe titiv e a dva n t a ge by opt im iz ing the a c tiv itie s ba se d on pre s e nt c onditi ons . E n t e rpris e s w h ic h c ontinue to work on the olde r a pproa c he s in outda te d m ode s of ope ra t ion s uffe r. C ha ng es in g overnm en t reg ula ti ons If the re is a c ha nge in t h e st a n da rds of the produc t of the e nte rpris e , with res pe c t t o t h e e n v iron m e nta l c ontrols , re s tric tions on e ntry to the ma rk e t , an d t ra de ba rrie rs the n it a ffe c t the pe rform a nc e of the e nte rpris e .

Busi n ess P rocess Re- eng ine ering ( BP R) :

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Th e e x is t in g sy s te m in the orga niz a tion is tota lly re e xa m ine d a nd ra dic a lly m odifie d for inc orpora ting the la tes t te c hnology . This proc e s s of c h a n ge for t h e be t t e rm e nt of the orga niz a tion is ca lle d a s Bus ine s s proc e s s re e n gin e e rin g. This proc e ss is ma inly us e d to m ode rniz e a nd m ak e t h e orga n iz a t ion s e ffic ie nt. BPR dire c tly affe c ts the pe rform a nc e . It is u se d t o ga in an u n de rs ta nding the proc e ss of bus ine ss a nd to unde rs ta n d t h e proc e s s t o m ak e it be tte r and re - des igning a nd the re by im prov in g t h e sy s t e m . BPR is m a in ly us e d for c ha nge in the work proc e s s . La tes t s oftwa re is u s e d an d ac c ording ly the bus ine ss proc e dure s a re m odifie d, s o tha t doc u m e n t s a re w ork e d upon m ore ea s ily a nd e ffic ie ntly . This is k nown as w ork flow ma n a ge m e n t. Si g ni fi ca nc e of BP R : Bu s in es s proc e s s a re a group of ac tiv itie s pe rform e d by va riou s

de pa rt m e n t s , v a rious orga niz a tions or be twe e n indiv idua ls tha t is ma in ly us e d for t ra ns a c tions in bus ines s . The re ma y be pe ople who do t h is t ra ns a c t ion or tools . W e all do the m a t one point or anothe r e it h e r as a su pplie r or c us tom e r. You will re a lly a ppre c ia te the ne e d of proc e s s im prov e m e n t or c ha nge in the orga niz a tions c onduc t with bus ine ss if y ou ha v e e v e r wa ite d in the que ue for a longe r tim e to purc ha s e 1 kilo of ric e from a Pu blic Dis tribut ion Shop ( PDS- ra tion s hop) . The proc e s s is ca lle d t h e c h e ck - out proc e s s . It is c a lle d proc e ss be c a use uniform s ta n da rd sy s t e m ha s be e n m a inta ine d to unde rtak e s uc h a ta sk . The s ys te m s ta rt s w it h form in g a que ue , re c e iv ing the ne e de d ite m form the s hop, ge t t in g it
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bille d, pa y m e nt whic h inv olv e s billing, pa y ing a m ount a nd re c e iv in g t h e re c e ipt of purc ha s e and the proc e ss e nds up with the e x it from th e s t ore . It is t h e t ra ns a c tion be twe e n c us tom e r a nd s upplie r. Th e abov e a c tiv itie s tak es pla c e be twee n the c us tom e r and s upplie r w h ic h form s t h e proc e ss s te ps this e x a m ple ex pla ins the bus ine s s proc e s s . Th e bu s in es s proc e s s ma y be ge tting adm iss ion to the c olle ge a nd gra du a t in g from t h e c olle ge , building hou s e , and im ple m e nting ne w te c hnology t o a n orga n iz a t ion ( E xa m ple E DU N XT in SMU DE ) , e tc A Proc e ss c a n be re pre s e nte d by tria ngle and be low shows c on t in u e proc e s s of Bus ine s s .

Bu s in es s proc e s s re e ngine e ring is a m a jor innov a tion c ha nging t h e w a y orga n iz a t ion s c onduc t the ir bus ine ss . Suc h c ha nge s a re ofte n n e c e ss a ry for profit a bil ity or e v e n s urv iv a l. Da ta Wa reh ou sing : Da ta Wa re h ous e is de fine d as c olle c ti on of da ta ba se whic h is re fe rre d as re la t ion a l da ta bas e for the purpos e of que ry ing a nd a na ly s is ra t h e r t h a n ju s t t ra n sa c t ion proc e s s ing. Da ta wa re hous e is us ua lly ma inta ine d t o s t ore h e u ris t ic da ta for future use . Da ta wa re hous ing is us ua lly u se d to

ge n e ra te re ports . Inte gra tion a nd s e pa ra tion of da ta a re the tw o bas ic


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fea t u re s n e e d to be k e pt in m ind while c re a ting a da ta wa re hous in g. Th e ma in ou t pu t from da ta wa re hous e s ys te m s a re ; e ithe r ta bula r lis t in gs ( qu e rie s ) w ith m inim a l form a tting or highly form a tte d "form a l" re port s on bu s in es s a c tiv itie s . This be c om e s a c onv e nie nt wa y to ha n dle the

in form a t ion be ing ge ne ra te d by va rious proc e s s es . Da ta wa re hou s e is a n a rc h iv e of in form a tion c olle c te d from wide m ultiple s ourc e s , s tore d u n de r a u n ifie d sc he m e , at a s ingle s ite . This da ta is s tore d for a lon g t im e pe rm it t in g t he us e r an a c ce ss to a rc hiv e d da ta for y ea rs . The da t a st ore d an d t h e su bs e que nt re port ge ne ra te d out of a que ry ing proc e ss e na ble s de c is ion m ak ing quic k ly . This c onc e pt is us e ful for big c om pa nie s h a v in g ple n t y of da ta on the ir bus ine s s proc e s s es . Big c om pa nie s ha v e bigge r proble m s a nd c om ple x proble m s . De c is ion ma k e rs re quire ac c e ss to

in form a t ion from a ll s ourc e s . Se tting up que rie s on indiv idua l proc e s se s ma y be te dious and ine ffic ie nt. Da ta wa re hous e ma y be c ons ide re d u n de r su c h sit u a t ions . Da ta w a reho use A rchitect ure:

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Da ta w a re hous e is ce nte r pa rt of da ta re pos itory . Da ta wa re h ou s in g prov ide s a s tra te gic a pproa c h to a ll the bus ines s . Da ta wa re h ou s e is broa dly fa m ous for its c ha ra c te ris tic s lik e : a. Sub j ec t orien ted : Da ta wa re hous e has the a bility to a na ly z e t h e da t a . Th e a bilit y t o de fine by subje c t ma tte r ma k es DW subje c t orie nte d. b. I nteg ra ted : This re s olv e s t he proble m s of c onflic ts a nd inc ons is t e n c ie s e x is t in g in t he units of m ea s ure . c . Non vol a til e: Onc e the da ta is ente re d in the wa re hous e it s ha ll n ot c ha n ge . Th is c ha ra c te ris tic s is v e ry im porta nt be c a us e a fte r a ll the

pu rpos e of h e uris tic da ta is for future us e . d. T i m e va ria nt: The da ta wa re hous e foc us on c ha nge ov e r t im e . To dis c ov e r ne w tre nds in bus ine s s , ana ly s ts ne e d la rge am ount of da ta w h ic h is c on tra s ting to OL TP ( Online tra nsa c tion Proc e s s ing) whic h w ork s on h e u ris t ic da ta . Da ta Mini ng : Da ta m in in g is prim a rily use d a s a pa rt of inform a tion sy s te m t oda y , by c om pa n ie s with a s trong c ons um e r foc us re ta il, fin a n c ia l,

c om m u n ic a t ion, a nd m a rk e ting orga niz a tions . It e na ble s the s e c om pa n ie s t o de t e rm in e re la tions hips am ong "inte rna l" fa c tors s uc h a s pric e , produ c t pos it ion in g, or s ta ff s k ills , and "e x te rna l" fa c tors suc h as e c on om ic

in dic a t ors , c om pe titio n, and c us tom e r de m ogra phic s . And, it e na ble s t h em t o de t e rm in e the im pa c t on s ale s , c us tom e r s atis fa c tion, a nd c orpora t e
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profit s . F in a lly , it e na bles the m to "drill down" into s um ma ry inform a t i on t o v ie w de t a il tra ns a c tiona l da ta . W ith da ta m ining, a re ta ile r c ou ld u se poin t - of- s a le re c ords of c us tom e r purc ha s es to s e nd ta rge te d prom ot i on s ba s e d on an indiv idua ls purc has e his tory . By m ining de m ogra ph ic da ta from c om m e nt or wa rra nty c a rds , the re ta ile r c ould de v e lop produ c t s a n d prom ot ion s t o a ppea l to spe c ific c us tom e r se gm e nts . Da ta M in in g is a c olla bora tiv e tool whic h c om pris e s of da ta bas e sy s t e ms , st a tis t ic s , m ac hine le a rning, v is ua liz a tion and inform a tion s c ie nc e . Ba s e d on t h e da t a m ining a pproa c h use d, diffe re nt te c hnique s form th e ot h e r dis c iplin e c a n be use d suc h as ne ura l ne twork s , a rtific ia l inte llige n c e , fu z z y logic , knowle dge re pre se nta tion, high pe rform a nc e c om pu t in g a n d in du c t iv e logic progra m m ing.

Da ta Mini ng P rocess : Da ta m in in g re fe rs to e x tra c ting or m ining k nowle dge from la rge a m ou n t of da ta . Th e re m a y be othe r te rm s whic h re fe r da ta m ining su c h a s kn ow le dge m ining, knowle dge e x tra c tion, da ta /pa tte rn a na ly s is , da t a

a rc h e ology , a nd da ta dre dging. The Knowle dge dis c ov e ry a s a proc e s s ma y c on s is t of foll owing s te ps :

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1. D a ta C l ea ning : It re m ov es nois e a nd inc ons is te nt da ta . 2. D a ta i nteg ra ti on: It is whe re m ultiple da ta s ourc es are c om bin e d. 3. Da ta sel ect ion: Da ta re le va nt to the a na ly s is ta sk a re re trie v e d from t h e da ta bas e . 4. Da ta tra nsfo rm a tio n: Da ta a re tra ns form e d or c ons olida te d in t o form s appropr ia t e for m ining by pe rform i ng s um ma ry or aggre ga tion ope ra t ion s , for in s ta n c e . 5. D a ta m i ning : An es se ntia l proc e s s whe re inte llige nt m e th ods a re applie d in orde r to e x tra c t da ta pa tte rns . 6. P a ttern eva lua tio n: To ide ntify the truly inte re s ting re pre s e n t in g knowle dge bas e d on s om e inte re s ting m ea s ure . pa t t e rn s

7. K now l ed g e p resenta t ion: Vis ua liz a tion and k nowle dge re pre s e n t a t ion t e c h n iqu e s a re us e d to pre s e nt the m ine d knowle dge to the us e rs .

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Q.4 Explain DFD & Data Dictionary ? Explain in detail how the information requirement is determined for an organization ? Ans.
DF D (D a ta Flow D ia g ra m s) :

Da ta flow dia gra ms re pre s e nt the logic a l flow of da ta within the sy s t e m . DF D do n ot e x pla in how the proc e ss e s c onv e rt the input da ta into ou t pu t . Th e y do n ot e x pla in how the proc e s s ing ta k es pla c e . DF D us e s fe w s y m bols lik e c irc le s a nd re c ta ngle s c onne c te d by a rrow s t o re pre s e n t da ta flows . DFD c a n ea s ily illus tra te re la tions hips a m on g da t a , flow s , e x t e rna l e ntitie s an s tore s . DFD ca n a ls o be dra wn in in c re a s in g le v e ls of de ta il, s ta rting with a s um m a ry high le v e l v ie w a nd proc e e din g o m ore de t a ile d lowe r le v e l v ie ws . Rounde d re c ta ngle s re pre s e nt proc e ss e s tha t tra ns form flow of da ta or work to be done . Re c ta ngle re pre s e nts e x te rna l a ge nts the bounda ry of the

sy s te m . It is s ourc e or des tina tion of da ta . Th e ope n- e nde d box e s re pre s e nt da ta s tore s , s om e tim es c a lle d file s or da ta ba se s . Thes e da ta store s c orre s pond to a ll in s t a n c es of a s ingle e ntity in a da ta m ode l.
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Arrow re pre s e nts da ta flows , inputs a nd outputs to e nd from t h e proc e s se s . A n u m be r of guide line s s hould be us e d in c ons truc ting DFD. C h oos e m ea ningful na m e s for the s ym bols on the dia gra m . N u m be r the proc e s s es c ons is te ntly . The num be rs do not im ply t h e se qu e n c e . Av oid ov e r c om ple x DFD. Ma ke s ure the dia gra m s a re ba la nc e d. Da ta D i c tiona r y : Th e da t a dic tiona ry is use d to c re a te and s tore de finitions of da t a , loc a t ion , form a t for s tora ge a nd othe r c ha ra c te ris tic s . The da ta dic t ion a ry ca n be us e d to re trie v e the de finition of da ta tha t has a lre a dy be e n u se d in an a pplic a tion. of The d a ta d ictiona ry suc h as a ls o store s s om e of the and

des c ript io n

da ta

s truc ture s ,

e ntitie s ,

a ttribu t e s

re la t ion s h ips . It c a n als o ha ve s oftwa re to upda te its e lf a nd to produ c e re port s on it s c onte nts and to a ns we r s ome of the que rie s . D eterm ining the I nform a ti on Req uir em e nt : Th e s ole pu rpos e of the M IS is to produc e suc h inform a tion w h ic h w ill re du c e u n c e rta inty risk in a giv e n s itua tion. Th e diffic u lt y to de te rm ine a c orre c t a nd c om ple te se t of inform a t i on is on ac c ou n t of t he fa c tors giv e n be low: 1. Th e ca pa bility c ons tra int of the hum a n be ing as an inform a t ion

proc e s s or, a proble m s olv e r a nd a de c is ion- ma k e r.


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2. Th e na t u re a nd the v a rie ty of inform a tion in pre c is e te rms . 3. Re lu c t a n c e of de c is ion- m ak e rs to spe ll out the inform a tio n for t h e polit ic a l a n d the be ha v iora l re as ons . 4. Th e a bilit y of the de c is ion- ma k e rs to s pe c ify the inform a tion. In s pit e of thes e diffic ult ie s , m e thods a re e v olv e d ba se d on the

u n c e rt a in t y s ca le , sta rting from the low to the high le v e l of unc e rt a in t y . If t h e u n c e rt a inty is low, se ek ing inform a tion re quire m e nt or ne e ds is ea sy as a ga in s t a v e ry high le v e l of unc e rta inty . Bas e d on t he unc e rta inty sc a le the follo wing m e thods , s hown in t h e follow in g t a ble ha v e be e n s ugges te d. Th e re a re four m e thods of de te rm ining the inform a tion re quire m e n t s . Th e y a re : 1. As k in g or inte rv ie wing 2. De t e rm in ing from the e x is ting sy s te m 3. An a ly s in g the c ritic a l s uc ce ss fa c tors 4. E x pe rim e nta tion a nd m ode lling . A sk i ng or I ntervi ew ing : In t h is me t h od a des igne r of the M IS puts que s tions or c onv e rs e s w it h t h e us e r of t h e inform a tion and de te rm ine s the inform a tio n re quire m e n t s . Pu t t in g t h e que s tions is a n a rt a nd it should be us e d prope rly t o s e ek in form a t ion .
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W he n t h e us e r has to s e le c t one a ns we r from a finite se t of a ns w e rs a c los e d qu es tion should be as ke d. For ex a m ple , "W hic h a re the ra w

ma te ria ls us e d for ma k ing a produc t? " But a n ope n que s tion is pu t , w h e n t h e u se r ha s no pre c is e k nowle dge but has a n a bility to de te rm in e a ll an s w e rs t o se le c t one out of the m ? For e xa m ple , "W hic h a re t h e ra w ma te ria ls w hic h c a n be use d in a produc t? " In ope n ques tions , the a ns w e rs ma y n ot be im m e dia te but c a n be obta ine d by s urv e y ing the dom a in kn ow le dge of the us e r. D eterm ining from the Existing System : In a n u m be r of ca se s the e x is ting s ys te m , whic h has be e n ev olv e d a fte r a n u m be r of y e a rs , and ha s be e n des igne d out of e x pe rie nc e giv e s

st ra igh t a w a y the re quire m e nt of inform a tion . In a ny s itua tions , s ys t e ms from ot h e r c om pa nie s ca n giv e a dditiona l inform a tion re quire m e nt s . Th e fu n d of k nowle dge is av a ila ble from the te x tbook s , ha n dbook s ,

res e a rc h s t u die s whic h ca n de te rm ine the inform a ti on re quire m e n t . F or e xa m ple , s ys te m s s uc h as the ac c ounts re c e iv a ble s , the a c c ou n t s

pa y a ble s , t h e pa y roll, the inv e ntory c ontro l, the fina nc ia l ac c ou n t in g, e t c . , h a v e a we ll de te r m ine d, inform a ti on re quire m e nt. A na l ysing the Critica l Succe ss Fa ctors : E ve ry bu s ine ss of orga niz a tion c e rta in c ritic a l pe rform s s uc c es s s uc c es s fully fa c tors . Othe r on e ffic ie n t a re

ma n a ge m e n t

fa c t ors

im port a n t and pla y a support role in the func tion ing of the orga n iz a t ion .

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Ma n y t im e s a func tion is s ingu la rly c ritic a l to the suc c e ss ful func t ion in g of a bu s in e ss orga niz a tion. E xp eri m en ta tio n a nd Mod elli ng : W he n t h e re is tota l to unc e rta inty , this the de s igne r a nd the the us e r of the

in form a t ion re qu ire m e n t .

res ort The

m e thod

for

de te rm ining de c ide the

inform a t ion for

e x pe rim e nta tion

would

m e thodol ogy

ha n dlin g t h e c om ple x s itua tion. If the m e thod is fina liz e d, the inform a t i on n e e ds a re de te rm ine d as the y ha v e be e n e v olv e d throu gh the

e x pe rim e n t a tion. Te s t ma rk e ting of a produc t is a n a pproa c h of t h e e x pe rim e n t a tion to de c ide the c orre c t m a rke ting s tra te gy .

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Q.5 What is ERP ? Explain its existence before and its future after ? What are the advantages & disadvantages of ERP ? What is Artificial Intelligence ? How is it different from Neural Networks ? Ans.
E nterp ris e Reso urce P la nning ( ERP ) :

Ma n u fa c t u ring m a na ge m e nt s ys te ms ha ve e v olv e d in s ta ges ov e r t h e fe w de ca de s from a s im ple m ea ns of ca lc ula ting m a te ria ls re quire m e n t s t o t h e au t om a t ion of a n e ntire e nte rpris e . Around 1980, ov e r- fre que nt c h a n ges in sa les fore c as ts , e nta iling c ontinua l re a djus tm e nts in produc ti on, as w e ll as t h e u n s u ita bility of the pa ra m e te rs fix e d by the s ys te m , le d MRP (M a t e ria l Re quire m e nt Re s ourc e Pla nning) Pla nning to ( or e v olv e M RP2) into a nd a ne w c on c e pt the :

Ma n u fa c t u ring

fina lly

ge n e ric

c on c e pt En t e rpris e Re s ourc e Pla nning ( ERP ) Th e in it ia ls E RP origina te d a s a n e x te ns ion of M RP (m a te ria l re qu ire m e n t s pla n n in g then ma nufa c turing res ourc e pla nning) . E RP sy s te ms n ow

at t e m pt t o c ov e r all ba s ic func tions of a n e nte rpris e , re ga rdle ss of t h e orga n iz a t ion s bus ine ss or c ha rte r. N on- m a nufa c turing bus ine ss es , n on profit orga n iz a tions a nd gov e rnm e nts now all utiliz e E RP sy s te ms . To be c on s ide re d an E RP s ys te m , a s oftwa re pa ck a ge m us t prov ide t h e fu n c t ion of a t le as t two s ys te ms . For e xa m ple , a s oftwa re pa c ka ge t h a t prov ide s both pa y roll a nd ac c ounting func tions c ould te c hnic a lly be

c on s ide re d an E RP s oftwa re pa c ka ge .
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How e v e r, t h e te rm is ty pic a lly re s e rv e d for la rge r, m ore broa dly bas e d applic a t ion s . The introduc ti on of a n E RP sy s te m to re pla c e two or m ore in de pe n de n t a pplic a tions e lim ina te s the ne e d for ex te rna l in t e rfa c e s

pre v iou s ly re quire d be twe e n s ys te m s , a nd prov ide s a dditiona l be n e fit s t ha t ra n ge from s ta nda rdiz a tion a nd lowe r m a inte na nc e to e as ie r a n d/or gre a t e r re porting ca pa bilitie s . E xa m ple s of m odule s in an E RP whic h form e rly would ha v e be e n st a n da lon e applic a tions inc lude : Ma nufa c turing, Supply C ha in, Fin a n c ia ls ,

C us t om e r Re la tions hip M ana ge me nt ( CRM ) , Hum a n Re s ourc e s , W a re h ou se Ma na ge m e n t a nd De c is ion Support Sy s te m . E RP Before a nd A fter Before Prior t o t h e c onc e pt of E RP sy s te ms , de pa rtm e nts within a n orga n iz a t ion ( for e xa m ple , the huma n res ourc e s ( HR) ) de pa rtm e nt, the pa y roll

de pa rt m e n t , a nd the fina nc ia l de pa rtm e nt) would ha v e the ir own c om pu t e r sy s t e ms . Th e HR c om pute r sy s te m ( ofte n c a lle d HRM S or HRIS) w ou ld t y pic a lly c onta in inform a ti on on the de pa rtm e nt, re porti ng s truc t u re , a n d pe rs on a l de ta ils of e m ploy e e s . The pa y roll de pa rtm e nt would t y pic a lly ca lc u la t e a n d store pa y c he ck inform a tion . The fina nc ia l de pa rtm e n t w ou ld t y pic a lly st ore fina nc ia l tra ns a c tions for the orga niz a tion. E ac h sy s t e m w ou ld h a v e to re ly on a s e t of c om m on da ta to c om m unic a te w it h ea c h ot h e r. F or t he HRIS to s end sa la ry inform a tion to the pa y roll s ys t e m , a n e m ploy e e n um be r would nee d to be a ss igne d and re m a in s ta tic be t w e e n t h e t w o sy s t e ms to ac c ura te ly ide ntify a n e m ploy e e . The fina nc ia l s ys t e m
26

wa s n ot in t e re s te d in the e m ploy e e - le v e l da ta , but only in the pa y ou t s ma de by t h e pa y roll s ys te ms , s uc h as the ta x pa y m e nts to v a riou s au t h orit ie s , pa y m e nts for e m ploy e e be ne fits to prov ide rs , a nd s o on . Th is prov ide d c om plic a tions . For ins ta nc e , a pe rs on c ould not be pa id in t h e pa y roll s ys t e m without a n e m ploy e e num be r.

A fter E RP s oft w a re , am ong othe r things , c om bine d the da ta of form e rly se pa ra t e applic a t ion s . This ma de the w orry of ke e ping num be rs in s y nc hron iz a t ion ac ros s m u lt iple s ys te m s dis a ppe a rs . It s ta nda rdiz e d and re du c e d t h e n u m be r of s oftwa re s pe c ia ltie s re quire d within la rge r orga niz a tion s . A d va nta g es a nd D isa d va nta g es : A d va nta g es In the a bs e nc e of a n E RP sy s te m , a la rge m a nu fa c t u re r ma y fin d it s e lf with ma ny s oftwa re applic a tions tha t do not ta lk t o ea c h ot h e r a n d do not e ffe c tiv e ly inte rfa c e . Ta sk s tha t ne e d to inte rfa c e w it h on e a n ot h e r ma y inv olv e : A t ot a lly inte gra te d sy s te m Th e a bility to stre a m line diffe re nt proc e s s es a nd work flows Th e ability to e as ily s ha re da ta a c ros s v a rious de pa rtm e n t s in a n orga n iz a tion Im prov e d e ffic ie nc y a nd produc tiv ity le v e ls Be t t e r tra c k ing and fore c as ting L ow e r c os ts Im prov e d c us tom e r se rv ic e
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D i sa d va nta g es M a ny proble m s orga niz a tions ha ve with E RP sy s t em s a re du e to ina de qua te inv e s tm e nt in ongoing tra ining for in v olv e d

pe rs on n e l, inc luding thos e im ple m e nting and tes ting c ha nges , a s w e ll a s a la ck of c orpora te polic y prote c ting the inte grity of the da ta in t h e E RP sy s t e ms a n d how it is us e d. W h ile adv a n ta ges us ua lly outwe igh dis a dva nta ges for m os t orga n iz a t ion s im ple m e n t in g an E RP sy s te m , he re a re s ome of the m os t c om m on

obs ta c le s e x pe rie nc e d: Us u a lly ma n y obs ta c le s ca n be pre v e nte d if a de qua te inv e s tm e nt is m a de an d a de qua t e tra ining is inv olv e d, howe v e r, suc c e ss doe s de pe nd on s k ills an d t h e e x pe rie nc e of the work forc e to quic k ly a da pt to the ne w sy s t em . C us t om iz a tion in m a ny s itua tions is lim ite d Th e n e e d to re e ngine e r bus ines s proc e s s es E RP sy s te m s c a n be c os t prohibi tiv e to ins ta ll a nd run Te c h n ic a l s upport c a n be s hoddy E RP s ma y be too rigid for spe c ific orga niz a tions tha t are e it h e r n e w or wa n t to m ov e in a ne w dire c tion in the nea r future . A rti fi c i a l I ntellig en ce ( A I) : Art ific ia l In t e llige nc e is the s c ie nc e a nd te c hnology bas e d on va riou s fu n c t ion s t o de v e lop a s ys te m tha t ca n think a nd work lik e a hum a n be in g. It ca n re as on, ana ly z e , lea rn, c onc lude a nd s olv e proble m s . The sy s t e ms w h ic h us e this ty pe of inte llige nc e a re known a s a rtific ia l in t e llige n t sy s t e ms an d the ir inte llige nc e is re fe rre d to as a rtific ia l inte llige n c e . It wa s s aid t ha t the c om pute r dont ha ve c om m on s e ns e . He re in AI, t h e
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ma in ide a is to m ak e the c om pute r think lik e hum a n be ings , s o th a t it ca n be t h e n s a id tha t c om pute rs a ls o ha v e c om m on se nse . M ore pre c is e ly t h e a im is t o obta in a k nowle dge ba se d c om pute r sy s te m tha t w ill he lp ma n a ge rs t o ta ke quic k de c is ions in bus ine s s . A rti fi c i a l I ntellig enc e ca n be c las s ifie d into va rious bra nc h es lik e

Na tura l La ng ua g e P roces sing (N L P) , Spe e c h Re c ogniti on, Au t om a t e d Progra m m in g, Ma c hine L ea rning, Pa tte rn Re c ogniti on a nd Proba bil is t ic Ne t w ork s . M os t of the s oftwa re de ve lope d for AI ha v e be e n t h rou gh Prolog, C+ + , Ja v a a nd L ISP. The s e progra m m ing la ngua ge s prov ide fa c ilit y of c rea t in g v a rious func tions of bus ine ss a c tiv ity , e x te ns ion of a fu n c t ion , ha n dlin g dy na m ic s itua tions in bus ine s s , prov iding uniform it y in

applic a t ion e tc . A rti fi c i a l I ntellig en ce a nd Neura l Netw ork s : Art ific ia l in te llige nc e is a fie ld of sc ie nc e a nd te c hnology ba s e d on

dis c iplin e s s uc h a s c om pute r sc ie nc e , biology , ps y c hology , lin gu is t ic s , ma th e m a t ic s and e ngine e ring. The goa l of AI is to de v e lop c om pu t e rs t ha t ca n sim u la t e the a bility to think , s e e , hea r, wa lk , ta lk a nd fe e l. In ot h e r w ords , s im u la tion of c om pute r func tions norm a lly a ss oc ia te d with h u m a n in t e llige n c e , s uc h a s re a s oning, le a rning and proble m s olv ing. AI c a n be groupe d unde r thre e ma jor a re as : c ognitiv e s c ie nc e , robot ic s an d n a t u ra l inte rfa c e s . [ Sourc e M IS 7th e dition, Ja me s O Brie n a nd Ge orge M M a ra ka s - Ta ta Mc G ra w Hill] .

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C ogn it iv e sc ie nc e foc us es on re s ea rc hing on how the hum a n bra in w ork s an d h ow h u ma ns think a nd le a rn. Applic a tions in the c ognitiv e sc ie n c e a re a of AI inc lude the de v e lopm e nt of e x pe rt sy s te ms and ot h e r

kn ow le dge - ba s e d sy s te ms tha t a dd a k nowle dge ba s e and s ome rea s on in g ca pa bilit y t o inform a tion sy s te ms . Als o inc lude d a re a da ptiv e le a rn in g sy s t e ms t ha t c a n m odify the ir be ha v ior bas e d on inform a tion the y ac qu ire as they ope ra te . Che ss - pla y ing s ys te m s a re s ome ex a m ple s of su c h

sy s t e ms . F us s y logic s ys te m s c a n proc e ss da ta tha t a re inc om ple te or am bigu ou s . Th u s , t h e y c a n solv e s e m i-s truc ture d proble m s with inc om ple te kn ow le dge by de v e loping approx im a te infe re nc e s a nd a ns we rs , a s huma ns do. Ne u ra l n e t w ork s oftwa re ca n le a rn by proc e s s ing s am ple proble m s an d t h e ir s olu t ions . As ne ura l ne ts s ta rt to re c ogniz e pa tte rns , the y c a n be gin t o progra m t he m s e lv es to s olv e s uc h proble m s on the ir own. Ne u ra l n e t w ork s a re c om puting s ys te ms m ode le d a fte r the huma n bra in s m es h lik e n e twork of inte rc onne c te d proc e ss ing e le me nts , ca lle d n e u ron s . Th e h u ma n bra in is es tim a te d to ha v e ov e r 100 billion ne uron bra in c e lls . Th e n e u ra l ne twork s a re lot s im ple r in a rc hite c ture . L ik e the bra in , t h e in t e rc on n e c t e d proc e s s ors in a ne ura l ne twork ope ra te in pa ra lle l an d in t e ra c t dy n a m ic a lly with e a c h othe r. Th is e na ble s the ne twork to ope ra te a nd lea rn from the da ta it proc e s se s , s im ila r t o t he hum a n bra in. Tha t is , it lea rns to re c ogniz e pa tte rn s an d re la t ion s h ips in the da ta . The m ore da ta e xa m ple s it re c e iv es as in pu t , t h e
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be t t e r it ca n lea rn to duplic a te the re s ults of the e x am ple s it proc e s s es . Th u s , the ne ura l ne twork s the will c ha nge the stre ngths in of the to

in t e rc on n e c t ions

be twe e n

proc e s s ing

e le m e nts

re s pon s e

c ha n gin g pa tte rns in the da ta it re c e iv e s and res ults tha t oc c ur. F or e x am ple , ne ura l ne twork ca n be tra ine d to lea rn whic h c re dit

c ha ra c t e ris t ic s re s ult in good or ba d loa ns . The ne ura l ne twork w ou ld c on t in u e t o be tra ine d until it de m ons tra te d a high de gre e of a c c u ra c y in c orre c t ly du plic a ting the re s ults of re c e nt ca s es . At tha t point it w ou ld be t ra in e d e n ou gh to be gin ma k ing c re dit e va lua tions of its own.

Q.6 Distinguish between closed decision making system & open decision making system ? What is What if analysis ? Why is more time spend in problem analysis & problem definition as compared to the time spends on decision analysis ? Ans.
T yp es of D ecision- m a k ing Syst em s :

Th e de c is ion - m ak ing sy s te ms c a n be c la ss ifie d in a num be r of wa ys . Th e re a re t w o t y pe s of s ys te ms ba s e d on the ma na ge rs knowle dge abou t t h e e n v iron m e n t . If the m a na ge r ope ra tes in a known e nv ironm e nt the n it is a c los e d de c is ion- ma k ing sy s te m . The c onditi ons of the c los e d de c is ion ma k in g s ys t e m a re : a) Th e ma n a ge r has a k nown se t of de c is ion a lte rna tiv e s a nd k now s t h e ir ou t c om e s fu lly in te rm s of va lue , if im ple m e nte d.
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b) Th e m a na ge r ha s a m ode l, a m e thod or a rule whe re by the de c is ion a lt e rna t iv e s c a n be ge ne ra te d, te s te d, a nd ra nke d for se le c tion. c ) Th e m a na ge r ca n c hoos e one of the m , ba se d on s om e goa l or obje c t iv e c rit e rion . F e w e xa m ple s a re a produc t m ix proble m , a n e xa m ina tion s ys t e m t o de c la re pas s or fa il, or a n a c ce pta nc e of the fix e d de pos its . If t h e ma n a ge r ope ra te s in an e nv ironm e nt not k nown to him , t h e n t h e de c is ion - ma k ing sy s te m is te rm e d as a n ope n de c is ion- ma k ing s ys t e m . Th e c on dit i ons of this sy s te m in c ontra s t c los e d de c is ion- ma k ing sy s t em a re : a) Th e ma n a ge r doe s not k now a ll the de c is ion a lte rna tiv e s . b) Th e ou t c om e of the de c is ion is a ls o not known fully . The k now le dge of t h e ou t c om e ma y be a proba bil is tic one . c ) N o m e t h od, rule or m ode l is av a ila ble to s tudy and fina lis e one de c is ion am on g t h e s e t of de c is ion a lte rna tiv e s . d) It is diffic ult to de c ide an obje c tiv e or a goa l and, the re fore , t h e ma n a ge r re s orts to tha t de c is ion, whe re his as pira tions or de s ire s a re m e t bes t . De c idin g on the pos s ible produc t div e rs ific a tion line s , the pric ing of a n e w produ c t , a n d the pla nt loc a tion, a re s om e de c is ion- ma k ing sit u a t ion s w h ic h fa ll in the ca te gory of the ope n de c is ion- m ak ing sy s te ms .
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Th e M IS t rie s to c onv e rt e v e ry ope n s ys te m to a c los e d de c is ion - ma k in g sy s t e m by prov idin g inform a tion s upport for the bes t de c is ion. Th e M IS giv e s t h e inform a tion support, whe re by the ma na ge r k nows m ore an d m ore a bou t e nv ironm e nt and the outc om e s , he is able to ge ne ra t e t h e de c is ion a lt e rna tiv e s , te s t them a nd se le c t one of the m . A good M IS ac h ie v e s t h is . Wha t i f a na lysis : De c is ion s a re m a de us ing a m ode l of the proble m for de v e loping va riou s s olu t ion a lte rna tiv e s and te s ting the m for be s t c hoic e . The m ode l is bu ilt w it h s om e v a ria ble s and re la tions hip be twe e n v a ria ble s . In re a lit y , t h e c on s ide re d va lue s of va ria ble s or re la tions hip in the m ode l m a y n ot h old good an d t h e re fore s olution nee ds to be te s te d for a n outc om e , if t h e c on s ide re d va lue s of va ria ble s or re la tions hip c ha nge . This m e t h od of an a ly s is is ca lle d wha t if a na ly s is . F or e x am ple , in de c is ion- ma k ing proble m about de te rm ining in v e n t ory c on t rol pa ra me te rs (E OQ, Sa fe ty Stoc k , Ma x im um Stoc k , Minim um St oc k , Re orde r le v e l) lea d tim e is a ss um e d fa irly c on sta nt and s ta ble for a pla n n in g pe riod. Ba se d on this , the inv e ntory pa ra m e te rs a re ca lc u la t e d. In v e n t ory m a na ge r wa nts to know how the c os t of holding inv e n t ory w ill be a ffe c t e d if le a d tim e is re duc e d by one we ek or inc re a s e d by on e w ee k . Th e m ode l with c ha nge d le a d tim e would c om pute the c os t of h oldin g in v e n t ory u nde r ne w c onditions . Suc h ty pe of a na ly s is c a n be don e for pu rc h as e an a ly s is pric e h e lps c ha nge , a de ma nd to fore c a s t m ore va ria tions le a rne d a nd s o on . Su c h if

m a na ge r

ta k e
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de c is ions .

What

an a ly s is

c re a tes

c onfide nc e

in

de c is ion- ma k ing

m ode l

by

pa in t in g

pic t u re of ou tc om e s unde r diffe re nt c onditions ? Beha vi o ra l Concep t s in D ecisio n- m a k ing : Th e m a na ge r, be ing a hum a n be ing, be ha ve s in a pe c ulia r wa y in a giv e n s it ua t ion . Th e re s pons e of one ma na ge r ma y not be the s am e as t h a t of t h e t w o ot h e r m a na ge rs , as the y diffe r on the be ha v iora l pla tform . E v e n t h ou gh t ools , m e thods and proc e dure s a re e v olv e d, the de c is ion is ma n y a t im es in flu e nc e d by pe rs ona l fa c tors suc h as be ha v ior. Th e ma n a ge rs diffe r in the ir a pproa c h towa rds de c is ion- m ak in g in t h e orga n iz a t ion , a nd, the re fore , the y ca n be c la ss ifie d into two c a t e gorie s , v iz . , t h e ac hie v e m e nt- orie nte d, i.e ., look ing for e x c e lle nc e and t h e ta sk orie n t e d, i. e ., look ing for the c om ple tion of the ta sk s ome h ow . Th e

ac h ie v e m e n t- orie nte d m a na ge r will a lwa ys opt for the be s t and, th e re fore , w ill be e n t e rpris ing in e v e ry a spe c t of the de c is ion- ma k ing. He w ill

e n dea v ou r t o de v e lop a ll the pos s ible a lte rna tiv e s . He would be s c ie n t ific , an d t h e re fore , m ore ra tiona l. He would we igh a ll the pros a n d c on s prope rly an d the n c onc lude . Th e ma n a ge rs pe rs ona l v a lues will de finite ly influe nc e ultim a te ly . Som e of t h e ma n a ge rs show a na ture of risk av oida nc e . The ir be ha v ior sh ow s a dis t in c t pa t t e rn indic a ting a c ons e rva tiv e ap proa c h to de c is ion- m ak in g a pa t h of low ris k or no ris k . Furthe r, e v e n though de c is ion- m ak ing t ools a re av a ila ble , t h e c hoic e of the tools ma y diffe r de pe nding on the m ot iv e s of t h e m a na ge r. The m otiv e s a re not a ppa re nt, a nd he nc e , a re diffic u lt t o
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u n de rs ta n d. A ra tiona l de c is ion in the norm a l c ours e ma y turn ou t t o be diffe re n t on ac c ount of the m otiv e s of the m a na ge r. Th e in t e rpla y of diffe re nt de c is ion- m ak ing of a ll the m a na ge rs in t h e orga n iz a t ion s ha pe s up the orga niz a tiona l de c is ion- ma k ing. The ra t ion a le of t h e bu s ines s de c is ion will la rge ly de pe nd upon the indiv idua ls , t h e ir pos it ion s ma n a ge rs . If t w o m a na ge rs a re pla c e d in two de c is ion- m ak ing situa tions , a nd if t h e ir obje c t iv e s a re in c onflic t , the m a na ge rs will a rriv e at a de c is ion in the orga niz a tion a nd the ir inte r- re la tions hip wit h ot h e r

obje c t iv e ly , s a tis fy ing indiv idua l goa ls . M any a tim e s , the y m a y ma k e a c on s c iou s de c is ion, dis re ga rding orga niz a tions obje c tiv e to m e e t t h e ir pe rs on a l goa ls a nd to sa tis fy the ir pe rs ona l v a lue s . If the ma n a ge r is e n t e rpris in g, he will ma ke obje c tiv e ly ra tiona l de c is ions . Bu t if the

ma n a ge r is a v e rs e to tak ing ris k , he will m ak e a de c is ion whic h w ill be su bje c t iv e ly ra tiona l a s he would a c t with lim ite d knowle dge and a ls o be in flu e n c e d by the ris k a v e rs e ne ss . Thus , it is c le a r tha t if the a t t it u de s an d t h e m ot iv e s are not c ons is te nt ac ros s the orga niz a tion, the de c is ion ma k in g proc e s s s lows down in the orga niz a tion.

=============The End=============

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