Master of Business Administration- MBA Semester 2 MB0047 Management Information Systems - 4 Credits (Book ID: B 1630) Assignment Set

t -1 (60 marks)

Q1. Explain Knowledge based system? Explain DSS and OLAP with example.

10 marks (350-400 words)

Ans. Knowledge-based system focuses on systems that use knowledge -based techniques to support human decision-making, learning and action it is a computer system that is programmed to imitate human problem -solving by means of artificial intelligence and reference to a database of knowledge on a particular subject. Also it based on the methods and techniques of artificial intelligence and their core components are the knowledge base and the inference mechanisms. Decision Support Systems (DSS) DSS is an interactive computer based system designed to help the decision makers to use all l the resources available and make use in the decision making. In management many a time problems arise out of situations for which simple solution may not be possible. To solve such problems you may have to use complex theories. The models that would be required to solve such problems may have to be identified. E.g. In a sales problem if there is multiple decision variables modeled as a simple linear problem but having multiple optima, it becomes difficult to take a decision. Since any of the multiple optima would give optimum results. But the strategy to select the one most suitable under conditions prevailing in the market, requires skills beyond the model. It would take some trials to select a best strategy. Under such circumstances it would be easy to take decision if a ready system of databases of various market conditions and corresponding appropriate decision is available. A system which consists of database pertaining to decision making based on certain rules is known as decision support system Online Analytical Processing (OLAP) OLAP refers to a system in which there are predefined multiple instances of various modules used in business applications. Any input to such a system results in verification of the facts with respect to the available instances. A nearest match is found analytically and the results displayed form the database. The output is sent only after thorough verification of the input facts fed to the system. OLAP is also referred to as a multi-dimensional analytical model. Many big companies use OLAP to get good returns in business. The querying process of the OLAP is very strong. It helps the management take decisions like which month would be appropriate to launch a product in the market, what should be the production quantity to maximize the returns, what should be the stocking policy in order to minimize the wastage Etc.

Q2. What do you understand by service level Agreements (SLAs)? Why are they needed? What is the role of CIO in drafting these? Explain the various security hazards faced by an IS? 10 marks (350-400 words) Ans. A service level agreement (SLA) is a part of a service contract where the level of service is formally defined. In practice, the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance. As an example, internet service providers will commonly include service level agreements within the terms of their contracts with customers to define the level(s) of Service being sold in plain language terms will in this case have a technical definition in terms of MTTF, MTTR, various data rates, etc.)A service level agreement (SLA) is a negotiated agreement between two parties where one is the customer and the other is the service provider. Role of CIO in drafting SLAS One of the major responsibilities of the CIO is to establish the credibility of the systems organization. The systems department should not only focus on providing better service to the various lines of business but also

help businesses operate better. If the CIO wants to be taken seriously, he needs to do what other executives do and have his own business metrics and performance measurements, so that he can effectively measure his internal business performance. Other business departments have them, but CIOs generally do not because IT has always been viewed as a cost center. Measurements in IT tend to be vague and lacking in context. A CIO should explore running their area more like a service operation rather than a cost center, and develop metrics that track the performance of the information systems staff, as well as the equipment comprising the applications, infrastructure, and networks under the CIOs control. It sets the expectation on the technical areas of the CIOs operations. At a minimum, they should set up what is expected and what levels of service the equipment will provide. The underlying SLAs should be some sort of a chargeback system with business units, particularly when it comes to apportioning staff time. If information systems are now providing a service, the staff needs to understand where the service is being used to be properly remunerated or to demonstrate where the value is. The second part of the IT operations equation is computer equipment, and CIOs must have a firm handle on how that equipment is being used. Security Hazards faced by an Information system are: a) Fraud and unauthorized access: This hazard is due to dishonesty, cheating or deceit. This can be done through a) Infiltration and industrial espionage b) Tapping data from communication lines) Unauthorized browsing through lines by online terminals, etc. c) Power and communication failure: In some locations they are the most frequent hazards than any other else because availability of both of them depends upon the location. Sometimes communication channel are busy or noisy. There are power cuts and sometimes high voltage serge destroys a sensitive component of the computer

Q3. Explain DFD & Data Dictionary? Explain in detail how the information requirement is determined for an organization? Ans. Data flow diagrams (DFD): It represent the logical flow of data within the system. DFD do not explain how the processes convert the input data into output. They do not explain how the processing takes place. DFD uses few symbols like circles and rectangles connected by arrows to represent data flows. DFD can easily illustrate relationships among data, flows, external entities and stores. DFD can also be drawn in increasing levels of detail, starting with a summary high level view and proceeding o more detailed lower level views. Rounded rectangles represent processes that transform flow of data or work to be done. Rectangle represents external agents- the boundary of the system. It is source or destination of data. Data Dictionary: The data dictionary is used to create and store definitions of data, location, format for storage and other characteristics. The data dictionary can be used to retrieve the definition of data that has already been used in an application. The Data dictionary also stores some of the description of data structures, such as entities, attributes and relationships. It can also have software to update itself and to produce reports on its contents and to answer some of the queries 10 marks (350-400 words)

The information requirement for an Organization can be determined in the following 4 ways: a) Asking or interviewing: Asking questions is an art and the designer should use it properly to seek information. In this method a designer of MIS questions the user of the information and determines the Information requirement. For example, : Which are the raw materials that can be used in a product? b) Determining from the existing system: The existing system, designed out of experience, gives the requirement of the information. In a few cases, somebody else from the company or some other company provide information requirements. Knowledge is available from textbooks, handbooks, research studies that can determine the information requirement.

c) Analyzing the critical success factors: On efficient management, every business organization performs successfully with certain critical success factors. Other factors are important and play a role in the functioning of the organization. For example, in a high technology business, the management of the technology becomes the critical factor. Alternately, in a service organization, the management of service becomes the critical factor. d) Experimentation and modelling: The experimentation would determine the methodology for handling the complex situation. If the method is finalizes, the information needs are determined, through experimentation.

Q4. 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? 10 marks Ans. The 2 types of decision making systems can be distinguished in the following way. Closed decision making system has the following features: a) b) c) The manager has a known set of decision alternatives and knows their outcome fully in terms of value, if implemented. The manager has a model, a method or a rule The manager can choose any 1 with his will.

If the manager operates in an environment not known to him, then the decision -making system is termed as an open decisionmaking system. The conditions of this system in contrast closed decision-making system are: a) b) c) The manager does not know all the decision alternatives. The outcome of the decision is also not known fully. The knowledge of the outcome may be a probabilistic one. No method, rule or model is available to study and finalize one decision among the set of decision alternatives

What if analysis One of the models in decision Analysis by analytical modelling is What if analysis. Decisions are made using a model of the problem for developing various solution alternatives and testing them for best choice. The model is built with some variables and relationship between variables considered values of variables or relationship in the model may not hold well and therefore solution needs to be tested for an outcome, if the considered values of variables or relationship change. This method of analysis is called what if analysis. Such type of analysis can be done for purchase price manager to take more learned decisions. What if analysis creates confidence in decision making model by painting a picture of outcomes under different circumstances? Based on the methods discussed, a decision is made but such decision needs to be analyzed for conditions and assumptions considered in the decision model. The process is executed through analytical modeling of problem and solution. Peter Drucker points out that The most common sources of mistakes in the management decisions is the emphasis on finding the right answers rather than the right questions. This clearly explains why more time is spent in problem analysis & problem definition as compared to the time spends on decision analysis.

Q5. How hardware & software support in various MIS activities of the organization? Explain the transaction stages from manual system to automated systems? Ans. 10 marks

Generally hardware in the form of personal computers and peripherals like printers, fax, machines, copier, scanners etc are used in organization to support various MIS activities of the organization. Computers are widely used to support in MIS activities. Some of the types commonly used in business are desktop computer, notebook computer, PDA etc. A PC can process data at a very high speed. It can process millions of instructions within fractions of seconds. Storage: A PC can store large amount of data in a small space. Information can easily transform from one place to another place. Communication: PC with internet is used as a powerful tool of communication for every business activity. Accuracy: A PC is highly reliable in the sense that it could be used to perform calculations continuously for hours with a great degree of accuracy. Conferencing: A PC with internet offers facility of video conferencing worldwide. Business people across the globe travel a lot to meet their business partner, colleague and customer etc. to discuss about business activities. Software support in MIS activities MS-Windows: Windows is an operating system. It supports various applications like MS-Office, Lotus Smart Suite, and Outlook etc. MS-Excel: It is used to make charts, graphs, pivot tables and MIS reports etc.MS-WORD: It is used for letter drafting.MSPower Point: Power point is used for presentation.

Q6. Compare & Contrast E-enterprise business model with traditional business organization model? Explain how in Eenterprise manager role & responsibilities are changed? Explain how manager is a knowledge worker in E-enterprise Ans. The difference between the E-enterprise business model and traditional business organization model is put in a table below:

Managing the E-enterprise E-business enterprise is open twenty-four hours, and being independent, managers, vendors, customers transact business anytime from anywhere. Internet capabilities have given E-business enterprise a cutting edge capability advantage to increase the business

value. It has opened new channels of business as buying and selling can be done on Internet. It enables to reach new markets across the world anywhere due to communication capabilities. It has empowered customers and vendors / suppliers through secured access to information to act, wherever necessary. The effect of these radical changes is the reduction in administrative and management overheads, reduction in inventory, faster delivery of goods and services to the customers. In E-business enterprise traditional people organization based on Command Control principle is absent. It is replaced by people organizations that are empowered by information and knowledge to perform their role. They are supported by information systems, application packages, and decision-support systems. It is no longer functional, product, and project or matrix organization of people but E-organization where people work in network environment as a team or work group in virtual mode-business enterprise is more process-driven, technology-enabled and uses its own information and knowledge to perform. It is lean in number, flat in structure, broad in scope and a learning organization. In E-business enterprise, most of the things are electronic, use digital technologies and work on databases, knowledge bases, directories and document repositories. The business processes are conducted through enterprise software like ERP, SCM, and CRM supported by data warehouse, decision support, and these transformations have made conventional organization design obsolete. The basis of conventional organization design is command & control which is now collaborates & control. The role of MIS in E-business organization is to deal with changes in global market and enterprises. MIS produces more knowledge-based products. Knowledge management system is formally recognized as a part of MIS. It is effectively used for strategic planning for survival and growth, increase in profit and productivity and so onto achieve the said benefits of E-business organization, it is necessary to redesign the organization to realize the benefits of digital firm. The organization structure should be lean and flat. Get rid of rigid established infrastructure such as branch office or zonal office. Allow people to work from anywhere. Automate processes after re-engineering the process to cut down process cycle time. Make use of groupware technology on Internet platform for faster response processing. Another challenge is to convert domestic process design to work for international process, where integration of multinational information systems using different communication standards, country-specific accounting practices, and laws of security are to be adhered strictly. Internet and networking technology has thrown another challenge to enlarge the scope of organization where customers and vendors become part of the organization. This technology offers a solution to communicate, co -ordinate, and collaborate with customers, vendors and business partners.