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SIKKIM MANIPAL UNIVERSITYDEPARTMENT OF DISTANCE EDUCATION
ASSIGNMENTSEMESTER 2
FULL NAME : Galchar Pankaj N
ROLL NUMBER : 521113886
LEARNING CENTER : 1771
SUBJECT NAME : Management InformationSystems
SUBJECT CODE : MB0047
BOOK ID : B1136
MODULE NO : SET 2
DATE OF SUBMISSIONAT THE LEARNINGCENTRE : 19-June-2012
FACULTY SIGNATURE :
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Master of Business Administration-MBA Semester 2nd
MB0047 Management Information Systems -4 Credits
Assignment Set- 2
Q 1. How hardware & software support in various MIS activites of the organization ?Explain the transaction stages from manual system to automated systems?
Ans :-
Hardware support for MIS : Generally hardware in the form of personal computers and peripherals like printers,
faxmachines, copier, scanners etc are used in organization to support various MIS activitiesof theorganization.
Advantages of a PC: you can find the following advantages a personal computer offers:a)
Speed A PC can process data at a very high speed. It can process millions of
instructionswithin fraction of seconds. b)
Storage A PC can store large quantity of data in a small space. It eliminates the need
of storing the conventional office flat files and box files which requires lots of space. The
storagesystem in a PC is such that the information can be transferred from one placeto another place inelectronic form.c)
Communication A PC on the network can offer great support as a communicator incommunicating
information in the form of text and images. Today a PC with internet is used as a powerfultool of communication for every business activity.d)
Accuracy A PC is highly reliable in the sense that it could be used to perform
calculationscontinuously for hours with a great degree of accuracy. It is possible to obtainmathematicalresults correct up to a great degree of accuracy.e)
Conferencing
A PC with internet offers facility of video conferencing worldwide. Business peopleacross the globe travel a lot to meet their business partner, colleagues, and customers etctodiscuss about business activities. By video conferencing inconvenience of traveling canbeavoided. A block diagram of a computer may be represented as
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input unit is used to give input to the processor. Examples of input unit Keyboard, scanner,mouse, bar code reader etc
A processor refers to unit which processes the input received the way it hasbeen instructed. In acomputer the processor is the CPU Central Processing Unit. It doesall mathematicalcalculations, logical tasks, storing details in the memory etc.Output unit isused to give output s from the computer.Examples of output unit Monitor, printer, speakers
etc.Transformation stage Manual systems to automated systems :-
The value of Information is not present day discovery. We have always observedthat the Information is the asset of any organization. The existence of information is sincethe Big bang happened and then on it went on. But the value of information is being usedonly after the industrial revolution. Before, it was only in the record which we are using nowin an efficientway. The first information was binary. Information is generated by interactions;information is by interaction, as without comparison, without a context, without interaction,there is nothing. Traditional information systems are said to contain data, which is thenprocessed. The process eddata is called information. The processing of data takes place by
selecting the required fact and organizing it in a way to form meaningful information which isused for some organizational needs. In Manual systems, a series of action takes whichmay be similar as well as different to processing in traditional systems. For instance, inhospital information systems the patient details can be viewed by the administrator as wellas patient. But the views perceived by these are different. One may view it as a record totake print and other may be the source of his ailment description. What is common to the twosystems is the idea of transformation. Transformationoccurs when systems participants arefaced with cues from their environment, which may be data or situations, and the participantsthen define and redefine what to do next, either processing data or developing a situation,altering the system each time to transform it to a state closer to the participants goal orobjective. When a fact from either type of system is presented for manipulation, atransformation can occur. Thus, transformation is common to both types of systems.
A transformation had to necessarily go through the following stagesa) appraisal of the proceduresb) types of documentsc) storage systemsd) formulations and codinge) verification and validationf) reviewg) documentation
After the industrial revolution slowly manual systems were transformed into digital formby means of computer and related instruments.
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Q 2. Explain the various behavioral factors of management organization ? Asper porter , How can performance of individual corporations be determined?
Ans:-
Behavioral factors The implementation of computer based information systems in general and MSS in particularis affected by the way people perceive these systems and by how they behave in acceptingthem .User resistance is a major behavioral factor associated with the adoption of newsystems. The following are compiled by Jiang et al. (2000); reasons that employees resistnew systems: Change in job content Loss of status Change in interpersonal relationshipsLoss of power Change in decision making approach Uncertainty or unfamiliarity ormisinformation Job security The major behavioral factors are
a) Decision styles symbolic processing of AI is heuristic; DSS and ANN are analytic
b) Need for explanation ES provides explanation, ANN does not, DSS may provide partialexplanation. Explanation can reduce resistance to change
c) Organizational climate some organizations lead and support innovations andnewtechnologies whereas others wait and lag behind in making changes
d) Organizational expectations over expectation can result in disappointments andterminationof innovation. Over expectation was observed in most early intelligent systems.e)Resistance to change can be strong in MSS because the impacts may be significant.
Performance Out of many possible interpretations of a strategy an organization adopts in business,
it is foundthat a majority is concerned with competition between corporations. Competitionmeanscultivating unique strengths and capabilities, and defending them against imitation byother firms. Another alternative sees competition as a process linked to innovation inproduct, market,or technology.
Strategic information systems theory is concerned with the use of informationtechnology tosupport or sharpen an enterprises competitive strategy. Competitive strategy isanenterprises plan for achieving sustainable competitive advantage over, or reducing theedge of,its adversaries.
The performance of individual corporations is determined by the extent to whichthey managethe following (as given by Porter)
a) the bargaining power of suppliers;b) the bargaining power of buyer;c) the threat of new entrants;d) the threat of substitute products; ande) Rivalry among existing firms.Porters classic diagram representing these forces is indicated below
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There are two basic factors which may be considered to be adopted by organization intheir strategies:a)
low costb) product differentiation Enterprise can succeed relative to their competitors if they possess sustainable
competitiveadvantage in either of these two. Another important consideration in positioningis
competitive scope , or the breadth of the enterprises target markets within its industry , i.e. the range of productvarieties it offers, the distribution channels it employs, the types of buyers it serves,
thegeographic areas in which it sells, and the array of related industries in which itcompetes.Under Porters framework, enterprises have four generic strategies available tothem wherebythey can attain above-average performance. They are:
a) cost leadership;b) differentiation;c) cost focus; andd) focused differentiation.
Porters representation of them is indicated below -
Porter s Four Generic Strategies (Porter 1980)
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According to Porter, competitive advantage grows out of the way an enterpriseorganizes and performs discrete activities. The operations of any enterprise can be dividedinto a series of activities such as salespeople making sales calls, service techniciansperforming repairs,scientists in the laboratory designing products or processes, andtreasurers raising capital.
By performing these activities, enterprises create value for their customers.Theultimate value an enterprise creates is measured by the amount customers are willing topayfor its product or services. A firm is profitable if this value exceeds the collective costof performing all of the required activities.
To gain competitive advantage over its rivals, a firmmust either provide comparablevalue to the customer, but perform activities more efficientlythan its competitors (lower cost),or perform activities in a unique way that creates greater buyer value and commands apremium price (differentiation).
As per Borden 1964, quoted in Wiseman 1988 many differentiation bases can be
classified as 4Ps as given below: product (quality, features, options, style, brand name,packaging, sizes, services, warranties,returns); price (list, discounts, allowances, paymentperiod, credit terms); place (channels, coverage, locations, inventory, transport); andPromotion (advertising, personal selling, sales promotion, publicity).The various attributeslisted above can be sharpened the firms product by the support of asuitable informationtechnology
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Q 3. Compare various types of development aspect of information system ? Explainthe various stages of SDLC?
Ans:
Development of Information Systems :-
a) Development and Implementation of the MIS :-
Once the plan for MIS is made, the development of the MIS, calls for determining thestrategy of development. As discussed earlier, the plan consists of various systems andsubsystems. The development strategy determines where to begin and in what sequencethe development can take place with the sole objective of assuring the informationsupport.The choice of the system or the sub-system depends on its position in the total MISplan, the size of the system, the user's understanding of the systems and the complexity andits interface with other systems. The designer first develops systems independently andstarts integrating them with other systems, enlarging the system scope and meeting the
varying information needs.Determining the position of the system in the MIS is easy. The real problem is thedegree of structure, and formalisation in the system and procedures which determine thetiming and duration of development of the system. Higher the degree of structured-ness andformalisation, greater is the stabilisation of the rules, the procedures, decision-making andthe understanding of the overall business activity. Here, it is observed that the user's and thedesigner's interaction is smooth, and their needs are clearly understood and respectedmutually. The development becomes a method of approach with certainty in input processand outputs.
b) Prototype Approach :-
When the system is complex, the development strategy is Prototyping of the System.Prototyping is a process of progressively ascertaining the information needs, developingmethodology, trying it out on a smaller scale with respect to the data and the complexity,ensuring that it satisfies the needs of the users, and assess the problems of developmentand implementation.This process, therefore, identifies the problem areas, inadequacies in the prototype vis--visfulfilment of the information needs. The designer then takes steps to remove theinadequacies. This may call upon changing the prototype of the system, questioning theinformation needs, streamlining the operational systems and procedures and move userinteraction.In the prototyping approach, the designer's task becomes difficult, when there are multipleusers of the same system and the inputs they use are used by some other users as well. Forexample, a lot of input data comes from the purchase department, which is used in accountsand inventory management.The attitudes of various users and their role as the originators of the data need to bedeveloped with a high degree of positivism. It requires, of all personnel, to appreciate thatthe information is a corporate resource, and all have to contribute as per the designated roleby the designer to fulfil the corporate information needs. When it comes to information thefunctional, the departmental, the personal boundaries do not exist. This call upon eachindividual to comply with the design needs and provide without fail the necessary data inputswhenever required as per the specification discussed and finalised by the designer.Bringing the multiple users on the same platform and changing their attitudes towardinformation, as a corporate resource, is the managerial task of the system designer. The
qualification, experience, knowledge, of the state of art, and an understanding of the
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corporate business, helps considerably, in overcoming the problem of changing the attitudesof the multiple users and the originators of the data.
c) Life Cycle Approach :- There are many systems or sub-systems in the MIS which have a life cycle, that is, they
have birth and death. Their emergence may be sudden or may be a part of the businessneed, and they are very much structured and rule-based. They have 100% clarity of inputsand their sources, a definite set of outputs in terms of the contents and formats. Thesedetails more or less remain static from the day the system emerges and remains in thatstatic mode for a long time. Minor modifications or changes do occur but they are notsignificant in terms of handling either by the designer or the user of the system. Suchsystems, therefore, have a life and they can be developed in a systematic manner, and canbe reviewed after a year or two, for significant modification, if any.
Examples of such systems are pay roll, share accounting, basic financial accounting,finished goods accounting and dispatching, order processing, and so on.
These systems have a fairly long duration of survival and they contribute in a big way assources of data to the Corporate MIS. Therefore, their role is important and needs to bedesigned from the view point as an interface to the Corporate MIS.
d) Implementation of the Management Information SystemThe implementation of the system is a management process. It brings about organisationalchange; it affects people and changes their work style. The process evokes a behaviourresponse which could be either favourable or unfavourable depending upon the strategy ofsystem implementation. In the process of implementation, the system designer acts as achange agent or a catalyst. For a successful implementation he has to handle the humanfactors carefully. The user of the system has a certain fear complex when a certain culturalwork change is occurring. The first and the foremost fear is about the security to the personif the change-over from the old to new is not a smooth one. Care has to be taken to assurethe user that such fears are baseless and the responsibility, therefore, rests with thedesigner.
The second fear is about the role played by the person in the organisation and howthe change affects him. On many occasions, the new role may reduce his importance in theorganisation, the work design may make the new job impersonal, and a fear complex mayget reinforced that the career prospects may be affected.
There are certain guidelines for the systems designer for successful implementationof the system. The system designer should not question beyond a limit the information need
of the user.
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1. Not to forget that his role is to offer a service and not to demand terms.
2. Remember that the system design is for the use of the user and it is not the designer'sprerogative to dictate the design features. In short, the designer should respect the demandsof the user.
3. Not to mix up technical needs with the information needs. He should try to developsuitable design with appropriate technology to meet the information needs. The designershould not recommend modifications of the needs, unless technically infeasible.
4. Impress upon the user the global nature of the system design which is required to meetthe current and prospective information need.
5. Not to challenge the application of the information in decision-making. It is the sole right ofthe user to use the information the way he thinks proper.
6. Impress upon the user that the quality of information depends on the quality of input.
7. Impress upon the user that you are one of the users in the organisation and that theinformation is a corporate resource and he is expected to contribute to the development of
the MIS.8. Ensure that the user makes commitment to all the requirements of the system designspecifications. Ensure that he appreciates that his commitments contribute largely to thequality of the information and successful implementation of the system.
9. Ensure that the overall system effort has the management's acceptance.
10. Enlist the user's participation from time to time, so that he is emotionally involved in theprocess of development.
11. Realise that through serving the user, he is his best guide on the complex path ofdevelopment.
12. Not to expect perfect understanding and knowledge from the user as he may be the userof a non-computerised system. Hence, the designer should be prepared to change thesystem specifications or even the design during the course of development.
13. Impress upon the user that the change, which is easily possible in manual system, is notas easy in the computer system as it calls for changes in the programs at cost.
14. Impress upon the user that perfect information is non-existent; his role therefore still hasan importance in the organisation.
15. Ensure that the other organisation problems are resolved first before the MIS is taken fordevelopment.
16. Conduct periodical user meetings on systems where you get the opportunity to know theongoing difficulties of the users.
17. Train the user in computer appreciation and systems analysis as his perception of thecomputerised information system will fall short of the designer's expectation.Implementation of the MIS in an organisation is a process where organisationaltransformation takes place. This change can occur in a number of ways.
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The Lewin's model suggests three steps in this process. The first step is Unfreezing the organisation to make the people more receptive and interested in the change. Thesecond step is choosing a course of action where the process begins and reaches thedesired level of stability, and the third step is Refreezing , where the change is consolidatedand equilibrium is reinforced. Many a times, this process is implemented through an externalchange agent, such as a consultant playing the role of a catalyst.
The significant problem in this task is the resistance to change. The resistance canoccur due to three reasons, viz., the factors internal to the users of information, the factorsinherent in the design of the system and the factors arising out of the interaction between thesystem and its users. The problem of resistance can be handled through education,persuasion, and participation. This itself can be achieved by improving the human factors,and providing incentives to the users, and eliminating the organisational problems beforeimplementing the system
SDLC :- System development cycle stages are sometimes known as system study. System
concepts which are important in developing business information systems expedite problemsolving and improve the quality of decision-making. The system analyst has to do a lot in thisconnection. They are confronted with the challenging task of creating new systems anplanning major changes in the organization. The system analyst gives a systemdevelopment project, meaning and direction. The typical breakdown of an informationsystems life cycle includes a feasibility study, requirements, collection and analysis, design,prototyping,implementation, validation, testing and operation. It may be represented in theform of a block diagram as shown below:
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a) Feasibility study It is concerned with determining the cost effectiveness of variousalternatives in the designs of the information system and the priorities among the varioussystem components.b) Requirements, collection and analysis It is concerned with understanding the missionof the information systems, that is, the application areas of the system within the enterpriseand the problems that the system should solve.c) Design It is concerned with the specification of the information systems structure. Thereare two types of design: database design and application design. The database design is thedesign of the database design and the application design is the design of the applicationprograms.
d) Prototyping A prototype is a simplified implementation that is produced in order toverify in practice that the previous phases of the design were well conducted.
e) Implementation It is concerned with the programming of the final operational version ofthe information system. Implementation alternatives are carefully verifies and compared.f) Validation and testing It is the process of assuring that each phase of the developmentprocess is of acceptable quality and is an accurate transformation from the previous phase.
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Q 4. Compare & contrast E-enterprise business model with traditional businessorganization model?
Explain how in E-enterprise manager role & responsiblilties are changed ? Explainhow manager is a knowledge worker in E-entrprise?
Ans:
IntroductionIn the earlier unit, you have learnt about new trends in MIS. As you have learnt in the
earlier unit about DSS AI and expert systems, it gives you a brief overview of the relationshipbetween AI and expert systems. In this unit you will learn that with the emergence ofInternet, business organisation of 20th century has undergone structural, cultural andqualitative change, and a new organisation structure has emerged which is known as E-business enterprise. E-business enterprise enables employees, professionals, teams,groups, vendors, customers to perform business operations through electronic exchange of
data and information anywhere at any time. The business operations are performed throughE-communication and E-collaboration initiatives. Therefore, E-business enterprise has aglobal market, reach, source and global competition.
Managing the E-enterprise :-
Due to Internet capabilities and web technology, traditional business organisationdefinition has undergone a change where scope of the enterprise now includes othercompany locations, business partners, customers and vendors. It has no geographicboundaries as it can extend its operations where Internet works. All this is possible due toInternet and web moving traditional paper driven organisation to information driven Internetenabled E-business enterprise. E-business enterprise is open twenty-four hours, and beingindependent, managers, vendors, customers transact business anytime from anywhere.
Internet capabilities have given E-business enterprise a cutting edge capabilityadvantage to increase the business value. It has opened new channels of business asbuying and selling can be done on Internet. It enables to reach new markets across theworld anywhere due to communication capabilities. It has empowered customers andvendors / suppliers through secured access to information to act, wherever necessary. Thecost of business operations has come down significantly due to the elimination of paper-driven processes, faster communication and effective collaborative working. The effect ofthese 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 organisation based on CommandControl principle is absent. It is replaced by people organisations that are empowered byinformation and knowledge to perform their role. They are supported by information systems,application packages, and decision-support systems. It is no longer functional, product, andproject or matrix organisation of people but E-organisation where people work in networkenvironment as a team or work group in virtual mode.
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E-business enterprise is more process-driven, technology-enabled and uses its owninformation and knowledge to perform. It is lean in number, flat in structure, broad in scopeand a learning organisation. In E-business enterprise, most of the things are electronic, usedigital technologies and work on databases, knowledge bases, directories and documentrepositories. The business processes are conducted through enterprise software like ERP,SCM, and CRM supported by data warehouse, decision support, and knowledgemanagement systems.
Today most of the business organisations are using Internet technology, network,and wireless technology for improving the business performance measured in terms of cost,efficiency, competitiveness and profitability. They are using E-business, E-commercesolutions to reach faraway locations to deliver product and services. The enterprise solutionslike ERP, SCM, and CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN).The business processes across the organisation and outside run on E-technology platformusing digital technology. Hence today's business firm is also called E-enterprise or Digitalfirm.
The paradigm shift to E-enterprise has brought four transformations, namely: Domestic business to global business.
Industrial manufacturing economy to knowledge-based service economy.
Enterprise Resource Management to Enterprise Network Management.
Manual document driven business process to paperless, automated, electronicallytransacted business process.
These transformations have made conventional organisation design obsolete. The basisof conventional organisation design is command & control which is now collaborates &
control. This change has affected the organisation structure, scope of operations, reportingmechanisms, work practices, workflows, and business processes at large. The comparisonbetween conventional organisation design and E-enterprise is summarized in Table -
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In E-enterprise, business is conducted electronically. Buyers and sellers throughInternet drive the market and Internet-based web systems. Buying and selling is possible onInternet. Books, CDs, computer, white goods and many such goods are bought and sold onInternet. The new channel of business is well-known as E-commerce. On the same lines,banking, insurance, healthcare are being managed through Internet E-banking, E-billing, E-audit, & use of Credit cards, Smart card, ATM, E-money are the examples of the E-commerce application. The digital firm, which uses Internet and web technology and uses E-business and E-commerce solutions, is a reality and is going to increase in number.
MIS for E-business is different compared to conventional MIS design of anorganisation. The role of MIS in E-business organization is to deal with changes in globalmarket and enterprises. MIS produces more knowledge-based products. Knowledgemanagement system is formally recognized as a part of MIS. It is effectively used forstrategic planning for survival and growth, increase in profit and productivity and so on. Toachieve the said benefits of E-business organisation, it is necessary to redesign theorganisation to realize the benefits of digital firm. The organisation structure should be leanand 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 cutdown process cycle time. Make use of groupware technology on Internet platform for fasterresponse processing. Another challenge is to convert domestic process design to work forinternational process, where integration of multinational information systems using differentcommunication standards, country-specific accounting practices, and laws of security are tobe adhered strictly.
Internet and networking technology has thrown another challenge to enlarge thescope of organisation where customers and vendors become part of the organisation. Thistechnology offers a solution to communicate, co-ordinate, and collaborate with customers,vendors and business partners. This is just not a technical change in business operationsbut a cultural change in the mindset of managers and workers to look beyond the
conventional organisation. It means changing the organisation behaviour to take competitiveadvantage of the E-business technology.
The last but not the least important is the challenge to organise and implementinformation architecture and information technology platforms, considering multiple locationsand multiple information needs arising due to global operations of the business into acomprehensive MIS.
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Q.5 What do you understand by service level agreements (SLAs)? Why arethey needed ? What is the role of CIO in drafting these ? Explain the varioussecurity hazards faced by an IS?
Ans:
Chief Information Officer (CIO) :-
1. Chief Information Officers are senior executives responsible for all aspects oftheir companies' information technology and systems. They direct the use ofIT to support the company's goals. With knowledge of both the technologyand business process and a cross-functional perspective, they are usually themanagers most capable of aligning the organization's technology deploymentstrategy with its business strategy.
2. CIOs oversee technology purchases, implementation, and various relatedservices provided by the Information Systems Department. However, in manyleading-edge organizations, the CIO delegates many of the tactical andoperational issues to an IT manager in order to focus on more strategicconcerns.
3. The 'information' part of the CIO's job is getting increasingly important. Theeffective and strategic use of common enterprise-wide information requiressomeone with a cross-functional perspective. CIOs have taken a leadershiprole in reengineering their organizations' business processes andtheunderpinning IT infrastructures to achieve more productive, efficient, andvaluable use of information within the enterprise.
Many also take a leader's role in knowledge management and the valuation ofintellectual capital. Similarly, CIOs are in an ideal position to lead their organizations' Internetand Web initiatives. They usually report to the CEO, COO (Chief Operating Officer), or CFO,and often have a seat on the executive steering committee or board (or at least havefrequent and close access to top officers). While the specific title CIO is generally a clearindication of an IT executive's senior rank and strategic influence, many executives with thetitle VP or Director of IT, Information Systems, or Information Services hold comparablepositions.
The Role of a CIO :-
The CIO of an organization has to play the following roles :
Leader: The CIO is part of the senior executive group and the most senior managerresponsible for IT. As a leader, the Information Systems Manager is responsible forsupervising, hiring, training, and motivating information systems personnel. The CIO leadsall usage of IT from a business perspective.
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Spokesman: This role incorporates activities that require the CIO to extend organizationalcontacts outside the department to other areas of the organization. Frequently, he or shemust cross the traditional departmental boundaries and become involved in affairs ofproduction, distribution, marketing, and finance. It has been shown that keeping in touch withtop executives as well as key users is critical.The spokesman's role demands that the information systems manager acts as aninformation disseminator and politician, ensuring that the information systems department isproperly connected to the top level of the organization and to the key decision makers inother departments.
Monitor: The CIO must scan the external environment to keep up with technical changesand competition. In acting as the firm's technical innovator, the information systems manageridentifies new ideas from sources outside the organization. A CIO is proactive andknowledgeable about opportunities for the use of IT in the respective industry.
Liaison: The CIO is responsible for developing a working relationship between IT and thebusiness units that fits the organization's objectives, management style, and culture. TheInformation Systems Manager must communicate with the external environment includingexchanging information with the departments of suppliers, customers, buyers, marketanalysts, and the media. To meet a distinct set of information systems requirements andwork in joint supplier-customer teams, the CIO should communicate information systemscapabilities to meet the requirements of suppliers and customers. In order to maintain thecompatibility of inter-organizational networks, the CIOs need to liaison with their equivalentsin other organizations.
Entrepreneur: The CIO plays an important role in influencing the overall strategy andplanning in the organization and translates these organizational strategies and plans intodefinitive information systems actions. A CIO identifies business needs and developssolutions that change business situations. A major responsibility of the Information SystemsManager is to ensure that the rapidly evolving technical opportunities are understood,planned, implemented, and strategically exploited in the organization. A proactive CIO notonly sets MIS planning objectives consistent with the firm's overall objectives, but, as anorganizational change agent, is also able to influence the future strategic direction andopportunities of the firm.
Resource Allocator: The Information Systems Manager must decide how to allocatehuman, financial, and information resources. As the Information Systems Department actsas the main custodian of corporate data, 'information' resource allocation decisions arebecoming critical to the success of organizations. These decisions affect departmental data
management, standards, and control. The CIO acts as a steward of Information and ITresources for the organization, e.g., the finance head is the steward of financial resources.
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Q.6 case study: Information system in a restaurant.
Ans;-
Information System in Restaurant :-
A waiter takes an order at a table, and then enters it online via one of the sixterminals located inthe restaurant dining room. The order is routed to a printer inthe appropriate preparation area: the cold item printer if it is a salad , the hot-itemprinter if it is a hot sandwich or the bar printer if i t i s a drink . A customers meal check -listing (bill) the items ordered and the respective pricesare automaticallygenerated. This ordering system eliminates the old three-carbon-copy guestcheck system as well as any problems caused by a waiters handwriting. When the kitchenrunsout of a food item, the cooks send out an out of stock message, which will be displayedon the dining room terminals when waiters try to order that item. This gives the waiters fasterfeedback, enabling them to give better service to the customers. Other system features aidmanagement in the planning and control of their restaurant business. The system
provides up-to-the-minute information on the food items ordered and breaks outpercentages showing sales of eachi t emversus to ta l sa l es . Th i s he lps management p lan menus accord ing toc u s t o me r s t as t e s . T hesystem also compares the weekly sales totals versus foodcosts, allowing planning for tighter costcontrols. In addition, whenever an order isvoided, the reasons for the void are keyed in. Thismay help later in managementdecisions, especially if the voids consistently r elated to food or se rv ic e.A ccep t an ce o f t h e s y s t em b y t h e u s e r s i s ex cep t i o n a l l y h i g h s i n ce t h ewa it er s an d waitresses were involved in the selection and design process.Al l potent ial users were ask ed togive their impressions and ideas about the varioussystems available before one was chosen.
Questions: a. In the light of the system, describe the decisions to be made in the area of strategicplanning, managerial control and operational control? What information would you require tomake such decisions?
b. What would make the system a more complete MIS rather than just doingtransaction processing?
c. Explain the probable effects that making the system more formal would have on thecustomers and the management.
