MB0031 - P.Srinath - Completely Solved

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MB0031: ManagementInformation Systems[Assignment SET1 & SET2]

Name : P. SrinathSMDUE ID : 520923307Center : Mehbub College Campus, SecunderabadSubject Code : MB0031Subject : Management Information Systems


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ASSIGNMENT MBA SEM II Subject Code:MB0031 SET 1

1. a. Explain the impact of MIS in the area of police Informationsystem.

b. What are the functions and disadvantages of MIS?

MIS is an Information system which helps in providing themanagement of an organization with information which is used bymanagement for decision making.

A management information system (MIS) is a subset of the overallinternal controls of a business covering the application of people, documents,technologies, and procedures by management accountants to solvingbusiness problems such as costing a product, service or a business-widestrategy. Management information systems are distinct from regularinformation systems in that they are used to analyze other information

systems applied in operational activities in the organization. Academically,the term is commonly used to refer to the group of information managementmethods tied to the automation or support of human decision making, e.g.Decision Support Systems, Expert systems, and Executive informationsystems.

During the period of preindustrial revolution most of the dataprocessing was done manually.It was after the industrial revolution that thecomputers slowly started replacing manual labour. The modern digitalcomputer was basically designed to handle scientific calculations. During theperiod 1940 to 1960 computers were commercially used for census andpayroll work. This involved large amount of data and its processing. Since

then the commercial application exceeded the scientific applications forwhich the computer were mainly intended for. MIS is an Information systemwhich helps in providing the management of an organization with informationwhich is used by management for decision making.

Impact of MIS MIS has a major impact on the functions of anyorganization. The organization derives benefits from the systems in thefollowing form:

(a) Speedy access to information,(b) Interpretation of data,(c) Quick decisions,(d) Speedy actions,(e) Increased productivity and thereby increase in the profit(f) Reduced transaction cost

The usage of Electronic media for data storage and processing thedata is an integral part of MIS. The texts and images in electronic forms areeffective in communicating ideas from source to destination. It is technologydriven in the sense it revolves around wireless electronic gadgets, internet,money cards credits cards, debit cards, id cards, atm cards etc.

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MIS is very significant in modern day education system where we comeacross usage of LCDs, Smart boards, internet etc in class rooms. In thetourism MIS has led to radical changes in booking system, tourist informationsystem, hotel facilities, accommodation facilities, transportation modesavailable, images of the facilities that could be provided etc.

Function of MIS :The main function of MIS is to help the managers and theexecutives in the organization in decision making.

Large quantities of data like customers information, competitors

information, personnel records, sales data, accounting data etc iscollected from internal sources like the company records and externalsources like annual reports and publications.

The collected data is organized in the form of a database.

The data from the database is processed and analysed by usingdifferent tools and techniques.

The results of the analysis is properly presented to themanagers to help them in decision making.

Disadvantages of MIS

Highly senstive requires constant monitoring. Budgeting of MIS extremely difficult.

Quality of outputs governed by quality of inputs. Lack of flexiblity to update itself.

Effectiveness decreases due to frequent changes in top managementTakes into account only qualitative factors and ignores non-qualitativefactors like morale of worker, attitude of worker etc...

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MIS

Teaching

methodolog

y

Transportation

planning

Better

Tourists

Information

Office

automation

Better

Banking

system

Increased

Production


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2. A. Write a scenario which shows the applications of OLAP systems.B. How does Information technology influence the organizations

goals?

Online Analytical Processing (OLAP) : OLAP refers to a systemin which there are predefined multiple instances of various modules used in

business applications. Any input to such a system results in verification of thefacts with respect to the available instances. A nearest match is foundanalytically and the results displayed form the database. The output is sentonly after thorough verification of the input facts fed to the system.

The system goes through a series of multiple check of thevarious parameters used in business decision making. OLAP is also referredto as a multi dimensional analytical model. Many big companies use OLAP toget good returns in business. The querying process of the OLAP is verystrong. It helps the management take decisions like which month would beappropriate to launch a product in the market, what should be the productionquantity to maximize the returns, what should be the stocking policy in order

to minimize the wastage etc.

Model of OLAPIT influences Organizations goals There is always a mention about

what IT contributes to corporate strategy. It was recognized that corporationachieved a significant competitive advantage by adopting suitable ITconcepts in building

While many people think of decision support systems as a specializedpart of a business, most companies have actually integrated this system intotheir day to day operating activities. For instance, many companiesconstantly download and analyze sales data, budget sheets and forecastsand they update their strategy once they analyze and evaluate the current

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Deman

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results. Decision support systems have a definite structure in businesses, butin reality, the data and decisions that are based on it are fluid and constantlychanging.

Types of DSS

Data-Driven DSS take the massive amounts of data available throughthe company's TPS and MIS systems and cull from it useful information whichexecutives can use to make more informed decisions. They don't have tohave a theory or model but can "free-flow" the data. The first generic type ofDecision Support System is a Data-Driven DSS. These systems include filedrawer and management reporting systems, data warehousing and analysissystems, Executive Information Systems (EIS) and Spatial Decision SupportSystems. Business Intelligence Systems are also examples of Data-DrivenDSS. Data-Driven DSS emphasize access to and manipulation of largedatabases of structured data and especially a time-series of internal companydata and sometimes external data. Simple file systems accessed by queryand retrieval tools provide the most elementary level of functionality. Data

warehouse systems that allow the manipulation of data by computerizedtools tailored to a specific task and setting or by more general tools andoperators provide additional functionality.

Data-Driven DSS with Online Analytical Processing (OLAP) provide thehighest level of functionality and decision support that is linked to analysis oflarge collections of historical data.

Model-Driven DSS: A second category, Model-Driven DSS, includessystems that use accounting and financial models, representational models,and optimization models. Model-Driven DSS emphasize access to andmanipulation of a model. Simple statistical and analytical tools provide themost elementary level of functionality. Some OLAP systems that allowcomplex analysis of data may be classified as hybrid DSS systems providingmodeling, data retrieval and data summarization functionality. Model-DrivenDSS use data and parameters provided by decision-makers to aid them inanalyzing a situation, but they are not usually data intensive. Very largedatabases are usually not needed for Model-Driven DSS.

Model-Driven DSS were isolated from the main Information Systems ofthe organization and were primarily used for the typical "what-if" analysis.That is, "What if we increase production of our products and decrease theshipment time?" These systems rely heavily on models to help executivesunderstand the impact of their decisions on the organization, its suppliers,and its customers.

Knowledge-Driven DSS: The terminology for this third generictype of DSS is still evolving. Currently, the best term seems to be Knowledge-Driven DSS. Adding the modifier driven to the word knowledge maintains aparallelism in the framework and focuses on the dominant knowledge basecomponent. Knowledge-Driven DSS can suggest or recommend actions tomanagers. These DSS are personal computer systems with specialized

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problem-solving expertise. The "expertise" consists of knowledge about aparticular domain, understanding of problems within that domain, and "skill"at solving some of these problems. A related concept is Data Mining. It refersto a class of analytical applications that search for hidden patterns in adatabase. Data mining is the process of sifting through large amounts of datato produce data content relationships.

Document-Driven DSS: A new type of DSS, a Document-Driven DSSor Knowledge Management System, is evolving to help managers retrieveand manage unstructured documents and Web pages. A Document-DrivenDSS integrates a variety of storage and processing technologies to providecomplete document retrieval and analysis. The Web provides access to largedocument databases including databases of hypertext documents, images,sounds and video. Examples of documents that would be accessed by aDocument-Based DSS are policies and procedures, product specifications,catalogs, and corporate historical documents, including minutes of meetings,corporate records, and important correspondence. A search engine is apowerful decision aiding tool associated with a Document-Driven DSS.

Communications-Driven and Group DSS: Group Decision SupportSystems (GDSS) came first, but now a broader category of Communications-Driven DSS or groupware can be identified. This fifth generic type of DecisionSupport System includes communication, collaboration and decision supporttechnologies that do not fit within those DSS types identified. Therefore, weneed to identify these systems as a specific category of DSS. A Group DSS isa hybrid Decision Support System that emphasizes both the use ofcommunications and decision models. A Group Decision Support System is aninteractive computer-based system intended to facilitate the solution ofproblems by decision-makers working together as a group. Groupwaresupports electronic communication, scheduling, document sharing, and othergroup productivity and decision support enhancing activities We have anumber of technologies and capabilities in this category in the framework Group DSS, two-way interactive video, White Boards, Bulletin Boards, andEmail.

The five levels Scott Morton proposes five levels of complexity atwhich reconfiguration can be applied. The following five levels indicates howit is possible to reconfigure strategic information system based on theinfluence of IT.

Localised exploitation: This is part of the Evolutionary level andexists within individual business functions. It addresses the local efficiencyand effectiveness of a information system.

Internal integration:This is part of the evolutionary level and existsbetween different systems and applications. It evolves out of rationalizationusing a common IT platform. Efficiency and effectiveness are enhanced bycoordination and cooperation within the enterprise;

Business process redesign:This is part of the revolutionary level. Itinvolves more thorough reevaluation of the enterprise valuechain and theproduction process.

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Business network redesign: This is also part of the revolutionarylevel. It involves reconfiguration of the scope and tasks of the businessnetwork. It also helps in the creation and delivery of products and services.Coordination and cooperation extend, selectively, beyond the enterprise'sboundaries; and

Business scope redefinition: It is also part of the revolutionary

level. It involves migration of functions across the enterprise's boundaries. Itmay change the organization's conception of the business.

Scott Morton's Five Levels of ITInduced Reconfiguration (Scott Morton1991)

(b) Software Development Life Cycle (SDLC)India Outsourcing > Software Development Life Cycle

As in any other engineering discipline, software engineering also hassome structured models for software development. This document willprovide you with a generic overview about different software development

methodologies adopted by contemporary software firms. Read on to knowmore about the Software Development Life Cycle (SDLC) in detail.

Curtain Raiser: Like any other set of engineering products,software products are also oriented towards the customer. It is either marketdriven or it drives the market. Customer Satisfaction was the buzzword of the80's. Customer Delight is today's buzzword and Customer Ecstasy is thebuzzword of the new millennium. Products that are not customer or userfriendly have no place in the market although they are engineered using thebest technology. The interface of the product is as crucial as the internaltechnology of the product.

Market Research: A market study is made to identify a potentialcustomer's need. This process is also known as market research. Here, thealready existing need and the possible and potential needs that are availablein a segment of the society are studied carefully. The market study is donebased on a lot of assumptions. Assumptions are the crucial factors in thedevelopment or inception of a product's development. Unrealisticassumptions can cause a nosedive in the entire venture. Though assumptionsare abstract, there should be a move to develop tangible assumptions tocome up with a successful product.

Research and Development: Once the Market Research is carriedout, the customer's need is given to the Research & Development division(R&D) to conceptualize a cost-effective system that could potentially solvethe customer's needs in a manner that is better than the one adopted by thecompetitors at present. Once the conceptual system is developed and testedin a hypothetical environment, the development team takes control of it. Thedevelopment team adopts one of the software development methodologiesthat is given below, develops the proposed system, and gives it to thecustomer.

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The Sales & Marketing division starts selling the software to theavailable customers and simultaneously works to develop a niche segmentthat could potentially buy the software. In addition, the division also passesthe feedback from the customers to the developers and the R&D division tomake possible value additions to the product.

While developing a software, the company outsources the non-coreactivities to other companies who specialize in those activities. Thisaccelerates the software development process largely. Some companies workon tie-ups to bring out a highly matured product in a short period.

Popular Software Development Models The following are somebasic popular models that are adopted by many software development firms

1. System Development Life Cycle (SDLC) Model2. Prototyping Model3. Rapid Application Development Model4. Component Assembly Model

A. System Development Life Cycle (SDLC) Model This is alsoknown as Classic Life Cycle Model (or) Linear Sequential Model (or) WaterfallMethod. This model has the following activities.

1. System/Information Engineering and Modeling Assoftware is always of a large system (or business), work begins byestablishing the requirements for all system elements and then allocatingsome subset of these requirements to software. This system view is essentialwhen the software must interface with other elements such as hardware,people and other resources. System is the basic and very critical requirementfor the existence of software in any entity. So if the system is not in place,the system should be engineered and put in place. In some cases, to extractthe maximum output, the system should be re-engineered and spruced up.Once the ideal system is engineered or tuned, the development team studiesthe software requirement for the system.

2. Software Requirement Analysis This process is alsoknown as feasibility study. In this phase, the development team visits thecustomer and studies their system. They investigate the need for possiblesoftware automation in the given system. By the end of the feasibility study,the team furnishes a document that holds the different specificrecommendations for the candidate system. It also includes the personnelassignments, costs, project schedule, target dates etc.... The requirementgathering process is intensified and focussed specially on software. Tounderstand the nature of the program(s) to be built, the system engineer or"Analyst" must understand the information domain for the software, as wellas required function, behavior, performance and interfacing. The essentialpurpose of this phase is to find the need and to define the problem thatneeds to be solved.

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3. System Analysis and Design In this phase, thesoftware development process, the software's overall structure and itsnuances are defined. In terms of the client/server technology, the number oftiers needed for the package architecture, the database design, the datastructure design etc... are all defined in this phase. A software developmentmodel is thus created. Analysis and Design are very crucial in the whole

development cycle. Any glitch in the design phase could be very expensive tosolve in the later stage of the software development. Much care is takenduring this phase. The logical system of the product is developed in thisphase.

4. Code Generation The design must be translated into amachine-readable form. The code generation step performs this task. If thedesign is performed in a detailed manner, code generation can beaccomplished without much complication. Programming tools like compilers,interpreters, debuggers etc... are used to generate the code. Different highlevel programming languages like C, C++, Pascal, Java are used for coding.With respect to the type of application, the right programming language is

chosen.

B. Prototyping Model This is a cyclic version of the linearmodel. In this model, once the requirement analysis is done and the designfor a prototype is made, the development process gets started. Once theprototype is created, it is given to the customer for evaluation. The customertests the package and gives his/her feed back to the developer who refinesthe product according to the customer's exact expectation. After a finitenumber of iterations, the final software package is given to the customer. Inthis methodology, the software is evolved as a result of periodic shuttling ofinformation between the customer and developer. This is the most populardevelopment model in the contemporary IT industry. Most of the successfulsoftware products have been developed using this model - as it is verydifficult (even for a whiz kid!) to comprehend all the requirements of acustomer in one shot. There are many variations of this model skewed withrespect to the project management styles of the companies. New versions ofa software product evolve as a result of prototyping.

C. Rapid Application Development (RAD) Model The RADmodelis a linear sequential software development process that emphasizesan extremely short development cycle. The RAD model is a "high speed"adaptation of the linear sequential model in which rapid development isachieved by using a component-based construction approach. Used primarilyfor information systems applications, the RAD approach encompasses thefollowing phases:

1. Business modeling The information flow among businessfunctions is modeled in a way that answers the following questions:

What information drives the business process?What information is generated?Who generates it?

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Where does the information go?Who processes it?

2. Data modeling The information flow defined as part of thebusiness modeling phase is refined into a set of data objects that are neededto support the business. The characteristic (called attributes) of each object is

identified and the relationships between these objects are defined.

3. Process modeling The data objects defined in the data-modeling phase are transformed to achieve the information flow necessary toimplement a business function. Processing the descriptions are created foradding, modifying, deleting, or retrieving a data object.

4. Application generation The RAD model assumes the use ofthe RAD tools like VB, VC++, Delphi etc... rather than creating software usingconventional third generation programming languages. The RAD model worksto reuse existing program components (when possible) or create reusablecomponents (when necessary). In all cases, automated tools are used to

facilitate construction of the software.

5. Testing and turnover Since the RAD process emphasizesreuse, many of the program components have already been tested. Thisminimizes the testing and development time.

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D. Component Assembly Model Object technologies provide thetechnical framework for a component-based process model for softwareengineering. The object oriented paradigm emphasizes the creation ofclasses that encapsulate both data and the algorithm that are used tomanipulate the data. If properly designed and implemented, object orientedclasses are reusable across different applications and computer basedsystem architectures. Component Assembly Model leads to softwarereusability. The integration/assembly of the already existing softwarecomponents accelerates the development process. Nowadays manycomponent libraries are available on the Internet. If the right components arechosen, the integration aspect is made much simpler.

3. A. Explain the role of systems analyst in SDLC. Explain with ascenario.B. Draw a data flow diagram for an hospital management system.

SDLC : System development cycle stages are sometimes known assystem study. System concepts which are important in developing businessinformation systems expedite problem solving and improves the quality ofdecisionmaking. The system analyst has to do a lot in this connection. Theyare confronted with the challenging task of creating new systems an planningmajor changes in the organization.

The system analyst gives a system development project, meaning anddirection. The typical breakdown of an information systems life cycle includes

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a feasibility study, requirements, collection and analysis, design, prototyping,implementation, validation, testing and operation. It may be represented inthe form of a block diagram as shown below:

1. Feasibility study It is concerned with determining the costeffectiveness of various alternatives in the designs of the information systemand the priorities among the various system components.

2. Requirements, collection and analysis It is concernedwith understanding the mission of the information systems, that is, theapplication areas of the system within the enterprise and the problems thatthe system should solve.

3. Design It is concerned with the specification of the informationsystems structure. There are two types of design, database design andapplication design. The database design is the design of the database design

and the application design is the design of the application programs.4. Prototyping A prototype is a simplified implementation that is

produced in order to verify in practice that the previous phases of the designwere well conducted.

5. Implementation It is concerned with the programming of thefinal operational version of the information system. Implementationalternatives are carefully verifies and compared.

6. Validation and testing It is the process of assuring that eachphase of the development process is of acceptable quality and is an accuratetransformation from the previous phase.

Data Flow Diagram Data flow diagrams represent the logical flow ofdata within the system. DFD do not explain how the processes convert theinput data into output. They do not explain how the processing takes place.DFD uses few symbols like circles and rectangles connected by arrows torepresent data flows. DFD can easily illustrate relationships among data,flows, external entities an stores. DFD can also be drawn in increasing levelsof detail, starting with a summary high level view and proceeding moredetailed lower level views.

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4. What are the features contributing to success and failures of MISmodels?

Factors Contributing to Success of MIS The following featurescontributing a lot for the success of MIS and are listed below:-

1. The MIS is integrated into the managerial functions. It sets clearobjectives to ensure that the MIS focuses on the major issues of thebusiness. Also adequate development resources are provided and the

human and organisational barriers to progress are removed.2. An appropriate information processing technology required to meet thedata processing and analysis needs of the users of the MIS is selected.3. The MIS is oriented, defined and designed in terms of the usersrequirements and its operational viability is ensured.4. The MIS is kept under continuous surveillance, so that its open systemdesign is modified according to the changing information needs.5. MIS focuses on the business results and goals, and highlights thefactors and reasons for non-achievement.6. MIS is not allowed to end up into an information generation millavoiding the noise in the information and the communication system.7. The MIS recognises that manager is a human being and therefore, the

systems must consider all the human behavioural factors in the process ofthe management.8. The MIS recognises that the different information needs for differentobjectives must be met with. The globalisation of information in isolationfrom the different objectives leads to information overload and its non-use.9. The MIS is easy to operate and, therefore, the design of the MIS hassuch features which make up a user-friendly design.

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10.MIS recognises that the information needs become obsolete and newneeds emerge. The MIS design, therefore, has a basic potential capabilityto quickly meet new needs of information.11.The MIS concentrates on the developing the information support tomanage critical success factors. It concentrates on the mission criticalapplications serving the needs of the top management.

Factors Contributing to Failure of MIS The common observed featureswhich are responsible for the failure of MIS is as follows:-

1. The MIS is conceived as a data processing and not as an informationprocessing system.2. The MIS does not provide that information which is needed by themanagers but it tends to provide the information generally the functioncalls for. The MIS then becomes an impersonal system.3. Underestimating the complexity in the business systems and notrecognising it in the MIS design leads to problems in the successfulimplementation.

4. Adequate attention is not given to the quality control aspects of theinputs, the process and the outputs leading to insufficient checks andcontrols in the MIS.5. The MIS is developed without streamlining the business processingsystems in the organisation.6. Lack of training and appreciation that the users of the information andthe generators of the data are different, and they have to play animportant responsible role in the MIS.7. The MIS does not meet certain critical and key factors of its users suchas a response to the query on the database, an inability to get theprocessing done in a particular manner, lack of user-friendly system andthe dependence on the system development personnel.8. A belief that the computerised MIS can solve all the managementproblems of planning and control of the business.9. Lack of administrative discipline in following the standardised systemsand procedures, wrong coding and deviating from the systemspecifications result in incomplete and incorrect information.10.The MIS does not give perfect information to all the users in theorganisation. Any attempt towards such a goal will be unsuccessfulbecause every user has a human ingenuity, bias, certain assumptions notknown to the designer. The MIS cannot make up these by providingperfect information.

5. What are the limitations of ERP systems? How do ERP packages helpin overcoming theses limitations?

Enterprise Resource Planning Manufacturing managementsystems have evolved in stages over the few decades from a simple meansof calculating materials requirements to the automation of an entireenterprise. Around 1980, over frequent changes in sales forecasts, entailing

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continual readjustments in production, as well as the unsuitability of theparameters fixed by the system, led MRP (Material Requirement Planning) toevolve into a new concept : Manufacturing Resource Planning (or MRP2) andfinally the generic concept Enterprise Resource Planning (ERP)

The initials ERP originated as an extension of MRP (material

requirements planning then manufacturing resource planning). ERP systemsnow attempt to cover all basic functions of an enterprise, regardless of theorganization's business or charter. Nonmanufacturing businesses, nonprofitorganizations and governments now all utilize ERP systems. To be consideredan ERP system, a software package must provide the function of at least twosystems. For example, a software package that provides both payroll andaccounting functions could technically be considered an ERP softwarepackage.

However, the term is typically reserved for larger, more broadly basedapplications. The introduction of an ERP system to replace two or moreindependent applications eliminates the need for external interfaces

previously required between systems, and provides additional benefits thatrange from standardization and lower maintenance to easier and/or greaterreporting capabilities.

Some organizations -typically those with sufficient inhouse IT skills tointegrate multiple software products - choose to implement only portions ofan ERP system and develop an external interface to other ERP or standalonesystems for their other application needs. For example, one may choose touse the HRMS from one vendor, and the financials systems from another, andperform the integration between the systems themselves.

Ideally, ERP delivers a single database that contains all data for thesoftware modules, which would include:

Enterprise Resource Planning is a term originally derived frommanufacturing resource planning that followed material requirementsplanning . MRP evolved into ERP when "routings" became a major part of thesoftware architecture and a company's capacity planning activity alsobecame a part of the standard software activity. ERP systems typically handlethe manufacturing, logistics, distribution, inventory, shipping, invoicing, andaccounting for a company. Enterprise Resource Planning or ERP software canaid in the control of many business activities, like sales, marketing, delivery,billing, production, inventory management, quality management, and humanresource management.

ERP systems saw a large boost in sales in the 1990s as companiesfaced the Y2K problem in their legacy systems. Many companies took thisopportunity to replace their legacy information systems with ERP systems.This rapid growth in sales was followed by a slump in 1999, at which timemost companies had already implemented their Y2K solution.

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ERPs are crossfunctional and enterprise wide. All functionaldepartments that are involved in operations or production are integrated inone system. In addition to manufacturing, warehousing, logistics, andinformation technology, this would include accounting, human resources,marketing, and strategic management.

The Ideal ERP SystemAn ideal ERP system is when a single database is utilized and contains

all data for various software modules. These software modules can include:

1. Manufacturing: Some of the functions include; engineering,capacity, workflow management, quality control, bills of material,manufacturing process, etc.

2. Financials: Accounts payable, accounts receivable, fixed assets,general ledger and cash management, etc.

3. Human Resources: Benefits, training, payroll, time andattendance, etc

4. Supply Chain Management: Inventory, supply chain planning,

supplier scheduling, claim processing, order entry, purchasing, etc.5. Projects: Costing, billing, activity management, time and expense,

etc.6. Customer Relationship Management: sales and marketing,

service, commissions, customer contact, calls center support, etc.7. Data Warehouse: Usually this is a module that can be accessed by

an organizations customers, suppliers and employees.

Limitations of ERP Success depends on the skill andexperience of the workforce, including training about how to make thesystem work correctly. Many companies cut costs by cutting training budgets.Privately owned small enterprises are often undercapitalized, meaning theirERP system is often operated by personnel with inadequate education in ERPin general, such as APICS foundations, and in the particular ERP vendorpackage being used.

1. Personnel turnover; companies can employ new managers lackingeducation in the company's ERP system, proposing changes in businesspractices that are out of synchronization with the best utilization of thecompany's selected ERP.

2. Customization of the ERP software is limited. Some customizationmay involve changing of the ERP software structure which is usually notallowed.

3. Reengineering of business processes to fit the "industry standard"prescribed by the ERP system may lead to a loss of competitive advantage.

4. ERP systems can be very expensive to install often ranging from30,000 US Dollars to 500,000,000 US Dollars for multinational companies.

5. ERP vendors can charge sums of money for annual license renewalthat is unrelated to the size of the company using the ERP or its profitability.

6. Technical support personnel often give replies to callers that areinappropriate for the caller's corporate structure. Computer security concernsarise, for example when telling a non programmer how to change a database

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on the fly, at a company that requires an audit trail of changes so as to meetsome regulatory standards.

7. ERPs are often seen as too rigid and too difficult to adapt to thespecific workflow and business process of some companies this is cited asone of the main causes of their failure.

8. Systems can be difficult to use.

9. Systems are too restrictive and do not allow much flexibility inimplementation and usage.

10. The system can suffer from the "weakest link" problem aninefficiency in one department or at one of the partners may affect otherparticipants.

11. Many of the integrated links need high accuracy in otherapplications to work effectively. A company can achieve minimum standards,then over time "dirty data" will reduce the reliability of some applications.

12. Once a system is established, switching costs are very high for anyone of the partners (reducing flexibility and strategic control at the corporatelevel).

13. The blurring of company boundaries can cause problems in

accountability, lines of responsibility, and employee morale.

14. Resistance in sharing sensitive internal information betweendepartments can reduce the effectiveness of the software.

15. Some large organizations may have multiple departments withseparate, independent resources, missions, chainsofcommand, etc, andconsolidation into a single enterprise may yield limited benefits.

16. There are frequent compatibility problems with the various legacysystems of the partners.

17. The system may be overengineered relative to the actual needs ofthe customer.

Before ERP systems, each department in an organization would mostlikely have their own computer system, data and database. Unfortunately,many of these systems would not be able to communicate with one anotheror need to store or rewrite data to make it possible for cross computersystem communication. For instance, the financials of a company were on aseparate computer system than the HR system, making it more intensive andcomplicated to process certain functions. Once an ERP system is in place,usually all aspects of an organization can work in harmony instead of everysingle system needing to be compatible with each other. For largeorganizations, increased productivity and less types of software are a result.

6. Explain the relationship between artificial intelligence and neuralnetworks with

the help of a scenario.

Ans:- Artificial Intelligence is the science and technology based onvarious functions to develop a system that can think and work like a humanbeing. It can reason, analyze, learn, conclude and solve problems. Thesystems which use this type of intelligence are known as artificial intelligentsystems and their intelligence is referred to as artificial intelligence. It was

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said that the computer dont have common sense. Here in AI, the main ideais to make the computer think like human beings, so that it can be then saidthat computers also have common sense. More precisely the aim is to obtaina knowledge based computer system that will help managers to take quickdecisions in business.

Artificial Intelligence can be classified into various branches likeNatural Language Processing (NLP), Speech Recognition, AutomatedProgramming, Machine Learning, Pattern Recognition and ProbabilisticNetworks. Most of the software developed for AI have been through Prolog,C++, Java and LISP. These programming languages provide facility ofcreating various functions of business activity, extension of a function,handling dynamic situations in business, providing uniformity in applicationetc.

A neuron is a micro cell which is connected to thousands ofother micro cells in the brain and all the other parts of the human bodycontaining nerves. It is a system which tries to learn from the database and

the manager then decides what the right answer is. The entire neuralnetwork is realized in the form of software. The software renders thecomputer as a problem solver. The neural networks goes on building strongdatabase for problem solving depending upon the decisions taken by themanager in the form of response confirmation given to the system by themanager. Neural networks can be used in various business applications likeforecasting, stock analysis, market analysis etc.

Advantages of Neural Networks Neural networks are used toforecast some complex data patterns. When designed properly, they can beused as experts for a particular project. They have the ability to adjust to thechanging environment and thus are very flexible. For example, it can forecastnet asset values of mutual funds.

Artificial intelligence is a field of science and technology based ondisciplines such as computer science, biology, psychology, linguistics,mathematics and engineering. The goal of AI is to develop computers thatcan simulate the ability to think, see, hear, walk, talk and feel. In other words,simulation of computer functions normally associated with humanintelligence, such as reasoning, learning and problem solving. AI can begrouped under three major areas: cognitive science, robotics and naturalinterfaces. Cognitive science focuses on researching on how the human brainworks and how humans think and learn. Applications in the cognitive sciencearea of AI include the development of expert systems and other knowledge-based systems that add a knowledge base and some reasoning capability toinformation systems. Also included are adaptive learning systems that canmodify their behavior based on information they acquire as they operate.Chessplaying systems are some examples of such systems.

Fussy logic systems can process data that are incomplete orambiguous. Thus, they can solve semi structured problems with incompleteknowledge by developing approximate inferences and answers, as humansdo.

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Neural network software can learn by processing sample problems andtheir solutions. As neural nets start to recognize patterns, they can begin toprogram themselves to solve such problems on their own. Neural networksare computing systems modeled after the human brains mesh like networkof interconnected processing elements, called neurons. The human brain isestimated to have over 100 billion neuron brain cells. The neural networks

are lot simpler in architecture. Like the brain, the interconnected processorsin a neural network operate in parallel and interact dynamically with eachother.

This enables the network to operate and learn from the data itprocesses, similar to the human brain. That is, it learns to recognize patternsand relationships in the data. The more data examples it receives as input,the better it can learn to duplicate the results of the examples it processes.Thus, the neural networks will change the strengths of the interconnectionsbetween the processing elements in response to changing patterns in thedata it receives and results that occur.

For example, neural network can be trained to learn which creditcharacteristics result in good or bad loans. The neural network would

continue to be trained until it demonstrated a high degree of accuracy incorrectly duplicating the results of recent cases. At that point it would betrained enough to begin making credit evaluations of its own.

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ASSIGNMENT MBA SEM II Subject Code:MB0031 SET 2

1. Explain the different business models that work together in an E-enterprise system. Give example for each.

Managing an E-business & Challenges before an E-business -Due toInternet capabilities and web technology, traditional business organizationdefinition has undergone a change where scope of the enterprise nowincludes other company locations, business partners, customers and vendors.It has no geographic boundaries as it can extend its operations whereInternet works. All this is possible due to Internet and web moving traditionalpaper driven organization to information driven Internet enabled E-businessenterprise. E-business enterprise is open twenty-four hours, and beingindependent, managers, vendors, customers transact business anytime fromanywhere. Internet capabilities have given E-business enterprise a cuttingedge capability advantage to increase the business value. It has opened new

channels of business as buying and selling can be done on Internet. Itenables to reach new markets across the world anywhere due tocommunication capabilities. It has empowered customers and vendors /suppliers through secured access to information to act, wherever necessary.The cost of business operations has come down significantly due to theelimination of paper-driven processes, faster communication and effectivecollaborative working. The effect of these radical changes is the reduction inadministrative and management overheads, reduction in inventory, fasterdelivery 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 organizationthat is empowered by information and knowledge to perform their role. Theyare supported by information systems, application packages, and decision-support systems. It is no longer functional, product, and project or matrixorganization of people but E-organization where people work in networkenvironment as a team or work group in virtual mode. E-business enterpriseis more process-driven, Technology-enabled and uses its own information andknowledge to perform. It is lean in number, flat in structure, broad in scopeand a learning organization. In E-business enterprise, most of the things areelectronic, use digital technologies and work on databases, knowledge bases,directories and document repositories. The business processes are conductedthrough enterprise software like ERP, SCM, and CRM supported by datawarehouse, decision support, and knowledge management systems. Todaymost of the business organizations are using Internet technology, network,and wireless technology for improving the business performance measured interms of cost, efficiency, competitiveness and profitability. They are using E-business, Ecommerce solutions to reach faraway locations to deliver productand services. The enterprise solutions like ERP, SCM, and CRM run on Internet(Internet / Extranet) & Wide Area Network (WAN). The business processesacross the organization and outside run on E-technology platform using

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digital technology. Hence today's business firm is also called E-enterprise orDigital firm.

The paradigm shift to E-enterprise has brought four transformations,namely:1. Domestic business to global business.2. Industrial manufacturing economy to knowledge-based service

economy.3. Enterprise Resource Management to Enterprise Network Management.4. Manual document driven business process to paperless, automated,

electronically transacted business process.

These transformations have made conventional organization designobsolete.

In E-enterprise, business is conducted electronically. Buyers and sellersthrough Internet drive the market and Internet-based web systems. Buyingand selling is possible on Internet. Books, CDs, computer, white goods andmany such goods are bought and sold on Internet. The new channel ofbusiness is well-known as Ecommerce. 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 theexamples of the Ecommerce application. The digital firm, which uses Internetand web technology and uses E-business and Ecommerce solutions, is areality and is going to increase in number.

MIS for E-business is different compared to conventional MS design ofan organization. The role of MIS in E-business organization is to deal withchanges 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 andgrowth, increase in profit and productivity and so on. To achieve the saidbenefits of E-business organization, it is necessary to redesign theorganization to realize the benefits of digital firm. The organization structureshould be lean and flat. Get rid of rigid established infrastructure such asbranch office or zonal office. Allow people to work from anywhere. Automateprocesses after reengineering the process to cut down process cycle time.Make use of groupware technology on Internet platform for faster responseprocessing. Another challenge is to convert domestic process design to workfor international process, where integration of multinational informationsystems using different communication standards, country-specificaccounting practices, and laws of security are to be adhered strictly. Internet

and networking technology has thrown another challenge to enlarge thescope of organization where customers and vendors become part of theorganization. This technology offers a solution to communicate, coordinate,and collaborate with customers, vendors and business partners. This is justnot a technical change in business operations but a cultural change in themindset of managers and workers to look beyond the conventionalorganization. It means changing the organization behaviour to takecompetitive advantage of the E-business technology.

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The last but not the least important is the challenge to organize andimplement information architecture and information technology platforms,considering multiple locations and multiple information needs arising due toglobal operations of the business into a comprehensive MIS. E-COMMERCE isa second big application next to ERP. It is essential deals with buying andselling of goods. With the advent of intent and web technology, E-Commerce

today covers an entire commercial scope online including design anddeveloping, marketing, selling, delivering, servicing, and paying for goods.Some E-Commerce application add order tracking as a feature for customerto know the delivery status of the order.

E-Collaboration helps work effectively on applications like calendaringand scheduling tasks, event, project management, workflow application, workgroup application. E-collaboration system components are internet, Intranet,Extranet and LAN, WAN networks for communication through GroupWaretools, browser.

Let us illustrate the model using an event in the business such asreceipt of material for a job to be processed on the shop floor. In this eventthere is a transaction receipt of material, which needs to be processed, andthen a workgroup will use this information of material receipt. Each memberof this workgroup has a different goal.

2. What are the different emerging fields in MIS? Explain with anapplication of your own for each.

A Strategic Information System (SIS) is a system to manageinformation and assist in strategic decision making. A strategic informationsystem has been defined as, "The information system to support or change

enterprise's strategy."

A SIS is a type of Information System that is aligned with businessstrategy and structure. The alignment increases the capability to respondfaster to environmental changes and thus creates a competitive advantage.An early example was the favourable position afforded American and UnitedAirlines by their reservation systems, Sabre and Apollo. For many years thesetwo systems ensured that the two carriers' flights appeared on the firstscreens observed by travel agents, thus increasing their bookings relative tocompetitors. A major source of controversy surrounding SIS is theirsustainability.

SISs are different from other comparable systems as:

they change the way the firm competes.

they have an external (outward looking) focus.

they are associated with higher project risk. they are innovative (and not easily copied).

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It is mainly concerned with providing and organization and itsmembers an assistance to perform the routine tasks efficiently andeffectively. One of the major issue before any organization is the challenge ofmeeting its goals and objectives. Strategic IS enable such organization inrealizing their goals. Strategic Information System (SIS) is a support to theexisting system and helps in achieving a competitive advantage over the

organizations competitors in terms of its objectives. This unit deals with thecritical aspects of the strategic information system. This units indicates thetheoretical concepts and the way in which the same are realized in practice.The flow of the unit is in such a way that it starts with the development ofcontemporary theory about strategic uses of corporations' internalinformation systems leading to systems which transcend the boundaries ofparticular organizations. The process whereby strategic information systemsare created or identified is then examined. A number of weaknesses in theexisting body of theory are identified, and suggestions made as to directionsin which knowledge is or may be progressing. A strategic information systemis concerned with systems which contribute significantly to the achievementof an organization's overall objectives. The body of knowledge is of recent

origin and highly dynamic, and the area has an aura of excitement about it.The emergence of the key ideas, the process whereby strategic informationsystems come into being is assessed, areas of weakness are identified, anddirections of current and future development suggested.

Information system is regarded as a tool to provide various services todifferent management functions. The tools have been developing year byyear and the application of the tool has become more and more diverse. Inmanagement it is now a very power means to manage and control variousactivities and decision making process. The original idea of automatingmechanical processes got quickly succeeded by the rationalization andintegration of systems. In both of these forms, IS was regarded primarily asan operational support tool, and secondarily as a service to management.Subsequent to the development, it was during the last few years that anadditional potential was discovered. It was found that, in some cases,information technology (IT) had been critical to the implementation of anorganization's strategy. An organizations strategy supported by informationsystem fulfilling its business objectives came to be known as StrategicInformation System. The strategic information system consists of functionsthat involved gathering, maintenance and analysis of data concerninginternal resources, and intelligence about competitors, suppliers, customers,

government and other relevant organizations.

3. How is MIS used for decision making in the organization?Todays managers depend on information systems for decision making.

The managers have handful of data around them but manually they cannotprocess the data accurately and with in the short period of time available tothem due to heavy competition in modern world. Therefore mangers dependon information systems.

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The concept of MIS

Management: Management has been defined in a variety of ways,

but for our purposes it comprises the process or activities what managers doin the operation of their organization: Plan, Organize, Initiate and Controloperations.

Information Data are facts and figures that are not currently beingused in a decision processes and usually take the form of historical recordsthat are recorded and filed without immediate intent to retrieve for decisionmaking.

Information consists of data that have been retrieved, processed orotherwise used for information or inference purposes, argument, or as a basisfor forecasting or decision making.

System can be described simply as a set of elements joined togetherfor a common objective. A subsystem is Part of a larger system with which weare concerned. All systems are part of larger systems.

The objective of an MIS (Management Information System) is toprovide information for decision making on planning, initiating, organizing,and controlling the operations of the subsystems of the form and to provide asynergetic organization in the process.

Decision Support System: It is sometimes described as the nextevolutionary step after Management Information Systems (MIS) . MIS supportdecision making in both structured and unstructured problem environments..It supports decision making at all levels of the organization .IS (InformationSystems) are intended to be woven into the fabric of the organizations , notstanding alone. IS support all aspects of the decision making process.MIS aremade of people, computers, procedures, databases, interactive queryfacilities and so on. They are intended to be evolutionary/adaptive and easyfor people to use.

Methods of Decision Making:MIS is a technique for makingprogrammed decisions. If we include the computer and management scienceas integral parts or tools of computer based information systems, theprospects for a revolution in programmed decision making are very real. Justas a manufacturing process is becoming more and more automated so is theautomation of programmed decisions increasing to support this productionand other information needs throughout the organization.

4. Below is the list of data from a sample project

Activity

Mostlikelyduration

ImmediatePredecessors to

A 4 E,B

B 7 A,E

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C 5 ---

D 11 C

E 9 ---

a. Draw the PERT network for the above data. Also draw the criticalpath for the network.

b. Given the optimistic time estimate as 3, the most likely timeestimate as 12 and the pessimistic time estimate as 21, calculatethe activity time estimate.

Ans:- (a) The critical path is that path which takes the longest time for start toend. The critical path for the above mentioned network is as follows:-

(b) to the optimistic time estimate = 3

tm the most likely time estimate = 12

tp the pessimistic time estimate = 21

te the activity time estimate= to + 4tm +tp

6

- ,- = 3 + 4(12) + 21

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6

-,- = 12

5. Explain the difference between Intranet and Extranet

Information Systems have grown powerful year after year. The role of the traditional MIS has been obscured by newer softwareapplications. Various applications known collectively asenterprise resource planning (ERP) software has taken a dominantposition among large business applications. These packages, whichtypically come in functional modules such as an accounting module,a human resources module, and a manufacturing supply chainmodule, serve many of the functions that a traditional MIS would, andthey tend to be more flexible, integrated, and user-friendly

than legacy MIS. While early implementations of ERP suites were largelycross functional databases with minimal high-level management tools,later upgrades have added decision support anddata manipulation tools to facilitate a wide range of analyses.

In future, MIS is likely to be verbal and qualitative in nature. It will depend upon the strength of the organizations Information Systems. Most of the enterprises are growing and their systems also have to grow. The ever growingdemands of the systems will force out the old conventional systems by newersystems. The next decade is going to witness several fundamental and qualitative changes in the practice of management of commercial enterprisesand other types of organizations. These changes would be necessitated

by better rates of economic growth, intensification ofcompetition, diversified and rapid technological developments, continuingfluidity in economicpolitical environments, and sociopolitical changesinvolving the values and attitudes of people working in organizationsat all levels.

To support these demands and meet newer challenges inthe business, organizations will have to resort to various technologies. Thisunit is based on such possible technologies whichwill enable the enterprises to support their MIS.

Extranet An extranet is a private network that uses the Internetprotocols and the public telecommunication system to securely share part ofa business's information or operations with suppliers, vendors, partners,customers, or other businesses. An extranet can be viewed as part of acompany's intranet that is extended to users outside the company. Anextranet requires security and privacy.

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A new buzzword that refers to an intranet that is partially accessible toauthorized outsiders. Whereas an intranet resides behind a firewall and isaccessible only to people who are members of the same company ororganization, an extranet provides various levels of accessibility to outsiders.You can access an extranet only if you have a valid username and password,and your identity determines which parts of the extranet you can view.

An extranet is somewhat very similar to an intranet. Extranets aredesigned specifically to give external, limited access to certain files of yourcomputer systems to:

Certain large or privileged customers.

Selected industry partners.

Suppliers and subcontractors... etc.

Therefore, a carefully designed extranet can bring additional business toyour company. Intranets and extranets all have three things in common:

They both use secured Internet access to the outside world.

Both can drastically save your company or organization a lot of money. Both need a user ID & password to control access to the whole system.

The professional development team at My Web Services has the expertiseand the right tools to design the right intranet or extranet that will meet yourexact needs, both for today and the future.

Intranet An internal use, private network inside an organisation that usesthe same kind of software which would also be found on the Internet. Inter-connected network within one organization that uses Web technologies for

the sharing of information internally, not worldwide. Such information mightinclude organization policies and procedures, announcements, or informationabout new products.

An intranet is a restricted-access network that works like the Web, butisn't on it. Usually owned and managed by a company, an intranet enables acompany to share its resources with its employees without confidentialinformation being made available to everyone with Internet access. Anetwork based on TCP/IP protocols (an internet) belonging to an organization,usually a corporation, accessible only by the organization's members,employees, or others with authorization. An intranet's Web sites look and actjust like any other Web sites, but the firewall surrounding an intranet fendsoff unauthorized access. Like the Internet itself, intranets are used to shareinformation.

An intranet is an information portal designed specifically for the internalcommunications of small, medium or large businesses, enterprises,governments, industries or financial institutions of any size or complexity.Intranets can be custom-designed to fit the exact needs of businesses nomatter where they are situated. Users of intranets consists mainly of:

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Members of the executive team.

Accounting and order billing.

Managers and directors. Sales people and support staff.

Customer service, help desk, etc.

6. Explain the control issues in management information systems.

A management control systems (MCS) is a system which gathers anduses information to evaluate the performance of different organizationalresources like human, physical, financial and also the organization as a wholeconsidering the organizational strategies. Finally, MCS influences thebehavior of organizational resources to implement organizational strategies.MCS might be formal or informal. The term management control was givenof its current connotations by Robert N. Anthony (Otley, 1994).

According to Maciariello et al. (1994), management control isconcerned with coordination, resource allocation, motivation, and

performance measurement. The practice of management control and thedesign of management control systems draws upon a number of academicdisciplines. Management control involves extensive measurement and it istherefore related to and requires contributions from accounting especiallymanagement accounting. Second, it involves resource allocation decisionsand is therefore related to and requires contribution from economicsespecially managerial economics. Third, it involves communication, andmotivation which means it is related to and must draw contributions fromsocial psychology especially organizational behavior

Management control systems use many techniques such as

A. Balanced scorecard The balanced scorecard (BSC) is a strategicperformance management tool - a semi-standard structured report supportedby proven design methods and automation tools that can be used bymanagers to keep track of the execution of activities by staff within theircontrol and monitor the consequences arising from these actions.B. Total quality management (TQM) Total Quality Management (orTQM) is a management concept coined by W. Edwards Deming. The basis ofTQM is to reduce the errors produced during the manufacturing or serviceprocess, increase customer satisfaction, streamline supply chainmanagement, aim for modernization of equipment and ensure workers havethe highest level of training. One of the principal aims of TQM is to limit errorsto 1 per 1 million units produced. Total Quality Management is often

associated with the development, deployment, and maintenance oforganizational systems that are required for various business processes.C. Kaizen (Continuous Improvement) Kaizen (Japanese for"improvement" or "change for the better") refers to a philosophy or practicesthat focus upon continuous improvement of processes in manufacturing,engineering, supporting business processes, and management. It has beenapplied in healthcare, government, banking, and many other industries.

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D. Activity-based costing Activity-based costing (ABC) is a costingmodel that identifies activities in an organization and assigns the cost of eachactivity resource to all products and services according to the actualconsumption by each: it assigns more indirect costs (overhead) into directcosts. In this way an organization can precisely estimate the cost of itsindividual products and services for the purposes of identifying and

eliminating those which are unprofitable and lowering the prices of thosewhich are overpriced.E. Target costing Target costing is a pricing method used by firms. Itis defined as "a cost management tool for reducing the overall cost of aproduct over its entire life-cycle with the help of production, engineering,research and design". A target cost is the maximum amount of cost that canbe incurred on a product and with it the firm can still earn the required profitmargin from that product at a particular selling price.F. Benchmarking and Bench trending: Benchmarking is the processof comparing one's business processes and performance metrics to industrybests and/or best practices from other industries. Dimensions typicallymeasured are quality, time, and cost. Improvements from learning meandoing things better, faster, and cheaper.

JIT: JIT may refer to:-

o Various meanings of Just In Time.o Just-in-time compilation - a technique for improving the

performance of virtual machines in computing.o Just-in-time (business) - a business inventory strategy.

G. Budgeting A budget (from old French bougette, purse) is generally alist of all planned expenses and revenues. It is a plan for saving andspending. A budget is an important concept in microeconomics, which uses abudget line to illustrate the trade-offs between two or more goods. In otherterms, a budget is an organizational plan stated in monetary terms.H. Capital budgeting Capital budgeting (or investment appraisal)is the planning process used to determine whether a firm's long terminvestments such as new machinery, replacement machinery, new plants,new products, and research development projects are worth pursuing. It isbudget for major capital, or investment, expenditures.program managementtechniques, etc.

MB0031 - P.Srinath - Completely Solved

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