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Amity Campus
Uttar Pradesh
India 201303
ASSIGNMENTS
PROGRAM: BFIA
SEMESTER-II
Subject Name:

MANAGEMENT
SYSTEM

Study COUNTRY:
Roll Number (Reg. No.):
Student Name:

SOMALIA
BFIA01512010-2013019
MOHAMED ABDULLAHI KHALAF

CONTROL

AND

INFORMATION

INSTRUCTIONS
a) Students are required to submit all three assignment sets.
ASSIGNMENT
DETAILS
MARKS
Assignment A
Five Subjective Questions
10
Assignment B
Three Subjective Questions + Case Study
10
Assignment C
Objective or one line Questions
10
b) Total weight-age given to these assignments is 30%. OR 30
Marks
c) All assignments are to be completed as typed in word/pdf.
d) All questions are required to be attempted.
e) All the three assignments are to be completed by due dates
and need to be submitted for evaluation by Amity University.
f) The students have to attach a scanned signature in the form.
Signature : _________________________

Date: 09. Jan. 2012

( ) Tick mark in front of the assignments submitted

Assignment A

Assignment B

Assignment C

Management Control and Information System

Assignment A
Q:1) Define MIS? What are the characteristics of MIS?
Answer:
MIS is an abbreviation of popularly known term of Management
Information System.
MIS consists of three different sub terms, namely; Management,
Information and System.
In order to understand the term better we have to define each of these
sub terms.
First, Management defined for the purpose of Management information
Systems is; the process of planning, organizing, staffing, coordinating
and controlling the efforts of the members of the organization to achieve
common stated goals of the organization.
Secondly, Information is a collection of facts organized in such a way that
they have additional value beyond the value of the facts themselves.
Finally, System is a set of elements or components that interact to
accomplish goals. It is a combination of components working together,
For example, a computer system includes both hardware and software.
Management Information System (MIS) is an organized, automated, and
diverse information system that gathers, stores, processes, and
distributes data associated with different departments of the
organization. This data is processed in various forms, such as graphs,
diagrams, charts, and reports to generate accurate, relevant and valuable
information for the management. This information is further
communicated to the various departments to be used for decisionmaking and business management.
MIS is an organized approach to the study of the information needs of an
organization's management at every level in making operational, tactical,
and strategic decisions. Its objective is to design and implement

procedures, processes, and routines that provide suitably detailed

reports in an accurate, consistent, and timely manner.
In a management information system, modern, computerized systems
continuously gather relevant data, both from inside and outside an
organization. This data is then processed, integrated, and stored in a
centralized database or data warehouse where it is constantly updated
and made available to all who have the authority to access it, in a form
that suits their purpose.
A management information system (MIS) is a subset of the overall
internal controls of a business covering the application of people,
documents, technologies, and procedures by management accountants
to solving business problems such as costing a product, service or a
business-wide strategy. This means that MIS provides a central storage of
all the business information.
There are various types of MIS systems, such as transaction processing
system (TPS) decision support system (DSS), financial management
systems (FMS), Operations Information Systems (OIS), system and people
management systems (SPMS), project management system (PMS),
accounting management systems (AMS), marketing management systems
(MMS) and sales management system (SMS), which are used to gain
better understanding of the market and enterprise.
MIS is considered as one such method of generating information which is
used by management of organization for decision Making, control of
activities, operations etc.
MIS is an Information system which helps in providing the management
of an organization with information which is used by management for
decision making.
MIS has a major impact on the functions of any organization. The
organization derives benefits from the systems in the following form:
1)
2)
3)
4)
5)
6)

Speedy access to information.

Interpretation of data.
Quick decisions.
Speedy actions.
Increased productivity and thereby increase in the profit.
Reduced transaction cost.
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MIS is used across all levels in an organization. For example, MIS

provides vital information at senior levels to help make strategic
decisions. At other levels, MIS observes an organization's activities and
distributes information to everyone in the organization and customers.
Function of MIS
The main function of MIS is to help the managers and the executives in
the organization in decision-making.
o Large quantities of data like customers information, competitors
information, personnel records, sales data, accounting data etc is
collected from internal sources like the
o Company records and external sources like annual reports and
publications.
o The collected data is organized in the form of a database.
o The data from the database is processed and analyzed by using
different tools and techniques.
o The results of the analysis are properly presented to the managers
to help them in decision-making.
Characteristics of MIS:
The Basic characteristics of an effective Management Information System
are as follows:
1) Management-oriented: The basic objective of MIS is to provide
information support to the management in the organization for
decision
making.
So
an
effective
MIS
should
start
its journey from appraisal of management needs, mission and goal
of the business organization. It may be individual or collective
goals of an organization. The MIS is such that it serves all the
levels of management in an organization i.e. top, middle and lower
level.
2) Management directed: When MIS is management-oriented, it
should be directed by the management because it is the
management who tells their needs and requirements more
effectively than anybody else.
Manager should guide the MIS professionals not only at the stage
of planning but also on development, review and implementation
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stages so that effective system should be the end product of the

whole exercise in making an effective MIS.
3) Integrated: It means a comprehensive or complete view of all the
sub systems in the organization of a company. Development of
information must be integrated so that all the operational and
functional information sub systems should be worked together as a
single entity. This integration is necessary because it leads to
retrieval of more meaningful and useful information.
4) Common data flows: The integration of different sub systems will
lead to a common data flow which will further help in avoiding
duplication and redundancy in data collection, storage and
processing. For example, the customer orders are the basis for
many activities in an organization viz. billing, sales for cashing, etc.
Data is collected by a system analyst from its original source only
one time. Then he utilizes the data with minimum number of
processing procedures and uses the information for production
output documents and reports in small numbers and eliminates
the undesirable data. This will lead to elimination of duplication
that simplify the operations and produce an efficient information
system.
5) Heavy planning-element: The preparation of MIS is not a one or
two day exercise. It usually takes few years and sometimes a much
longer period. So the system expert has to keep two things in mind
one is that he has to keep future objectives as well as the firms
information well in advance and also he has to keep in mind that
his MIS will not be obsolete before it gets into action.
6) Sub System concept: When a problem is seen in two sub parts,
then the better solution to the problem is possible. Although MIS is
viewed as a single entity but for its effective use, it should be
broken down in small parts or subsystems so that more attention
and insight is paid to each sub system. Priorities will be set and
phase of implementation will be made easy. While making or
breaking down the whole MIS into subsystems, it should be kept in
mind that the subsystems should be easily manageable.
7) Common database: This is the basic feature of MIS to achieve the
objective of using MIS in business organizations. It avoids
duplication of files and storage which leads to reduction in costs.
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Common database means a Super file or Master file which

consolidates and integrates data records formerly stored in many
separate data files. The organization of the database allows it to be
accessed by each subsystem and thus, eliminates the necessity of
duplication in data storage, updating, deletion and protection.
8) Computerized: MIS can be used without a computer. But the use
of computers increases the effectiveness and the efficiency of the
system. The queries can be handled more quickly and efficiently
with the computerized MIS. The other benefits are accuracy,
storage capacity and timely information.
9) User friendly/Flexibility: An MIS should be flexible i.e. there
should be room for further modification because the MIS takes
much time in preparation and our environment is dynamic in
nature.MIS should be such that it should be used independently
by the end user so that they do not depend on the experts.
10)
Information as a resource: Information is the major
ingredient of any MIS. So, an MIS should be treated as a resource
and managed properly
Q:2) Explain strategic MIS categories in detail. Give relevant
examples.
Answer:
A Strategic Information System is a system to manage information and
assist in strategic decision making. A strategic information system 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 business
strategy and structure. The alignment increases the capability to respond
faster to environmental changes and thus creates a competitive
advantage. An early example was the favorable position afforded
American and United Airlines by their reservation systems, Sabre and
Apollo. For many years these two systems ensured that the two carriers'
flights appeared on the first screens observed by travel agents, thus
increasing their bookings relative to competitors. A major source of
controversy surrounding SIS is their sustainability.
SISs are different from other comparable systems as:
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1)
2)
3)
4)

They
They
They
They

change the way the firm competes.

have an external (outward looking) focus.
are associated with higher project risk.
are innovative (and not easily copied).

It is mainly concerned with providing and organization and its members

an assistance to perform the routine tasks efficiently and effectively. One
of the major issues lying before any organization is the challenge of
meeting its goals and objectives. Strategic IS enables such organizations
in realizing their goals. Strategic Information System (SIS) is a support to
the existing system and helps in achieving a competitive advantage over
the organizations competitors in terms of its objectives.
A strategic information system is concerned with systems which
contribute significantly to the achievement of an organization's overall
objectives. The body of knowledge is of recent origin and highly dynamic
and the area have an aura of excitement about it. The emergence of the
key ideas, the process whereby strategic information systems come into
being is assessed, areas of weakness are identified, and directions of
current and future development suggested.
Information system is regarded as a tool to provide various services to
different management functions. The tools have been developing year by
year and the application of the tool has become more and more diverse.
In management it is now a very powerful means to manage and control
various activities and decision making process. The original idea of
automating mechanical processes got quickly succeeded by the
rationalization and integration of systems. In both of these forms, IS was
regarded primarily as an operational support tool, and secondarily as a
service to management. Subsequent to the development, it was during
the last few years that an additional potential was discovered. It was
found that, in some cases, information technology (IT) had been critical
to the implementation of an organization's strategy.
An organizations strategy supported by information system fulfilling its
business objectives came to be known as Strategic Information System.
The strategic information system consists of functions that involved
gathering, maintenance and analysis of data concerning internal
resources, and intelligence about competitors, suppliers, customers,
government and other relevant organizations.
Q:3) Write a detailed note on the planning and development of
MIS?

Answer:
Information is a corporate resource, as important as the capital, labour,
know-how etc. and is being used for decision-making. Its quality,
therefore, is required to be very high. Low quality information would
adversely affect the organizational performance as it affects decisionmaking. The quality of information is the result of the quality of the input
data, processing design, system design, system and procedures which
generate such a data, and the management of the data processing
function. Quality, unlike any other product, is not an absolute concept.
Its level is determined with reference to the context and its use, and the
user. Perfect quality just as perfect information is non-achievable and
has cost-benefit implications.
However, it is possible to measure the quality of information on certain
parameters. All these parameters need not have a very high value. Some
parameters may have lesser importance in the total value on account of
their relevance in the information and its use.
The quality parameters which are generally considered are shown in the
table

Individual
differences
Locus of control
internal or external

Explanation

to the situation

Which is internal to the or external

organization or external to the
organization?
The degree of faith in beliefs, Low
dogmatism,
then
opinions and past experience.
more
information
collection and processing.

of tools and materials etc.

The ability to take the risk.

The top management decisionmaking in a strategic planning.

Personal
dogmatism.

Risk propensity.

Tolerance
ambiguity.

The degree of perception in

assessing the control

Effect on information
processing
More information
Gathering and

Higher,
then
more
information gathering and
analysis.
Tight tolerance then more
information collection and
Analysis
High ability, then less
information and more self
analysis.

for Level of clarity required in the

information. The ability to read
through the information.
Manipulative
The ability to manipulate the
intelligence.
data and information vis--vis
the stored information and
knowledge
Experience
in Extent
of
experience
at High,
then
correct
decision-making
particular level of decision filtering of data and
making.
appropriate
choice
of
decision making process.

Examples
The production
decisions, selection

The pricing,
advertising in a
Competitive environment.

Manager Constantly asking for

more information.
Experienced
and
skillful
managers
rely
on
the
manipulative intelligence.
The managers with a wide
experience in the different fields
of management call for precise
and
less
but
pertinent
information.

Knowledge of the The extent of knowledge in the

task,
tools
and application of the tools and
technology.
technology.

Higher,
then
less The Technocrat scientists and
information relevant to managers of technology have
and tools correct analysis. definite information.

The quality of these important parameters is ensured by conducting a

proper systems analysis, designing a suitable information system and
ensuring its maintenance from time to time, and also subjecting it to
audit checks to ensure the system integrity.
The quality of the parameters is assured if the following steps are taken.
1) All the input is processed and controlled, as input and process
design.
2) All updating and corrections are completed before the data processing
begins.
3) Inputs (transactions, documents, fields and records) are subject to
validity checks.
4) The access to the data files is protected and secured through an
authorization scheme.
5) Intermediate processing checks are introduced to ensure that the
complete data is processed right through, i.e. run to run controls.
6) Due attention is given to the proper file selection in terms of data,
periods and so on.
7) Backup of the data and files are taken to safeguard corruption or loss
of data.
8) The system audit is conducted from time to time to ensure that the
information system specifications are not violated.
9) The system modifications are approved by following a set procedure
which begins with authorization of a change to its implementation
followed by an audit.
10) Systems are developed with a standard specification of design and
development.
11) Information system processing is controlled through programme
control, process control and access control.
12) Ensure MIS model confirms consistency to business plan satisfying
information needs to achieve business goals.
The assurance of quality is a continuing function and needs to be evolved
over a period and requires to be monitored properly. It cannot be
assessed in physical units of measure. The user of the information is the
best judge of the quality.
Information system planning (ISP) of an organization is an assessing of
the information needs of an organization and defining the systems,
databases and technologies that best satisfy those needs.
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Planning of Information System consists of following:

Development of Long range plans of the MIS

Contents of the MIS plan
MS goals and objectives

Strategy for the plan achievement:

Development strategy
System Development strategy
Resources for system development
Manpower composition

Following needs to be in mind while planning for information

system:

Architecture of MIS
System Development schedule
Hardware and Software Plan

Development of Information systems consist of following:

Development and implementation of MIS

Prototype Approach
Life Cycle Approach
Implementation of the MIS

Steps in Implementation process:

Unfreezing
Choosing
Refreezing

System analysis is the survey and planning of the project. It has two
phases:

Study phase
Definition phase

SDLC: It includes:

Feasibility study. Types of feasibility study:

1)
2)
3)
4)

Technical feasibility
Economic feasibility
Operational feasibility
Schedule feasibility

Requirement, collection and analysis.

Design.
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Prototyping.
Implementation.
Validating and testing.

Guidelines used in constructing DFD:

Choose meaningful names

Number the process consistently
Avoid over complex DFD
Make sure the diagrams are balanced

System Design:
Steps Involved in system design are:
Input Design

Output Design

Development

Testing

Implementation and Maintenance.

Production and Maintenance.

Q:4) How does the use of Internet, intranets and extranets by
companies today support their business process and activities?
Discuss in detail with at least two real examples.

Answer:
Information technology plays a vital role in the success of an enterprise.
For example, the Internet and Internet-like internal networks, or
intranets, and external inter-organizational networks, called extranets,
can provide the information infrastructure a business needs for efficient
operations, effective management, and competitive advantage.
In order to succeed today, organizations are increasingly competing in
global markets. The increased use of technologies such as the Internet,
intranets, and extranets will definitely revolutionize how businesses will
operate and how they will use computers to compete.
Internet: organization can connect directly with the general public.
Opportunities range from giving away basic product information to
automatically updating or patching retail software. Many businesses also
conduct retail operations online.

Intranets: organizations often use internet technologies to facilitate

operations within the organization. Such systems might include product
support knowledge bases, training systems, and access to the
organizations benefits system.
An intranet system usually includes: corporate directories, sales and
customer relationship management tools, project management systems
all with the aim to improve productivity. This makes an intranet an
excellent content delivery method for internal communications.
Extranet: organizations may use these same internet technologies to
connect with their business partners to facilitate supply chain
management, help manage projects, manage accounts, or provide
advanced technical support.
Organizations use internet technologies to connect with both customers
and suppliers. These technologies allow customers to generate and track
their own orders as well as manage their accounts. They also enable
significant supply chain automation.
Q:5) Explain the challenges before an E-business management.
Answer:
Managing an E-business & Challenges before an E-business - Due to
Internet capabilities and web technology, traditional business
organization definition has undergone a change where scope of the
enterprise now includes other company occasions, business partners,
customers and vendors. It has no geographic boundaries s it can extend
its operations where Internet works. All this is possible due to Internet
and web moving traditional paper driven organization to information
driven Internet enabled E-business enterprise.
E-business enterprise is open twenty-four hours, and being independent,
managers, vendors; customers transact business anytime from
anywhere. Internet capabilities have given E-business enterprise a
cutting edge capability advantage to increase the business value. It has
opened new channels of business as buying and selling can be done on
Internet. It enables to reach new markets across the world anywhere due
to communication capabilities. It has empowered customers and
vendors/suppliers through secured access to information to act,
wherever necessary. The cost of business operations has come down
significantly due to the elimination of paper-driven processes, faster
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communication and effective collaborative working. The effect of these

radical changes is the reduction administrative and management
overheads, reduction in inventory, faster delivery of goods and services to
the customers.
In E-business enterprise traditional people organization based on
'Command Control' principle is absent. It is replaced by people
organization that is empowered by information and knowledge to perform
their role. They are supported by information systems, application
packages, and decision-support systems. It is no longer functional,
product, and project or matrix organization of people but E-organization
where people work in network environment as a team or work group in
virtual mode.
E-business enterprise is more process-driven, Technology-enabled and
uses its own information and knowledge to perform. It is lean in number,
flat in structure, broad in scope and a learning organization. In Ebusiness enterprise, most of the things are electronic, use digital
technologies and work on databases, knowledge bases, directories and
document repositories. The business processes are conducted through
enterprise software like ERP, SCM, and CRM supported by data
warehouse, decision support, and knowledge management systems.
Today most of the business organizations 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, Ecommerce solutions to reach faraway
locations to deliver product and services. The enterprise solutions like
ERP, SCM, and CRM run on Internet (Internet / Extranet) & Wide Area
Network (WAN). The business processes across the organization and
outside run on E-technology platform using digital technology. Hence
today's business firm is also called E-enterprise or Digital firm.
The paradigm shift to E-enterprise has brought four transformations,
namely:
o Domestic business to global business.
o Industrial manufacturing economy to knowledge-based service
economy.
o Enterprise Resource Management to Enterprise Network
Management.
o Manual document driven business process to paperless,
automated, electronically transacted business process.
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These transformations have made conventional organization design

obsolete.
In E-enterprise, business is conducted electronically. Buyers and sellers
through Internet drive the market and Internet-based web systems.
Buying and selling is possible on Internet. Books, CDs, computer, white
goods and many such goods are bought and sold on Internet. The new
channel of business is well-known as Ecommerce. On the same lines,
banking, insurance, healthcare are being managed through Internet Ebanking, E-billing, E-audit, & use of Credit cards, Smart card, ATM, Emoney are the examples of the Ecommerce application. The digital firm,
which uses Internet and web technology and uses E-business and
Ecommerce solutions, is a reality and is going to increase in number.
MIS for E-business is different compared to conventional MIS design of
an organization. The role of MIS in E-business organization is to deal
with changes in global market and enterprises. MIS produces more
knowledge-based products.
Knowledge management system is formally recognized as a part of MIS. It
is effectively used for strategic planning for survival and growth, increase
in profit and productivity and so on. To achieve the said benefits of Ebusiness organization, it is necessary to redesign the organization to
realize the benefits of digital firm. The organization structure should be
lean and flat. Get rid of rigid established infrastructure such as branch
office or zonal office. Allow people to work from anywhere. Automate
processes after reengineering the process to cut down process cycle time.
Make use of groupware technology on Internet platform for faster
response processing. Another challenge is to convert domestic process
design to work for international process, where integration of
multinational information systems using different communication
standards, country-specific accounting practices, and laws of security
are to be adhered strictly.
Internet and networking technology has thrown another challenge to
enlarge the scope of organization where customers and vendors become
part of the organization. This technology offers a solution to
communicate, coordinate, and collaborate with customers, vendors and
business partners. This is just not a technical change in business
operations but a cultural change in the mindset of managers and
workers to look beyond the conventional organization. It means changing
the organization behaviour to take competitive advantage of the E7

business technology. The last but not the least important is the challenge
to organize and implement information architecture and information
technology platforms, considering multiple locations and multiple
information needs arising due to global operations of the business into a
comprehensive MIS.
E-COMMERCE is a second big application next to ERP. It is essential
deals with buying and selling of goods. With the advent of intent and web
technology, E-Commerce today covers an entire commercial scope online
including design and developing, marketing, selling, delivering, servicing,
and paying for goods. Some E-Commerce applications add order tracking
as a feature for customer to know the delivery status of the order.
The entire model successfully works on web platform and uses internet
technology. Ecommerce process has two participants, namely Buyer and
Seller, like in traditional business model.
And unique and typical to E-commerce there is one more participant to
seller by authorization and authentication of commercial transaction.
E-Commerce process model can be viewed in four ways and categories:
o
o
o
o

B2C:
B2B:
C2B:
C2C:

Business Organization to Customer

Business Organization to Business
Customer to Business Organization
Customer to Customer

In B2C Model, business organization uses websites or portals to offer

information about product, through multimedia clippings, catalogues,
product configuration guidelines, customer histories and so on. A new
customer interacts with the site and uses interactive order processing
system for order placements. On placements of order, secured payment
systems comes into operation to authorize and authenticate payment to
seller. The delivery system, then take over to execute the delivery to
customer.
In B2B Model, buyer and seller are business organizations. They
exchange technical & commercial through websites and portals. Then
model works on similar line like B2C. More advanced B2B model uses
Extranet and Conducts business transaction based on the information
status displayed on the buyers application server. In C2B Model,
customer initiates actions after logging on to sellers website or to server.
On the server of the selling organization, E-Commerce applications are
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present for the use of the customer. The entire Internet banking process
work on C2B model where account holders of the bank transact a
number of requirements such as seeking account balance, payment and
soon. In C2C model, Customer Participates in the process of selling and
buying through the auction website. In this model, website is used for
personal advertising of products or services. E-Newspaper website is an
Example of advertising and selling of goods to customer.
In B2B Model, the participants in E-business are two organization with
relations as buyer=seller, distributor-dealer and so on.
E-Collaboration every business has a number of work scenarios where
group of people work together to complete the tasks and to achieve a
common objective. The group could be teams or virtual teams with
different member strength. They come together to platform a task to
achieve some results. The process is called Collaboration. The Biggest
Advantage of E-Collaboration is that it taps the collective wisdom,
knowledge and experience of the members.
The collaboration team or group could be within the organization and
between the organizations as well. Since, E-Collaboration works on an
internet platform and uses web technology, work group/team need not be
at one physical location.
E-collaboration uses E-Communication capabilities to perform
collaborative tasks or project assignment. Its effectiveness is increased by
software GroupWare that enables the members of the group to share
information, invoke an application
E-Collaboration helps work effectively on applications like calendaring
and scheduling tasks, event, project management, workflow application,
work group application.
E-collaboration system components are internet, Intranet, Extranet and
LAN, WAN networks for communication through GroupWare tools,
browser.
Let us illustrate the model using an event in the business such as receipt
of material for a job to be processed on the shop floor. In this event there
is a transaction receipt of material, which needs to be processed, and
then a workgroup will use this information of material receipt. Each
member of this workgroup has a different goal.

Assignment B
Q:1) What is an internet? Explain the differences between internet,
intranet and extranet.
Answer:
Internet, sometimes called (The Net), is a worldwide system of computer
networks in which users at any one computer can, if they have
permission, get information from any other computer and sometimes talk
directly to users at other computers.
An Intranet is a computer network that is designed to work like the
internet but in a much smaller scale and is restricted only to the
employees of the company.
Internet is a global network of interconnected computers, enabling users
to share information along multiple channels. Typically, a computer that
connects to the Internet can access information from a vast array of
available servers and other computers by moving information from them
to the computer's local memory. The same connection allows that
computer to send information to servers on the network; that information
is in turn accessed and potentially modified by a variety of other
interconnected computers. A majority of widely accessible information on
the Internet consists of inter-linked hypertext documents and
other resources of the World Wide Web (WWW). Computer users typically
manage sent and received information with web browsers; other software
for users' interface with computer networks includes specialized
programs for electronic mail, online chat, file transfer and file sharing.
The movement of information in the Internet is achieved via a system of
interconnected computer networks that share data by packet switching
using the standardized Internet Protocol Suite (TCP/IP). It is a "network
of networks" that consists of millions of private and public, academic
business, and government networks of local to global scope that are
linked by copper wires, fiber-optic cables, wireless connections, and other
technologies.
Difference between internet, intranet and extranet as follow:

Internet: An electronic network of computers that includes nearly every

university, government, and research facility in the world. Also included
are many commercial sites. It started with four interconnected computers
in 1969 and was known as ARPA net. A network of computer networks
which operates world-wide using a common set of communications
protocols. The vast collections of inter-connected networks across the
world use the TCP/IP protocols. It is a global network connecting millions
of computers. It is a worldwide network of computer networks. It is an
interconnection of large and small networks around the globe. The
Internet began in 1962 as a resilient computer network for the US
military and over time has grown into a global communication tool of
more than 12,000 computer networks that share a common addressing
scheme.
Intranet: An internal use, private network inside an organization that
uses the same kind of software which would also be found on the
Internet. It is inter-connected network within one organization that uses
Web technologies for the sharing of information internally, not worldwide.
Such information might include organization policies and procedures,
announcements, or information about new products. An intranet is a
restricted-access network that works like the Web, but isn't on it. Usually
owned and managed by a company, an intranet enables a company to
share its resources with its employees without confidential information
being made available to everyone with Internet access. A network 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 act just
like any other Web sites, but the firewall surrounding an intranet fends
off unauthorized access. Like the Internet itself, intranets are used to
share information. An intranet is an information portal designed
specifically for the internal communications 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 no matter where they are situated. Users of
intranets consist mainly of:

Members of the executive team.

Accounting and order billing.
Managers and directors.
Sales people and support staff.
Customer service, help desk, etc.
7

Extranet: An extranet is a private network that uses the Internet

protocols and the public telecommunication system to securely share
part of a business's information or operations with suppliers, vendors,
partners, customers, or other businesses. An extranet can be viewed as
part of a company's intranet that is extended to users outside the
company. An extranet requires security and privacy. A new buzzword that
refers to an intranet that is partially accessible to authorized outsiders.
Whereas an intranet resides behind a firewall and is accessible only to
people who are members of the same company or organization, 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 are designed
specifically to give external, limited access to certain files of your
computer systems to:

Certain large or privileged customers.

Selected industry partners.
Suppliers and subcontractors... etc.

Therefore, a carefully designed extranet can bring additional business to

your 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 expertise

and the right tools to design the right intranet or extranet that will meet
your exact needs, both for today and the future.
Intranet: An internal use, private network inside an organization that
uses the same kind of software which would also be found on the
Internet.
Inter-connected networks within one organization that uses Web
technologies for the sharing of information internally, not worldwide.

Such information might include organization policies and procedures,

announcements, or information about new products.
An intranet is a restricted-access network that works like the Web, but
isn't on it. Usually owned and managed by a company, an intranet
enables a company to share its resources with its employees without
confidential information being made available to everyone with Internet
access.
A network 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 act just like any other Web sites, but the firewall
surrounding an intranet fends off unauthorized access. Like the Internet
itself, intranets are used to share information.
An intranet is an information portal designed specifically for the internal
communications 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 no matter where they are situated. Users of intranets consist
mainly of:
o
o
o
o

Members of the executive team.

Accounting and order billing.
Managers and directors.
Sales people and support staff.

Customer service, help desk, etc. Internet: An electronic network of

computers that includes nearly every university, government, and
research facility in the world. Also included are many commercial sites. It
started with four interconnected computers in 1969 and was known as
ARPA net.
A network of computer networks which operates world-wide using a
common set of communications protocols.
The vast collection of inter-connected networks across the world that all
use the TCP/IP Protocols. A global network connecting millions of
computers. A worldwide network of computer networks.

It is an interconnection of large and small networks around the globe.

The Internet began in 1962 as a resilient computer network for the US
military and over time has grown into a global communication tool of
more than 12,000 computer networks that share a common addressing
scheme.
Q:2) Explain the application of MIS by taking either materials
management or production planning system in a manufacturing
industry or service organization.
Answer:
The application of management information system (MIS) in either
manufacturing sector or service sector of any economy is as important as
other economical resources such as materials, labor and investments.
The MIS of manufacturing sector does not match with the MIS for Service
sector due to the difference in the nature of two sectors, but the objective
of MIS in both sectors is providing the most satisfying products or
services to their consumers and customers.
Managers in service industries such as Hotels, Hospitals, Airlines,
Banks, Insurance companies etc. put a lot of efforts to create a
distinctive service to remain competitive.
Principles of distinctive service
Tom Peter stated five principles of distinctive service:

Listen, Understand and Respond to the customers;

Define a Superior Service and establish a Service Strategy;
Set standards and measure the performance;
Select, Train and Empower the employees to work for the
customers; and
Recognize and reward the accomplishments.

Service process Cycle

Stages
in Steps in stage
service cycle
Initiation
service

Example:
institute

of Enquiry, information, seeking,Through

checking, assessing
advertisement

educational
website,

Transition
service

to Step towards service

Information brochure & online

application form.

Pre-service

Cross checking
records

the document,Cross check the

application form

certificate,

Service

Effecting the service, deliveryBest

faculty
with the goods
infrastructure.

with

Post service

Concluding the service, existingGiving world class placement

assistance

Customer design: Service process designer design the customer

service based on the assessment and analysis of customer choice,
preference and quality expectation, willingness to pay the price.

People

Promotion

Price
Customer Service
Design

Product

Place
Applicatio
n

Conceptual
SMS Architecture Model
Resource
Data Base

Facilities
Data Base

Back End
Application

Knowledge

Customer
Data Base

Front
End
Network
Server

Accounts
Data Base

Service Job
Data Base

PC

PC

PC

PC

Application of MIS in service Sector

MIS for Hotel

People prefer hotels when they are out of their homes, might be on
vacations, spending their leisure time, or on some official duties.
Hotel is a place where people would like to have a distinctive
service. Due to lot of competitions in the hotel service, the concept
has changed from convenience of stay to comfort and enjoyment.
Today, hotels are not only meant for a individual stay but now its a
place for business meetings, interviews, conferences, live concerts.
Every time the hotel needs to undergo change according to the
needs of the customers.
Main function of hotel industry is to provide a room to stay with
basic amenities and facilities so that customer has a comfortable
stay. Managers put all efforts to keep hotel occupancy high all the
times.
Responsibilities of MIS plays important role of providing
information to the best possible way, so that customers
expectations are fulfilled.

Customer queries (telephone, web, E-mail)

Transition to service
Customer arrives at hotel reception

Pre-service
Customer gives passport, a letter and visiting card

Service
7

Service requests: lunch, dinner, room service

Post-Service
Customer gives feedback

Case Study
THE CASE OF A DEPARTMENTAL STORE
Mr. BAWA, Director (Sales) of the BAWA Departmental Store Chain in
Uganda is a worried person. The worries revolve around the number of
complaints he has been receiving from the Store Mangers about nonavailability of the store information.
The BAWA Stores chain was started about 6 years back. The then
management thought it fit to install a Sales Information System (SIS)
also. The present system, therefore, was installed at the beginning of the
chain and became operational a year later.
The system is operated on batch-processing mode and it generates
monthly and quarterly reports on several aspects of Sale.
The basic input document for the processing is the Sale Invoice. In fact
the Store personnel enter the Sale Invoices of the day at the end of the
day. The Store Manager is responsible to see that the input data is
created and validated before the same is passed on to the Computer
Department for further processing. Every Store was provided with a PC
for this purpose, however, on persistent demands one more PC was
provided to each Store. The Computer Department does the final
processing at the Head Office, and then the Reports distributed to each
Store.
The system worked very well for about 3 years; however, for the last two
years there have been several complaints from the Store Managers about
the system.
The Mohini started its operations with 3 Stores. In the last six years, the
number of Stores has increased to 8. The management has plans to open
an additional Store every year during the next five years. During the last
3 years the sales of Mohini has increased by nearly 120%.
Apart from the usual retail sales, almost all the Store in the chain cater
to several bulk customers e.g. Government Departments, Factories
Canteens etc, which make bulk purchases from the Stores on a regular
basis. The individual Store Managers generally enter into the sale
contracts for these on annual basis. These are credit sales and the
individual Store Manger is responsible for collecting the outstanding.
7

Discuss:
Q:1) The general conditions of the Chain now and in the immediate
future.
Answer:
The current conditions are demanding because the chain store is
expanding very fast that requires management information system to be
integrated to supervise property all departments due to bulk customers
like governments departments factories and canteens should all be put
sale information system for easy managerial concept.
In immediate future the chain store requires elaborate system that
provides central storage of all sales information.
Q:2) What are the problems, the Chain is facing. List them in order
of priority.
Answer:
A department store is a retail establishment which satisfies a wide range
of the consumer's personal and residential durable goods product needs;
and at the same time offering the consumer a choice of multiple
merchandise lines, at variable price points, in all product categories.
Department stores usually sell products including clothing, furniture,
home appliances, toys, cosmetics, gardening, toiletries, sporting goods,
do it yourself , paint and hardware and additionally select other lines of
products such as food, books, jewellery, electronics, stationery,
photographic equipment and baby and pet needs. Certain department
stores are further classified as discount stores. Discount department
stores commonly have central customer checkout areas, generally in the
front area of the store. Department stores are usually part of retail chain
of many stores situated around a country or several countries.
The chain is facing some problems, namely: Communication problem, old
fashioned information system, networking problem and so on. In other
words, these problems are:
7

a) Non availability of the store information from all department due to

lack of proper system of giving information. (Communication
problem).
b) After installing a sales information system, it was not definite to
provide information on daily basis because of batch processing
mode that subsequently may omit some important information.
c) The problem of input data and its validation for further processing
to ensure all invoices are well administered.

Q:3) Suggest a solution to overcome the problems as listed by you.

Answer:
The management of Mohini departmental store chain needs to take
immediate action to solve above mentioned problems to keep his
business running. Some solutions that I may suggest are:
a) Ensuring availability of the store information from all departments
by installing and using well designed proper sales information
system (SIS) and establishing a proper organizational design that
smoothen the follow of information throughout the organization.
b) Providing on regular basis sales information to installed system for
processing on daily basis.
c) Input data and validation should be available when needed and
processed immediately.

Assignment C
Q:1) A computer-based information system consists of which of the
following elements?
a)
b)
c)
d)

Computers, keyboards, display monitors, hard disks, and printers

People, procedures, data, programs, and computers ()
Input, processing, storage, and output
Planning, programming, organizing, and evaluating

Q:2) Which of the following characteristics of a system reflects the fact

that all systems are comprised of subsystems?
a)
b)
c)
d)

Synergy
Differentiation
Regulation
Hierarchy ()

Q:3) The process by which workers develop their own applications, with
or without the help of professional MIS staff, is called
a)
b)
c)
d)

Decentralized computing
Distributed computing ()
End-user computing
Client/server computing

Q:4) A database management system must include which of the

following components?
I.
II.
III.
IV.
a)
b)
c)
d)

A
A
A
A

data
data
data
data

definition language
manipulation language
dictionary
redundancy protocol

I only
I and II only
I, II, and III only
I, II, III, and IV ()

Q:5) Which of the following is NOT a benefit of electronic data

interchange (EDI)?
a)
b)
c)
d)

It reduces errors
It reduces the volume of invoices or orders ()
It reduces transaction processing costs
It saves time

Q:6) Which of the following terms is used to describe the transmission

of data one character at a time?
a)
b)
c)
d)

Synchronous
Asynchronous ()
Half-duplex
Full-duplex

Q:7) Multiplexors and concentrators are used in telecommunication

systems to do which of the following?
a)
b)
c)
d)

Perform high-speed arithmetic operations

Increase utilization of the communication lines ()
Store and retrieve data
Display data on the monitor

Q:8) Which of the following systems development approaches involves a

highly iterative process of building, using, evaluating, and refining?
a)
b)
c)
d)

System development life cycle (SDLC)

Top-down analysis (TDA)
Prototyping ()
Critical-path analysis

Q:9) In MIS the concept of outsourcing can be best defined as which of

the following?
I. An option that some organizations use to control data processing
costs
II. A process of releasing an organizations computer operations to an
external vendor
III. A data support and retrieval system that organizations can access
electronically
7

a)
b)
c)
d)

I only ()
I and II only
II and III only
I, II, and III

Q:10) Is an example of artificial intelligence. (Choose one only)

a)
b)
c)
d)

ADSS
Office automation
The MIS
An expert system ()

Q:11) You would find an executive on the strategic-planning Level?

a) TRUE ()
Q:12) The system life cycle
development, and use.

b) FALSE
consists

a) TRUE

of

three

phases;

planning,

b) FALSE ()

Q:13) Any time a manager engages in end-user computing (EUC), there is

no need for information specialists such as systems analysts and
programmers.
a) TRUE ()
b) FALSE
Q:14) Users of the MIS include
a)
b)
c)
d)

Managers
Persons and organizations in the firms environment
Non-managers
All of the above ()

Q:15) The box that includes AIS, MIS, DSS, the virtual office, and
knowledge-based systems is named (Choose one only)
a) The super system
b) The environment
c) The computer-based information system (CBIS) ()
7

d) Information resources management (IRM)

Q:16) Which one of these BEST describes the role of a manager?
a) Attending meetings, attending corporate luncheons, disciplining
staff, representing the company.
b) Planning,
organizing,
coordinating,
making
decisions,
controlling ().
c) Maintaining a rigid position in the hierarchy to prevent customer
complaints from coming to the attention of the Board.
d) Supervising the work of junior staff.
Q:17) Which one of these statements describes the role of a management
information system?
a) Software that makes decisions based on external and internal
data.
b) Software that provides information to enable a manager to make
decisions based on internal data.
c) Software that provides information to enable a manager to make
decisions based on external data.
d) Software that provides information to enable a manager to
make decisions based on internal and external data ().
Q:18) Which one of these statements describes a function that is NOT
carried out by a management information system?
a) Recording the sale of an item to a customer ().
b) Recording information about the products produced by a
competitor.
c) Calculating the financial implication for the company from a rise in
the minimum wage.
d) Modeling the impact on the business of a new piece of Government
legislation.
Q:19) Which one of these statements best describes a formal flow of
information.
a) An article written in a trade paper.
b) A chance comment in a telephone conversation
c) Data that are collected from a data collection agency ().
7

d) A conclusion drawn while thinking about a particular problem

Q:20) A manager has to make an unstructured decision, which means
that:
a) The decision has a definite procedure to deal with the problem.
b) The manager has to use judgment based on previous
experience, insight and careful evaluation ().
c) The decision will result in no correct course of action.
d) No decision can be made.
Q:21) Which one of these features is desirable in a management
information system?
a) It takes up little space on the computer.
b) It can make decisions for the manager
c) The manager receives all the data that are stored by the company
in as tables of numbers.
d) It can be interrupted so that the manager can come back at a
later stage ().
Q:22) Why do computer projects in MIS need to be carefully managed?
a) Computer professionals are rather disorganized people.
b) Many specialist skills are needed, which have to
coordinated ().
c) MIS systems are powerful bits of software that make decisions.
d) The hardware is complex to set up.

be

Q:23) Which one of these statements describes the waterfall model of

project management?
a) Each stage is completed before the next stage is undertaken.
b) The next stage is undertaken after completion of the previous
stage, but it is possible to rework previous stages in the light
of experience gained at later stages ().
c) A model is made of the system that allows the end user to have an
input into the new system.
d) It is a scornful description of a project that has failed.
Q:24) A drawback of prototyping is:
7

a) That the end user is involved in the project.

b) The end user notices the missing functions, which can be an
embarrassment to a computer professional.
c) The software is more susceptible to viruses.
d) That the project management can be sloppy ().
Q:25) How is information collected for the requirements analysis in a new
IT project?
a) A quick discussion with the managing director on the telephone.
b) Detailed discussion with board members and other members of
senior management.
c) Interviewing all staff at all levels, sending out questionnaires,
detailed examination of documentation and information flows,
and observation of company practice ().
d) Discussion with the network manager and the IT technicians.
Q:26) When a system is designed, it is put together with a modular
design structure. This means that:
a) System is constructed according to the prototype model.
b) The software is made up of sub-units and put together to make
a finished unit ().
c) The hardware is made up of sub-units that are put together,
d) The implementation will be in phases.
Q:27) Which one of the following statements would indicate that a new
MIS was successfully implemented?
a)
b)
c)
d)

Perfective maintenance has been carried out.

The hardware has high specification
The system processes data adequately.
There is a high degree of user satisfaction ().

Q:28) Governance of IT is shifting from being handled exclusively by IS

executives to being a collaborative effort between IS business and their
constituencies.
a) True ().

b) False

Q:29) Governance of IT is a collaborative effort between IS, the business,

and their constituencies.
a) True ().

b) False

Q:30) System integration and infrastructure development is the ________.

Q:31) ______________ is characterized as the development and
management of relationships with external service providers.
Q:32) The device that was hailed as a technological marvel in the 1950's
was the:
a)
b)
c)
d)
e)

Mainframe
PC ()
Calculator
Terminal
Abacus

Q:33) Hewlett - Packard was credited with the creation of the first
handheld calculator.
Q:34) IBM and Microsoft emerged as key players in the DBMS market.
Q:35) Products in digital formats that can be delivered anywhere, at any
time, at a low cost and no delivery cost are sold on E-Commerce.
Q:36) The emerging trend that has shifted focus from tangible items such
as capital, equipment, and factories to intangibles such as ideas,
intellectual capital, and knowledge is known as E-Business.
Q:37) An MIS helps businesses achieve:
a)
b)
c)
d)

Its goals and objectives ()

Parity.
Fairness.
Security.

Q:38) The most important component of an information system is

the_________________.
a)
b)
c)
d)

Software
Hardware.
Data.
People ()

Q:39) Which of the following is not a characteristic of good information?

7

a)
b)
c)
d)

Interchangeability ()
Relevance.
Cost effectiveness.
Timeliness.

Q:40) In order to be cost effective, information must be:

a)
b)
c)
d)

Timely.
Adaptable.
Be worth the cost of producing it ()
An input into another system.