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IGNOU MBA MS-07 Solved Assignment December 2012

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1.What are Operating Systems? What are their functions? Describe the
Open Systems Interconnection Reference Model (OSI Model) & its seven
layers.

Ans: What are Operating Systems

An operating system is a set of computer programs that controls the computer
hardware and acts as an interface with the application programs. The operating
system plays a central role in the functioning of a computer system. It is usually
stored on disk, after the computer system is started or booted up portions of operating
system are transferred to memory as required. The kernel as the name suggests is
the heart of the operating system and controls the most critical processes. Windows
by Microsoft, Linux, UNIX, and the Macintosh are the commonly used operating
systems.
Functions of Operating System
An operating system performs allocation and assignment of system resources,
schedules the use of computer resources, monitors the computer system activities
etc. The various activities performed by a typical operating system are:
• Performing common computer hardware functions.
• Providing a user interface
• Providing a degree of hardware independence
• Managing system memory
• Managing processing tasks
• Providing networking capability
• Controlling access to system resources
• Managing files
Common Hardware Functions
All application programs must perform certain tasks. For example
• Getting input from the keyboard or some other input devices
• Retrieving data from disks
• Storing data on disks
• Displaying information on a monitor or printer

Open Systems Interconnection Reference Model (OSI Model) & its seven
layers
The International Standards Organization developed a framework for computer
communication with an objective of providing a standard. The model provided by ISO
is known as Open Systems Interconnection Reference Model, popularly as OSI
model. The OSI model has seven layers. Each layer has a well-defined function and
interface. Development and management of software has become simple due to the
OSI model. The seven layers are briefly described here.
Application Layer
This is the top layer and provides user with an interface to the network. The primary
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purpose is to provide a set of utilities for application programs.

Presentation Layer
This layer formats the data for presentation to the user. This layers, for instance,
might compress/uncompress the data.
Session Layer
This layer is responsible for initiating, maintaining, and terminating the network
session on behalf of an application.
Transport Layer
This layer is responsible for creating data units called packets from the data that is to
be transmitted. Each unit is appended with enough information about its source and
destination so that it can travel independently on the network without having to worry
about other packets. The packets are combined at the destination into the original
message. This layer makes sure that each packet has been received and without
error. It may request re-transmission of a packet if required.
Network Layer
This layer accepts messages generated by the transport layer. Its responsibility is to
route packets to the destination.
Data link Layer
This layer is responsible for initiating the physical transmission of the data. This layer
also detects and corrects errors that might have occurred during transmission.
Physical Layer
This layer is concerned with transmission of data bits. This layer defines rules for
transmission, such as voltage.
The TCP/IP model consists of four layers- application layers, network layer, data link
layer, and physical layer. The network layer is equivalent to presentation layer,
session layer, transport layer, and network layer of OSI model.

2.Define MIS. Describe the function that MIS supports in an

organization. What are the various ways of assessing the value of
information. Also explain each method briefly.

Ans: MIS
The MIS is defined as an integrated system of man and machine for providing the
information to support the operations, the management, and the decision-making
function in the organization.
An MIS deals with information that is systematically and routinely collected in
accordance with a well-defined set of rules. In other words, data collection is a
planned activity for which resources are allocated and rules are defined.

The Function That Mis Supports In An Organization

The information provided by an MIS assists managers in planning, organizing,
staffing, coordinating, directing and controlling the operations of an organization. The
management experts have viewed these steps as Management Control system.
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Information systems are used in all functional areas and operating divisions of
business. In finance and accounting, information systems are used to forecast
revenue and business activity, determine the best sources and uses of funds.
Information systems have been used for managing cash and other financial
resources, and analyzing investment. Financial health of an organization is also
checked using IS. In sales and marketing, information systems are used to develop
new goods and services (product analysis), determining the best location for
production and distribution facilities (site analysis), determine the best advertising and
sales approaches (promotion analysis) and set product prices to get the highest total
revenues (price analysis).
In manufacturing, information systems are used to process customer orders, develop
production schedules; control inventory lends and monitor product quality. Service
industries such as airline industry and railways use information systems to serve their
customers better. Banks and other investment firms’ use IS to make good
investments and sanction sound loans. Publishing houses, healthcare organizations,
and retail companies all make use of information systems to serve their customers
better and maximize their profit.
Various Ways Of Assessing The Value Of Information
The value of information is measured in terms of benefits to the organization. The
benefits may be tangible that can be easily quantified. For example, 5% increase in
sales is a tangible benefit, which corresponds to Rs. 50,000. If the cost of the
information that led to this additional profit is Rs. 20,000. Then the value of the
information is Rs. 30,000. Sometimes, the benefits may be intangible and cannot be
easily quantified. For instance, the information may help consumers to connect to a
company better. The employees may feel respected in an organization if more
information is shared with them. In both the cases, the attrition rate will decrease
and the corresponding benefit cannot be directly measured in terms of financial
benefit to the organization.
There are many methods to assess value of information system, which is explained
below.
1) Cost-benefit analysis
IT project and investments has to take its place in the queue for all too scarce
cash
resources, and the rules for justifying are the same as for any other project
A more sophisticated argument is that, because the risks inherent in decision
about IT
are higher, the expected ROI needs to higher before an investment can be
justified.
Because of high sum, IT investment has a high potential to damage the
organization.
A new product is equally risky.
But fundamentally, decision makers are less comfortable about IT because of
their
ignorance of the issues and they lack faith in the estimates presented to them.
The
main points:
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• IT is high risk, high cost; at the same time IT has potential for substantial
benefits
• Managers are not conversant with all aspects of the decision - due to rapid pace
of change of technology.
• There is no trusted track record of benefits of IT investments
• IT decision should be made by IT professionals in consultation with general
management of the organization
• IT investment should get integrated with organization’s strategy/processes
• An organization should start with simple and inexpensive systems, gain
experience and then move to better, more involved systems
• The systems being used by the competition may be used as a guideline.

Identification of IT Costs
IT cost is so hard to estimate that one may be off by 50% or more. One of reasons
is
that the overheads are excessive. If one unit of money is invested in IT, 57 units
will
be spent on human resources etc. The Table 6.1 gives the cost involved.
a) Direct Cost
 Environmental operating cost
 Hardware cost
 Software cost
 Installation and configuration costs
 Overheads
 Training cost
 Maintenance cost
b) Indirect Human Costs
Indirect human cost is more significant than direct cost and it is very illusive in
nature.
Following is the taxonomy of indirect human costs:
• Management Time
• Management effort and dedication
• Employee Training
• Management Resources
• Personnel Issues
• Cost of ownership
• Employee Time
• Employee Motivation
c) Indirect Organizational Costs
• Losses in productivity
• Organizational Productivity
• Strains on Organizational Resources
• Opportunity Cost and Risk
• Business Process Reengineering
• Covert Resistance
2) Return on Investment (ROI)
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Another measure of IS value is return on investment (ROI). This method tries to

quantify additional profits that are generated as a percentage of the investment in
information system technology. For an example, a manufacturing firm invested 5 lakh
rupees in IS and an additional benefit due to increased sales is 50 thousand rupees,
then the return on investment is
50,000
–––––––– × 100 = 10%.
500,000
In other words, the return on investment is 10%. The company might perform this
analysis before installing the information system with an objective of determining the
utility of the system. The same analysis may be performed after the installation to
check the delivered benefits of the IS against expected benefits.
3) Earning Growth
Another measure of IS value is the increase in earnings growth. Let us say, an
organization experienced 6% sales growth in year 2000. After installing IS, the sales
growth became 11%. Assuming that no other factors affected sales, 5% increase in
the sales are due to information system.
4) Market Share
Similar to earning growth one can also evaluate value of IS in terms of increased
market share.
5) Customer Awareness and Satisfaction
Customer satisfaction is one of the most valued intangible benefits of an information
system. For instance, an information system may help customer track status of their
orders. Customer may check the stock status before he places an order. The
information may be available on-line or through an operation who has access to
information system of the company. There are many companies that conduct survey
on behalf of their client company’s to determine the satisfaction level of their
customers.

3.Distinguish between information and knowledge. Develop an

information system for human resource department. Explain how a
properly developed information system contributes to business
development and company profits.

Ans: Information And Knowledge

Information:Data that have been put into a meaningful and useful context and
communicated to a recipient who uses it to make decisions it reduces
uncertainty, reveals additional alternatives or helps eliminate irrelevant or poor
ones.
Knowledge: is an awareness and understanding of a set of information that help
decision-making. Knowledge makes a person wise. The sequence is the following-data is
processed to get
information; information makes a person knowledgeable, knowledge adds to the
wisdom.
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Information system for human resource department.

HRIS Defined
Human Resource Information System provides a method by
which an organisation collects, maintains, analyses and reports information on
people and jobs. The information contained in the HRIS serves as a guide to
recruiters, trainers, career planners and other human resource specialists. It applies to
information needs at macro level as well as to the micro level.
Human resource information at macro Level
The Data base required for purposes of making forecasts of manpower at the macro
level is indicated in the table mentioned below

HUMAN RESOURCE INFORMATION AT MICRO LEVEL

With regard to data needs at the micro level for a well-defined and detailed manpower
information system within the organization,the data modules and the particulars of
information
that each such module should carry are noted below:
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BUSINESS PERSPECTIVE OF INFORMATION SYSTEMS

The terms Information Systems and Information Technology are used synonymously.
The impact of IT on a business has been tremendous. One of the advantages of IT
systems for a business is the cost-performance ratio, which is better in case of
computers. The labor cost increases every year but the cost of computer does not
increase. A better and more powerful computer can be bought for the same price
after a year. It is better to use computers for routine jobs as far as possible. The IT
has been used in every business and for every function of a business. Some of the
applications are as follows.
• Finance and Accounting : IT has been used for forecasting revenues,
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determining the best sources and uses of funds and managing cash and other
financial resources. IT has also been used to analyze investments and perform
audits.
• Sales and Marketing : IT has been used to develop new services, which may
not exist without IT. IT has helped management of various organizations to
determine the best location for production and distribution facilities. The
operational data has been analyzed using IT to determine the best advertising and
sales approaches. The product prices have been set using IT to get the highest
total revenues. In other words, IT has been used for product analysis and price
analysis.
• Manufacturing : IT has been extensively used for processing customer orders,
controlling inventory levels, developing production schedules and for monitoring
product quality. A whole new discipline— Computer Aided Design and Computer
Aided Manufacturing has evolved due to application of IT to design and
manufacturing. The manufacturing is not what is used to be due to the use of
computers, Computer Integrated Manufacturing (CIM) dominates the
manufacturing sector.
• Human Resource Management : Companies are using IT systems for
screening applicants and conducting various tests.
• Project Management : A range of software packages are available in the
market for managing projects. These software products let the management set
the schedules, milestones, facilitate communication among group members, and
monitor the project progress. These products help in document and report
preparation.
• Data Analysis : Investment firms heavily use information systems to analyze
stocks, bonds and options to provide better service to their clients.

4.Discuss the steps involved in system analysis and design. What specific
considerations are required for proper implementation and maintenance?
Ans:
SYSTEMS ANALYSIS
Systems analysis is the analysis of the problem that the organization will try to solve
with an information system. It consists of
 Defining the problem,
 Identifying its causes,
 Specifying the solution
 Identifying the information requirements that must be met by a system solution.
The key to building any large information system is a thorough understanding of the
existing organization and system. Thus, the systems analyst creates a road map of the
existing organization and systems, identifying the primary owners and users of data in
the organization. These stakeholders have a direct interest in the information affected
by the new system. In addition to these organizational aspects, the analyst also briefly
describes the existing hardware and software that serve the organization.
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From this organizational analysis, the systems analyst details the problems of existing
systems. By examining documents, work papers, and procedures; observing system
operations; and interviewing key users of the systems, the analyst can identify the
problem are and objectives to be achieved by a solution. Often the solution requires
buildings a new information system or improving an existing one.
Feasibility
In addition to suggesting a solution, systems analysis involves a feasibility study to
determine whether that solution is feasible, or achievable, given the organization’s
resources and constraints. Three major areas of feasibility must be addressed:
Technical Feasibility: Whether the proposed solution can be implemented with the
available hardware, software, and technical resources.
Economic Feasibility: Whether the benefits of the proposed solution outweigh the
costs.
Organizational Feasibility: Whether the proposed solution is desirable within the
existing managerial and organizational framework.
Normally the systems analysis process will identify several alternative solutions that
can be pursued by the organization. The process will then assess the feasibility of
each. Three basic solution alternatives exist for every systems problem:
1. To do nothing, leaving the existing situation unchanged
2. To do modify or enhance existing systems
3. To develop a new system
Establishing Information Requirements
Perhaps the most difficult task of the systems analyst is to define the specific
information requirements that must be met by the system solution selected. This is the
area where many large system efforts go wrong and the one that poses the greater
difficulty for the analyst. At the most basic level, the information requirements of a
new system involve identifying who needs what information, where, when, and how.
Requirements analysis carefully defines the objectives of the new or modified system
and develops a detailed description of the functions that the new system must
perform. Requirements must consider economic, technical, and time constraints, as
well as the goals, procedures, and decision processes of the organization. Faulty
requirements analysis is a leading cause of systems failure and high systems
development costs.
Some problems do not require an information system solution, but instead need an
adjustment in management, additional training, or refinement of existing organizational
procedures. If the problem is information-related, systems analysis may still be
required to diagnose the problem and arrive at the proper solution.

SYSTEMS DESIGN
While systems analysis describes what a system should do to meet information
requirements, systems design shows how the system will fulfill this objective. The
design of an information system is the overall plan or model for that system.

Systems design has three objectives.

First, the systems designer is responsible for considering alternative technology
configurations for carrying out and developing the system as described by the analyst.
This may involve analyses of the performance of different pieces of hardware and
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software, security capabilities of systems, network alternatives, and the portability or

changeability of systems hardware.
Second, designers are responsible for the management and control of the technical
realization of systems. Detailed programming specifications, coding of
data,documentation, designers are responsible for the actual procurement of the
hardware,consultants, and software needed by the system.
Third, the systems designer details the system specifications that will deliver
thefunctions identified during systems analysis. These specifications should address all
of the managerial, organizational, and technological components of the system solution.
Logical and Physical Design
The design for an information system can be broken down into logical and physical
design specifications. Logical design lays out the components of the system and their
relationship to each other, as they would appear to users. It showed what the system
solution would do as opposed to how it is actually implemented physically. It describes
inputs and outputs, processing functions to be performed, business procedures, data
models, and controls. (Controls specify standards for acceptable performance and
methods for measuring actual performance in relation to these standards. They are
described in detail).
Physical design is the process of translating the abstract logical model into the
specific technical design for the new system. It produces the actual specifications for
hardware, software, physical databases, input/output media, manual procedures, and
specific controls. Physical design provides the remaining specifications that transform
the abstract logical design plan into a functions system of people and machines.

Design Alternative
Before the design of an information system is finalized, analysts will evaluate various
design alternatives. Based on the requirements definition and systems analysis,
analysts construct high-level logical design models. They then examine the costs,
benefits, strengths, and weaknesses of each alternative
IMPLEMENTATION AND MAINTENANCE
The remaining steps in the systems development process translate the solution
specifications established during systems analysis and design into a fully operational
information system. These concluding steps consist of programming, testing,
conversion, and production and maintenance.
Programming
During the programming stage,system specifications that were prepared during the
design stage are translated into program code. On the basis of detailed design
documents for files, transaction and report layouts, and other design details,
specifications for each program in the system are prepared.
Testing
Exhaustive and thorough testing must be conducted to ascertain whether the system
produces the right results. Testing answers the question, “Will the system produce the
desired results under known conditions?”
Testing information system can be broken down into three types of activities: Unit
testing, or program testing, consists of testing each program separately in the system.
While it is widely believed that the purpose of such testing each program separately
in antee that programs is error free, this goal is realistically impossible. Testing should
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be viewed instead as a means of locating errors in programs, focusing on finding all

the ways to make a program fail. Once pinpointed, problems can be corrected.
System testing the functioning of the information system as a whole. It tries to
determine if discrete modules will function together as planned and whether
discrepancies exist between the ways the system actually works and the way it was
conceived. Among the areas examined are performance times, capacity for the
storage and handling peak loads, recovery and restart capabilities, and manual
procedures.
Acceptance testing provides the final certification that the system is ready to be used
in a production setting. Systems tests are evaluated by users and reviewed by
management. When all parties are satisfied that the new system meets their
standards, the system is formally accepted for installation.
Conversion
Conversion is the process of changing from the old system to the new system.
It answers the question, “Will the new system work under real conditions?” Four
main conversion strategies can be employed: the parallel strategy, the direct cutover
strategy, the pilot study strategy, and the phased approach strategy
In a parallel strategy, both the old system and its potential replacement are run
together for a time until everyone is assured that the new one functions correctly.
The direct cutover strategy replaced the old system entirely with the new system on
an appointed day. At first glance, this strategy seems less costly than parallel
conversion strategy. However, it is a very risky approach that can potentially be more
costly than parallel activities if serious problems with the new system are found.
There is no other system to fall back on. Dislocations, disruptions, and the cost of
corrections may be enormous.
The pilot study strategy introduces the new system only to a limited area of the
organization, such as a single department or operating unit. When this pilot version is
complete and working smoothly, it is installed throughout the rest of the organization,
either simultaneously or in stages.
The phased approach strategy introduces the new system in stages, either by
functions or by organizational units. If, for example, the system is introduced by
functions, a new payroll system might begin with hourly workers who are paid
weekly, followed six months later by adding salaried employees who are paid monthly
to the system. If the system is introduced by organizational units, corporate
headquarters might be converted first, followed by outlaying operating units four
months later.
Production and Maintenance
After the new system is installed and conversion is complete, the system is said to be
in production. During this stage, both users and technical specialists to determine how
well it has met its original objectives and to decide whether any revisions or
modifications are in order will review the system. Changes in hardware, software,
documentation, or improve processing efficiency are termed maintenance.
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5.What do you understand by Intranet and Internet? “E-commerce has

emerged as vital component in today’s business”. Explain by giving its
features, constraints and examples.
Ans: Internet
Internet or Inter-Network is the connection of two or more networks so that a
computer on one network can communicate with a computer on another network.
The Internet is a set of thousands of networks linked together around the world. The
communication between two computers takes place such that the user does not have
to worry about the technology used by the networks. It is easy to find out the location
of another system on the network. The router (also called gateway) acts as an
interface between two networks. The Internet has no central administration but there
are protocols, which are followed by each network of Internet.
Intranet
An Intranet is a network that connects the internal computing resources of an
organization. The prime motive of Intranet is to facilitate information sharing within
the organization with the help of tools such as web browsers. For instance, a
manager can check the inventory level sitting in his own room. Email becomes an
easy way to communicate, without having to worry about the physical presence of
the person on his seat. Intranets operate within the company’s firewalls. A firewall is
a method of isolating the company’s computers behind a device that acts as a
gatekeeper. All outgoing requests for information go to a special computer, which
hides the sender’s machine address but passes on the request. All incoming
information is also checked by the firewall computer. Employees can venture out into
the Internet but unauthorized users cannot come in.

Features And Contraints Of E-commerce

Features Of E-commerce

Lower Cost

Doing e-business is cost effective; it reduces logistical problems and puts a small
business on a par with giants such as Amazon.com or General Motors. In a commercial
bank, for example. a basic over-the-counter transaction costs £0.50 to process; over the
Internet, the same transaction costs about £0.01. Every financial transaction eventually
turns into an electronic process. The sooner it makes the conversion, the more cost-
effective the transaction becomes.

Economy

Unlike the brick–and–mortar environment, in e–commerce there is no physical store

space, insurance, or infrastructure investment. All you need is an idea, a unique
product, and a well–designed web storefront to reach your customers, plus a partner to
do fulfillment. This makes e–commerce a lot more economical.
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Higher Margins

E–commerce means higher margins. For example, the cost of processing an airline
ticket is £5. According to one travel agency, processing the same ticket online costs £1.
Along with higher margins, businesses can gain more control and flexibility and are able
to save time when manual transactions are done eletronically.

Better Customer Service

E–commerce means better and quicker customer service. Online customer service
makes customers happier. Instead of calling your company on the phone, the web
merchant gives customers direct to their personal account online. This saves time and
money. For companies that do business with other companies, adding customer service
online is a competitive advantage. The overnight package delivery service, where
tracking numbers allow customers to check the whereabouts of a package online, is one
good example.

Quick Comparison Shopping

E–commerce helps consumers to comparison shop. Automated online shopping

assistants called hopbots scour online stores and find deals on everything from apples ro
printer ribbons.

Productivity Gains

Weaving the web throughout an organisation menas improved productivity. For

example IBM incorporated the web into every corner of the firm – products, marketing,
and practices. The company figured it would save $750 million by letting customers find
answers to technical questions via its website. The total cost savings in 1999 alone was
close to $1 billion.

Teamwork

E–mail is one example of how people collaborate to exchange information and work on
solutions. It has transformed the way organisations interact with suppliers, vendors,
business partners, and customers. More interactions means better results.

Knowledge Markets

E–commerce helps create knowledge markets. Small groups inside big firms can be
funded with seed money to develop new ideas. For example, DaimlerChrysler has
created small teams to look for new trends and products. A Silicon Valley team is doing
consumer research on electric cars and advising car designers.

Information Sharing, Convenience, And Control

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Eletronic marketplaces improve information sharing between merchants and customers

and promote quick, just–in–time deliveries. Convenience for the consumer is a major
driver for changes in various industries. Customers and merchants save money; are
online 24 hours a day, 7 days a week; experience no traffic jams, no crowds, and do not
have to carry heavy shopping bags.

Disadvantages Of E–commerce

Security

Security continues to be a problem for online businesses. Customers have to feel

confident about the integrity of the payment process before they commit to the
purchase.

System And Data Integrity

Data protection and the integrity of the system that handles the data are serious
concerns. Computer viruses are rampant, with new viruses discovered every day.
Viruses cause unnecessary delays, file backups, storage problems, and other similar
difficulties. The danger of hackers accessing files and corrupting accounts adds more
stress to an already complex operation.

System Scalability

A business develops an interactive interface with customers via a website. After a while,
statistical analysis determines whether visitors to the site are one–time or recurring
customers. If the company expects 2 million customers and 6 million show up, website
performance is bound to experience degradation, slowdown, and eventually loss of
customers. To stop this problem from happening, a website must be scalable, or
upgradable on a regular basis.

E–commerce Is Not Free

So far, success stories in e–commerce have forced large business with deep pockets and
good funding. According to a report, small retailers that go head–to–head with e–
commerce giants are fighting losing battle. As in the brick–and–mortar environment,
they simply cannot compete on price or product offering. Brand loyalty is related to this
issue, which is supposed to be less important for online firms. Brands are expected to
lower search costs, build trust, and communicate quality. A search engine can come up
with the best music deals, for example, yet consumers continue to flock to trusted
entities such as HMV.

Consumer Search Is Not Efficient or Cost–effective

On the surface, the electronic marketplace seems to be a perfect market, where

worldwide sellers and buyers share and trade without intermediaries. However, a closer
look indicates that new types of intermediaries are essential to e–commerce. They
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include electronic malls that guarantee legitimacy of transactions. All these

intermediaries add to transaction costs.

Customer Relations Problems

Not many businesses realise that even e–business cannot survive over the long term
without loyal customers.

Products People won't buy online

Imagine a website called furniture.com or living.com, where venture capitalists are

investing millions in selling home furnishings online. In the case of a sofa, you would
want to sit on it, feel the texture of the fabric etc. Beside the sofa test, online furniture
sotres face costly returns which makes the product harder to sell online.

Corporate Vulnerability

The availability of product details, catalogs, and other information about a business
through its website makes it vulnerable to access by the competition. The idea of
extracting business intelligence from the website is called web framing.

High Risk Of Internet Start–up

Many stories unfolded in 1999 about successful executives in established firms leaving
for Internet start–ups, only to find out that their get–rich dream with a dot.com was just
that – a dream.