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Amity Center for elearning

Amity Campus

Uttar Pradesh

India 201303

ASSIGNMENTS

PROGRAM: BFIA

SEMESTER-II

Subject Name:MANAGEMENT CONTROL AND INFORMATION SYSTEM

Study COUNTRY:SOMALIA

Roll Number (Reg. No.):BFIA01512010-2013019

Student Name:MOHAMED ABDULLAHI KHALAF

INSTRUCTIONS

a) Students are required to submit all three assignment sets.

ASSIGNMENTDETAILSMARKS

Assignment AFive Subjective Questions10

Assignment BThree Subjective Questions + Case Study10

Assignment CObjective or one line Questions10

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 decision-making 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) Speedy access to information.2) Interpretation of data.3) Quick decisions.4) Speedy actions.5) Increased productivity and thereby increase in the profit.6) Reduced transaction cost.

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.

Large quantities of data like customers information, competitors information, personnel records, sales data, accounting data etc is collected from internal sources like the

Company records and external sources like annual reports and publications.

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

The data from the database is processed and analyzed by using different tools and techniques.

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 startits 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 lowerlevel.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 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 formany 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 productionoutput 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. Common database means a Super file or Master file whichconsolidates 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:1) They change the way the firm competes.2) They have an external (outward looking) focus.3) They are associated with higher project risk.4) They 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 decision-making. 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 tableIndividual

differencesExplanationEffect on information

processingExamples

Locus of control

internal or externalThe degree of perception in assessing the controlMore information

Gathering and

The production

decisions, selection

to the situation

Which is internal to the organization or external to the organization?or externalof tools and materials etc.

Personal dogmatism.

The degree of faith in beliefs, opinions and past experience.Low dogmatism, then more information collection and processing.The pricing,

advertising in a

Competitive environment.

Risk propensity.

The ability to take the risk.

Higher, then more information gathering and analysis.The top management decision-making in a strategic planning.

Tolerance for ambiguity.

Level of clarity required in the information. The ability to read through the information.Tight tolerance then more information collection and

AnalysisManager Constantly asking for more information.

Manipulative intelligence.

The ability to manipulate the data and information vis--vis the stored information and knowledgeHigh ability, then less information and more self analysis.Experienced and skillful managers rely on the manipulative intelligence.

Experience in decision-makingExtent of experience at particular level of decision making.High, then correct filtering of data and appropriate choice of decision making process.The managers with a wide experience in the different fields of management call for precise and less but pertinent information.

Knowledge of the task, tools and technology.The extent of knowledge in the application of the tools and technology.Higher, then less information relevant to and tools correct analysis.The Technocrat scientists and managers of technology have 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.

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) Technical feasibility

2) Economic feasibility

3) Operational feasibility

4) Schedule feasibility

Requirement, collection and analysis.

Design.

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 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 E-business enterprise, most of the things are electronic, use digital technologies and work on databases, knowledge bases, directories and document repositories. The business processes are conducted through enterprise software like ERP, SCM, and CRM supported by data warehouse, decision support, and 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:

Domestic business to global business.

Industrial manufacturing economy to knowledge-based service economy.

Enterprise Resource Management to Enterprise Network Management.

Manual document driven business process to paperless, automated, electronically transacted business process.

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 E-banking, E-billing, E-audit, & use of Credit cards, Smart card, ATM, E-money 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 E-business organization, it is necessary to redesign the organization to realize the benefits of digital firm. The organization structure should be lean and flat. Get rid of rigid established infrastructure such as branch office or zonal office. Allow people to work from anywhere. Automate processes after 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 E-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:

B2C: Business Organization to Customer

B2B: Business Organization to Business

C2B: Customer to Business Organization

C2C: 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 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 andpotentially modified by a variety of other interconnected computers. A majority of widely accessible information on the Internet consists of inter-linked hypertext documents and otherresources 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 computernetworks 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 fourinterconnected 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 computernetworks. It is an interconnection of large and small networks around the globe. The Internetbegan 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 newproducts. 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 ofsmall, 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.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 ofa 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 youridentity 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:

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 service cycle Steps in stage Example: educational institute

Initiation of service Enquiry, information, seeking, checking, assessing Through website, advertisement

Transition to service Step towards service Information brochure & online application form.

Pre-service Cross checking the document, records Cross check the certificate, application form

Service Effecting the service, delivery with the goods Best faculty with infrastructure.

Post service Concluding the service, existing assistance Giving world class placement

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.

Conceptual SMS Architecture Model

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 serviceCustomer arrives at hotel receptionPre-serviceCustomer gives passport, a letter and visiting card

ServiceService requests: lunch, dinner, room service

Post-ServiceCustomer gives feedback

Case StudyTHE CASE OF A DEPARTMENTAL STOREMr. 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 non-availability 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.

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'spersonal 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 customercheckout 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: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) Computers, keyboards, display monitors, hard disks, and printers

b) People, procedures, data, programs, and computers ()c) Input, processing, storage, and outputd) Planning, programming, organizing, and evaluatingQ:2) Which of the following characteristics of a system reflects the fact that all systems are comprised of subsystems?

a) Synergyb) Differentiationc) Regulationd) Hierarchy ()Q:3) The process by which workers develop their own applications, with or without the help of professional MIS staff, is called

a) Decentralized computingb) Distributed computing ()c) End-user computingd) Client/server computing

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

I. A data definition language

II. A data manipulation language

III. A data dictionary

IV. A data redundancy protocol

a) I onlyb) I and II onlyc) I, II, and III onlyd) I, II, III, and IV ()Q:5) Which of the following is NOT a benefit of electronic data interchange (EDI)?

a) It reduces errorsb) It reduces the volume of invoices or orders ()c) It reduces transaction processing costsd) It saves timeQ:6) Which of the following terms is used to describe the transmission of data one character at a time?

a) Synchronousb) Asynchronous ()c) Half-duplexd) Full-duplexQ:7) Multiplexors and concentrators are used in telecommunication systems to do which of the following?

a) Perform high-speed arithmetic operationsb) Increase utilization of the communication lines ()c) Store and retrieve datad) Display data on the monitorQ:8) Which of the following systems development approaches involves a highly iterative process of building, using, evaluating, and refining?

a) System development life cycle (SDLC)b) Top-down analysis (TDA)c) Prototyping ()d) 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

a) I only ()b) I and II only

c) II and III only

d) I, II, and III

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

a) ADSS

b) Office automationc) The MIS

d) An expert system ()Q:11) You would find an executive on the strategic-planning Level?

a) TRUE ()

b) FALSEQ:12) The system life cycle consists of three phases; planning, development, and use.

a) TRUE

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) FALSEQ:14) Users of the MIS includea) Managers

b) Persons and organizations in the firms environment

c) Non-managers

d) 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 systemb) The environment

c) The computer-based information system (CBIS) ()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 ().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 be coordinated ().

c) MIS systems are powerful bits of software that make decisions.

d) The hardware is complex to set up.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:

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) Perfective maintenance has been carried out.

b) The hardware has high specification

c) The system processes data adequately.

d) 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 theirconstituencies.

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) Mainframe

b) PC ()c) Calculator

d) Terminal

e) AbacusQ: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) Its goals and objectives ()b) Parity.

c) Fairness.

d) Security.

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

a) Softwareb) Hardware.c) Data.d) People ()Q:39) Which of the following is not a characteristic of good information?a) Interchangeability ()b) Relevance.c) Cost effectiveness.d) Timeliness.Q:40) In order to be cost effective, information must be:

a) Timely.b) Adaptable.c) Be worth the cost of producing it ()d) An input into another system.Price

Customer Service Design

Place

Product

People

Promotion

Accounts Data Base

Customer Data Base

Resource Data Base

Application

Back End Application

PC

PC

PC

PC

Network Server

Front End

Service Job Data Base

Knowledge

Facilities Data Base

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