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Unit - I
Unit I
Unit II
Unit III
Unit IV
Unit V
1. Explain management information system. Explain the characteristics of MIS?
Ans: During the period of preindustrial revolution most of the data processing was done manually. It was after the industrial revolution that the computers slowly started replacing manual labor.
The modern digital computer was basically designed to handle scientific calculations.
During the Period 1940 to 1960 computers were commercially used for census and payroll work. This involved large amount of data and its processing. Since then the commercial application exceeded the scientific applications for which the computer were mainly intended for. MIS is an Information system which helps in providing the management of an organization with information which is used by management for decision making.
Characteristics of MIS
• perations Research
• Computer Science Management
• Accounting
• Management Science / Theory
• Behavioral Sciences
• Organization Theory
I. In any organization managers will have varieties of tasks to manage. MIS is mainly designed to take care of the needs of the managers in the organization.
II. Organizations will have different departments like marketing, production, sales, inventory, maintenance etc. Each of these departments function individually and also in relationship with other departments. Information is available in abundance. MIS aids in integrating the information generated by various departments of the organization.
III. MIS helps in identifying a proper mechanism of storage of data. The data is maintained in such a way that the unnecessary duplication of data is avoided.
IV. MIS also helps in establishing mechanism to eliminate redundancies in data.
V. MIS as a system can be broken down into sub systems. Each such sub system may be Programmed. This results in easy access of data, accuracy of data and information. It helps in maintaining the consistency of data.
2. What is system? Explain the various characteristics of it?
A collection of components that work together to realize some objectives forms a system. Basically there are three major components in every system, namely input, processing and output.

A System means an organized relationship among functioning units or components. It is an orderly grouping of interdependent components linked together according to a plan to achieve a specific objective.
Characteristics of System
Following characteristics are present in all systems:
a) Organization
b) Interaction
c) Interdependence
d) Integration
e) Central Objective
Organization : Organization implies structure and order. It is the arrangement of components that helps to achieve objectives. Hierarchical relationship starting with the president on top and leading down ward to the blue collar worker represent the organization structure
Interaction : Interaction refers to the procedure in which each component interact with other components of the system. In an organization, for example purchasing must interact with product, advertising with sales and payroll with personnel.
Interdependence : Independence is concerned with how a system is tied together; it is more than sharing a physical part or location. It means that parts of the system part or location with in the system, even through each part performance. A unique function successful integration will typically produce a better request as whole rather than if each component works independently.
Central Objective : Objective may be real or stated. Objective is determined by higher management and user must be aware about the central objective well in advance
3. Explain various elements of a system? Explain various types of system. Give an example. Ans:
The elements of the system are as under:
(1) Outputs and Inputs : A major objective of a system is to produce an output that has value to its user. Whatever the nature of the output, it must be in line with the expectations of the intended user. Inputs are the elements that enter the system for processing and output is the outcome of
the processing.
(2) Processors : The processor is the element of the system that involves the actual transformation of input into output. It is the operational component of a system. Processors modify the input totally or partially.
(3) Control : The control element guides the system. It is the decision-making subsystem that controls the pattern of activities governing input, processing and output.
(4) Feedback : Control in a dynamic system is achieved by feedback. Feedback measures output against a standard in some form that includes communication and control. Feedback may be positive or negative, routine or informational.
(5) Environment : It is the source of external elements that impinge on the system. It determines how a system must function.
(6) Boundaries and Interfaces : A system should be defined by its boundaries- the limits that identify its components, processes and interrelationships when it interfaces with another system.
Types of System
Physical or Abstract :
Physical system is tangible entities that may be static or dynamic in nature. Abstract system is conceptual or non-physical. The abstract is conceptualization of physical situations.
Open and Closed :
An open system continually interacts with its environment. It receives input from the outside and delivers output to outside.
A closed system is isolated from environment influences.
Sub System and Super System :
Each system is part of a large system. The business firm is viewed as the system or total system when focus is on production, distribution of goal and sources of profit and income. The total system consists of all the objects, attributes and relationship necessary to accomplish an objective given a number of constraints. Sub systems are the smaller systems within a system. Super system denotes extremely large and complex system
Permanent and Temporary System :
A permanent system is a system enduring for a time span that is long relative to the operation of human. Temporary system is one having a short time span.
Natural and Man Made System :
System which is made by man is called man made system. Systems which are in the environment made by nature are called natural system.
Deterministic and Probabilistic :
A Deterministic system is one in which the occurrence of all events is perfectly predictable. If we get the description of the system state at a particular time, the next state can be easily predicted. Probabilistic system is one in which the occurrence of events cannot be perfectly predicted.
Man-made Information System :
It is generally believed that the information reduces uncertainty about a state or event. An information system is the basis for interaction between the user and the analyst. It determines the nature of relationship among decision makers. An information system may be defined as a set of devices, procedures and operating system designed around user-base criteria to produce information and communicating it to the user for planning control and performance.
4. differentiate between:-
a) an open and closed system
b) a deterministic and probabilistic system
Open and Closed:
An open system continually interacts with its environment. It receives input from the outside and delivers output to outside. A closed system is isolated from environment influences. In reality completely closed system are rare.
Deterministic and Probabilistic:
A Deterministic system is one in which the occurrence of all events is perfectly predictable. If we get the description of the system state at a particular time, the next state can be easily predicted. Probabilistic system is one in which the occurrence of events cannot be perfectly predicted.
5. Explain information life cycle in details? (w-08,s-10,s-04,w-04,s-07,w-07) or Explain the concept of system life cycle? (w-09) Ans:
A collection of components that work together to realize some objectives forms a system. Basically there are three major components in every system, namely input, processing and output.
In a system the different components are connected with each other and they are interdependent. For example, human body represents a complete natural system. We are also bound by many national systems such as political system, economic system, educational system and so forth. The objective of the system demands that some output is produced as a result of processing the suitable inputs. A well-designed system also includes an additional element referred to as ‘control’ that provides a feedback to achieve desired objectives of the system.
System life cycle is an organizational process of developing and maintaining systems. It helps in establishing a system project plan, because it gives overall list of processes and sub-processes required for developing a system.
System development life cycle means combination of various activities. In other words we can say that various activities put together are referred as system development life cycle. In the System Analysis and Design terminology, the system development life cycle also means software development life cycle.
Following are the different phases of system development life cycle:
 Preliminary study
 Feasibility study
 Detailed system study
 System analysis
 System design
 Coding
 Testing
 Implementation
 Maintenance
The different phases of system development life cycle is shown in

System development cycle stages are sometimes known as system study. System concepts which
are important in developing business information systems expedite problem solving and improves the quality of decision making.
The system analyst has to do a lot in this connection. They are confronted with the challenging task of creating new systems an planning major changes in the organization. The system analyst gives a system development project, meaning and direction.
The typical breakdown of an information systems life cycle includes a feasibility study, requirements, collection and analysis, design, prototyping, implementation, validation, testing and operation. It may be represented in the form of a block diagram as shown below:
a) Feasibility study
It is concerned with determining the cost effectiveness of various alternatives in the designs of the information system and the priorities among the various system components.
b) Requirements, collection and analysis
It is concerned with understanding the mission of the information systems, that is, the application areas of the system within the enterprise and the problems that the system should solve.
c) Design
It is concerned with the specification of the information systems structure. There are two types of design: database design and application design. The database design is the design of the database design and the application design is the design of the application programs.
d) Prototyping
A prototype is a simplified implementation that is produced in order to verify in practice that the previous phases of the design were well conducted.
e) Implementation
It is concerned with the programming of the final operational version of the information system. Implementation alternatives are carefully verifies and compared.
f) Validation and testing
It is the process of assuring that each phase of the development process is of acceptable quality and is an accurate transformation from the previous phase.
6. Differentiate between data and information.
Ans: Data : Data is raw facts. Data is like raw material. Data does not interrelate and also it does not help in decision making. Data is defined as groups of non-random symbols in the form of text, images, voice representing quantities, action and objects.
Information : Information is the product of data processing. Information is interrelated data. Information is equivalent to finished goods produced after processing the raw material. The information has a value in decision making. Information brings clarity and creates an intelligent human response in the mind.

According to Davis and Olson : “Information is a data that has been processed into a form that is meaningful to recipient and is of real or perceived value in the current or the prospective action or decision of recipient.”
In short, Information is data presented in a form that is meaningful to the recipient. It adds to knowledge and is relevant for the situation.
Two types of information are
 accounting information and
 management information.
Data becomes information when they are transformed to communicate meaning or knowledge, ideas or conclusions. By itself data is meaningless. The attributes of an item of information are: accuracy, form, frequency, breadth (scope), origin, time. horizon. Attributes of a set of information are relevance, completeness and timeliness.
It is a most critical resource of the organization. Managing the information means managing future. Information is knowledge that one derives from facts placed in the right context with the purpose of reducing uncertainty.
Characteristics of Information
The parameters of a good quality are difficult to determine for information. Quality of information refers to its fitness for use, or its reliability.
Following are the essential characteristic features :
i) Timeliness : Timeliness means that information must reach the recipients within the prescribed timeframes. For effective decision making, information must reach the decision-maker at the right
time, i.e. recipients must get information when they need it. Delays destroy the value of information. The characteristic of timeliness, to be effective, should also include up-to-date, i.e. current information.
ii) Accuracy : Information should be accurate. It means that information should be free from mistakes, errors &, clear. Accuracy also means that the information is free from bias. Wrong
information given to management would result in wrong decisions. As managers decisions are based on the information supplied in MIS reports, all managers need accurate information.
iii) Relevance : Information is said to be relevant if it answers especially for the recipient what, why, where, when, who and why? In other words, the MIS should serve reports to managers which is useful and the information helps them to make decisions..
iv) Adequacy : Adequacy means information must be sufficient in quantity, i.e. MIS must provide reports containing information which is required in the deciding processes of decision-making. The report should not give inadequate or for that matter, more than adequate information, which may create a difficult situation for the decision-maker. Whereas inadequacy of information leads to crises, information overload results in chaos.
v) Completeness : The information which is given to a manager must be complete and should meet all his needs. Incomplete information may result in wrong decisions and thus may prove costly to the organization.
vi) Explicitness : A report is said to be of good quality if it does not require further analysis by the recipients for decision making.
vii) Impartiality : Impartial information contains no bias and has been collected without any distorted view of the situation.
7. What is a system approach? List and explain the phases and steps involved in system approach? Ans:
System approach
Approaches to systems development, in professional organizations, usually follow one of two Basic models: the waterfall model or the spiral model.
The Waterfall model is the basis of most of the structured development methods that came into use from the 1970s onwards. It provides a framework for planning top – down systems development.
The development flows down a number of successive stages are typically:
• Systems analysis;
• Systems design;
• Systems build and test;
• Systems introduction and transition;
• Maintenance of production status systems.
The Waterfall Model
• Systems analysis;
• Systems design;
• Systems build and test;
• Systems introduction and transition;
• Maintenance of production status systems.
The Spiral Model
• Incremental approach to systems development
• System divided into smaller sub-sets for development and delivery.
• End-users’ functionality provided at regular intervals, rather than at the end of a waterfall development.
The Spiral model of systems development proposed by Barry Boehm, has become popular is basis for iterative systems development. The spiral model follows the same breakdown into stages, but takes an incremental approach to systems development. Typically, a system is divided into smaller sub-sets for development and delivery. This provides functionality to end users at regular intervals, rather than at the end of a waterfall development. It is also common in iterative development for highly-skilled developers to model systems with stakeholders, the design and implement them, rather than assign the stages to different departments or groups. Effective use of the spiral approach to system development can deliver systems quickly and ensure user involvement, especially when prototypes are part of the development approach.
8. Explain decision support system. Discuss the structure, function and components and advantage of DSS. Ans:
Decision support system (DSS) : Managers are usually faced with challenges which are unstructured. The problems they face are normally under situations involving uncertainties and risks. Decision making becomes very difficult under such situations. A system which provides solutions to such problems is known as decision support system (DSS).
Decision Support System refers to a class of systems which support in the process of decision making and does not always give a decision it self. Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision making activities. A properly designed DSS is an interactive software based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.
DSS is an interactive, flexible computer based information system. It uses rules and models for
Processing data, to support various managerial levels, ranging from top executives to mangers, in
their decision making. It supports all phases of decision making: intelligence, design, choice and
implementation. A DSS is usually built to support the solution of certain problem and does not replace the decision maker. As such, it is called a DSS application. It is user-friendly with strong graphical capabilities.
DSS components
The components of a DSS include a database of data used for query and analysis, software with Models, data mining and other analytical tools and a user interface. The DSS database is a collection of current or historical data from a number of applications or groups. It can be small database or a massive data warehouse from a large company, which is continuously being updated. The DSS software system includes software tools for data analysis. They contain various OLAP tools, data mining tools or a collection of mathematical and analytical models. A model can be a physical model, a mathematical model or a verbal model. Most commonly used are the statistical functions such as means, medians, deviations and scatter plots. Optimization models such as linear programming are used to determine optimal resource allocation.
DSS include following component:
• Model management
• Dialogs management
• Database management
• Hardware management
• Software management
Function performed by DSS:
• Model building
• What if analysis
• Goal seeking
• Risk analysis
• Graphical method
DSS is an application of Hebert Simon model, as discussed, the model has three phases :
i) Intelligence
ii) Design
iii) Choice
The DSS basically helps in the information system in the intelligence phase where the objective is to identify the problem and then go to the design phase for solution.
The choice of selection criteria varies from problem to problem. It is therefore, required to go through these phases again and again till satisfactory solution is found. In the following three phase cycle, we may use inquiry, analysis, and models and accounting system to come to rational solution.
These systems are helpful where the decision maker calls for complex manipulation of data and use of several methods to reach an acceptable solution using different analysis approach. The decision support system helps in making a decision and also in performance analysis.
DSS can be built around the rule in case of programmable decision situation. The rules are not fixed or predetermined and requires every time the user to go through the decision making cycle as indicated in Herbert Simon model.
Advantage of DSS:
 DSS should be adaptable and flexible.
 DSS should be interactive and provide ease of use.
 Effectiveness balanced with efficiency (benefit must exceed cost).
 Complete control by decision-makers.
 Ease of development by (modification to suit needs and changing environment) end users.
 Support modeling and analysis.
 Data access.
 Standalone, integration and Web-based
 Support for decision makers in semi structured and unstructured problems.
 Support managers at all levels.
 Support individuals and groups.
 Support for interdependent or sequential decisions.
 Support intelligence, design, choice, and implementation.
 Support variety of decision processes and styles
9. Write a note on OAS?
Ans: Office Automation System (OAS):
Office Automation Systems are among the newest and most rapidly expanding computer based information systems. They are being developed with the hope and expectation that they will increase the efficiency and productivity of office workers, typists, secretaries, administrative assistants, staff professionals, managers and others.
10. Write a brief note on TPS and its Types. Support our answer with suitable diagram? or Discuss elements, types and working of a TPS?
Ans: Transaction processing systems (TPS):
A transaction processing system (TPS) helps in conducting the daily routine activities like sales order entry, airline reservations, payroll etc.
Transactions are mainly observed at the bottom level of the management. Plenty of operational activities at the bottom level results in one or more transactions. Every transaction may be considered to generate information. The information generated can be highly structured. A structured information is easy to process further. Examples – payroll system, transport ticket reservation system, purchase order entry system, marks tabulation system etc.
Output of such systems may be of printed type or display type on the monitor of the computer. TPS may further be classified as online systems or batch systems. In online systems there is direct interaction of the operator and the TPS system. In batch systems activities of the same type are batched into groups and then processed.
Example of online systems – enquiry, checking availability of tickets etc. example of batch systems – entering parcel details belonging to one destination, procession student marks of one subject etc.
11. Write a note on knowledge systems. Support our answer with suitable diagram? Ans:
Knowledge Based Systems (KBS)
KBS is a system that represents knowledge. Abundant information is available today. These information are representatives of various facts and figures. These constitute knowledge base. The system adopted is capable of quick data acquisition and interpretation of the data which is necessary in decision making. This system is used as an expert to give expert advice on various subject matters and at time as a consultant. Such a system is known as knowledge based system.
KBS refers to a system of data and information used for decision making. The systems is automated to work on the knowledge based data and information required in a particular domain of management activity. The processing is done based on the past decisions taken under suitable conditions. Decision making is based on the fact that the condition is similar to the past situation hence the decision also is similar. Examples of KBS are Intelligent systems, robotics, neural networks etc.
The goal of computer scientists working in the field of artificial intelligence is to produce programs that imitate human performance in a wide variety of “intelligent” tasks. For some expert systems, that goal is close to being attained. For others, although we do not yet know how to construct programs that perform well on their own, we can begin to build programs that significantly assist people in their performance of a task.
KBS becomes successful in the organization when developers and users recognize and appreciate
the barriers in the system implementation. The barriers however lose the strength when competitive processes force organization to come out of these barriers.
The barriers are at four different locations:
• People in the organization
– Resistance to change
– Lack of motivation to learn
– Turnover of people
– Resistance to share knowledge
• Management of the organization
– Ego problem
– Los of power of possession
– Fear of loosing to competition
• Organization structure
– Complex, distributed, based on different principles of structuring posing problems in storage, Distribution sharing and security
• Knowledge itself
– Universal definition of 'knowledge' with respect to context
– Unanimity in coding, classifying and storing of knowledge
– Decision on specific knowledge to declare it as a general knowledge
12. What do we understand by value information system? Ans:
Dimensions of Information
There are three most common dimensions of information for MIS :
i) Economic Dimension : Economic dimension of information refers to the cost of information and its benefits. Generation of information costs money. Measuring cost and benefit of
information is difficult because of intangible characteristic of information.
ii) Cost of Information : Cost of information may include: Cost of acquiring data, Cost of maintaining data, Cost of generating information and Cost of communication information. Cost related to the response time require to generate information and communicating it. Thus, for system with low response time, the cost is high. The cost is depends on accuracy, speed of generation etc.
iii)Value of Information : Information has a cost for its acquisition and maintenance. Thus before a particular piece of information is acquired, decision maker must know its value. The information has a perceived value in terms of decision making. The decision maker feels more secured when additional information is received in case of decision making under uncertainty or risk.
iv) Perfect Information : The information is called a Perfect Information, if it wipes out uncertainty or risk completely. However, perfect information is a myth. The value of information is the value of the change in decision behavior because of the information. The change in the behavior due to new information is measured to determine the benefit from its use. To arrive at the value of information, the cost incurred to get this information is deducted from the benefit.
Value of information = Cost to get information-benefit
Given a set of possible decisions, a decision maker will select one on the basis of the available information. If the new information causes a change in the decision, then the value of information is the difference in the value between outcome of the old decision and that of new decision, less the cost obtaining the new information. The value of the additional information making the existing information perfect (VPI) is:
VPI = (V2 - V1) - (C2 - C1)
Where V is the value of the information and C is the cost of obtaining the information. V1 and C1 relate to one set of information V2, C2 relate to the new set. In MIS, the concept of the value of information is used to find out the benefit of perfect information and if the value is significantly
high, the system should provide it. If the value is insignificant, it would not be worth collecting the additional information.
v) Business Dimension : Different types of information are required by managers at different levels of the management hierarchy. The information needs of managers at strategic planning level are altogether different that those of operational control managers. It is because of the fact that managers at different levels are required to perform different functions in an organization.
vi) Technical Dimension: This dimension of information refers to the technical aspects of the database. It includes the capacity of database, response time, security, validity, data interrelationship etc.
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