Amity Campus

Uttar Pradesh
India 201303
ASSIGNMENTS
PROGRAM: MFC
SEMESTER-II
Subject Name:
Study COUNTRY:
Roll Number (Reg. No.):
Student Name:

MANAGEMENT INFORMATION SYSTEM

SOMALIA
MFC001512014-2016091
MOHAMED ABDULLAHI KHALAF

INSTRUCTIONS
a) Students are required to submit all three assignment sets.
ASSIGNMENT
Assignment A
Assignment B
Assignment C

DETAILS
Five Subjective Questions
Three Subjective Questions + Case Study
Objective or one line Questions

MARKS
10
10
10

b) Total weight-age given to these assignments is 30%. OR 30 Marks

c) All assignments are to be completed as typed in word/pdf.
d) All questions are required to be attempted.
e) All the three assignments are to be completed by due dates and need to be
submitted for evaluation by Amity University.
f) The students have to attach a scanned signature in the form.
Signature

Date: 06, June, 2015

( ) Tick mark in front of the assignments submitted
Assignment A

Assignment B

Assignment C

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MANAGEMENT INFORMATION SYSTEM

ASSIGNMENT A
Q: 1).

Define MIS? What are the characteristics of MIS?

Answer:
The Management Information System (MIS) is a concept of the last decade or two. It has
been understood and described in a number of ways. It is also known as; the Information
System, the Information and Decision System, the Computer-based Information System.
MIS is an abbreviation of the term: Management Information System. It consists of three
different sub terms, namely; Management, Information and System. These three
components of MIS give more complete and focused definition.
Management:
Management covers the planning, control, and administration of the operations of a
concern. The top management handles planning; the middle management concentrates on
controlling; and the lower management is concerned with actual administration.
Information:
Information, in MIS, means the processed data that helps the management in planning,
controlling and operations. Data means all the facts arising out of the operations of the
concern. Data is processed i.e. recorded, summarized, compared and finally presented to the
management in the form of MIS report.
System:
Data is processed into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control. Thus MIS means a system for processing data in
order to give proper information to the management for performing its functions.
Definition of MIS:
Management Information System, 'MIS' is a planned system of collecting, storing and
disseminating data in the in the form of information needed to carry out the functions of
management.
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A management information system (MIS) is a system or process that provides the

information necessary to manage an organization effectively. MIS and the information it
generates are generally considered essential components of prudent and reasonable business
decisions. It is directed towards the managerial functions of planning, controlling and
monitoring, and decision making which are associated at different levels of management.
Management information systems (MIS), produce fixed, regularly scheduled reports based
on data extracted and summarized from the firms underlying transaction processing systems
to middle and operational level managers to identify and inform structured and semistructured decision problems.
A management information system (MIS) provides information that organizations need to
manage themselves efficiently and effectively. Management information systems are typically
computer systems used for managing five primary components: hardware, software, data
(information for decision making), procedures (design, development and documentation),
and people (individuals, groups, or organizations). Management information systems are
distinct from other information systems, in that they are used to analyze and facilitate
strategic and operational activities.
MIS has more than one definition, some of which are given bellow:
1) The MIS is defined as a system which provides information support for decisionmaking in the organization.
2) The MIS is defined as an integrated system of man and machine for providing the
information to support the operation, the management and the decision-making
function in the organization.
3) The MIS is defined as a system based on the database of the organization evolved for
the purpose of providing information to the people in the organization.
4) The MIS is defined as a Computer-based Information System.
From these definitions we can conclude that 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.

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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.
OBJECTIVES OF MIS:
An effective MIS has the following objectives
Facilitate the decision - making process by furnishing information in the proper time
frame. This helps the decision - maker to select the best course of action.
Provide requisite information at each level of management to carry out their
functions.
Help in highlighting the critical factors to the closely monitored for successful
functioning of the organization.
Support decision-making in both structured and unstructured problem environments.
Provide a system of people, computers, procedures, and interactive query facilities,
documents for collecting, sorting, retrieving and transmitting information to the
users.
CHARACTERISTICS OF MIS:
Following are the characteristics of an MIS:

It should be based on a long-term planning.

It should provide a holistic view of the dynamics and structure of the organization.
It should work as a complete and comprehensive system covering all interconnecting
sub-systems within the organization.
It should be planned in a top-down way, as the decision makers or the management
should actively take part and provide clear direction at the development stage of the
MIS.
It should be based on need of strategic, operational and tactical information of
managers of an organization.
It should also take care of exceptional situations by reporting such situations.
It should be able to make forecasts and estimates, and generate advanced
information, thus providing a competitive advantage. Decision makers can take
actions on the basis of such predictions.
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It should create linkage between all sub-systems within the organization, so that the
decision makers can take the right decision based on integrated view.
It should allow easy flow of information through various sub-systems, thus avoiding
redundancy and duplicity of data. It should simplify the operations with as much
practicability as possible.
Although the MIS is an integrated, complete system, it should be made in such a
flexible way that it could be easily split into smaller sub-systems as and when
required.
A central database is the backbone of a well-built MIS.

Characteristics of Computerized MIS

Following are the characteristics of a well-designed computerized MIS:

It should be able to process data accurately and with high speed, using various
techniques like operations research, simulation, heuristics etc.
It should be able to collect, organize, manipulate and update large amount of raw data
of both related and unrelated nature, coming from various internal and external
sources at different periods of time.
It should provide real time information on ongoing events without any delay.
It should support various output formats and follow latest rules and regulations in
practice.
It should provide organized and relevant information for all levels of management:
strategic, operational and tactical.
It should aim at extreme flexibility in data storage and retrieval.

Characteristics of Effective & Useful MIS:

To function effectively as an interacting, interrelated, and interdependent feedback tool for
management and staff, MIS must be "useable." The essential elements of a useable MIS system are
listed below. The usefulness of MIS is hindered whenever one or more of these elements are
compromised.

1) Timeliness:
To simplify prompt decision making, an institution's MIS should be capable of providing
and distributing current information to appropriate users. Information systems should be
designed to expedite reporting of information. The system should be able to quickly collect
and edit data, summarize results, and be able to adjust and correct errors promptly.
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2) Accuracy:
A sound system of automated and manual internal controls must exist throughout all
information systems processing activities. Information should receive appropriate editing,
balancing, and internal control checks. A comprehensive internal and external audit program
should be employed to ensure the adequacy of internal controls.
3) Consistency:
To be reliable, data should be processed and compiled consistently and uniformly. Variations
in how data is collected and reported can distort information and trend analysis. In addition,
because data collection and reporting processes will change over time, management must
establish sound procedures to allow for systems changes. These procedures should be well
defined and documented, clearly communicated to appropriate employees, and should
include an effective monitoring system.
4) Completeness:
Decision makers need complete and pertinent information in a summarized form. Reports
should be designed to eliminate clutter and voluminous detail, thereby avoiding "information
overload."
Relevance Information provided to management must be relevant. Information that is
inappropriate, unnecessary, or too detailed for effective decision making has no value. MIS
must be appropriate to support the management level using it. The relevance and level of
detail provided through MIS systems directly correlate to what is needed by the board of
directors, executive management, departmental or area mid-level managers, etc. in the
performance of their jobs.
5) Management-oriented:
The basic objective of MIS is to provide information support to the management in the
organization for decision making. So an effective MIS should start its journey from appraisal
of management needs, mission and goal of the business organization. It may be individual or
collective goals of an organization. The MIS is such that it serves all the levels of
management in an organization i.e. top, middle and lower level.

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6) 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.
7) 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.
8) Common data flows:
The integration of different sub systems will lead to a common data flow which will further
help in avoiding duplication and redundancy in data collection, storage and processing. For
example, the customer orders are the basis for many activities in an organization viz. billing,
sales for cashing, etc. Data is collected by a system analyst from its original source only one
time. Then he utilizes the data with minimum number of processing procedures and uses the
information for production output documents and reports in small numbers and eliminates
the undesirable data. This will lead to elimination of duplication that simplify the operations
and produce an efficient information system.
9) 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.
10) 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
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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.
11) 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 which consolidates and integrates data
records formerly stored in many separate data files. The organization of the database allows
it to be accessed by each subsystem and thus, eliminates the necessity of duplication in data
storage, updating, deletion and protection.
12) 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.
13) 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.
14) 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:
Strategic Information System - A Strategic Information System (SIS) 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."
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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)
2)
3)
4)

They change the way the firm competes.

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

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 issue before any
organization is the challenge of meeting its goals and objectives. Strategic IS enables such
organization 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. This unit deals with the critical aspects of the strategic
information system. This units indicates the theoretical concepts and the way in which the
same are realized in practice. The flow of the unit is in such a way that it starts with the
development of contemporary theory about strategic uses of corporations' internal
information systems leading to systems which transcend the boundaries of particular
organizations. The process whereby strategic information systems are created or identified is
then examined. A number of weaknesses in the existing body of theory are identified, and
suggestions made as to directions in which knowledge is or may be progressing. 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 has 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 power means to manage
and control various activities and decision making process. The original idea of automating
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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:
Planning of information systems:
Many organizations have purchased computers for data processing and for meeting the
statutory requirements of filling the returns and reports to the government. Computers are
used mainly for computing and accounting the business transactions and have not been
considered as tool for information processing.
The organizations have invested on computers and expanded its use by adding more or
bigger computers to take care of the numerous transactions in the business. In this
approach, the information processing function of the computers in the organization never
got its due regard as an important asset to the organization. In fact, this function is
misinterpreted as data processing for expeditious generation of reports and returns, and not
as information processing for management action and decisions.
However, the scene has been changing since late eighties when the computers become more
versatile, in the function of storage, communication, intelligence and language. The
computer technology is so advanced that the barriers of storage, distance understanding of
language and speed are broken.
In short, we need a management information system flexible enough to deal with the
changing information needs of the organization. It should be conceived as an open system
continuously interacting with the business environment with a built-in mechanism to
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provide the desired information as per the new requirements of the management. The
designing as such in open system is a complex task. It can be achieved only if the MIS is
planned, keeping in view, the plan of the business management of the organization.
Development of information systems:
Once the plan of MIS is done; the development of the MIS calls for determining for the
strategy of development. As discussed earlier, the plan consists of various systems and sub
systems. The development strategy determines where to begin and what sequence the
development can take place with the sole objective of assuring the information support.
The choice of the system or the sub-system depends on its position in the total MIS plan,
the size of the system, the user understands of the systems and the complexity and its
interface with other systems. The designer first develops systems independently and starts
integrating them with other systems, enlarging the system scope and meeting the varying
information needs.
Determining the position of the position of the system in the MIS is easy. The real problem
is the degree of structure, and formalization in the system and procedures which determine
the timing and duration of development of the system.
Q: 4).

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 locations, business
partners, customers and vendors. It has no geographic boundaries as 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 and customers transact business anytime from anywhere. Internet
capabilities have given E-business enterprise a cutting edge capability advantage to increase
the business value. It has opened new channels of business as buying and selling can be done
on Internet. It enables to reach new markets across the world anywhere due to
communication capabilities. It has empowered customers and vendors / suppliers through
secured access to information to act, wherever necessary. The cost of business operations
has come down significantly due to the elimination of paper-driven processes, faster
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communication and effective collaborative working. The effect of these radical changes is
the reduction in administrative and management overheads, reduction in inventory, faster
delivery of goods and services to the customers.
The scope of E-business is limited to executing core business process of the organization.
The process would have external interface life suppliers, customers, contractors, consultants
and so on. The core business process of the organization is procurement, manufacturing,
selling, distribution, delivery and accounting. These core process are best run by application
packages like enterprise definition is made wider including customer, suppliers and
distributors, application package like supply chain management (SCM) is best suited for
planning and execution of entire business process.
In addition to these core business process, organizations use internet enabled systems and
other technologies to handle these process more effectively. Transaction processing
workflow, work group and process control applications are the backend support systems to
main ERP/SCM enterprise management systems.
E-business systems scope manages cross-functional application systems as a single business
process. It integrates cross functions seamlessly, automates the tasks, and updates the
information is real time the ERP/SCM and now customer Relations management system
(CRM) is a family of software solution packages dedicated to care management of functions
of business. They are supported by front-end and back-end systems and applications
designed for transaction processing. Work flow management, work group processing and
automated process control, E-business systems use client/server architecture and run an
internet platform. E-business systems lay foundation for other Enterprise applications,
namely E-commerce, E-communications, and E-collaboration.
In Accounting and finance system, IT application is very strong. E-business applications in
this area are capable of accounting every business entity such as material, men, machines,
cash, customer, vendor and so on, all process which deal with transaction, computing,
accounting and analysis are automated using system intelligence and knowledge driver
intelligent systems.
E-business involves the transaction of business or buying and selling using the electronic
medium usually the internet. It has several benefits as well as challenges. Below are some
listed challenges of E-business to its management.
Management of an E-business will face challenges of maintaining the privacy of their
businesses. Privacy involves the right to control ones information. While invasion of privacy
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is generally perceived as an undesirable loss of autonomy, government and business

organizations do need to collect data in order to facilitate administration and exploit
marketing opportunities. Electronic commerce presents a particular challenge to privacy, as
personal information is routinely collected and disseminated in a largely unregulated manner.
Preventing abusive invasions of privacy is complicated by the lack of an international legal
standard.
An E-business is likely to face challenges of piracy. Intellectual property, such as computer
software, books, music, and movies, is protected, albeit imperfectly, by patents, trade secrets,
and copyrights. However, such essentially intangible goods can be easily copied and
transmitted electronically over the Web for unlawful reproduction and use. Combinations of
legal statutes and technological safeguards, such as antipiracy encryption and electronic
watermarks, are emerging.
Also, management of an e-business has to work to ensure that the internet site which hosts
and advertises their products and services is regularly updated and in time. This may mean
recruiting experts or training already existing staff and ultimately may involve spending more
of business proceeds.
Again, after having updated the site, its maintenance and security is of essence. Management
has the responsibility of ensuring that the site is maintained and secured to prevent hackers
and fraudsters from defrauding the business. Management therefore has to always think and
plan ahead so as to improve services/products and outwit these fraudsters. This may mean
more work and perhaps sleepless nights for management.
Management of an E-business also has to invest in information systems and decision
support systems tailored which can help their goals and objectives. Failure to do so may
result in serious consequences for the business.

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ASSIGNMENT B
Q: 1).
What is an internet? Explain the differences between internet, intranet
and extranet.
Answer:
Internet is a global network of interconnected computers, enabling users to share
information along multiple channels. Typically, a computer that connects to the Internet can
access information from a vast array of available servers and other computers by moving
information from them to the computer's local memory. The same connection allows that
computer to send information to servers on the network; that information is in turn accessed
and potentially modified by a variety of other interconnected computers. A majority of
widely accessible information on the Internet consists of inter-linked hypertext documents
and other resources of the World Wide Web (WWW). Computer users typically manage sent
and received information with web browsers; other software for users' interface with
computer networks includes specialized programs for electronic mail, online chat, file
transfer and file sharing.
The movement of information in the Internet is achieved via a system of interconnected
computer networks that share data by packet switching using the standardized Internet
Protocol Suite (TCP/IP). It is a "network of networks" that consists of millions of private
and public, academic, business, and government networks of local to global scope that are
linked by copper wires, fiber-optic cables, wireless connections, and other technologies.
Difference between internet, intranet and extranet as follow:
Internet:
Internet is 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 Arpanet. A network
of computer networks which operates world-wide using a common set of communications
protocols. It is the vast collection of inter-connected networks across the world that all use the
TCP/IP protocols.
It is 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
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communication tool of more than 12,000 computer networks that share a common addressing
scheme.

Intranet:
An internal is use private network inside an organization that uses the same kind of software
which would also be found on the Internet. It is Inter-connected network within one
organization that uses Web technologies for the sharing of information internally, not
worldwide. Such information might include organization policies and procedures,
announcements, or information about new products.
An intranet is a restricted-access network that works like the Web, but isn't on it. Usually
owned and managed by a company, an intranet enables a company to share its resources
with its employees without confidential information being made available to everyone with
Internet access.
A network based on TCP/IP protocols (an internet) belonging to an organization, usually a
corporation, accessible only by the organization's members, employees, or others with
authorization. An intranet's Web sites look and act just like any other Web sites, but the
firewall surrounding an intranet fends off unauthorized access. Like the Internet itself,
intranets are used to share information.
An intranet is an information portal designed specifically for the internal communications of
small, medium or large businesses, enterprises, governments, industries or financial
institutions of any size or complexity. Intranets can be custom-designed to fit the exact
needs of businesses no matter where they are situated.
Users of intranets consist mainly of:

Members of the executive team.

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

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
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with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed
as part of a company's intranet that is extended to users outside the company. An extranet
requires security and privacy.
A new buzzword that refers to an intranet that is partially accessible to authorized outsiders.
Whereas an intranet resides behind a firewall and is accessible only to people who are
members of the same company or organization, an extranet provides various levels of
accessibility to outsiders. You can access an extranet only if you have a valid username and
password, and your identity determines which parts of the extranet you can view. An
extranet is somewhat very similar to an intranet. Extranets are designed specifically to give
external, limited access to certain files of your computer systems to:
Certain large or privileged customers.
Selected industry partners.
Suppliers and subcontractors... etc.
Therefore, a carefully designed extranet can bring additional business to your company.
Intranets and extranets all have three things in common:
They both use secured Internet access to the outside world.
Both can drastically save your company or organization a lot of money.
Both need a user ID & password to control access to the whole system.
The professional development team at My Web Services has the expertise and the right tools
to design the right intranet or extranet that will meet your exact needs, both for today and
the future.

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Internet

Intranet

Extranet

This is the world-wide network of

computers accessible to
anyone who knows their
Internet Protocol (IP) address
- the IP address is a unique set
of numbers that defines the
computer's location.

This is a network that is not

available to the world outside of the
Intranet. If the Intranet network is
connected to the Internet, the
Intranet will reside behind a firewall
and, if it allows access from the
Internet, will be an Extranet. The
firewall helps to control access
between the Intranet and Internet
to permit access to the Intranet only
to people who are members of the
same company or organization.

An Extranet is
actually an
Intranet that is
partially
accessible to
authorized
outsiders. The
actual server
will reside
behind a
firewall.

Before this named computer

can be accessed, the name
needs to be resolved into an
IP address. To do this your
browser will access a Domain
Name Server (DNS)
computer to lookup the name
and return an IP address - or
issue an error message to
indicate that the name was not
found. Once your browser has
the IP address it can access
the remote computer. The
actual server does not reside
behind a firewall - if it did, it
would be an Extranet. It may
implement security at a
directory level so that access is
via a username and password,
but otherwise all the
information is accessible.
To see typical security have
a look at a sample secure
directory - the username
is Dr and the password
is Who.

In its simplest form, an Intranet can

be set up on a networked PC
without any PC on the network
having access via the Intranet
network to the Internet.
For example, consider an office
with a few PCs and a few printers
all networked together. The
network would not be connected to
the outside world. On one of the
drives of one of the PCs there
would be a directory of web pages
that comprise the Intranet. Other
PCs on the network could access
this Intranet by pointing their
browser to this directory.
From then onwards they would
navigate around the Intranet in the
same way as they would get around
the Internet.

The firewall
helps to control
access between
the Intranet and
Internet
permitting
access to the
Intranet only to
people who are
suitably
authorized. The
level of access
can be set to
different levels
for individuals
or groups of
outside users.
The access can
be based on a
username and
password or an
IP address.

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Q: 2).
Explain the application of MIS by taking either materials management
or production planning system in a manufacturing industry or service
organization.
Answer:
In the manufacturing industry, production planning is a very important thing to do so as to
increase profits and maximize wealth. The use of MIS at various departments or stages of
manufacturing plays a vital role in production planning. This can be done in several ways as
explained below:
Marketing Information Systems is used to process orders from other organizations for the
firms products. On the basis of these orders, the production/operations section assess
available inventory so as to ascertain whether or not it will be adequate to produce to meet
orders. If not, an order is made to the firms suppliers for inventory. This is done with the
help of logistics management information system. Also, with the use of resources
management information systems, the firm is able to assess itself in terms of its people,
know-how, plant facilities and equipment hence is able to tell whether or not it has the
capacity to produce to meet the orders placed for its products. When the firm acquires
adequate inventory, the production/operation section goes into production as scheduled.
Then, business acquisition management information systems are used to handle information
related to markets, competitors, sales etc. Logistics management information systems are
used to help with accounting for inventory.
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:

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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, Through website, advertisement
seeking, checking, assessing

Transition to service

Step towards service

Pre-service

Cross
checking
document, records

Service

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

Post service

Concluding the
existing assistance

Information brochure & online

application form.
the Cross check the
application form

certificate,

service, Giving world class placement

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.

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Responsibilities of MIS plays important role of providing information to the best

possible way, so that customers expectations are fulfilled.

Customer queries (telephone, web, E-mail)

Transition to service
Customer arrives at hotel reception

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

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Service
Service requests: lunch, dinner, room service

Post-Service
Customer gives feedback

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CASE STUDY
THE CASE OF A DEPARTMENTAL STORE
Mr. BAWA, Director (Sales) of the BAWA Departmental Store Chain in Uganda is a
worried person. The worries revolve around the number of complaints he has been receiving
from the Store Mangers about 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.

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Discuss:
Q: 1).

The general conditions of the Chain now and in the immediate future.

Answer:
The general condition of the chain is good for now. This is demonstrated in the percentage
increase in sales over the last three years. However, the situation can be better. As the chain
plans to expand within the next five years, its focus should not be shifted away from
equipping and maintaining existing infrastructure, equipment etc. the broken down systems
should therefore be maintained/replaced.
Q: 2).
What are the problems, the Chain is facing. List them in order of
priority.
Answer:
The chain is facing the following problems;
inadequate computers for the stores
lack of experts or know-how on the part of workers to develop, operate or maintain
the system leading to breakdown
Q: 3).

Suggest a solution to overcome the problems as listed by you.

Answer:
Management should fully equip new stores and maintain existing ones. While doing this, it
should also engage the services of experts to develop improved systems for efficient
functioning or train staff to better operate and maintain the system being used currently.

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

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

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

Q: 2).
Which of the following characteristics of a system reflects the fact that
all systems are comprised of subsystems?
a)
b)
c)
d)

Synergy
Differentiation
Regulation
Hierarchy ()

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

decentralized computing
distributed computing
end-user computing ()
client/server computing

Q: 4).
A database management system must include which of the following
components?
I.
II.
III.
IV.

A data definition language

A data manipulation language
A data dictionary
A data redundancy protocol
a)
b)
c)
d)

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

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Q: 5).
Which of the following is NOT a benefit of electronic data interchange
(EDI)?
a)
b)
c)
d)

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

Q: 6).
Which of the following terms is used to describe the transmission of
data one character at a time?
a)
b)
c)
d)

Synchronous
Asynchronous ()
Half-duplex
Full-duplex

Q: 7).
Multiplexors and concentrators are used in telecommunication systems
to do which of the following?
a)
b)
c)
d)

Perform high-speed arithmetic operations

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

Q: 8).
Which of the following systems development approaches involves a
highly iterative process of building, using, evaluating, and refining?
a)
b)
c)
d)

System development life cycle (SDLC)

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

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Q: 9).
In MIS the concept of outsourcing can be best defined as which of
the following?
I.
II.

An option that some organizations use to control data processing costs

A process of releasing an organizations computer operations to an external
vendor
A data support and retrieval system that organizations can access electronically

III.
a)
b)
c)
d)

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

Q: 10).
a)
b)
c)
d)
Q: 11).

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

ADSS
Office automation
The MIS
An expert system ()
You would find an executive on the strategic-planning Level.

a) TRUE ()
b) FALSE
Q: 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) FALSE ()

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Q: 14).
a)
b)
c)
d)

Users of the MIS include

managers
persons and organizations in the firms environment
non-managers
all of the above ()

Q: 15). The box that includes AIS, MIS, DSS, the virtual office, and knowledgebased systems is named (Choose one only)
a)
b)
c)
d)

the super-system
the environment
the computer-based information system (CBIS) ()
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 ()

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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 form 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)
b)
c)
d)

An article written in a trade paper.

A chance comment in a telephone conversation
Data that are collected from a data collection agency ()
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
()

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Q: 22).
a)
b)
c)
d)

Why do computer projects in MIS need to be carefully managed?

Computer professionals are rather disorganized people.

Many specialist skills are needed, which have to be coordinated ()
MIS systems are powerful bits of software that make decisions.
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

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Q: 26). When a system is designed, it is put together with a modular design

structure. This means that:
a) System is constructed according to the prototype model.
b) The software is made up of sub-units and put together to make a finished
unit ()
c) The hardware is made up of sub-units that are put together.
d) The implementation will be in phases.
Q: 27). Which one of the following statements would indicate that a new MIS
was successfully implemented?
a)
b)
c)
d)

Perfective maintenance has been carried out.

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

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

executives to being a collaborative effort between IS business and their
constituencies.
a) True ()
b) False
Q: 29). Governance of IT is a collaborative effort between IS, the business, and
their constituencies.
a) True
b) False ()
Q: 30). System integration and infrastructure development is the SYSTEM
INFRASTRUCTURE DEVELOPMENT LIFE CYCLE.

Q: 31).
RELATIONSHIP MANAGEMENT is characterized as the
development and management of relationships with external service providers.

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Q: 32).
the:
a)
b)
c)
d)
e)

The device that was hailed as a technological marvel in the 1950's was

Mainframe ()
PC
Calculator
Terminal
Abacus

Q: 33). HEWLETT PACKARD was credited with the creation of the first
handheld calculator.

Q: 34).

IBM and ORACLE 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 ONLINE SHOPPING.

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 KNOWLEDGE ASSETS.

Q: 37).
a)
b)
c)
d)

An MIS helps businesses achieve:

Its goals and objectives ()

Parity.
Fairness.
Security.

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

_________________.
a)
b)
c)
d)

Software.
Hardware.
Data.
People ()

Q: 39).
a)
b)
c)
d)

Interchangeability ()
Relevance.
Cost effectiveness.
Timeliness.

Q: 40).
a)
b)
c)
d)

Which of the following is not a characteristic of good information?

In order to be cost effective, information must be:

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

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