Xaviers Institute of Business Management Studies

Management Information Systems

Maximum: 80 Marks

PART - A (8 X 5 = 40)
Answer any EIGHT Questions

1. Explain the sources of information.

 ANS:- Below are few Source of Information with explanations

 Transaction Processing Systems

A transaction process system (TPS) is an information processing system for business
transactions involving the collection, modification and retrieval of all transaction data.
Characteristics of a TPS include performance, reliability and consistency. TPS is also
known as transaction processing or real-time processing

 Office Automation Systems

Office automation systems (OAS) are systems that are designed to increase the
productivity of clerical workers and knowledge workers and enhance communication
in the workplace. Example: - OAS are word processing, desktop publishing, voice mail,
e-mail, videoconferencing, and multimedia systems.

 Knowledge Management Systems

 A knowledge management system is any kind of IT system that stores and retrieves knowledge
to improve understanding, collaboration, and process alignment. Knowledge management
systems can exist within organizations or teams, but they can also be used to center your
knowledge base for your users or customers

 Management Information Systems

Management Information Systems (MIS) is the study of people, technology, organizations, and
the relationships among them. MIS professionals help firms realize maximum benefit from
investment in personnel, equipment, and business processes. MIS is a people-oriented field
with an emphasis on service through technology

 Decision Support Systems

A decision support system (DSS) is a computerized program used to support determinations,
judgments, and courses of action in an organization or a business. A DSS sifts through and
analyzes massive amounts of data, compiling comprehensive information that can be used to
solve problems and in decision-making.

 Executive Support System

An Executive Support System (ESS) is software that allows users to transform enterprise data
into quickly accessible and executive-level reports, such as those used by billing, accounting
and staffing departments. An ESS enhances decision making for executives. ESS is also known
as Executive Information System (EIS)

2. Explain the system development life cycle.

 ANS:- The systems development life cycle (SDLC) is a conceptual model used in project
management that describes the stages involved in an information system development project,
from an initial feasibility study through maintenance of the completed application. SDLC can
apply to technical and non-technical systems

The SDLC has five phases: inception, design, implementation, maintenance, and audit or
disposal, which includes an assessment of the risk management plan.
Inception
The practice of entering dreams and planting an idea in someone's head. Normally Cobb and
his team only invade dreams to steal secrets and they aren't sure if Inception is really possible.
The Architect: The person who constructs the dream world inside the mind of the Dreamer

Design
A design is a plan or specification for the construction of an object or system or for the
implementation of an activity or process, or the result of that plan or specification in the form
of a prototype, product or process. The verb to design expresses the process of developing a
design.

Implementation
An act or instance of implementing something: the process of making something active or
effective implementation of a new policy/law The Vatican returned the revised text to the
bishops for implementation

Maintenance
The definition of maintenance is providing support or upkeep to something. An example of
maintenance is a janitor keeping a school clean. To assist a party to a lawsuit with which one
has no connection by providing financial or other support to enable the party to pursue the
matter

Audit or disposal
Audit is the examination or inspection of various books of accounts by an auditor followed by
physical checking of inventory to make sure that all departments are following documented
system of recording transactions. It is done to ascertain the accuracy of financial statements
provided by the organization.

A specific method of tending to matters, as in business. The act or process of transferring

something to or providing something for another. the power or opportunity to make use of
someone or something (esp. in the phrase at one's disposal) a means of destroying waste
products, as by grinding into particles.
 4. What are major phase in hardware and software selection
ANS:- Please refer below the phases in Hardware & Software Selections

Hardware Steps of Selection Process are

1. Requirement Analysis.
2. System Specifications.
3. Request for proposal.
4. Evaluation & validation.
5. Vendor selection.
6. Post-installation review.

Components of an Effective Software Selection Process

1. Identify the Problem. ...
2. Perform a Requirements Analysis. ...
3. Research the Market for Vendors. ...
4. Request Information from Vendors. ...
5. Submit a Request for Proposal. ...
6. Invite Vendors for a Demo. ...
7. Choose to Build or Buy a Solution. ...
8. Get Help with Software Selection.

5. Why is database important in MIS? Explain.

ANS: - A database is an organized collection of structured information, or data, typically stored
electronically in a computer system. A database is usually controlled by a database
management system (DBMS).
A database is typically designed so that it is easy to store and access information. A good
database is crucial to any company or organization. This is because the database stores all the
pertinent details about the company such as employee records, transactional records, salary
details etc.
 Database, also called electronic database, any collection of data, or information that is specially
organized for rapid search and retrieval by a computer. Databases are structured to facilitate
the storage, retrieval, modification, and deletion of data in conjunction with various data-
processing operations.

Data consistency is ensured in a database because there is no data redundancy. All data appears
consistently across the database and the data is same for all the users viewing the database.
Moreover, any changes made to the database are immediately reflected to all the users and
there is no data inconsistency

The benefits of good Database Design

 Easy Retrieval of Information. If the design is developed properly, then it would be easier to
retrieve information
 Easier Modification
 Easy to Maintain
 Information
 Well-designed Database

6. Give an overview of marketing management information

system.
ANS:- A marketing information system is a continuing and interacting structure of people,
equipment and procedures to gather, sort, analyses, evaluate, and distribute pertinent, timely
and accurate information for use by marketing decision makers to improve their marketing
planning, implementation, and control

Management Information System- A set of efficient procedures and techniques that help
organization to collect, evaluate, sort and generate reports for making effective marketing
decisions. It helps to provide an organized flow of information and support marketing activities
of an organization.

9. Describe the elements of a system.

 A system has three basic elements input, processing and output. The other elements include
control, feedback, boundaries, environment and interfaces. Input: Input is what data the system
receives to produce a certain output

Input: - A computer file that contains data that serve as input to a device or program. Input file.
Computer science, computing - the branch of engineering science that studies (with the aid of
computers) computable processes and structures.

Processing: - Manipulation of data by a computer. It includes the conversion of raw data to

machine-readable form, flow of data through the CPU and memory to output devices, and
formatting or transformation of output. Any use of computers to perform defined operations on
data can be included under data processing.

Output: - The process and method by which data can be studied under different circumstances
and manipulated as required by the researcher. Any statistical analysis produces an output data
that needs to be studied

An information system is described as having five components.

 Computer hardware. This is the physical technology that works with information. ...
 Computer software. The hardware needs to know what to do, and that is the role of software. ...
 Telecommunications. ...
 Databases and data warehouses. ...
 Human resources and procedures.

11. Explain the roles played by a system analyst.

ANS:-A systems analyst is a person who uses analysis and design techniques to solve business
problems using information technology. Systems analysts may serve as change agents who
identify the organizational improvements needed, design systems to implement those changes,
and train and motivate others to use the systems.
The system analyst is a person who is thoroughly aware of the system and guides the system
development project by giving proper directions. He is an expert having technical and
interpersonal skills to carry out development tasks required at each phase.
The most important role of the business systems analyst is to promote efficiency through the
systems used in a company. This is broken into two components: Improving and optimizing
current systems in the business; and. creating new systems to support the company's strategies

12. Discuss the pitfalls in MIS development.

ANS:-  Following are the pitfalls of the MIS development : ;

1. Emphasis on Clerical System: Just taking over an existing clerical system and modifying it
without upgrading or changing it does not help. The clerical system has to be upgraded to a
management system. On the other hand, computers have been put to work on those things that
are best understood and easily structured and which require little management involvement. 

2. Communication gap between Computer Technologist and Manager/ User: Ensuring maximum

cooperation and coordination between computer personnel and managers is necessary. A
greater degree of interaction and involvement between the systems function and the
management function is required. 

3. Lack of a Master Plan: A systematic long range plan/planned approach is necessary for
establishing an effective Management Information System. Increased focus on the area of
problems definition is required in the systems analysis. The dramatic changes in business
strategy together with changes in the top management personnel and organization structure
call for a through plan.

4.  Subordination of MIS Function to EDP Accounting System: Management Information System's

function should be made an independent function so that it reports directly to top   management.  

5. Lack of Managerial Participation: This involvement and support of top management as well as

participation of all managers in the design of their own management information system are
necessary. If top management tends to depend upon its informally designed private information
systems, development of structured, formalized and a public management information systems
becomes difficult. Many top managers wrongly feel that good strategic decisions are made more
by intuition than by a quantitative analysis of the available data.
 6. Overlooking Human Acceptance: Users of Management Information System should be involved
right at the early stages of design. Their cooperation by demonstrating how Management
Information System will positively affect their job is a must. 

7. Lack of Resources and Trained Personnel: Lack of trained personnel consisting of system

analysts, system designers, programmers and chief information officers who are business
trained and/or have a basic business prospective is a handicap.  

8. Voluminous and Unstructured Nature of Data: Sometimes the volume of data itself can be a
hurdle unless careful sifting is done. On the other hand, it may also be difficult to locate and
retrieve relevant data. Often, the data required by top management is unstructured, non-
programmed, future oriented. Inexact and external and hence difficult to capture.

9. Limited Use of Management Science and or Techniques: Some of the ways of increasing the
effective of Management Information System include motivating managers to participate and
get involved in Management Information System, establishing consistent performance and work
criteria for Management Information System, maintaining simplicity and ease of use, training
systems analysts and careful consideration of basic computer feasibility criteria like volume and
repetitive nature of transactions, degree of mathematical processing, quick  turnaround time,
accuracy and validity of data, common source documents and well understood processing
logic. 
10.  Enormous Time, Effort and Resources Required: MIS budget includes data processing costs,
hardware costs, personnel costs, supplies, services, etc.  

PART – B (4 x 10 = 40)
Answer Any FOUR Questions
 13. Explain how information technology can help a company
to be an agile competition with the help of customers and
business partner.
ANS: - Information technology impacts every aspect of a company's processes and decision
making. From Marketing to Sales, to Supply chain and Inventory management, everything is
impacted by technology. Ensuring your organization has the right technology is crucial
to maximize efficiency and revenue.

Timely and efficient delivery of products and services. Higher sales through better
understanding of customer behaviors. Cost savings from fewer staff hours and reduced human
or machine error. Better resource planning through detailed, accurate, and timely financial
information.

Information technology can help a business form strategic alliances with its customers,
suppliers, and others by enabling communications, collaboration, and information sharing in
ways that were never before possible.

In any company, information technology has a powerful effect on competitive advantage in

either cost or differentiation. The technology affects value activities themselves or allows
companies to gain competitive advantage by exploiting changes in competitive scope. Lowering
cost.

In a low-cost competitive environment, companies should look for a strategic opportunity from
IS technology either through sharp cost reduction (for example, staff reduction or ability to
grow without hiring staff, improved material use, increased machine efficiency through better
scheduling or more cost-effective

5 Competitive Advantages Business Communications Technology Gives You

 Free up resources. ...
 Improve multitasking, automation, and internal communications. ...
 Enable remote workers. ...
 Build better relationships with customers. ...
 Survive catastrophes
16. What do you mean by system maintenance? Explain
corrective and adaptive maintenance.

ANS: - System maintenance is a catchall term used to describe various forms of computer or
server maintenance required to keep a computer system running properly. It can describe
network maintenance, which could mean that servers are being physically repaired, replaced,
or moved

The truth is that this is an almost uncountable set of tasks, covering such tasks as controlling
commercial software licenses, maintaining databases, configuring and updating the operating
system and software used by the computers, protecting against malware, or detecting and
cleaning it if it is already on the systems

Corrective maintenance refers to repairing design and programming errors and is the most
frequent. 
Corrective maintenance covers maintenance tasks that are undertaken to identify, isolate and
repair a fault in order to restore equipment, a machine or a system to an operational condition
so it can perform its intended function.

For example, corrective maintenance in equipment-centric businesses may be the repair or

replacement of a part that has worn down. Companies that deal primarily with non-equipment
assets, such as facilities or property, might consider mowing the lawn to be CM.

Adaptive maintenance refers to modifying a system in response to environmental changes.

Preventive maintenance refers to introducing changes that would protect the system from
future problems.

Adaptive maintenance refers to the enforcement of changes in the monitoring, use or other
operational details of a metallic structure or object to prevent corrosion from spreading from
one part of the metal where it is already present to another.

Users are far more likely to notice when adaptive is completed, as this could prevent the
software from working with the latest devices. In this example of adaptive maintenance, users
have been logging on to the software from a social media platform with no problems for the
past few days

17. Describe briefly the financial system and highlight the role
played by computer in this system.
ANS: - A financial system is a system that allows the exchange of funds between financial
market participants such as lenders, investors, and borrowers.

The financial system consisting of a variety of institution, markets, and the instruments which
are related in a systematic manner and provide the principal means by which savings are
transformed into instruments. Significance of the Financial System

The benefits, meanwhile, are associated with three components of enhanced financial stability:
the decreased probability of a future crisis, decreased expected losses, and decreased costs to
society

When you look at financial services currently, they are all molded based on creating a faster,
more efficient service for customers which focusses towards more mobile-based quicker
options. Since cloud-based technology information is so often used, the importance of
information technology is incredibly vital.
When looking at information technology you must look at the entire global financial systems in
place which allow this type of technology to thrive and function at an entire global level. The
role of information technology in finance allows financial institutions to constantly attain new
info at the same rate as their competition. The impact of information technology on financial
services also allows customers to be able to easily complete online transactions, which creates a
better convince in finance, allowing for the development of information technology and
initially create a more fast and efficient service. Financial reporting is also an industry within
information technology that has greatly impacted the financial service industry. The growing
modernizations that are surrounded around information technology have greatly enhanced the
way we use financial reports.
Technology has overall driven a persistent ultimatum for accessibility, and innovation, and
being able to have convenience is going to be something that keeps changing forever. The role
 of information technology in finance departments plays a big part ranging from small to large
applications and operations. Communication is a very critical component that comes with
information technology as well, and there are a ton of advantages that lie within the streamline
of communication in both perspectives.
Creating more automating and commoditizing processes intensifies the power of information
technology in our society today as well, and when looking at how robo-advisors are used. This
is a prime example of how IT has taken over how we look at automation in wealth
management services such as asset allocation and investment opportunities. The importance of
computers in finance also improves data storage, file management, and data reporting as stated
earlier in this article. Cloud-based services such as Dropbox are huge roles in information
technology, but these services play tangent roles with data reporting and analysis.
Online banking and transactions, and mobile payments are incredibly popular in our society
today. There are a ton of vulnerabilities since financial transactions are being used so much,
many financial institutions have to adapt to the latest security, and updated technology in order
to stay up to date. Even though there are a lot of risks that are associated with the use of
information technology, there are a lot of positive aspects to the use of higher technology.
There are billions of financial transactions that are happening on a day to day basis, this is why
information technology is perfect for the way the financial systems are set up. The software
tools and computer systems that are in place for automation, create a huge importance for the
use of information technology in finance.

18. List out the principles in designing a database? State its

advantages and disadvantages.
ANS: - The design process consists of the following steps:

 Determine the purpose of your database

 Find and organize the information required
 Divide the information into tables
 Turn information items into columns
 Specify primary keys
 Set up the table relationships
 Refine your design
 Apply the normalization rules
 Advantage and Disadvantages of DBMS

Disadvantages of DBMS

 Improved data sharing: The DBMS helps create an environment in which end users have better
access to more and better-managed data. ...
 Improved data security
 Better data integration
 Minimized data inconsistency
 Improved data access
 Improved decision making

Disadvantages of DBMS
 High Cost. The high cost of software and hardware is the main disadvantage of the database
management system.
 Huge Size
 Database Failure
 Complexity
 Increased Staff Cost
 Requirement of Technical Staff
 Cost of Data Conversion.
 Performance