Ques 1 : How does IS change traditional business?

Ans : Information Systems (IS) have significantly transformed traditional business practices, as following

1. Improved Information Flow: IS enables real-time data access and communication across departments,
improving decision-making and operational efficiency. Traditional methods like paper-based reporting are
replaced by instant digital insights.

2. Facilitating New Business Models: IS drives the adoption of innovative business models, such as e-
commerce, platform businesses, and subscription services. For instance, companies like Amazon and
Netflix leverage IS to operate in ways traditional brick-and-mortar businesses could not.

3. Flattening Business Infrastructure: IS reduces hierarchical layers by providing tools for direct
communication and collaboration. Middle management's role diminishes as employees at all levels can
access the necessary data, fostering a leaner organizational structure.

4. Enhanced Customer Engagement: IS allows businesses to personalize services, analyze customer behavior,
and engage through multiple digital channels, transforming the customer relationship.

5. Globalization and Competitiveness: IS empowers businesses to operate globally by connecting suppliers,

customers, and partners, creating a competitive edge through enhanced reach and efficiency.

This transformation highlights the crucial role of IS in modernizing traditional business practices.

Ques 2: Define the strategic business objective of information systems.

Ans: Strategic business objectives refer to the long-term goals businesses aim to achieve to gain a competitive
advantage, improve performance, and ensure growth. Information Systems (IS) play a crucial role in achieving these
objectives. The key strategic business objectives include:

Operational Excellence:
Information Systems (IS) help businesses work more efficiently and productively. They automate tasks, which saves
time and reduces costs. IS also ensures that businesses maintain high-quality results. For example, enterprise
systems manage supply chain processes smoothly and efficiently.

1. New Products, Services, and Business Models:

IS allows businesses to create new products and services. It also helps them find new ways to do business,
such as selling online through e-commerce or offering services through the cloud. This innovation helps
businesses stay competitive and attract customers.

2. Customer and Supplier Intimacy:

IS helps businesses build closer relationships with customers and suppliers. It allows companies to
understand customer preferences and offer personalized services. For suppliers, IS enables better
communication and coordination. These efforts increase loyalty and satisfaction for everyone involved.

3. Improved Decision Making:

IS provides businesses with accurate and up-to-date information. Managers can use this data to analyze
trends, predict outcomes, and make better decisions. With IS, businesses can plan more effectively and
respond quickly to changes.

4. Competitive Advantage:
By using IS, businesses can stand out from their competitors. They can reduce costs, improve their
 services, and provide better value to customers. This gives them a strong position in the market and helps
them succeed.

5. Survival:
In a fast-changing world, businesses need to adapt to new laws, technologies, and market conditions. IS
helps businesses stay flexible and handle these changes effectively. This ensures they remain relevant and
can continue to grow.

Ques 3: What is IS? Describe 3 dimensions of IS .

Ans: Information systems refer to interrelated components that collect ( or retrieve), store, process, and
distribute data to support decision-making and control in an organization.

The three key dimensions of an Information System (IS) are organization, management, and technology.
These dimensions work together to ensure that an IS functions effectively and supports the overall goals of a
business.

1. Organizational Dimension:

This dimension refers to the structure and processes within an organization that influence how an IS operates.

 Organizational Structure: Every organization has a hierarchy or structure (e.g., top management, middle
management, operational workers) that determines how information flows. Information Systems must
align with this structure to effectively support the organization.

 Business Processes: IS supports and automates key business processes like sales, marketing, production,
and finance. These processes define how tasks are carried out and how departments interact with one
another.

 Culture: The culture of an organization impacts how employees use and interact with IS. For example, a
culture that values collaboration will use IS tools that encourage teamwork, while a more hierarchical
culture may limit access to certain data.

2. Management Dimension:

The management dimension focuses on how IS supports managerial roles, including decision-making, planning,
and problem-solving.

 Decision-Making: IS provides managers with real-time data and analytical tools to make informed
decisions. For example, a manager can use data from an IS to determine whether to increase production
or adjust marketing strategies.

 Planning and Strategy: Managers use IS to plan long-term strategies by analyzing market trends, customer
behavior, and internal performance metrics. This allows them to formulate strategies that give the
company a competitive edge.

 Problem-Solving: When issues arise, such as declining sales or operational inefficiencies, managers use IS
to analyze the problem and identify solutions quickly. IS helps by providing accurate and relevant data to
guide problem-solving.

3. Technology Dimension:

This dimension covers the technical components required to build and maintain an IS.
  Hardware: The physical devices used in an IS, such as computers, servers, and networking equipment.
These devices are necessary for data processing and storage.

 Software: The applications and programs that help process data and run business operations. This
includes systems like enterprise resource planning (ERP) software, customer relationship management
(CRM) systems, and accounting software.

 Data: Data is the core of any IS. It includes all the information that the system collects, processes, and
stores, such as customer data, sales figures, and employee records.

 Networks: Telecommunications networks, such as the internet and intranets, allow data to be shared
across departments and with external partners. They enable communication and collaboration, making it
easier for employees to access information in real time.

Ques No 4 : Beximco Pharmaceuticals Ltd is an emerging generic drug player committed to providing access to
affordable medicines. Beximco Pharma is consistently building upon its portfolio and currently producing more
than 500 products. They use information systems & enterprise applications to execute all the business activities
successfully. Now explain the major enterprise applications through which Beximco Pharmaceuticals Ltd can attain
efficiency.

Ans: Beximco Pharmaceuticals Ltd can improve its efficiency through the use of several enterprise applications:

1. Enterprise Resource Planning (ERP) :

ERP systems help Beximco Pharma integrate all its departments, like finance, production, and human resources,
into one unified system. This allows the company to manage operations more smoothly, reduce costs, and make
better decisions based on real-time data.

2. Supply Chain Management (SCM) :

SCM systems allow Beximco to efficiently manage its relationships with suppliers, ensuring timely delivery of raw
materials, reducing inventory costs, and optimizing production processes. It also helps in tracking products from
manufacturing to distribution.

3. Customer Relationship Management (CRM) :

CRM helps Beximco Pharma manage its relationships with customers, such as doctors, pharmacies, and
healthcare providers. It allows the company to track customer preferences, handle complaints, and provide better
service, improving customer satisfaction and loyalty.

4. Knowledge Management System (KMS) :

KMS enables Beximco to store, share, and manage its vast knowledge base, including research data,
manufacturing processes, and regulatory compliance information. This helps in innovation and maintaining high-
quality standards.
By using these enterprise applications, Beximco Pharmaceuticals can achieve greater efficiency, reduce operational
costs, and improve both customer service and product quality.

Ques 4: BKash has a great potential to expand their business more in Bangladesh. They use information systems to
carry on their business activities with efficiency. They use TPS, MIS, DSS & ESS for their efficiency. Now find out the
differences among TPS, MIS, DSS & ESS from the perspective of bKash.

Ans : From the perspective of bKash, the use of Transaction Processing Systems (TPS), Management Information
Systems (MIS), Decision Support Systems (DSS), and Executive Support Systems (ESS) helps enhance business
efficiency at different organizational levels. Here are the key differences among these systems based on their roles
and functionalities:

1. Transaction Processing System (TPS)

TPS is designed to handle routine, day-to-day transactions at bKash. This system is essential for processing large
volumes of basic transactions like mobile money transfers, bill payments, and merchant payments.

- Function: Processes daily transactions accurately and in real-time.

- bKash Example : Recording customer deposits, withdrawals, and peer-to-peer money transfers.

- Role : Ensures the smooth execution of operations by handling data entry and transaction recording, forming
the basis for higher-level systems like MIS.

2. Management Information System (MIS)

MIS collects data from TPS and other sources to generate structured reports that help middle management
monitor performance. For bKash, MIS helps track operational efficiency, agent performance, and customer activity.

- Function : Generates regular reports based on transaction data.

- bKash Example : Monthly reports on transaction volumes, service charges, and network performance.

- Role : Helps middle management monitor and manage operations by providing insights into the company’s day-
to-day performance.

3. Decision Support System (DSS)

DSS helps in analyzing data to assist in decision-making, particularly in complex or non-routine situations. At bKash,
DSS could be used to assess market trends, customer preferences, and the viability of new services or features,
such as introducing new loan products or expanding services to new areas.

- Function : Supports decision-making by providing data analysis and predictive modeling.

- bKash Example : Using customer transaction data to decide on launching a new micro-loan service.

- Role : Helps managers make informed decisions by analyzing data and offering scenario-based projections.

4. Executive Support System (ESS)

ESS is used by senior executives at bKash to view company-wide data and make strategic decisions. It provides an
overview of the company’s performance, key market trends, and financial health, often through dashboards and
visual reports.

- Function : Provides high-level summaries and insights for strategic planning.

- bKash Example : Executive dashboards showing total market share, revenue growth, and key performance
indicators (KPIs).

- Role : Assists top executives in making long-term strategic decisions, such as expanding into new markets or
investing in new technologies.

Summary of Differences:

- TPS is focused on processing and recording routine transactions.

- MIS organizes transaction data into reports for middle managers to monitor operations.

- DSS helps analyze data for complex decision-making, often involving predictions and trends.

- ESS provides top executives with high-level insights for strategic planning and decision-making.

By utilizing TPS, MIS, DSS, and ESS, bKash can operate efficiently at every level—from daily operations to long-term
strategic growth—ensuring its continued success and expansion in Bangladesh.

Ques 5: 4. Data management is imperative for any organization today. For managing the data property
understanding of data hierarchy is significantly required. Now elaborate the data hierarchy with relevant figure.

Ans: Data hierarchy is a structured organization of data, arranged in a hierarchical manner, from the smallest unit
(bit) to the largest (database). Understanding this hierarchy is essential for effective data management and analysis.
Here's a breakdown of the data hierarchy:

Bit: The smallest unit of data, representing a binary digit (0 or 1).

Byte: A group of 8 bits, representing a single character.

Field: A specific piece of information within a record, such as a name, address, or phone number.

Record: A collection of related fields that form a single unit of information. For example, a customer record might
include fields for name, address, phone number, and email address.
File: A collection of related records. For instance, a customer file would contain all the customer records.

Database: An organized collection of interrelated files. A database management system (DBMS) is used to manage
and manipulate the data within a database.

Understanding the Importance of Data Hierarchy:

Efficient Data Organization: A well-structured data hierarchy ensures efficient storage and retrieval of information.

Improved Data Quality: By organizing data in a hierarchical manner, it becomes easier to maintain data accuracy
and consistency.

Enhanced Data Security: A clear data hierarchy allows for better access control and security measures to protect
sensitive information.

Facilitated Data Analysis: A well-defined data hierarchy simplifies data analysis and reporting processes.

By understanding the data hierarchy, organizations can effectively manage their data assets, make informed
decisions, and gain a competitive edge.