assignment 1 spring 2010

8/3/2019 Assignment 1 Spring 2010

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Q1) (a) What specific managerial roles can information systemssupport? Where are information systems particularly strong insupporting managers, and where are they weak?

Ans) Information systems play three fundamental and managerial roles in thebusiness, which are as follows:

1. Support of its business processes & operations.2. Support of decision-making by its managers.3. Support of its strategies for competitive advantage.

We will see that many different types of information system implementhese vital roles. We also see that these roles given to the informationsystems function have expanded significantly over the years. Informationsystems in the real world can be classified in several different ways. E.g.,several types of information system can be classified conceptually aseither operations or management information system. These are

categorized this way to spotlight the major roles each plays in theoperations and management of a business.

MANAGEMENTSUPPORTSYSTEM: -When information systems focus on providing information & support foreffective decision-making by managers, they are called managementsupport system. Management support system began when the concept ofmanagement information system (MIS) originated in the 1960s. MISbecame the byword (buzzword) of almost all attempts to relate computertechnology and systems theory to data processing in organizations. At thetime, it became evident that computer were being applied to the solution

of business problems in a piecemeal fashion, focusing almost entirely onthe computerization of clerical & record keeping tasks. The concept ofmanagement information system was developed to counteract suchinefficient development & ineffective use of computers. MIS concept isstill recognized as vital to efficient & effective information systems inorganization for two major reasons:

It emphasizes the management orientation of information technology inbusiness. A major goal of computer-based information systems shouldbe the support of management decision-making. Not merely theprocessing data generated by business operation.

It emphasized that a systems framework should be used for organizing

information system applications. Business application of informationtechnology should be viewed as interrelated & integrated computer-based information system and not as independent data processing jobs.

Providing information & support for management decision-making by alltype and levels of managers is a complex task. Conceptually, severalmajor types of information systems are needed to support a variety ofmanagerial end user responsibilities.

QUESTION NO. 1


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Give examples to illustrate how information systems can help and support a firms business operations and

managerial decision-making?

ANSWER NO. 1

Why Information Systems are Important

Why study information systems and information technology? That is the same

as asking why anyone should study accounting, finance, operations management,

marketing, human resource management, or any other major business function.

Information systems and technologies have become a vital component of successful

businesses and organizations. They thus constitute an essential field of study in

business administration and management. That is why most business majors must

take a course in information systems. Since you probably intend to be a manager,

entrepreneur, or business professional, it is just as important to have a basic

understanding of information systems as it is to understand any other functional area

in business.

Information systems perform three vital roles in any type of organization:-

a. Support of business operations.

b. Support of managerial decision-making.

c. Support of strategic competitive advantage.

Lets take a retail store as an example to illustrate this important point.

As a consumer, you have to deal regularly with the information systems

that support business operations at the many retail stores where you

shop. For example, most retail stores chases, keep track of inventory,

pay employees, buy new merchandise and evaluate sales trends. Store

operations would grind to a halt without the support of such information

systems.

Information systems also help store managers make better decisions

and attempt to gain a strategic competitive advantage. For example,

decision on what lines of merchandise need to be added or


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discontinued, or on what kind of investment they require, are typically

made after an analysis provided by computer based information

systems. This not only supports the decision making of store managers

but also helps them look for ways to gain an advantage over other

retailers in the competition for customers.

Example 1. OGDCL has implemented the oracle applications for its

business environment. Oracle Receivable module provides the

complete information for the sales of products on daily basis, month-

wise or yearly. It provides the information of oil, gas, LPG etc for the

management decision as well as the need of customers.

The major consumers/customers are WAPDA, PSO, SNGPL, and SSGC

and now they will get the complete information through this computer

technology.

Example 2. These oracle applications will provide early information

through online data feeding by WAN in Pakistan, because OGDC has the

different producing fields in country. From this information

management will take decision well in time, which were not possible

before this technology.


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QUESTION NO.1

Elaborate the concept of system by taking an example from daily life

ANSWER:

Definition of system

1. A group of interacting, interrelated, or interdependent elementsforming a complex whole.2. A functionally related group of elements, especially:a. The human body regarded as a functional physiologicaunit.b. An organism as a whole, especially with regard to its vitaprocesses or functions.c. A group of physiologically or anatomically complementaryorgans or parts: the nervous system; the skeletal system.

d. A group of interacting mechanical or electricacomponents.e. A network of structures and channels, as forcommunication, travel, or distribution.f. A network of related computer software, hardware, anddata transmission devices.3. An organized set of interrelated ideas or principles.4. A social, economic, or political organizational form.5. A naturally occurring group of objects or phenomena: the solarsystem.6. A set of objects or phenomena grouped together forclassification or analysis.7. A condition of harmonious, orderly interaction.8. An organized and coordinated method; a procedure. Seesynonyms at method.9. The prevailing social order; the establishment. Used with theYou can't beat the system. System Concepts: A system can bemost simply defined as a group of interrelated or interactingelements forming a unified whole.
http://www.answers.com/main/ntquery;jsessionid=2m5axyxsjtg6w?method=4&dsid=1555&dekey=M0254000&gwp=8&curtab=1555_1&sbid=lc02bhttp://www.answers.com/main/ntquery;jsessionid=2m5axyxsjtg6w?method=4&dsid=1555&dekey=M0254000&gwp=8&curtab=1555_1&sbid=lc02b


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System Components:

Interacting or interrelated elements are as under:-

1. Hardware: The term hardware refers to machinery. This

category includes the computer itself, which is often referred to as

the central processing unit (PU), and all of its support equipment

Among the support equipment are input and output devices, storage

devices and communications devices.

2. Software: The term software refers to computer programs

and the manuals (if any) that support them. Computer programs are

machine-readable in function in ways that produce useful information

for data.

3. Data: Data are facts that are used by programs to produce

useful information. Like programs, data are generally stored in

machine readable form on disk or tape until the computer needs

them.

4. Procedures: Procedures are the policies that govern theoperation of a computer system. Procedures are to people what

software is to hardware is a common analogy that is used to

illustrate the role of procedures in a CBIS. For instance, the steps

that must be taken to enter a password and log on to a computer

terminal are a procedure.

5. People: Every CBIS need people if it is to be useful. Often the

most over looked element of the CBIS, people are probably the

components that most influence the success or failure of information

system. Users programmers, system analysts, and database

administrators are just some of the people associated with computer

based information system.


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For Example, one of the main jobs of the receivables component

of the transaction system is to correctly calculate customer account

balances and to produce customer statements reflecting those

balances.


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Question. 3(a):

Select any functional area (e.g. finance, human resources, marketing etc.) within any large

organization (such as the government or a bank) and then describe the business function and

the major processes and procedures within that functional area. Also discuss what MIS exist

to support these areas.

ANSWER

Auditor General of Pakistan (AGP)

The Auditor Generals organization is the prime institution in the country for ensuring

public accountability and fiscal transparency in governmental operations. The organization is

expected to bring about improvements in the financial discipline and internal control environment

in the executive departments for minimizing the possibility of waste and fraud. It has its 24 Field

Audit Offices (FAOs) located in all provinces of Pakistan along with at least one audit sub-office

in each district. AGP has about 1100 officers who are performing their duties in AGP headquarter,FAOs and other department of the government.

Human Resource of AGP:

Human resource is the most valuable asset of AGP Office, which has over the years

developed professional expertise in state auditing in accordance with the internationally accepted

standards. The department has a large number of officers specializing in various auditing and

related disciplines. More specifically it has:-

6 PhDs

45 Officials with professional certification 255 personnel with Masters Degree in professional disciplines Over 100 officers pursuing professional certification

HRM Department: Processes and Procedures

Efficient and effective management of Human Capital has progressed to an increasingly

imperative and complex process. The HRM department functions consist of the tracking existing

employee data which traditionally includes personal histories, skills, capabilities, accomplishments

and salary. The main functions of HRM department are:- Maintenance of Employees database including their personal, professional,educational data.

Transfer / Posting of the employees

Deputation Matters

Promotions

Performance Measurement

Training & Development

Establishment of HR Policies

Compensation and Rewards Management


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2. Some years ago, HR department was used to perform all of its processes and procedures

manually. It used to record all of its data simply on computer through using MS-Office only. But

with the rapid development of information systems, AGP office is also heading toward adopting

the new technologies in order to facilitate the operations of HR department. Its employees

database is very sensitive to the organization as it has to deal with the data of thousands of

employees.

Human Resource Management Information System:

To reduce the manual workload of its administrative activities, AGP began to

electronically automate many of its processes by introducing specialized HRM Information

System. It uses HRMIS within the HR department to computerize employee database and

information flow.

2. HRMIS provides a link between human resource management and information technology.

HRMIS allow the AGP office to automate many aspects of human resource management, with the

dual benefits of reducing the workload of the HR department as well as increasing the efficiency

of the department by standardizing HR processes and procedures.

3. Currently HRMIS encompasses several modules to deal with variant kinds of information

regarding HRM. These modules includes:-

Training Module

It provides a system for organization to administer and track employee training and

development efforts. It tracks the trainings being imparted to the employee within the country as

well as his foreign trainings. It keeps record of training, certificates, and courses already taken by

the employee.

Employee Self-Service Module

It allows employees to query HR related data and perform some HR transactions over the

system. Employees may query their attendance record from the system without asking the

information from HR personnel. The module also lets supervisors approve O.T requestes from

their subordinates through the system without overloading the task on HR department.


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Performance Appraisal Module

This module keeps track of annual performance report of the employees. ACRs of the

employee are part of this system. This module helps the Central Selection Board (CSB) to decide

whether to promote a particular officer on the basis of his previous performances being providedby this module. This provides information about the point scoring system of ACRs.

Promotions Modules

Promotions Modules helps to know the employees who have just recently been promoted

to next scale. It also indicates those employees who have forged to the promotion zone in the

current year.

Leave-Credit Module

This module provides information regarding leave status of the employees. It keeps track

of medical leave, sick leave, casual leave, leave with full pay etc. Employee can ask about their

leave credit at any time during the year.

Benefits Administration Module:

It provides a system for organization to administer and track employee participation in

benefits programmes. These typically encompass insurance, compensation, annual honorariums,

and retirement etc.

Transfer/Postings Module

This module provides deals with the transfer posting of the employees. This module helps

to know where a particular employee is presently posted. It keeps previous transfer/posting record

of the employee too.

This module also calls for the succession planning of the executives. Where the executive

officers are posted in other offices and where they need to be posted, all this is done by this

module. This also provides the current status of the positions for the AGP employees available in

other department of the government.


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Question No. 2 (a):

Read the following scenario and answer the question below:

..

1. Diagnose the situation critically and list the types of information each store manager

requires.

ANSWER

All the stores would possibly require some of the information based on the following systems:-

1. Management Information System(MIS)

MIS is an information system that generates accurate, timely and organized information so

managers so that they can make decisions, solve problems, supervise activities, and track

progress. Because it generates reports on a regular basis, a management information systemsometimes is called a management reporting system (MRS).

Management information systems often are integrated with transaction processing

systems. To process a sales order, for example, the transaction processing system records the sale,purchases, and makes a deduction from inventory.

Using this information system, the store managers may need to know the;

Daily, weekly, monthly and even quarterly and annual sales of the store

total expenses being incurred on direct and indirect material

Cost incurred on supporting services like warehousing

Inventory stock position

2. Transaction Processing System

A transaction processing system (TPS) is an information system that captures and processes data generated during an organizations day-to-day transactions. A transaction is a

business activity such as a deposit, payment, order or reservation.

Clerical staff of the store may record the sale activity. It enters it into system and prints

invoice receipt for the customer. Store Keeper may record the inventory stock in the warehouse.Store keeper may also record the number of items being damaged or defective. Staff may confirm

an action or triggering a response, such as printing an invoice, sending a thank-you note to a

customer, or issuing a receipt to a client, maintaining data, which involves adding new data,changing existing data, or removing unwanted data.

3. Decision Support System

A decision support system (DSS) is an information system designed to help users reach adecision when a decision-making situation arises. A variety of DSSs exist to help with a range of

decisions. A special type of DSS, called an executive information system (EIS), is designed to

support the information needs of executive management. Information in an EIS is presented in

charts and tables that show trends, ratios, and other managerial statistics.

This system will help the store managers to make certain decisions. Such as;

Ordering Point decisions can be taken when the stock level decreases to an extent.


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If there is decline in the sale of particular product, manager can decide whether to

purchase more of it or replace the product simply.

Sometimes, they need to add new product line or extend a product line.

Whether to go for horizontal or forward integration by keeping in mind the currentsupply and delivery/distribution position of the goods.

4. Office Information System

An office information system is an information system that uses hardware, software and

networks to enhance work flow and facilitate communications among employees. Win an office

information system, also described as office automation; employees perform tasks electronically

using computers and other electronic devices, instead of manually.

An office information system supports a range of business office activities such as creating

and distributing graphics and/or documents, sending messages, scheduling, and accounting. All

levels of users from executive management to employees utilize and benefit from the features of

an OIS.

This system helps the store managers to;

Contact with other managers via e-mail, fax etc.

An intranet can be created within the store.

Extranet can be used to share information among managers.

Information can be presented to management in understandable manner.

Question 2-(a):

2. Discuss which information can be part of computerized information systems?

The System Analyst and Programmers may need the information while designing the

Information System for the owner of the stores, such as;

Purchasing of new inventory

Sale of inventory items

Inventory Stock level position

Which products have arrived to ordering point?

Which products sale is decreasing?

Which product need to be purchased in bulk quantity?

Current trend of different goods. Total cost on the purchasing of goods

Total cost on warehousing and delivery of items to other locations.

Total Revenue being earned or periodic sales.

Information reports being generated for management

Cash position.

Petty Cash fund status.

Status of the current equipment or furniture to support the premises of the store

Whether the required strength of staff is satisfactory? Etc.


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Question No. 5

i. Why did Colin Savery reject a relational database solution? Explain.

He rejected the RDBMS because it takes 25% extra time of the organization to design the

system. It is more code demanding system and takes at least six months time to test the end results.

ii. How did the selection of an object-oriented DBMS address Bankers Trusts

information needs?

The organization wanted to save it time, determine the pros and cons of the system at the

very first stage, wants to test the system quickly and reduce the programming code.

The Object-oriented DBMS provided them the opportunity to meet their needs by saving

25% of extra time. It reduced the coding. It enabled the organization to test the end result in short

time by testing gradually with 25 traders periodically. When the very first time, the firm tested thesystem over 25 traders, it got the opportunity to assess the risk associated with the object-oriented

design and the number of advantages that can be availed. Likewise, if there is too much risk

involved in the first phase of testing, then company could decide about not to consider the system

anymore. If it gives more advantages then the system can be allowed to continue.

iii. Advantages and risks of Object-oriented DBMS.

Strengths:

An OODB can simplify your system's persistency challenges. In many cases it can make

deciding how to save and retrieve information simpler.

An OODB can reduce the number of required languages in your architecture. Thedevelopment team would no longer need to have skills in technologies such as JDBC,

Pro*C/C++, and PL/SQL. Instead, developers are able to work with more commonly

known concepts such as Java objects, iteration through collections, etc.

OODBs also can reduce development time by allowing developers to focus on objectpersistence, not the decomposition of objects to rows and parent/child relationships in one

or more tables.

Weaknesses:

One of the most obvious and significant drawbacks is the risk involved in an RDB-to-

OODB migration. Relational databases have their own cons but they are proven andsuccessfully used on data-driven systems. The architecture/design patterns for integrating

RDBs into your system are well defined and demonstrated.

In many OODB implementations, the OODB is tightly coupled to the application. Thissimplifies both the design and code, but the data abstraction layer has some value also. By

removing it, you lose a layer of insulation from the database.


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This can make it more difficult to migrate to a competing product without significant

changes and re-tests.

OODBs typically are weaker for ad hoc queries against the database

Some OODB implementations do not provide sufficiently granular locking.

It has limited platform support.

iv. How did Bankers Trust minimize the risks of using an object DBMS for its new

system?

Whenever a new system is designed, it is first tested at minor level so as to determine the

potential of risk linked with the system design or are there more advantages than risks? Thats why

the Bankers Trust first tested the system by implementing it at minor level. This enabled the

organization to assess the risks involved with the system design and helped them to decided

whether the system needs to be continued or not.


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BIBLIOGRAPHY / REFERENCE

1. Management Information System By: James A. OBrien

2. Chapter 1-2, Management Information System by David Kroenke, Mcgraw Hill Edition,

1990.

3. Management Information Systems, 6th Edition, Raymond & Mcleod Jr.

Prentice Hall International Edition.

i. Page 235-238, Chapter 8.

assignment 1 spring 2010

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