K. Padmavathi MIS 1

Management Information System

2 Marks

UNIT 1

MIS Introduction

1. Data: Raw facts such as an employee’s name and number of hours worked in a

week, inventory part numbers or sales orders. Information:

A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves. Data Information 2. Management information systems:

Def 1:

Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports. Def 2:

MIS provide information in the form of pre-specified reports and displays to support business decision making. Examples: sales analysis, production performance and cost trend reporting systems. Objectives:

� Routine information for routine decisions � Operational efficiency � Use transaction data as main input � Databases integrate MIS in different functional areas.

3. Describe three levels of information in managerial level

Management Support Systems provide information and support needed for effective decision making by managers Major categories are:

$35,000 12 Units $12,000 J. Jones Western Region

$100,000 100 Units 35 Units

Data Processing

Salesperson: J. Jones Sales Territory: Western Region. Current Sales: $147,000

Units = 147

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i) Management Information System ii) Decision Support Systems iii) Executive Information System

4. What are the various trends in the evolution of the MIS concept?

� MIS: Many companies are now using their computers to provide information for decision making; that is, they are using a management information system.

� MIS can provide managers with information in a usable from.

• A MIS is a formal Information network using computers to provide management information for decision making .The goal of MIS is to provide the correct information to the appropriate manager at the right, in a useful from.

� Successful MIS must provide information that can be applied:

• MIS should know who the users are

• MIS should provide the information the user needs

• MIS should provide the information in the format the user can understand.

5. What is Information System?

An information system (IS) is typically considered to be a set of interrelated elements or components that collect (input), manipulate (processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective. 6. What is the role of information system in today’s competitive business

environment?

• Data Processing: 1950s-1960s

• Management Reporting: 1960s-1970s

• Decision support: 1970s-1980s

• Strategic and End User Support: 1980s-1990s

• Global Internetworking: 1990s-2000s 7. State the principle which dictates how is system built from sub-system?

� System: A set of components that work together to achieve a common goal

� Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal

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� Closed system: Stand-alone system that has no contact with other systems

� Open system: System that interfaces with other systems

8. Compare Traditional Information Systems Vs Modern Information

Systems

Until the 1960s, the role of most information systems was simple. They were mainly used for electronic data processing, purposes such as transactions processing, record-keeping and accounting, use of computers in recording, classifying, manipulating, and summarizing data. It is also called transaction processing systems (TPS). Transaction processing systems – these process data resulting from business transactions, update operational databases, and produce business documents. Examples: sales and inventory processing and accounting systems.

In the 1960s, another role was added to the use of computers. The concept of management information systems (MIS) was born. This new role focused on developing business applications. Management information systems – provide information in the form of pre-specified reports and displays to support business decision making. Examples: sales analysis, production performance and cost trend reporting systems.

9. What are the principle sources of Information?

� Data (raw material)

• Alpha-numeric

• Symbolic

• Image � Stored facts � Inactive (they exist) � Technology based � Gathered from various places

10. What is the purpose of creating Management Information System?

� Routine information for routine decisions � Operational efficiency � Use transaction data as main input � Databases integrate MIS in different functional areas

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11. What is Intelligence?

� The ability to acquire and apply knowledge and skills. � A very general mental capability that, among other things, involves the

ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly and learn from experience.

12. What is Artificial Intelligence?

Artificial intelligence (AI): Is both the intelligence of machines and the branch of computer science which aims to create it. Achievements in artificial intelligence include: constrained and well-defined problems such as games, crossword-solving and optical character recognition. 13. Who is System Analyst?

A systems analyst researches problems, plans solutions, recommends software and systems, at least at the functional level, and coordinates development to meet business or other requirements.

The systems analysts are the liaisons between vendors and information technology professionals. They may be responsible for developing cost analysis, design considerations, staff impact amelioration, and implementation time-lines. 14. System analyst in an organization

15. Role of System Analyst

� The analyst must be able to work with people of all descriptions and be experienced in working with computers.

� Three primary roles:

• Consultant.

• Supporting expert.

• Agent of change. In detail….

PROGRAMMER SYSTEM

ANALYST USER

MANAGEMENT

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� Investigate, analyze, design, develop, installs, evaluate, and maintains a company’s information systems.

� A business problem solver � The solution to the “problem” is generally a new information system � Help translate business requirements into IT projects.

16. Functions of System Analyst

� Identifying Problems, Opportunities, and Objectives. � Determining Human Information Requirements. � Analyzing System Needs. � Designing the Recommended System. � Developing and Documenting Software. � Testing and Maintaining the System. � Implementing and Evaluating the System.

17. What is the role of information system in an organization?

� Focuses on competitive priorities � Support business processes and operations � Provide access to information � Enhance communication � Provide decision assistance � Supports strategies for competitive advantage.

18. 3 As of intelligence

� Ability Present competence to perform a task. Skill you have, e.g., reading or mechanical ability

� Achievement Present competence that reflects specific learning experience or instruction. Given instruction what do you now know? E.g., exam in Psy3135

� Aptitude Potential to acquire particular skills, with reference toward future performance. How well might you performance given appropriate instruction & motivation? E.g., SAT and college performance.

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UNIT 2

Systems Analysis and Design

19. Differentiate between DBMS and OODBMS

DBMS- Database Management System

� Interfaces between application programs and physical data files � Separates logical and physical views of data � A system whose overall purpose is to record and maintain information � A database is a repository for stored data and programs to manipulate

it. � Solves problems of traditional file environment

• Controls redundancy

• Eliminated inconsistency

• Uncouples programs and data

• Enables central management and security.

� Some popular DBMS solutions include DB2, Oracle, FileMaker and Microsoft Access.

OODBMS- Object Oriented DBMS

� Stores data and procedures as objects � Capable of managing graphics, multimedia, Java applets � Relatively slow compared with relational DBMS for processing large

numbers of transactions � Hybrid object-relational DBMS: Provide capabilities of both

OODBMS and relational DBMS.

20. Advantages of DBMS

� Centralized control. � No Data Redundancy � Data Consistency � Data can be shared � Standards can be enforced � Security can be enforced � Integrity can be maintained � Data independence.

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21. What is RDBMS?

The database system in which the relationships among different tables are maintained is called Relational Database Management System. It represents data as two-dimensional tables called relations or files. Each table contains data on entity and attributes.

RDBMS solution is required when large amounts of data are to be stored as well as maintained. A relational data model consists of indexes, keys, foreign keys, tables and their relationships with other tables. Relational DBMS enforces the rules even though foreign keys are support by both RDBMS and DBMS.

� Table: Grid of columns and rows

• Rows (tuples): Records for different entities

• Fields (columns): Represents attribute for entity

• Key field: Field used to uniquely identify each record

• Primary key: Field in table used for key fields

• Foreign key: Primary key used in second table as look-up field to identify records from original table.

22. Advantages of RDBMS

� Improved conceptual simplicity � Easier database design, implementation, management, and use � Powerful database management system

23. What is SDLC-System Development Life Cycle?

The Systems development life cycle (SDLC), or Software development process : � It is a process of creating or altering information systems. � It involves models and methodologies that people use to develop these

systems. � In software engineering the SDLC concept underpins many kinds

of software development methodologies. These methodologies form the framework for planning and controlling the creation of an information system: the software development process. "The Systems Development Life Cycle" is the waterfall model: a sequence of stages in which the output of each stage becomes the input for the next.

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Initiation System Development Concept

Planning Requirement analysis

Design Development

Integration &Test Implementation

Operations &maintenance Disposition.

24. What is System Design?

� Designing forms and reports � Designing interfaces and dialogues � Designing databases and files � Designing processing and logic

25. What are the advantages of SDLC?

� Focus on tradeoffs � Focus on goals � Controls: milestones, checklist, accountability � Tools, models, CASE � Hierarchical decomposition � Designed for user & manager involvement

26. What is Data Flow Diagram DFD?

A DFD is a graphic representation of the flow of data or information through a system. Main Elements:

• External entity - people or organisations that send data into the system or receive data from the system.

• Process - models what happens to the data i.e. transforms incoming data into outgoing data

ExternalEntity

Process Box

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• Data store - represents permanent data that is used by the system.

• Data flow - models the actual flow of the data between the other elements.

27. What is Entity Relationship Model?

The E-R model is a detailed, logical representation of the data for an organisation or business area. It should be understandable to both the user and to the IT technologist.The model must be as ‘open’ as possible and not tied to any technology or to any particular business methodology. It must be flexible enough so that it can be used and understood in practically any environment where information is modelled. Entity: “An entity is a business object that represents a group, or category of data.” Attribute: “An attribute is a sub-group of information within an entity.” 28. SDLC Phases

Data Flow

D Data Store

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29. Strength and Weakness of SDLC

Strength Weakness

Control. Increased development time

Monitor large projects Increased development cost

Detailed steps Systems must be defined up front

Evaluate costs and completion targets Rigidity

Documentation Hard to estimate costs, project overruns

Well defined user input User input is sometimes limited

Ease of maintenance Development and design standards Tolerates changes in MIS staffing

30. What is the difference between DBMS and RDBMS?

� Relationship among tables is maintained in a RDBMS whereas this not the case DBMS as it is used to manage the database.

� DBMS accepts the ‘flat file’ data that means there is no relation among different data whereas RDBMS does not accepts this type of design.

� DBMS is used for simpler business applications whereas RDBMS is used for more complex applications.

� Although the foreign key concept is supported by both DBMS and RDBMS but its only RDBMS that enforces the rules.

� RDBMS solution is required by large sets of data whereas small sets of data can be managed by DBMS.

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UNIT 3

Information System

31. What is meant by Decision Support System DSS?

� DSS are interactive computer-based systems, which help decision makers utilize data and models to solve unstructured problems (Scott Morton, 1971).

� Decision support systems couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer-based support system for management decision makers who deal with semi-structured problems (Keen and Scott Morton, 1978).

� Decision support system (DSS) is an organized collection of people, procedures, software, databases, and devices working to support managerial decision making.

32. Decision making as a component of problem solving

33. What are the problem solving factors in DSS?

� Multiple decision objectives � Increased alternatives � Increased competition � The need for creativity � Social and political actions � International aspects � Technology � Time compression

Intelligence

Design

Choice

Implementation

Monitoring

Decision Making

Problem Solving

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34. What are all the solution types in DSS?

� Optimization model - Finding the best solution

� Satisfying model - Finding a good -- but not necessarily the best -- solution to a problem

� Heuristics - Commonly accepted guidelines or procedures that usually find a good solution.

35. What is Executive Information System EIS?

An executive information system (EIS) is a type of management information system that facilitates and supports senior executive information and decision-making needs. It provides easy access to internal and external information relevant to organizational goals. It is commonly considered a specialized form of decision support system (DSS).

EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that can help and monitor performance and identify opportunities and problems of top-level executives. EIS and data warehousing technologies are converging in the marketplace.

In recent years, the term EIS has lost popularity in favor of business intelligence (with the sub areas of reporting, analytics, and digital dashboards). 36. Components of EIS EIS components can typically be classified as:

� Hardware � Software � User interface � Telecommunications

37. What are the advantages and disadvantages of EIS?

Advantages Disadvantages

� Easy for upper-level executives to use, extensive computer experience is not required in operations

� Provides timely delivery of company summary information

� Information that is provided is

� System dependent � Limited functionality, by design � Information overload for some

managers � Benefits hard to quantify � High implementation costs � System may become slow, large,

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better understood � EIS provides timely delivery of

information. Management can make decisions made promptly.

� Improves tracking information � Offers efficiency to decision

makers.

and hard to manage � Need good internal processes for

data management � May lead to less reliable and less

secure data

38. Characteristics of EIS

� Drill down � Critical success Factors (CSF) � Status access � Analysis � Exception reporting � Colors and audio � Navigation of information � Communication

39. What is Executive Support System?

Comprehensive support system that goes beyond EIS to include � Communications � Office automation � Analysis support � Intelligence

40. What is Enterprise Information System EIS?

� Corporate-wide system � Provides holistic information � From a corporate view � Part of enterprise resource planning (ERP) systems � For business intelligence � Leading up to enterprise information portals and knowledge management

systems. 41. What is International Information System IIS?

� An international information systems architecture consists of basic information systems required by organizations to coordinate worldwide trade and other tasks

� A business driver is an environmental force to which businesses must respond and that influence a business’s direction.

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42. International Information System Architecture

43. What is Knowledge Management System KMS?

Definition: Knowledge is intangible, dynamic, and difficult to measure, but without it no organization can survive.

� Tacit: which are unarticulated knowledge and more personal, experiential, context specific, and hard to formalize; is difficult to communicate or share with others; and is generally in the heads of individuals and teams.

� Explicit: explicit knowledge can easily be written down and codified. 44. Types of Knowledge Management System

� Enterprise-Wide Knowledge Management System � Knowledge Work Systems � Intelligent Techniques

45. What is Geographic Information System?

A system for capturing, storing, checking, integrating, manipulating, analysing and displaying data which are spatially referenced to the Earth. This is normally considered to involve a spatially referenced computer database and appropriate applications software.

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UNIT 4

Security and Control

46. What are the ethical principles associated with the use of Information

Technology IT?

� Protecting the public interest and maintaining integrity � Maintaining confidential information and privacy � Upholding responsibility to the IT profession � Demonstrating competence and quality of service.

47. What is Ethics?

� Ethics - set of beliefs about right and wrong behavior � Ethical behavior conforms to generally accepted social norms � Virtues - Habits that incline people to do what is acceptable � Vices - Habits of unacceptable behavior � Value system - Scheme of moral values

48. Responsibilities/Duties of Corporate Ethics Officer

o Complete oversight of the ethics function o Collecting and analyzing data o Developing and interpreting ethics policy o Developing and administering ethics education and training o Overseeing ethics investigations

49. 7 Steps to Ethical Decision Making

� Get the facts � Identify stakeholders and their positions � Consider the consequences of a decision � Weigh various guidelines and principles � Develop and evaluate options � Review a decision � Evaluate the results of a decision

50. What is meant by Computer Networks?

A computer network is a telecommunications network that allows computers to exchange data. The physical connection between networked computing devices is established using either cable media or wireless media. The best-known computer network is the Internet.

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Computer networks support applications such as access to the World Wide Web, shared use of application and storage servers, printers, and fax machines, and use of email and instant messaging applications. 51. Types of computer network

� LAN – Local Area Network � WAN – Wide Area Network � MAN – Metropolitan Area Network � CAN – Campus Area Network � PAN– Personal Area Network � GAN – Global Area Network

52. Difference between LAN and WAN

LAN WAN

� Small area covered � Use public communication links � Usually low speed � Uses Wi-Fi, Ethernet cables

� Large area covered � Use public communication links � Usually fast speed � Uses optic wires, microwaves,

satellites

53. What is meant by Intranet?

� Private computer network � Secure sharing organization's information or operational systems with

its employees. � The same architecture as in Internet � private version of the Internet � possible access to the Internet, then gateway with firewall is applied � Intranet delivers

o Tools and applications, o Collaboration (to facilitate working in groups and

teleconferencing) o Sophisticated corporate directories o Sales and Customer relationship management tools o Project management etc.

� In large intranets, traffic is often similar to public website traffic

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54. What is meant by Extranet?

� Uses Internet protocols, network connectivity � Share information as intranet � The number of clients is extended to people outside the company � interconnections are over a shared network rather than through

dedicated physical lines as in intranet 55. Difference between Intranet and Extranet

Intranet Extranet

� Connects users in company � Shared network � Single company's administrator � Don’t need so much security

� connects user inside and outside company

� Dedicated physical lines � Multiple company's administrator � Requires more security

56. What is meant by LAN?

o Small geographic area (e.g. room, office) o Contrast to wide-area networks (WANs) o Controlled by one administrative authority o Usually high speed o Always shared

57. What is meant by WAN?

o Computer network that covers a broad area o Crosses metropolitan, regional, or national boundaries o Uses routers and public communications links o Example: Internet o Used to connect LANs and other types of networks together o Option for WAN connectivity

• Leased Line

• Circuit switching

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• Packet switching

• Cell relay o Speed from 1200 bits/s to 6 Mbit/s

58. What is Internet?

• Global system of interconnected computer networks • Consists of millions of private and public networks

59. What are all the functions of Internet?

� E-mail � File-sharing � Instant messaging � Internet fax � World Wide Web � Voice over IP � Mobile VoIP

60. What is meant by Wireless Network Wi – Fi

• Cheap networking solution • Radio waves instead of cables • Three standards :

802.11a, 802.11b and 802.11g • 2 modes – Infrastructure, and Ad-hoc • Hotspots – easy internet access

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61. What is IS Vulnerability?

In computer security, vulnerability is a weakness which allows an attacker to reduce a system's information assurance.

Vulnerability is the intersection of three elements: a system susceptibility or flaw, attacker access to the flaw, and attacker capability to exploit the flaw. To exploit the vulnerability, an attacker must have at least one applicable tool or technique that can connect to a system weakness. In this frame, vulnerability is also known as the attack surface. 62. Types of Information System Controls

General Controls:

� Software and hardware � Computer operations � Data security � Systems implementation process

Application Controls:

� Input � Processing � Output

63. What are the tests conducted to check the security of information system?

� Vulnerability Scan � Penetration Test � Security Review � Vulnerability Assessment � Security Audit

64. Computer Crimes

� Hacking and � Cracking

� Hacker: Hackers are often described as individuals who seek to break into systems as a test of their abilities. Few hackers attempt to cause damage to systems they access and few are interested in gaining any sort of financial profit.

� Cracker: A person who gains access to an information system for malicious reasons is often termed a cracker rather than a hacker. This is because some people draw a distinction between ‘ethical’ hackers and malicious hackers.

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65. What are the types of Computer Viruses?

� Trojans and Worms � Spyware and Adware � Internet related viruses

• Denial of service

• Brand abuse

• Cybersquatting

• Cyber-stalking

• Cyber-terrorism

• Online stock fraud

• Phishing 66. What is meant by Internet Security?

Internet security is a branch of computer security specifically related to the Internet, often involving browser security but also network security on a more general level as it applies to other applications or operating systems on a whole. Its objective is to establish rules and measures to use against attacks over the Internet.

The Internet represents an insecure channel for exchanging information leading to a high risk of intrusion or fraud, such as phishing. Different methods have been used to protect the transfer of data, including encryption. 67. Methods to Securing the Web

� Use Open Source Scripts � Update Constantly � Use Strong Passwords � Secure Admin Email Address � Delete the Installation Folder � Change File & Folder Permissions � Restrict Root Access � Use security plugins � Read leading Tech Blogs � Stay away from Nulled Scripts & Themes

68. What is meant by MIS Audit?

� Identifies the controls that govern information systems and assesses their effectiveness

� Auditor conducts interviews with key individuals � Examines security, application controls, overall integrity controls, and

control disciplines

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69. What is meant by Software Audit?

Software audit can mean:

� A software licensing audit, where a user of software is audited for licence compliance

� Software quality assurance, where a piece of software is audited for quality � A software audit review, where a group of people external to a software

development organisation examines a software product � A physical configuration audit � A functional configuration audit

Software Auditing is - A regular investigation of the software installed on all computers in an organisation to ensure that it is authorized or licensed.

Software audits minimize the risk of prosecution for software theft, minimise the risk of viruses through uncontrolled software copying, and ensure technical support is available to all users.

70. What are the types of audit?

� First Party Audit o Within you company or organization

� Second Party Audit o Sometimes called “external audits” o By a Customer on his Supplier o By a Supplier on you.

� Third Party Audit o Outside third party is contracted to do the audit.

71. What is meant by CMM?

� Capability Maturity Model: A reference model of mature practices in a specified discipline, used to assess a group’s capability to perform that discipline

� CMMs differ by

o Discipline (software, systems, acquisition, etc.) o Structure (staged versus continuous) o How Maturity is Defined (process improvement path) o How Capability is Defined (institutionalization)

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UNIT 5

New IT Initiatives

72. What is meant by E-Business?

E-Business means buying and selling, servicing customers, collaborating with business partners, and conducting electronic transactions within an organisation. E-Business refers primarily to the digital enablement of transactions and

processes within a firm, involving only the information systems under the control of the firm.

E-Business is those activities other than ‘buying and selling’ via electronic channels. 73. Transaction types of E-Business

� Business-to-business (B2B) � Collaborative commerce (c-commerce) � Business-to-consumers (B2C) � Consumers-to-businesses (C2B) � Consumer-to-consumer (C2C) � Intra-business (intra-organizational) commerce � Government-to-citizens (G2C) � Mobile commerce (m-commerce)

74. What is meant by E-Commerce?

E-commerce describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the Internet. 75. What is meant by E-Governance?

It can be defined as the civil and political conduct of government, including service provision, using information and communication technologies. E-Gov solution

Government Government

Citizens

Transactions

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76. What is meant by Data Warehousing?

Data Warehouse:

A single, complete and consistent store of data obtained from a variety of different sources made available to end users in what they can understand and use in a business context. Data Warehousing:

A process of transforming data into information and making it available to users in a timely enough manner to make a difference. 77. What is Data Mining?

� Data mining is the process of discovering interesting patterns (or knowledge) from large amounts of data. The data sources can include databases, data warehouses, the Web, other information repositories, or data that are streamed into the system dynamically.

� A methodology designed to perform knowledge-discovery expeditions over the database data with minimal end-user intervention

� 3 Stages of Data o Data o Information o Knowledge

78. What is ERP?

Def 1:

� ERP stands for: Enterprise Resource Planning systems � This is what it does: attempts to integrate all data and processes of an

organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.

Def 2:

� ERP is a process of managing all resources and their use in the entire enterprise in a coordinated manner.

� ERP System is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management.

79. What is SCM?

Management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost.

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Supply chain management requires the commitment of supply chain partners to work closely to coordinate order generation, order taking, and order fulfillment. They thereby create an extended enterprise spreading far beyond the producer's location.

SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach

80. What is CRM?

With the growth of the internet and related technologies, customers are concerned over the privacy and safety of their personal information. Therefore, businesses need to ensure that the storage and analysis of the customer data must have the highest levels of protection against cyber criminals, identity theft and other breaches of securities. CRM is often thought of as a business strategy that enables businesses to:

� Understand the customer � Retain customers through better customer experience � Attract new customer � Win new clients and contracts � Increase profitably � Decrease customer management costs

81. What is meant by Pervasive Computing?

� Pervasive Computing is the ability to access information and software applications anytime and anywhere.

� Computing and communication capabilities are embedded in the infrastructure and disappeared from human users.

� People use computer-assisted task-specific devices, instead of computing devices.

For example: SmartTV (Samsung), smartphone (android phone) 82. What is meant by Business Intelligence?

The term Business Intelligence (BI) represents the tools and systems that play a key role in the strategic planning process of the corporation. These systems allow a company to gather, store, access and analyze corporate data to aid in decision-making. Generally these systems will illustrate business intelligence in the areas of customer profiling, customer support, market research, market segmentation, product profitability, statistical analysis, and inventory and distribution analysis to name a few.