MIS Model Paper for MBA Students
MIS Model Paper for MBA Students
SECTION B
Q:2 Attempt ay Three from this section. Each Question is of 10 marks-:
Course Outcome(CO) & Bloom's Taxonomy Level(BTL) for each question CO BTL
2A Describe various component of information system. CO1 K1
2B “Information as strategic resource used for competitive advantage”. Justify CO1 K2
statement with suitable example
2C Explain Herbert Simon’s model of decision making CO2 K2
2D Explain the importance of data independence with suitable example. CO3 K2
SECTION C
Attempt all questions from this section
Q 03 Attempt ONE Part of the Following
Course Outcome(CO) & Bloom's Taxonomy Level(BTL) for each question CO BTL
3A Explain Contemporary approaches to MIS? CO1 K2
3B Explain main functions of TPS? CO1 K2
SOLUTION
SECTION -A
ANS-1a) MIS is the use of information technology, people, and business processes to record,
store and process data to produce information that decision makers can use to make day to day
decisions. The full form of MIS is Management Information Systems. The purpose of MIS is to
extract data from varied sources and derive insights that drive business growth.
MIS is the mechanism that offers the managers ' required information as the operational
information source and prepares them for their decision-making. MIS is used by managers as a
tool to identify the issues facing them. MIS helps managers understand the issues and find
solutions.
ANS-1b) Main objectives of a management information system
ANS-1e) An expert system is a computer program that is designed to solve complex problems and
to provide decision-making ability like a human expert. It performs this by extracting knowledge
from its knowledge base using the reasoning and inference rules according to the user queries.
The expert system is a part of AI, and the first ES was developed in the year 1970, which was the
first successful approach of artificial intelligence. It solves the most complex issue as an expert by
extracting the knowledge stored in its knowledge base. The system helps in decision making for
complex problems using both facts and heuristics like a human expert. It is called so because it
contains the expert knowledge of a specific domain and can solve any complex problem of that
particular domain. These systems are designed for a specific domain, such as medicine, science,
etc.
ANS-1f) DSSs have the following features that make them distinct from other types of
information systems:
a) DSS does not aim at any specific type of decisions. It has the flexibility of use in various
unexpected decision situations.
b) The user friendly interface of DSS makes it different from other types of information systems.
Once a manager has used a DSS for some time, its irregular use does not adversely affect the ease
of use.
c) The report generators and graphic facilities in DSS provide better ways of representing the
information generated by use of models in DSS. These facilities add value to the information.
d) DSS offers any user complete control over the system. The input, method of processing and
output are controlled by the user.
ANS-1g) An Executive Information System (EIS) is a kind of decision support system (DSS)
used in organizations to help executives in decision making. It does so by providing easy access to
important data needed in an organization to achieve strategic goals. An EIS usually has graphical
displays on a user-friendly interface.
Executive information systems can be used for monitoring company performance in many
different types of organizations as well as for identifying opportunities and problems.
ANS-1j) A database is a set of data arranged in a particular way so that a computer program can
use the necessary parts from it. Every database has several fields, records, and files.
A database field refers to a set of values arranged in a table and has the same data type. A field is
also known as a column or attribute.
It is not necessary for the values included in a field to be in the form of text alone, as this is not a
requirement. Some databases have the capability of having fields that contain images, files, and
other types of media, while others have the capability of having data that links to other files that
can be accessed by clicking on the field data.
SECTION-B
ANS 2a) Components of MIS
The major components of a typical MIS long-form (Management Information System) are:
• Business Procedures – procedures put in place on how to record, store and analyze data
• Software – these are programs used to handle the data. These include programs such as
spreadsheet programs, database software, etc.
Information and its use has become the competitive advantage of today’s world. The efficiency
with which a firm manages its information determines its success in the marketplace. This
enormous power of information unleashed in today’s world has brought down reaction times for
decision-making of managers, made customers more aware, competitors more efficient and
regulators more alert.
Today, one can no longer hide behind excuses of ‘plausible deniability’. These changes have
resulted in a change in mindset of managers and have transformed the way business is conducted.
Management of information itself has become a key success factor for firms. However,
information is not to be seen in isolation. Information in the current competitive business
environment is available to business firms in a computerized environment. Computerization is
required to make the information supplied to be timely and accurate, which are critical factors for
success in these competitive times.
As is clear, the advantage that a modern corporate house enjoys can be traced to its management
of information. If the business house cannot manage its information, then it is likely that it will not
have any competitive advantage. Typically an organization can develop competitive advantage if
it can, does or have what others can’t, do or have. In modern times, the advantages on account of
raw materials, technological edge, etc., is being neutralized by the forces of modern business. The
last frontier so to say is information management. Companies that have managed to do it
successfully like Dell, Google, etc., have generated an unparalleled competitive advantage as their
reaction time to changes in the market and/or competition is much less and hence, they can shift
business gears faster than their competitors and hence the advantage. Competitive advantage
through managing information can accrue to an organization if it:
Information management leads to insights into the business that the competitors cannot
have
Information management is used for predictive analysis so that the organization is one step
ahead of competition.
This competitive advantage gained by managing information also requires changes in organization
cultures. Companies need to create a culture of information based management and decision-
making to take advantage of the opportunities of information management. This is a challenge, as
installing an organizational culture is not as straightforward as installing an information
management system. It is a process that takes a lot of time.
Decision-making involve the achievement of a goal. Rationality demands that the decision-maker
should properly understand the alternative courses of action for reaching the goals.
He should also have full information and the ability to analyse properly various alternative
courses of action in the light of goals sought. There should also be a desire to select the best
solutions by selecting the alternative which will satisfy the goal achievement.
Herbert A. Simon defines rationality in terms of objective and intelligent action. It is characterised
by behavioural nexus between ends and means. If appropriate means are chosen to reach desired
ends the decision is rational.
Bounded Rationality model is based on the concept developed by Herbert Simon. This model does
not assume individual rationality in the decision process.
Instead, it assumes that people, while they may seek the best solution, normally settle for much
less, because the decisions they confront typically demand greater information, time, processing
capabilities than they possess. They settle for “bounded rationality or limited rationality in
decisions. This model is based on certain basic concepts.
Herbert A. Simon was of the first few scholars to recognize that decisions are not always made
with rationality and logic. Simon, a winner of the Nobel Prize in Economics, instead of
prescribing how decisions should be made, describes how decisions often actually are made.
As a matter of fact, the classical and administrative models paint quite different pictures of
decision making. The classical model is prescriptive: it explains how managers can at least
attempt to be more rational and logical in their approach to decisions.
The administrative model can be used by managers to develop a better understanding of their
inherent biases and limitation.
A database system normally contains a lot of data in addition to users’ data. For example, it stores
data about data, known as metadata, to locate and retrieve data easily. It is rather difficult to
modify or update a set of metadata once it is stored in the database. But as a DBMS expands, it
needs to change over time to satisfy the requirements of the users. If the entire data is dependent,
it would become a tedious and highly complex job.
If a database system is not multi-layered, then it becomes difficult to make any changes in the
database system. Database systems are designed in multi-layers as we learnt earlier.
A database system normally contains a lot of data in addition to users’ data. For example, it
stores data about data, known as metadata, to locate and retrieve data easily. It is rather difficult
to modify or update a set of metadata once it is stored in the database. But as a DBMS expands, it
needs to change over time to satisfy the requirements of the users. If the entire data is dependent,
it would become a tedious and highly complex job.
Metadata itself follows a layered architecture, so that when we change data at one layer, it does
not affect the data at another level. This data is independent but mapped to each other.
Logical data is data about database, that is, it stores information about how data is managed
inside. For example, a table (relation) stored in the database and all its constraints, applied on that
relation.
Logical data independence is a kind of mechanism, which liberalizes itself from actual data
stored on the disk. If we do some changes on table format, it should not change the data residing
on the disk.
All the schemas are logical, and the actual data is stored in bit format on the disk. Physical data
independence is the power to change the physical data without impacting the schema or logical
data.
For example, in case we want to change or upgrade the storage system itself − suppose we want
to replace hard-disks with SSD − it should not have any impact on the logical data or schemas.
IMPORTANCE
Data independence allows changing the schema at one level without the need to change
the schema at another level.
It helps to improve the data security of the database.
With the help of physical data independence, we can change the storage and file structure
of the database without affecting the application program.
Logical data independence helps us to add and delete the data in the database without any
effect on the application program.
Data independence provides us the facility of data abstraction which means we can use the
functions without worrying about the internal structure of that function. Ex- in a vehicle
we used to apply breaks to decelerate the vehicle without worrying about the internal
mechanism of the break.
Data independence saves a lot of time and price in case, we want to change the location or
file structure of the database or we want to alter the data.
SECTION-C
MIS combines the work of computer science, management science, and operations research with a
practical orientation toward developing system solutions to real-world problems and managing
information technology resources. It is also concerned with behavioral issues surrounding the
development, use, and impact of information systems, which are typically discussed in the fields
of sociology, economics, and psychology
When an information system is being developed, much importance should be given to the
structure of the organization, culture of the organization, etc. But along with these, special
attention should also be given to the technical side of MIS. The various contemporary approaches
to MIS development can be summarized as:
c) Such an approach mainly finds much needed contributions from the disciplines like computer
science, management science, operations research etc.
a) Based on the impact of the behavior and also on the response of the people in the organization.
b) Motivational Feasibility forms a very important and demanding part of such an approach
towards MIS development.
a) In the beginning, this approach was finding it hard to survive – but now it is being accepted
worldwide and is also being implemented at a very large scale.
The main functions of a TPS are conducted by the above-mentioned primary components. These
include:
1. Input functions: Securing and inputting the data of the transactions that have taken place
2. Output functions: Producing the report and record of the input data to be used for future
references and validating the transaction
3. Storage functions: Storing the data from both input and output operations and ensuring the
availability of data for operations like information access, retrieval, sorting and updating.
4. Processing functions: Computing, calculating, sorting, and defining the input data to get
the desired results.
Examples of Transaction Processing System
There are several examples of transaction processing systems we use in day-to-day life. Some of
these are:
1. Hotel reservation: It is extremely useful in reservations of all types wherein the customer
needs an instant verification of the request.
2. Cheque Clearance: Like in physical banks, all the cheques are collected in dropbox and
processed together as a batch with a certain delay (batch processing).
3. POS(Point of Sale): IT reduces the work of sales executives as once the product is tagged
and the related information is entered into the system, the executive only needs to scan the code
and the complete information will be withdrawn from the database.
Transaction Processing System Advantages & Disadvantages
Advantages of using TPS
1.It is a highly cost-effective and fast solution to all the revenue-related operations of any given
organization.
2.It works through a highly stable and reliable database that stores and reflects the information as
and when desired without any risk of information loss.
3.It allows for a quick recovery from any operational failure causing very little delay in the
transaction processing.
4.It allows remote functioning giving the freedom of free operation to businesses who want to
grow across the globe.
5.It can be used both in a real-time manner and batch-processing manner.
Disadvantages of using TPS
1.Every business has different needs that must be dealt with exclusively. This calls for designing a
customized solution for every single business that has some specific requirements.
2.Though it is a cost-effective solution, the initial cost of setting up and installation can be on the
higher side.
3.Even with a highly sophisticated setup, you may need to deploy a large number of workforces
for data input, managing and recording inventory, etc.
4.Though TPS is designed for handling a lot of data and work, overloading may lead to a system
crash.
5.You need to have a certain specification of the hardware for TPS software to work smoothly.
Digital Analytics – Practically all companies capture a large amount of data about their customers
through their web properties and mobile apps. But putting this data to use and deriving
information that is of help in serving customers better or getting new ones, is a complicated task.
Digital analytics is the analysis of this information to achieve greater customer satisfaction,
increase client acquisition rates and improve the online experience of the people who visit the
company’s website.
Internet of Things – This refers to a situation where everyday objects have network connectivity
which allows them to send and receive data. The basic ingredients which are required for this to
happen are already in place as broadband internet is getting cheaper and more widely available.
Additionally, more devices with Wi-Fi abilities are being made and Smartphone penetration is
growing at a rapid pace.
As devices get the ability to “talk” to a central server and to each other, the possibilities for
businesses to use this information present a number of opportunities.
Mobile Applications – An increasing number of people access the internet and company websites
through Smartphone’s and tablets instead of desktop computers or laptops. This trend is expected
to accelerate and businesses need to develop mobile-friendly websites and applications if they
want to retain existing customers and attract new ones.
The question before businesses is no longer whether to invest heavily in information technology
or not. It is not even whether employees across the organisation need to be extremely tech-savvy
and capable of using the information technology available to them. The current challenge before
business leaders of organisations of all sizes is how they will use their digital advantage to keep
ahead of the competition.
ANS 4b) Information plays a vital role in decision-making. Even to take very simple decisions,
we need information. To understand the role played by information in decision-making, we have
to understand how decisions are taken. Decision-making is basically a process that includes the
following stages:
Putting the problem/ Without information about the context in which the problem has
occurred, one cannot take any decision on it. In a way, the
opportunity in .information about the context defines the problem.
context
Choice of best Based on the information about the suitability of the alternatives,
alternative a choice is made to select the best alternative.
Quality of information refers to its fitness for use or its reliability. Some of the attributes of
information which influence the quality of information are as follows:
1) Timeliness
Timeliness means that information must reach the recipients within the prescribed time frame.
Timely information can ensure correct executive action at an early stage. The characteristic of
timeliness, to be effective, should also include current information.
2) Accuracy
Accuracy is another key-attribute of management information. It means that information is free
from mistakes and errors, is clear and accurately reflects the meaning of data on which it is based.
It conveys an accurate picture to the recipient, who may require a presentation in graphical form
rather than tabular form.
3) Relevance
Relevance is yet another key attribute of management information. Information is said to be
relevant if it answers specifically for the recipient what, why, where, who and why? In other
words, the MIS should serve reports to managers, which are useful, and the information helps
them make decisions.
4) Adequacy
Adequacy means information must be sufficient in quantity. MIS must provide reports containing
information, which is required in deciding processes of decision-making.
5) Completeness
The information, which is provided to a manager, must be complete and should meet all his needs.
Incomplete information may result in wrong decisions and thus may prove costly to the
organization.
6) Explicitness
A report is said to be of good quality if it does not require further analysis by the recipient for
decision-making. Thus the reports should be such that a manager does not waste any time on the
processing of the report, rather he should be able to extract the required information directly.
7) Exception based.
Top managers need only exception reports regarding the performance of the organization.
Exception reporting principle states that only those items of information, which will be of
particular interest to a manager, are reported. This approach results in saving precious time of the
top management and enables the managers to devote more time in pursuit of alternatives for the
growth of the organization.
Executive Briefing:
EIS offers up-to-date information on different aspects of the executive’s interest. The briefing is,
generally, related to the performance of various profit centres and offers status reports on various
activities of the enterprise. Though a certain amount of briefing takes place in DSS as well the
information comes as and when it is asked for, from the databases.
In EIS, the information is automatically downloaded periodically from databases in the form of
finished reports. This automatic downloading ensures that executive does not remain out of touch
for long during the days of extreme pressure of workload.
Personalized Analysis:
EIS offers facilities for data analysis using the models of user’s choice. Spreadsheets and
statistical techniques are available in EIS for asking. The difference, here, is that EIS not only
helps the user in analysis of data, but also in interpretation of the outcome of the analysis.
Exceptions Reporting:
An important component of EIS is the exception reporting module. EIS caters to this requirement
of executives effectively and forewarns the executive of the substantial variations from the plans.
They permit, with varying degrees, further investigation into the reasons for deviations and
possible impact of proposed salvage operations. This ability to probe into the matter to get a little
more than just the exception makes EIS a very useful tool for the executive in the efficient
discharge of his functions.
It may be noted that EIS supports all the users and not necessarily the top executives of the
enterprise. All those who help top executives should have access to EIS and it must cater to the
information needs of all such people.
Though there are other data models in use today, the Relational model is the most used. Aside
from the relational model, there are a variety of different data models that we shall discuss in-
depth in this article. Data Models in DBMS include the following:
Hierarchical Model
This concept uses a hierarchical tree structure to organise the data. The hierarchy begins at the
root, which contains root data, and then grows into a tree as child nodes are added to the parent
node.
Network Model
The main difference between this model and the hierarchical model is that any record can have
several parents in the network model. It uses a graph instead of a hierarchical tree.
Entity-Relationship Model
The real-world problem is depicted in visual form in this model to make it easier for stakeholders
to comprehend. The ER diagram also makes it very simple for developers to comprehend the
system.
Relational Model
The data in this model is kept in the form of a table that is two-dimensional. All of the data is kept
in the form of rows and columns. Tables are the foundation of a relational paradigm.
Both the data and the relationship are contained in a single structure that is known as an object in
this model. We can now store audio, video, pictures, and other types of data in databases, which
was previously impossible with the relational approach (Although you can store video and audio
in relational DB, it is advised not to store them in the relational database
It is a hybrid of relational and object-oriented models. This model was developed to bridge the
gap between the object-oriented and relational models.
Ans-6b)
While some companies are good at collecting data, they are not managing it well enough to make
sense of it. Simply collecting data is not enough; enterprises and organizations need to understand
from the start that data management and data analytics only will be successful when they first put
some thought into how they will gain value from their raw data. They can then move beyond raw
data collection with efficient systems for processing, storing, and validating data, as well as
effective analysis strategies.
Another challenge of data management occurs when companies categorize data and organize it
without first considering the answers they hope to glean from the data. Each step of data
collection and management must lead toward acquiring the right data and analyzing it in order to
get the actionable intelligence necessary for making truly data-driven business decisions.
The best way to manage data, and eventually get the insights needed to make data-driven
decisions, is to begin with a business question and acquire the data that is needed to answer that
question. Companies must collect vast amounts of information from various sources and then
utilize best practices while going through the process of storing and managing the data, cleaning
and mining the data, and then analyzing and visualizing the data in order to inform their business
decisions.
It’s important to keep in mind that data management best practices result in better analytics. By
correctly managing and preparing the data for analytics, companies optimize their Big Data. A
few data management best practices organizations and enterprises should strive to achieve
include:
It is with the help of data management platforms that organizations have the ability to gather, sort,
and house their information and then repackage it in visualized ways that are useful to marketers.
Top performing data management platforms are capable of managing all of the data from all data
sources in a central location, giving marketers and executives the most accurate business and
customer information available.
ANS 7b)
Structured query language (SQL) is a programming language for storing and processing
information in a relational database. A relational database stores information in tabular form,
with rows and columns representing different data attributes and the various relationships between
the data values.
Constraints in SQL
Constraints in SQL means we are applying certain conditions or restrictions on the database. This
further means that before inserting data into the database, we are checking for some conditions. If
the condition we have applied to the database holds true for the data which is to be inserted, then
only the data will be inserted into the database tables.
1. Every person has a unique email id. This is because while creating an email account for
any user, the email providing services such as Gmail, Yahoo or any other email providing
service will always check for the availability of the email id that the user wants for
himself. If some other user already takes the email id that the user wants, then that id
cannot be assigned to another user. This simply means that no two users can have the same
email ids on the same email providing service. So, here the email id is the constraint on the
database of email providing services.
2. Whenever we set a password for any system, there are certain constraints that are to be
followed. These constraints may include the following:
o There must be one uppercase character in the password.
o Password must be of at least eight characters in length.
o Password must contain at least one special symbol.
Constraints available in SQL are:
1. NOT NULL
2. UNIQUE
3. PRIMARY KEY
4. FOREIGN KEY
5. CHECK
6. DEFAULT
7. CREATE INDEX