MMPC 8 Ebook Final

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MMPC 8 IGNOU
INFORMATION SYSTEMS FOR MANAGERS
TABLE OF
CONTENTS
01 LONG IMP QUESTIONS
02 EXTRA LONG QUESTIONS
03 VERY IMP SHORT NOTES
04 EXTRA SHORT NOTES
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MMPC 8 INFORMATION SYSTEMS FOR MANAGERS

FIRST PRIORITY MOST IMPORTANT QUESTIONS
Q1- What is INFORMATION SYSTEM/INFORMATION TECHNOLOGY? Describe type of information

system? How each type of information system support communication and decision making? (v v v
v v imp)
Ans – DEFINITIONS OF IT
Information Technology means the collection, storage, processing, dissemination, and use of
Information. It is not confined to hardware and software but acknowledges the importance of man
and the goals he sets for his technology, the values employed in making these choices, the
assessment criteria used to decide whether he is controlling the technology and is being enriched by
it
Let us understand what information is. Information is the finished product for which data is the raw
material. The dictionary defines information as processed data, which is used to trigger certain
actions or gain understanding of what the data implies. Information has also been defined as data
that have been put into a meaningful and useful context and communicated to a recipient who uses
it to make decisions. Information involves the communication and reception of intelligence or
knowledge. It apprises and notifies; surprises and stimulates, reduces uncertainty, reveals additional
alternatives or helps eliminate irrelevant or poor ones, and influences individuals and stimulates
them to action. The information must be received by the recipient within the required time frame
and the information must be free from errors.
The technology plays an important role in delivering timely and error free information to its
recipients. Technology includes hardware, software, databases, and communication system.
Hardware is a set of devices such as processor, monitors, keyboard, and printer that accept data,
process them, and display them. Software is a set of programs that enable the hardware to process
data. Database is also an integral part of IT system, which is a collection of related files, tables,
relation etc. that stores data and the association among them. Network connects computing
resources of an organization and facilitates sharing of hardware and software. The organization
processes and people are integral part of an IT System.
The above definition clearly states that IT is an important tool, which must be used properly. At one
time, 60% people used to work in agriculture. Nowadays, in a developed country, about 10% people
work in agriculture and 40% people work in information related fields. In a developed country such
as US, 50% households have computers and Internet connection. In India, only about 8 people out of
every 1000 have access to computers. However, India is making steady progress. As far as history of
computing is concerned, people tried to invent a computing machine as early as 800 BC. Abacus is
one of the oldest computing devices that are still in use. Every child in China learns to use abacus in
school. Our ancestors had built various other mechanical machines using gears. All these efforts laid
foundation for better computing machines. The diode tubes, transistors, integrated circuits (ICs) and
now very large integrated circuits (VLSI) are the electro-mechanical devices that have been invented
over a period of time. The technology has improved since World War II many folds. The improved
technology has been the key factor in making better computing devices. Along with improvement in
computing technology, the communication technology has also improved in parallel. The software
also improved and became user friendly. The spreadsheets, the word processing packages, database
packages, simulation software packages, and decision support systems made IT popular among
managers as well. The terms Information Systems (IS) and Information Technology (IT) are used
synonymously. IS has evolved considerably since 1960
TYPES OF INFORMATION SYSTEM
There are various types of information systems as listed below.
Transaction Processing Systems (TPS)
A TPS is used primarily for record keeping which is required in any organization to conduct the
business. Examples of TPS are sales order entry, payroll, and shipping records etc. TPS is used for
periodic report generation in a scheduled manner. TPS is also used for producing reports on demand
as well as exception reports.
COMPUTER AIDED DECISION MAKING

A decision system supports and assists all aspects of problem specific decisionmaking
A decision support system (DSS), also called Computer Aided Decision System (CADS), is used when
the problem is complex and the information needed to make the best decision is difficult to obtain
and use.In an organization, a manager has certain goals, which he tries to achieve through the use of
resources. The resources such as people, money, material, and time is always limited. One of the
roles that a manager plays among many others is of decisionmaking. The manager would like to
examine various alternatives, which may not be possible in a manual system due to time constraint
or due to sheer volume of data. Sometimes, a statistical analysis of fluctuating data is required which
may be done only with the help of a decision support system. The data may be distributed over
various branches of the organization and without the help of Information Technology; it may not be
possible to examine the data.
An information system that helps a manager in making a decision is called a computer-aided
decision support system (CADS) or simply decision support system (DSS). A DSS is designed with the
help of decision makers. A DSS aids in decisionmaking process and does not make any decision. A
DSS may be used for doing a thorough risk analysis of a project. Such a DSS performs what - if
analysis. A DSS consists of a model of the real world, collection of facts- database, and a user
interface.
An analyst talks to the manager and tries to establish his requirement. Analyst may need to interact
with users many times before the requirements are completely understood. The analyst may also
study the existing system if any. The analyst must have domain knowledge. The reality is examined,
the problem is identified, and it is defined. The problem may be too complex to be analyzed. In such
a situation, a simplified version of the problem is defined. The simplified problem is used to create a
model of the actual problem. There are many ways of creating a model for a problem. The model
may be a scale model, i.e. model of a building or a bridge. It may be a mathematical model such as
equations describing the trajectory of a missile. The model may be an analog model such as a blue
print for a building or a map to show a particular region. There are many other types of models,
which are not discussed here. A model has a set of uncontrollable variables that are not under the
control of the manager. There is a set of decision variables, which are under the control of the
manager, and these variables describe alternative course of action. As the values assigned to
decision variables are changed, the results also change. The result variables are dependent on
decision variables
The analyst then documents the requirements using one of the formal representations such as Data
Flow Diagram, Flowcharts, ER diagram, structured English. Such a document is called Software
Requirements Specification (SRS). A system is then built according to the requirements. There are
many software development models such as waterfall model, prototype, and incremental models.
For a decision support system, usually a prototype is built which is shown to the manager for
approval. The complete system is then built taking the feedback from the manager into
consideration.
The decision variables are changed and impact on result variables is analyzed. A DSS provides
support for decision makers by bringing together human judgment and computerized information. A
DSS may provide support throughout large and complex organization or it may support an executive.
A DSS may help an executive to perform trend analysis. A DSS may be designed to generate
exception report so that the manager does not miss any exceptional condition
Q2- What is data warehouse? Difference between data ware house and in an operation
data base ? (v v v v v imp)
Ans – THE DATA WAREHOUSE
We need a new breed of information delivery environment, called a data warehouse, to facilitate
strategic decision-making. The concept of a data warehouse given by Bill Inmon, the father of data
warehousing, is depicted in Figure
Table summarizes the differences between the data in a data warehouse and that in an operational
database
The Load Manager

Data flows into the data warehouse through the load manager. The data is mostly extracted from
the operational database(s) and other internal sources (like archived historical data), and
supplemented by data imported from external sources. Externally sourced data can greatly enhance
the value of information generated from a data warehouse. For example Transco, the gas pipeline
operator in UK, uses weather forecast data from the British Met Office on a regular basis to
determine demand for gas (the main source of energy used for heating homes and offices) in various
areas of the country. The weather data is fed into a model that incorporates several other factors
(e.g. day of the week, internal data about customers’ usage patterns, demographic and economic
profile data, alternate sources of energy, types of buildings in the area) to arrive at a demand
forecast. Types of data from external sources that may be included in data warehouse are: financial
indicators and statistics of the industry, market share data of competitors, demographic data,
weather data, credit worthiness data, readership / viewer survey data for advertising media,
specially commissioned surveys and so on. External data is usually obtained from commercial
database services or government agencies (e.g. Equifax, Reuters, Met Office, census agency, industry
associations, stock exchanges, local government statistics service). The data from such diverse
sources will obviously be in different incompatible formats and will be distributed through various
media. Some of them may be available on a downloadable format on the Internet; others may be
distributed on CD-ROMs, while some may only be available on printed media. Some data may be
available for free but most data (particularly when used for commercial purposes) have to be
purchased.
The load manager primarily performs what is termed an extract-transform-load (ETL) operation.
• Data Extraction
• Data Transformation
• Data Loading
Data Extraction: This function has to deal with numerous data sources. Appropriate techniques have
to be employed for each data source. Source data may be from different source machines in diverse
data formats. Part of the source data may be in relational database systems. Some data may be on
other legacy network and hierarchical data models. Many data sources may still be in flat files. There
may also be the need to include data from spreadsheets and local departmental data sets. Data
extraction can become quite a complex operation at times. Various tools are available on the market
for data extraction. Use of outside tools may be considered suitable for certain data sources. For the
other data sources, inhouse programs may need to be developed to do the data extraction.
Purchasing outside tools may entail high initial costs. In-house programs, on the other hand, may
mean ongoing costs for development and maintenance. After extraction, the data needs to be kept
somewhere for further preparation. Sometimes the extraction function is performed in the legacy
platform itself if that approach suits the designed framework. More frequently, data warehouse
implementation teams extract the source data into a separate physical environment from which
moving the data into the data warehouse would be easier. In the separate environment, the source
data may be extracted into a group of flat files, or an intermediate relational database, or a
combination of both. This physical environment is called the data-staging area
Data Transformation: In every system implementation, data conversion is an important function.
For example, when implementing an operational system such as a magazine subscription
application, the database has to be initially populated with data from the existing system records.
The conversion may either be from a manual system or from a file-oriented system to a modern
system supported with relational database tables. In either case, the data will need to be converted
from the existing systems. So, what is so different for a data warehouse? Why is data transformation
for a data warehouse more involved than that for an operational system? As already discussed, data
for a data warehouse comes from many disparate sources. If data extraction for a data warehouse
poses great challenges, data transformation presents even greater challenges. Another factor in the
data warehouse is that the data feed is not just an initial one-time load. The ongoing changes will
have to continue to be picked up from the source systems. Any transformation tasks are set up for
the initial load will have to be adapted for the ongoing revisions as well.
A number of individual tasks are performed as part of data transformation. First, the data extracted
from each source is cleaned. Cleaning may be correction of misspellings, or may include resolutions
of conflicts between state codes and pin codes in the source data, or may deal with providing default
values for missing data elements, or elimination of duplicates when the same data is brought in from
multiple source systems. Standardization of data elements forms a large part of data transformation.
The data types and field lengths for same data elements retrieved from the various sources need to
be standardized. Semantic standardization is another major task. Synonyms and homonyms have to
be resolved. Resolution of synonyms is required when two or more terms from different source
systems mean the same thing. On the other hand, when a single term means many different things
in different source systems, resolution of homonyms have to be performed.
Data transformation involves many forms of combining pieces of data from the different sources. In
some cases, data from a single source record or related data elements from many source records are
combined. In other situations, data transformation may also involve purging source data that is not
useful and/or separating out source records into new combinations. During data transformation
sorting and merging of data takes place on a large scale in the data staging area. In many cases, the
keys chosen for the operational systems are field values with built-in meanings. For example, the
product key value may be a combination of characters indicating the product category, the code of
the warehouse where the product is stored, and some code to show the production batch. Primary
keys in the data warehouse cannot have built-in meanings. Therefore, data transformation also
includes the assignment of surrogate keys derived from the source system primary keys. A grocery
chain point-of-sale operational system keeps the unit sales and revenue amounts by individual
transactions at the checkout counter at each store. But in the data warehouse, it may not be
necessary to keep the data at this detailed level. It may be more appropriate to summarize the totals
by product at each store for a given day and keep the summary totals of the sale units and revenue
in the data warehouse’s storage. In such cases, the data transformation function would include such
summarization processing.
Data Loading: Two distinct groups of tasks form the data loading function. After completion of the
design and construction of the data warehouse, when it goes live for the first time, the initial loading
of data is done. The initial load moves large volumes of data and takes substantial amount of time,
but it is a one-time effort. As the data warehouse starts functioning, extraction of additions (and
changes) to the source data continues on an ongoing basis, together with the transformation and
loading operations.
Operational data represent specific transactions that occur at a given time, such as customer
purchase of product X in store A. Thus, granularity is taken for granted to be of the lowest level, in
operational systems. Data warehouse data must be presented at different levels of aggregation,
from highly summarized to near atomic. This requirement is based on the fact that managers at
different levels in the organization require data with different levels of aggregation. It is also possible
that a single problem requires data with different summarization levels. For example, if a manager
must analyze sales by region, (s)he must be able to access data showing the sales by region, by city
within the region, by store within the city within the region, and so on. In this case, the manager
requires summarized data to compare the regions, but (s)he also needs data in a structure that
enables him or her to decompose (drill down) the data into more atomic components (that is, data
at lower levels of aggregation). For example, it is necessary to be able to drill down to the stores
within the region in order to compare store performance by region. Granularity level in a data
warehouse cannot, therefore, be assumed.
The decision on granularity level profoundly affects both the volume of data that resides in the data
warehouse, and the type of query that can be answered. A trade off exists between the volume of
data in the data warehouse and the level of detail of queries (see Figure 17.3 below). Some data
warehouses are designed to support dual granularity. In such environments some data (usually the
most recent) is held at a relatively low level of granularity, while the rest is held in more summarized
form (i.e. at a higher granularity level). This enables detailed analysis at the same time allows
reduction of data volume
Q3- What is meta data? Explain METADATA REPOSITORY? (v v v v v imp)

Ans – METADATA
Metadata in a data warehouse is similar to the data dictionary in the context of a database. It stores
data about data in the data warehouse
Types of Metadata
Metadata in a data warehouse fall into three major categories:
• Operational Metadata
• Extraction and Transformation Metadata
• End-User Metadata
Operational Metadata: As already discussed, data for the data warehouse comes from several
operational systems of the enterprise. These source systems contain different data structures. The
data elements selected for the data warehouse have various field lengths and data types. Selecting
data from different source files, and loading it into the data warehouse, requires splitting of records,
combining parts of records from different source files, and dealing with multiple coding schemes and
field lengths. When information is delivered to the end-users, it is essential to be able relate back to
the original source data sets. Operational metadata contain all of this information about the
operational data sources that allow us to trace back to the original source.
Extraction and Transformation Metadata: Extraction and transformation metadata contain data
about the extraction of data from the source systems, namely, the extraction frequencies, extraction
methods, and business rules for the data extraction. Also, this category of metadata contains
information about all the data transformations that take place in the data staging area.
End-User Metadata. The end-user metadata is the navigational map of the data warehouse. It
enables the end-users to find information from the data warehouse. The end-user metadata allows
the end-users to use their own business terminology and look for information in those ways in which
they normally think of the business.
Q4- What is NEURAL NETWORKS? (v v v v v imp)

Ans – NEURAL NETWORKS
Neural networks are a great aid to computing. They involves mathematical structures that are
capable of learning. Neural network is a set of connected input/output units where each connection
has a weight associated with it. Neural networks are primarily used for predictions. Neural networks
use past data and fit a model on it to predict and classify. Neural networks as the name suggest
resembles the namesake found in human beings. Neural networks begin with an input layer, which is
given some weight before it connects to the output unit. The output unit processes the values of
input variable and weights with a combination function. There are many hidden layers between the
input and output layer. A neural network is trained by assigning weights on the inputs of each of the
units so that the network predicts the variable under question in the best possible manner.
According to Barry & Linoff (2001), “Neural Networks are a good choice for most classification and
prediction tasks when the results of the model are more important than understanding how the
model works. Neural Networks actually represent complex mathematical equations, with lots of
summations, exponential functions and any parameters. These equations describe the neural
network, but are quite opaque for human eyes… Neural networks do not work well when there are
man hundreds or thousands of input features… Neural network works well with decision trees…
decision tress are good at choosing the most important variables- and these can be used for training
a network.” A major difference between neural networks and the statistical modeling is that the
former is based on the rules it explores from the data while the latter is based on previously
specified functional form. As our nervous system is made up of neurons that are connected with a
nerve fiber, neural nets also have nodes that are connected. As a neuron receives signals from its
neighboring neurons, processes them and move those signals forward, the neural net also do the
same functions.
Thus artificial neural networks are electrical analogues of the biological neural nets. The most
common application of neural network is in the field of machine learning. One can find many
applications of neural networks in control, automation, robotics, computer vision, scheduling,
knowledge acquisition and planning. They are useful in many applications because they derive
meaning from complicated or imprecise data. These situations are otherwise complex and
undetectable by humans and other computer techniques. Neural Networks are good at identifying
patterns or trends in data and hence they are well suited for prediction and forecasting needs
A neural network can have multiple layers. Suppose, we have a training data and we measure
attributes for training data. These measured attributes form the input layer. Weights are given to
the input layer according to their importance in the problem. The output from the input layer is
assigned some weights and this feed to the second layer, known as hidden layer. Similarly the
weighted outputs of this hidden layers can be fed to the next hidden layer and so on. Finally these
outputs go into the output layer, which emits network’s prediction. This process is explained in the
figure given below. Figure shows how a training sample x1 , x2 ,…xi is fed to the input layer.
Weighted connections exist between each layer denoted by wij.
If there is a single hidden layer then the network is called a two-layer neural network. Similarly a
network containing two hidden layers is called a three-layer neural network
Q5- What is system developed life cycle(SDLC) and phases? (v v v v v imp)

Ans – TRADITIONAL SYSTEM LIFE CYCLE
The goal of the traditional system life cycle is to keep the project under control and assure that the
information system produced, satisfies the requirements. The traditional system life cycle divides
the project into a series of steps, each of which has distinct deliverables, such as documents or
computer programs. This is known as the systems development life cycle (SDLC). The deliverables
are related because each subsequent step builds on the conclusions of previous steps. This has been
shown in Figure. Some deliverables are oriented toward the technical staff, whereas others are
directed toward or produced by users and mangers. The latter ensure that users and their
management are included in the system development process.
Although there is general agreement about what needs to be done in the traditional system life
cycle, different authors name individual steps and deliverables differently. Many versions of the
traditional system life cycle emphasize the building or software and de-emphasize what happens in
the organization before and after software development. Because this unit is directed at business
professionals, its version of the traditional system life cycle emphasizes implementation and
operation in the organization in addition to software development.
Initiation
The initiation phase may begin in many different ways. A user may work with the IS staff to produce
a written request to study a particular business problem. The IS staff may discover an opportunity to
use information systems beneficially and then try to interest users. A top manager may notice a
business problem and ask the head of IS to look into it. A computer crash or other operational
problem may reveal a major problem that can be patched temporarily but requires a larger project
to fix it completely. Regardless of how this phase begins, its goal is to analyze the scope and
feasibility of a proposed system and to develop a project plan. This involves two steps, the feasibility
study and project planning, which produce the functional specification and a project plan
The feasibility study is a user-oriented overview of the proposed information system’s purpose and
feasibility. A system’s feasibility is typically considered from economic, technical, and organizational
viewpoints.
Development
The development phase creates computer programs (with accompanying user and programmer
documentation) plus installed hardware that accomplishes the data processing described in the
functional specification. This is done through a process of successive refinement in which the
functional requirements are translated into computer programs and hardware requirements. The
purpose of the various steps and deliverables in the development phase is to ensure that the system
accomplishes the goals explained in the functional specification. These steps are summarized in
Figure
The first step in the development phase is the detailed requirements analysis, which produces a
user-oriented description of exactly what the information system will do. This step is usually
performed by a team including user representative and the IS department. It produces a document
called the external specification. Building on the functional specification, the external specification
shows the data input screens and major reports and explains the calculations that will be
automated. It shows what information system users will see, rather than explaining exactly how the
computer will perform the required processing. Users reviewing this document focus on whether
they understand the data input screens, reports, and calculations, and whether these will support
the desired business process. By approving the external specification, the users and IS staff signify
their belief that the information system will accomplish what they want.
The next step is internal system design, in which the technical staff decides how the data processing
will be configured on the computer. This step produces the internal specification, a technical
blueprint for the information system. It documents the computer environment the system will
operate in, the detailed structure and content of the database, and the inputs and outputs of all
programs and subsystems. Users do not sign off on the internal specification because it addresses
technical system design issues. Instead, the IS staff signs off that the internal specification
accomplishes the functions called for in the external specification the users have approved. Thus far
the discussion has focused on software. Because the software will work only if there is hardware for
it to run on, and essential step in the development phase is hardware acquisition and installation.
For some information systems, this is not an issue because it is a foregone conclusion that existing
hardware will be used. Other systems require a careful analysis to decide which hardware to
acquire, how to acquire it most economically, where to put it, and how to install it by the time it is
indeed. Factors considered in hardware acquisition decisions include compatibility with existing
hardware and software, price, customer service, and compatibility with long-term company plans.
Computer hardware can be purchased or rented through a variety of financing arrangements, each
with its own tax consequences. A firm’s finance department usually makes the financing
arrangements for significant hardware purchases. Especially if new computer hardware requires a
new computer room, lead times for building the room, installing the electricity and air conditioning,
and installing the computer may be important factors in the project plan
In firms with large IS staffs; users rarely get involved with the acquisition, installation, and operation
of computer hardware. Much as with telephone systems, users expect the hardware to be available
when needed and complain furiously whenever it goes down. This is one reason computer hardware
managers sometimes consider their jobs thankless.
A number of improvements in programming methods have made programming faster and more
reliable. Structured programming is often used to make the programs more consistent, easier to
understand and less error prone. Fourth generation languages (4GLs) also expedite programming for
some systems. However, as should be clear from all of the steps leading up to coding and following
coding, coding often accounts for less than 20% of the work in developing a system. This is one of
the reasons 4GLs and other improved programming tools do not drastically shrink the system life
cycle for large systems, even when they slash programming time. Documentation is another activity
that can proceed in parallel with programming and hardware acquisition. Both user and technical
documentation is completed from the material that already exists. The functional specification and
external specification are the basis for the user documentation, and the internal specification and
program documentation are the basis for the programmer documentation. With the adoption of
Computer Aided Software Engineering (CASE) tools, more of the documentation is basically a
compilation of data and diagrams already stored on a computer. Additional user documentation is
usually required, however, because different users need to know different things depending on their
roles. People who perform data entry tasks need to understand the data entry procedures and what
the data mean; people who use data from the system need to understand what the data mean and
how to retrieve and analyze data, but do not need to know much about data entry details
After the individual programs have been tested, the entire information system must be tested to
ensure that the programs operate together to accomplish the desired functions. This is called the
system testing, or integration testing. System tests frequently uncover inconsistencies among
programs as well as inconsistencies in the original internal specification. These must be reconciled
and the programs changed and retested. One of the reasons for Microsoft’s “synch and stabilize”
method is to eliminate the surprises and extensive network that might occur if system testing
showed that programs were incompatible. Although system testing may seem an obvious
requirement, inadequate system testing has led to serious problems. For example, a new trust
accounting system put into operation prematurely by Bank of America on March 1, 1987, lost data
and fell months behind in generating statements for customers. By January 1988, 100 institutional
customers with $ 4 billion in assets moved to other banks, several top executives resigned, and 2.5
million lines of code were scrapped. An important part of testing is the creations of a testing plan, a
precise statement of exactly how the information system will be tested. This plan includes the data
that will be used for testing. Creating a testing plan serves many purposes. It encourages careful
thought about how the system will be tested. In addition, a thorough plan increases the likelihood
that all foreseeable contingences will be considered and that the testing will catch more of the bugs
in the system
It should be clear that the development phase for a large information system is a complex
undertaking, quite different from sitting down at a personal computer and developing a small
spreadsheet model. Explicitly separating out all the steps in the development phase helps to ensure
that the information system accomplishes the desired functions and is debugged. Such an elaborate
approach is needed because the system is a tool of an organization rather than an individual. An
individual producing a spreadsheet is often typing to solve a current problem with no intention to
use the spreadsheet next month, much less that someone else will need to decipher and modify it
next year. In contrast, the traditional system life cycle assumes that the information system may
survive for years, may be used by people who were not involved in its development, and may be
changed repeatedly during that time by people other than the original developers. The steps in the
traditional life cycle try to make the long-term existence of the information system as efficient error-
free as possible
Implementation
Implementation is the process of putting a system into operation in an organization. Figure shows
that it starts with the end product of the development phase, namely, a set of computer programs
that run correctly on the computer, plus accompanying documentation. This phase begins with
implementation planning, the process of creating plans for training, conversion, and acceptance
testing.
System Analysis and Computer Languages The training plan explains how and when the user will be
trained. The conversion plan explains how and when the organization will convert to new business
processes. The acceptance-testing plan describes the process and criteria for verifying that the
information system works properly in supporting the improved work system. Training is the process
of ensuring that system participants know what they need to know about both the work system and
the information system. The training format depends on user backgrounds and the purpose and
features of both the work system and the information system. Users with no computer experience
may require special training. Training for frequently used transaction processing systems differs from
training for data analysis systems that are used occasionally. Information systems performing diverse
functions require more extensive training than systems used repetitively for new functions. Training
manuals and presentations help in the implementation system. After the previous methods have
receded into history, other types of training material are more appropriate
Following the training comes the carefully planned process of conversion from the old business
processes to new ones using the new information system. Conversion is often called cutover or
changeover. It can be accomplished in several ways, depending on the nature of the work and the
characteristics of the old and new systems. One possibility is to simply choose a date, shut off the
old information system, and turn on the new one while hoping that the work system will operate as
intended. This is risky, though, because it does not verify that the information system will operate
properly and that the users understand how to use it. Consider the following example: The State of
California installed an optical disk system to streamline the process of doing title searches
(establishing ownership and identifying indebtedness on a property) for borrowers who wished to
purchase property. Previously, there was a 2 to 3 week delay between the borrower’s loan request
and the bank’s receipt of a confirmation that the title was clear. The new system was to reduce this
delay to 2 days. Both the vendor and several state officials recommended that the existing manual
system remain in full operation during the conversion in case of problems. However, the Secretary of
Finance rejected the request for an additional $2.4 million, and the manual system was simply shut
down when the optical disk system came up. Unfortunately, software bugs plagued the new system,
and the resulting logjam of 50,000 loan requests delayed title searches for up to 10 weeks. The new
system was shut down for repair, and the old manual system reinstated. The Assistant Secretary of
State said that some banks almost went out of business because of the slow turnaround
To minimize risk and wasted effort, most conversions occur in stages, which can be done in several
ways. A phased approach uses the new information system and work system for a limited subset of
the processing while continuing to use old methods for the rest of the processing. If something goes
wrong, the part of the business using the new system can switch back to the old system. The
simultaneous use of the old system and the new system is called running in parallel. Although this
involves double record keeping for a while, it verifies that the new information system operates
properly and helps the users understand how to use it effectively within the new work system
Conversion requires careful planning because people who don’t want the new system and use the
problems as an opportunity to complain can blow even minor problems out of proportion. For these
reasons, it is often wise to do a pilot implementation with a small group of users who are
enthusiastic about the system improvements. Ideally, their enthusiasm will motivate them to make
the effort to learn about the changes and to forgive minor problems. After a pilot implementation
demonstrates that the new information system works, it is usually much easier to motivate everyone
else (including the skeptics) to start using it. Acceptance testing is testing of the information system
by the users as it goes into operation. Acceptance testing is important because the information
system may not fit, regardless of what was approved and signed off in the external specification. The
business situation may have changed; the external specification may reflect misunderstandings; the
development process may have introduced errors; or the implementation may have revealed
unforeseen problems. For all these reasons, it makes sense to include an explicit step of deciding
whether the information system is accepted for ongoing use. If it doesn’t fit user needs, for
whatever reason, installing it without changes may lead to major problems and may harm the
organization instead of helping. Acceptance testing also solidifies user commitment because it gets
people in the user organization to state publicly that the system works. The post-implementation
audit is the last step in the implementation phase, even though it occurs after the new system has
been in operation for a number of months. Its purpose is to determine whether the project has met
its objectives for costs and benefits and to make recommendations for the future. This is also an
opportunity to identify what the organization can learn from the way the project was carried out
Operations and Maintenance
The operation and maintenance phase starts after the users have accepted the new system. This
phase can be divided into two activities: (1) ongoing operation and support, and (2) maintenance.
Unlike the other steps in the life cycle, these steps continue throughout the system’s useful life. The
end of a system’s life cycle is its absorption into another system or its termination. Ongoing
operation and support is the process of ensuring that the technical system components continue to
operate correctly and that the users use it effectively. This process is similar to the process of making
sure a car or building operates well. It works best when a person or group has direct responsibility
for keeping the information system operating. This responsibility is often split, with the technical
staff taking care of computer operations and a member of the user organization ensuring that users
understand the system and use it effectively. Day-to-day computer operations typically include
scheduled events such as generating summary reports from management and backups of the
database. The operations manual specifies when these jobs should be done. For transaction
processing systems essential to the operation of the business, a member of the technical staff also
monitors computer-generated statistics related to response times, program run times, disk space
utilization, and similar factors to ensure the programs are running efficiently
System Analysis and Computer Languages When the database becomes too full, or when response
times start to increase, the technical configuration of the information system must be changed. This
is done by allocating more disk space, unloading (backing up onto tape or discarding) data that are
not current, or changing job schedules. Maintenance is the process of modifying the information
system over time. As users gain experience with a system, they discover its shortcomings and usually
suggest improvements. The shortcomings may involve problems unrelated to the information
system or may involve ways that the information system might do more to support the work system,
regardless of the original intentions. Some shortcomings are bugs. Important shortcomings must be
corrected if users are to continue using an information system enthusiastically. Handling
enhancement requests and bug fix requests is both a technical challenge and a delicate political
issue for IS departments. The technical challenge is ensuring that changes don’t affect other parts of
the system in unanticipated ways. The traditional life cycle helps here because documentation and
internal design methods enforce modularization and make it easier to understand the scope and
impact of changes. The political issue for most IS departments are their inability to support even half
of the enhancement requests they receive. For new or inadequately planned information systems,
some departments have more enhancement requests than they can even analyze. In this
environment, it requires both technical and political skill to keep users satisfied. Users are often
frustrated by how long it takes to make changes
What might seem to be a simple change to a person who “programs” spreadsheet is often vastly
more complex in a large information spawn changes in several levels of documentation. The steps in
each of the four phases of the traditional system life cycle have now been introduced. Table 14.1
outlines the steps in each phase and makes two major points in addition to the details it presents.
First it shows that users are highly involved in three of the four phases. In other words, building
information systems is not just technical work done by the technical staff. It also shows that each
step has specific deliverables that document progress to date and help keep the project under
control. The traditional system life cycle is a tightly controlled approach designed to reduce the
likelihood of mistakes or omissions? Despite its compelling logic, it has both advantages and
disadvantages. Adherence to fixed deliverables and signoffs improves control but guarantees a
lengthy process. Having specific deliverables due at specific times makes it schedule of deliverables
sometimes takes on a life of its own and seems as important as the real project goals. When merely
going through the motions of producing deliverables on schedule, participants may be tempted to
turn in work that is incomplete and to approve documents they do not truly understand
Q6- What is integrated software application? Discuss Advantages and Business Utility
integrated software application? (v v v v v imp)
Ans – INTEGRATED SOFTWARE APPLICATIONS
Literal meaning of “Integration” is combination or amalgamation. In terms of computer terminology,
“Integration” is a broad term for any software that serves to join together or act as a go-between
between two separate and usually already. Information Systems - II existing applications. Integrated
software applications for business gives you the ability to integrate the diverse information sources
pertaining to your business into a single framework. This integrated information can then be shared
by applications such as Customer relationship Management (CRM), Supply Chain Management
(SCM) and Business process Re-engineering (BPR) systems.
ERP: Short for enterprise resource planning, a business management system that integrates all
facets of the business, including planning, manufacturing, sales, and marketing. As the ERP
methodology has become more popular, software applications have emerged to help business
managers implement ERP in business activities such as inventory control, order tracking, customer
service, finance and human resources.
CRM: Short for customer relationship management. CRM entails all aspects of interaction a company
has with its customer, whether it be sales or service related. Computerization has changed the way
companies are approaching their CRM strategies because it has also changed consumer-buying
behavior. With each new advance in technology, especially the proliferation of self-service channels
like the Web and WAP phones, more of the relationship is being managed electronically.
Organizations are therefore looking for ways to personalize online experiences (a process also
referred to as mass customization) through tools such as help-desk software, e-mail organizers and
Web development applications.
SCM: Short for supply chain management, the control of the supply chain as a process from supplier
to manufacturer to wholesaler to retailer to consumer. Supply chain management does not involve
only the movement of a physical product (such as a microchip) through the chain but also any data
that goes along with the product (such as order status information, payment schedules, and
ownership titles) and the actual entities that handle the product from stage to stage of the supply
chain. There are essentially three goals of SCM: to reduce inventory, to increase the speed of
transactions with real-time data exchange, and to increase revenue by satisfying customer demands
more efficiently
BPR: Short for Business Process Re-engineering. It is aimed to make radical changes in an
organization from the ground up in an aim to improve performance and make more efficient use of
resources. The concept of BPR generally includes the use of computers and information technology
to organize data, project trends, etc. (Source: http://www. computeruser.com/resources/dictionary)
Many big companies are giving high importance to software integration. Today nobody wants to
access data stored in multiple systems. They want to build strong links between business systems
and make information flow better. Let us take an example, suppose you want to place an order
through the net. An integrated software solution will, on one hand, take that order, shift it and
allocate them to the manufacturing plant and on the other hand place order for the raw materials
on the basis of the stock, update the financial position of the company with respect to suppliers and
the inventory and so on. Many people have given different names to the integration of ERP, SCM,
BPR and CRM. These names include e-business, c-business, m-business and KM etc. There are many
software that do these integration activities. To name a few there are software known as Baan,
Fourth Shift, Frida, JD Edwards One World, Manage 2000, Masterpiece - MP/Net, Micro strategy,
Oracle e-Business Suite, People Soft and SAP R/3. We will discuss few among them
ADVANTAGES AND BUSINESS UTILITY
There is a lot of interest among IT solution providers about packages that help in ERP, SCM, BPR and
CRM. The plea given is that they help in real business growth. Companies actually want to integrate
their diverse business processes to simplify operations for faster decision-making. Many companies
have realized that if they have to survive and grow, they have to use tools that can provide quicker
and useful information and cut costs to increase efficiency. Till now IT was used in large and
multinational companies only. Small companies were not willing to invest more on IT. In India, on an
average, small and medium companies were reluctant to invest more than 2-5% on IT.
Circumstances have changed now. Businesses are not trying really hard to reap the benefits of IT for
gaining competitive advantages. IT has given businesses a chance to generate information in real-
time and thus grab opportunities that were non-existent or unseen earlier. With the development of
cutting-edge technology, we have seen evolution of many systems that has adapted market
demands. IT is readily providing business solutions now. These solutions provides a platform to
integrate all processes in an organization enabling it to plan, trace and see its 4-m resources
(materials, machines, men and money) in the best possible ways to service customers and reduce
costs. If you want that your Business should survive with low overheads and still run efficiently then
you have no choice but to opt for IT solutions.
A typical business solution is an integration of ERP, BPR, SCM and SCM. While ERP can take care of
functions like accounts production planning, payroll and marketing etc., BPR can be used
simultaneously to cut-down on all non-value added business processes and paperwork. These
systems are the enablers of change in the business for better. With the help of these systems your
business can compete better. These systems if combined with the web help you to reach your
customers most cost-effectively. There would be no cost incurred on travel and communication and
no cost incurred on setting up offices and employees.
The key to establishing a good IT system lies in the proper planning. Businesses should first specify
their needs, processes and key data. They should clearly specify the kind of information and its flow.
Once these specifications are done, it is the integration of information that is required. Once
integration is done, information is accessible to every department around the company
Information Systems - II Given above is a pictorial representation of the generations of e-business.

By this you would be able to appreciate why we are talking about integrations and business solutions
and what place it has in the present world. It can also be seen that many of the businesses in India
have not yet touched the first generation even. It can be seen that 4th generations business
solutions are using web to integrate all systems. ERP is used in a broader term here
SECOND PRIORITY MOST IMPORTANT QUESTIONS

Q7- Why CPU is called brain of computer? Describe 3 main parts of CPU? (v v v v v imp)
(SHORT NOTE ALSO)
Ans – CENTRAL PROCESSING UNIT (CPU)
In order to work, a computer needs some sort of “brain”. At the core of each computer, there is a
device called central processing unit (CPU), which is the brain of the computer. CPU reads the
program from the main memory, and executes each step of the program, which may involve
calculations and decision-making. The CPU is responsible for controlling all devices of the computer.
It initiates a memory operation, which may involve reading data from an input device and storing it
into memory or read data from the memory and display it on an output device. The CPU mainly
consists of three parts— Control Unit, Arithmetic Logic Unit (ALU), and Primary Storage (also
referred to as Main Memory).
The ALU is the unit, which performs all mathematical calculations and logical operations. It performs
addition, subtraction, multiplication, and division. It performs a logical operation by comparing two
numbers. It can determine the smaller number, larger number or determine if the two numbers are
equal. It can also determine whether a number is positive, negative or zero. A program is a sequence
of instructions. An instruction may be an arithmetic operation, a logical operation, an assignment, or
a jump. The control unit sequentially accesses program instructions, decodes them, and directs ALU,
Main Memory, input devices, and output devices so that the program instructions can be carried
out. Execution of one program instruction may require control unit to issue many directives. The ALU
may also perform many operations to complete one program instruction. Each operation performed
by ALU and control unit is referred to as machine instruction. Each program instruction may involve
many machine instructions. A single machine instruction is completed in a machine cycle. The
number of machine instructions completed in a second is called the speed of the CPU and it is
measured in MIPS (Millions of instructions per second). A CPU also contains a set of registers, which
are specialized, small, high-speed memory for storing temporary results of ALU and for storing
control information.
Computer Speed
The word length of a CPU is the number of bits it can process in a single cycle. A 64-bit machine can
process 64 bits in a single cycle. A 64-bit machine is faster than a 32-bit machine
The cycle is defined by the internal clock of the control unit. The Pentium based systems have a clock
speed of 1GHz or more whereas 3 years ago the speed used to be 300 MHz. The bus carries data,
control signals, and address in a system. If the data bus width is same as the word length, then one
word can be moved at a time. If the bus width is half of word length, two cycles are required for
moving one word. The instruction set also affects the speed. If the instruction set is simple, as in
RISC, one or more instructions may get executed in each cycle. There will be some long instructions,
which take more than one cycle. It is possible that a given application extensively uses long
instructions (such as scientific computing) and the machine will appear to be slow. There is no direct
relationship between clock frequency and the speed of a system. There are benchmark programs
that are run to establish the speed of a computer system
Q8- Why is data mining bring put to use in more and more business?Discuss data mining
techniques?? (v v v v v imp) (SHORT NOTE ALSO)
Ans – DATA MINING-
According to Berry and Linoff, Data Mining is the exploration and analysis, by automatic or
semiautomatic means, of large quantities of data in order to discover meaningful patterns and rules.
This definition, justifiably, raises the question: how does data mining differ from OLAP? OLAP is
undoubtedly a semiautomatic means of analyzing data, but the main difference lies in quantities of
data that can be handled. There are other differences as well.
Data Mining Technique

Data mining covers a broad range of techniques. Each technique has been heavily researched in
recent years, and several mature and efficient algorithms have evolved for each of them. The main
techniques are: Cluster detection, Decision trees, Memory based reasoning, Link analysis, Rule
induction, Association rule discovery, Outlier detection and analysis, Neural networks, Genetic
algorithms, and Sequential pattern discovery. Discussion on the algorithms associated with the
various techniques has been kept outside the scope of this text for two main reasons: firstly,
because they are too mathematical / technical in nature, and secondly, because there are numerous,
well written text books, to serve the needs of those who are specially interested in the subject. Table
17.7 below summarized the important features of some of these techniques. The model structure
refers to how the technique is perceived, not how it is actually implemented. For example, a decision
tree model may actually be implemented through SQL statements. In the framework, the basic
process is the process performed by the particular data mining technique. For example, the decision
trees perform the process of splitting at decision points. How a technique validate the model is
important. In the case of neural networks, the technique does not contain a validation method to
determine termination. The model calls for processing the input records through the different layers
of nodes and terminate the discovery at the output node
Data Mining Applications
Data mining technology encompasses a rich collection of proven techniques that cover a wide range
of applications in both the commercial and noncommercial realms. In some cases, multiple
techniques are used, back to back, to greater advantage. For instance, a cluster detection technique
to identify clusters of customers may be followed by a predictive algorithm applied to some of the
identified clusters to discover the expected behaviour of the customers in those clusters.
Noncommercial use of data mining is strong and pervasive in the research area. In oil exploration
and research, data mining techniques discover locations suitable for drilling based on potential
mineral and oil deposits. Pattern discovery and matching techniques have military applications in
assisting to identify targets. Medical research is a field ripe for data mining. The technology helps
researchers with discoveries of correlations between diseases and patient characteristics. Crime
investigation agencies use the technology to connect criminal profiles to crimes. In astronomy and
cosmology, data mining helps predict cosmetic events. The scientific community makes use of data
mining to a moderate extent, but the technology has widespread applications in the commercial
arena. Most of the tools target the commercial sector. Consider the following list of a few major
applications of data mining in the business area.
Q9- Explain expert sysytem? (v v v v v imp)

Ans – EXPERT SYSTEMS
Amongst the most noteworthy developments in the field of Artificial Intelligence (AI) is the advent of
“expert” or “knowledge based” systems. Joint efforts by human experts yielded systems that can
diagnose diseases, fly planes, drive vehicles and configure computer systems at performance levels
that can exceed the best human expertise. Question thus arises that what are expert systems? To
put it most simply: Expert systems are computer programs that use knowledge to solve problems
competently and successfully. They are similar to human experts in the sense that they also use logic
and heuristics to solve problems, they also make errors and they also learn from their errors. This
expertise is easier to store, retrieve, transfer and is cost-effective and permanent. Johnson (1983)
described the term ‘expert” in the most accurate manner as, “ An expert is a person who, because of
training and experience, is able to do things the rest of s cannot; experts are not only proficient but
also smooth and efficient in actions they take. Experts knows a great many things and have tricks
and caveats for applying what they know to problems and tasks; they are also good at plowing
through irrelevant information in order to get at basic issues, and they are good at recognizing the
problems they face as instances of types with which they are familiar. Underlying the behavior of
experts is the body of operative knowledge, we have termed expertise…” Thus we can now define
expert systems. Patterson (1990) described expert systems as, “ An expert system is a set of
programs that manipulate encoded knowledge to solve problems in a specialized domain that
normally requires human expertise. An expert system’s knowledge is obtained from expert sources
and coded in a form suitable for the system to use in its inference or reasoning process.” You might
recall the earlier description; an expert system consists of a knowledge base, database and an
inference engine for interpreting the database using the knowledge embedded in the knowledge
base. There is sound reasoning process that has to build in order to create an expert system.
Brief History of Expert Systems
Expert systems emerged as a consequence of the developments in the artificial intelligence field in
early 70’s at a few leading US universities like Stanford. They started as problem solvers using
specialized domain knowledge. We will discuss a few early successful systems. This is summarized in
the table given below:
These were some of the path setting work in the expert systems. These works provided the base for
other systems to build on them. Today one can see a plethora of applications of expert systems in
virtually all areas like agriculture, chemistry, computer systems, electronics, engineering, geology,
information management, law, manufacturing, mathematics, medicine, meteorology, military
science, physics, process control nd space technology etc
Working Principles of Expert Systems
Expert System is a result of the interaction between the system builder (knowledge engineer) and
many domain experts Expert systems are computer systems that are based on knowledge rather
than the data. They accumulate this knowledge at the time of system building. Knowledge is
programmed and kept in such a manner so that it can be browsed and appended from time to time.
Expert systems possess a very high level of expertise in the area for which they are made for. The
best thing about expert systems is that they grow over time and but for the initial expenditure
incurred in building them, they work in a cost effective manner. Expert systems have predictive
modeling power i.e. they are capable of describing the effects of new situation on the data and the
solution. Expert system uses symbolic representations for knowledge (rules, networks or frames).
This compilation often becomes a quick reference for best strategies, methods and consensus
decisions. This becomes a permanent knowledge base. Thus, one can say that expert systems have a
permanent memory. Expert systems gives access to the user to understand it’s reasoning and can be
used to provide training. This is possible because of its knowledge base; it can provide trainees with
experiences and strategies from which to learn
Building Expert System
The process of building an expert system is also called knowledge engineering. As we have discussed
earlier that there is an interaction between the domain expert and the expert system builder which
generates the knowledge into the expert system. The latter is also called “knowledge engineer”.
There is further to it. The remaining players in the building of the expert system are the expert
system building tools, the user and the expert system itself. Let us have a quick tour on their
meaning. Expert system is the collection of programs that solves problems in a particular area;
domain expert is a person who is knowledgeable about that particular problem area and has
solutions to those problems; knowledge engineer is a computer science expert who translates the
domain expert’s knowledge into the one, which is understandable by the computer; expert system
building tool is the programming language that is used by the knowledge engineer to build the
expert system. And finally the user is the one, which will use the expert system.
Knowledge Representation in Expert Systems
The knowledge can be represented in expert systems in three ways. These ways are rules, frames
and semantic nets. A rule-based system consists of a rule-base (permanent data); an inference
engine (process); and a workspace or working memory (temporary data). Knowledge is stored as
rules, which are of the form IF some condition THEN some action
Q10- Describe the competitiveness of information and communication technology? (v v v

v v imp)
Ans – COMPETITIVENESS OF ICT
Information and communication technologies have been regarded as the tools for increasing
efficiency levels in all spheres of operation in the postindustrial age. ICTs are also setting the
foundation for new industrial order. This belief is equally shared by developed nations and most of
the developing nations. For evaluating the impact of ICTs one has to go through the era known for
high industrial growth i.e. latter half of the current century in which they have come into widespread
use. The dramatic and continuing liberalization of world trade is indeed a central feature in global
economy and the spread of ICT and goods derived using ICTs has been rapid with an accompanying
emphasis on the issue of “competitiveness”. The word competitiveness is widely used to reflect the
growing needs of business enterprises to evaluate their relative position with regard to their
domestic competitors in international market and foreign competitors in domestic markets.
An enterprise is said be competitive if it can cut its share in international and domestic markets from
its rivals. Similarly, the term competitiveness can also be used in the context of national economy to
judge whether the nation is moving ahead in building market shares in business sectors that
promote economic growth, employment, and other measures of social developments. The use or
production of ICT is not itself, a principal determinant of social welfare measures like growth or
employment, but it does play an important role in the ability of nations to participate in economic
activities where growth and employment prospects are more favorable than would be available
otherwise. The use of ICTs strengthens the efforts of enterprises to achieve higher levels of
competitiveness to contribute towards expansion of economic activities promoting growth,
employment, and other social developments
Historically, every major change in global economic activities has witnessed a complete
transformation of industrial growth patterns involving different processes, practices and materials
yielding explicit gains. In industrial nations, most of these gains had been realized by the first half of
the 20th century owing to rapid industrialization. During the second half of the 20th century, the
industrial growth of developing nations may have been constrained by the existence of the
productive capacity of already industrialized nations. By the first half of the past century, most of the
possible gains from this transformation had been realized in industrialized nations while developing
nations, for many reasons, have experienced difficulties in fully entering this process. The ICTs
provide an opportunity for addressing manufacturing productivity advances in developing nations,
which would allow a substantial expansion of industrial output. Such output expansion, if large
enough, could substantially influence the creation of employment and the creation of wealth.
Because ICTs are often laborsaving, a large increase in output is necessary to raise the derived
demand for labor, through productivity improvement. Otherwise the impact of ICTs may be to
reduce labor inputs, an undesirable, and alarming outcome for developing nations if there are not
sufficient employment alternatives. The promise of ICTs seems to be partially supported by observed
technical progress made by the developing nations. Much of this progress has been the direct result
of the application of materials science to the production of modern ICTs. The earliest, and still the
most important of these applications, is the use of semiconductors for the production of computers,
telecommunications equipment, and related electronic devices. Technological improvement in

semiconductor technology, as measured by the cost and speed of performing narrowly defined
functions, has advanced at rates that were unprecedented for other manufacturing technologies
such as power generation using fossil fuels or improvements in machine operating speeds through
improvement in mechanical technology. The rapid advances in technical characteristics, which have
also led to dramatic falls in price per unit of performance, have generated optimistic expectations
about the contributions of information technology to manufacturing productivity growth
Productivity gains from the use of information technologies involve improved control, smoother
integration of production processes, and better control in the acquisition of inputs and the
disposition of outputs. Communication technologies play important roles, particularly in co-
ordination of functions, such as conveying timely information about inventories and scheduling
throughout a distribution system. The productivity gains from ICTs are greatly realized through cost-
reduction, in material inputs, labor, and capital. The relative shares of these reductions may differ
across industries and over time, but labor saving is a principle source of cost-reduction. In addition,
ICTs usually make it possible to produce more or higher quality with the same levels of inputs,
resulting in productivity advances that are independent of changes in input use. Growth in the use of
ICTs in manufacturing appear to involve greater flexibility and changeover speeds as well as
shortened and accelerated flows of materials for processing, work in process, and finished good
inventories. These changes suggest a transformation in methods of organizing production systems
from traditional models of mass production. The trade-off between the creation of new
organizational models and the augmenting of old is essential for evaluating the issue of
competitiveness
The use of ICTs, have also made it possible to expand other economic activities, conventionally
referred to as the “service sector”. The contributions of ICTs in the service area are apparent with
the fact that ICTs are a major component in the predominant form of physical capital that service
industries employ. It can be said without reservations that ICTs are the tools for productivity
improvement in the postindustrial or information society age for achieving higher productivity gains
that match or exceed those that have been historically experienced in manufacturing technologies.
With such productivity gains it would be possible to indefinitely sustain the growth of economic
output and productivity despite the trend towards a growing share of this output being produced in
service sectors. The possibility of indefinite growth in the production and consumption of services is
encouraging sign for both developed and developing economies. For developed nations, an
increasing share of output in services is consistent with increasing investments in human capital or
the dispersal of industrial activities domestically and internationally to reduce localized
environmental problems. For developed nations, the growth of services provide domestic growth
opportunities that can absorb labor displaced by productivity improvements in agriculture and
industry and that are less challenged by imports from developed or other developing nations. The
corresponding problem for developing countries is to find ways to upgrade the value and quality of
services so that service sector employees experience increasing wages over time. Doing this, of
course, requires improvements in the productivity of the service sector. Thus, both developed and
developing nations face a common challenge in finding ways to improve service sector productivity.
Again, however, it is the issue of organizational change that provides a fundamental barrier to
translating the rapid technological advances of ICTs into productivity gains. Developing and
implementing the organizational changes would permit ICT use to have the same productivity
impact in services as previous organizational changes had in manufacturing sector. For example, in
financial services, where the ICTs do support economies of scale in transactions processing they also
permit the creation of many new services.
There are several reasons to believe that developing nations could benefit from productivity
improvements in services. First, in developing nations, governments often absorb relatively large
shares of national output and most government activities are involved in the delivery of services.
Hence, improvements in productivity in government services could free resources for private
investment. Second, services are often close complements to manufacturing. For example, the
effectiveness of the retail and distribution sector of an economy influences the growth of
manufacturing by providing more efficient market outlets for manufactured output. Third,
developing nations are increasingly faced with the problems of harmonizing their production
systems with the use of ICTs in developed nations so that they can serve as suppliers and sub-
contractors in an increasingly global division of labor. This process of harmonization requires
adoption of ICTs not only at the “service” level of the firm, such as the front office and the
communication links to developed nation suppliers, but also within the production process to
control quality and scheduling in ways that are consistent with customer demands. Many of these
harmonization problems, nonetheless, are reflected in demands for services that, without the
extensive use of ICTs, serve as barriers rather than complements to improvement in international
trade and that absorb resources that could otherwise be used directly for production. Fourth, and
finally, productivity improvements in both services and manufacturing are worthwhile wherever
they may be achieved. Having more output using the same amount of inputs is of benefit in
whichever sector it is achieved. To the extent that ICT use achieves greater productivity through
releasing labor, the problem is to develop other opportunities for their employment (or remove
barriers to this adjustment) rather than to lock them into employment patterns where they have low
productivity
ICT-intensive retailing activities, the systems that manufacturers employ must increasingly be
compatible with the emerging new industrial models based on more intense ICT use. Examples of
these developments include the growing emphasis on international quality standards with high
levels of information content, the specification of product design using computer aided design and
manufacturing, and the co-ordination of product delivery such as “Just in time” and “sales driven”
production using high levels of ICT. Developing countries thus have an “offensive” strategic interest
in adopting ICTs to maintain their competitiveness in export markets. Moreover, the liberal
international trade environment that has characterized the “new world order” offers developing
nations access to new markets, although developed countries maintain substantial import barriers in
some areas, provided that they open their own markets to import competition. Imports from
nations that employ ICTs to augment the flexibility and tighten control of the production process can
offer formidable competition even with large differences in wage rates. Competition for domestic
markets from exports in developing nations makes it necessary for developing country enterprises to
adopt similar tools for achieving flexibility and variety that their competitors in developed and other
developing nations are coming to employ. Effective use of ICTs requires knowledge from a range of
disciplines and the solution of difficult problems of synthesizing technological knowledge and
managerial “know how”. The absence of well-established models for effectively achieving this
synthesis suggests that the creation of substantial variety of knowledge creating and using
capabilities will improve the likelihood of adaptive success in realizing the potentials from ICT use.
Many of the problems of implementing the new models of organization require skilled and flexible
human resources that can solve a variety of problems.
Q11- Explain the open source software? (v v v v v imp)

Ans – OPEN SOURCE SOFTWARE
Open Source Software (OSS) is primarily defined as software, which is freely re-distributable and
includes the source code. The licenses under which OSS is released vary greatly. The complete Open
Source Definition can be found at http:// www.opensource.org/osd.html. OSS is vastly different
from the mainstream software industry where source code is highly guarded and programs are only
distributed in their binary form, which is non-modifiable format.
The most important aspect of the open source movement is the participation of users. When a user
wants a feature or a bug fix for a commercial program, the user is at the mercy of the software
vendor. However, with open source, the user can modify the program according to his needs or fix a
bug. Many users will help develop p the program for free, simply to improve the product and for the
benefit of the community. These are a few of the most common and popular licenses for OSS
Q12- What is Simon’s framework for decision-making? How does it help in MIS design?
Discuss three major stage? (v v v v v imp)
Ans – Simon’s framework
Let us now look at Simon’s framework that has broken down the process of decision making into
three stages:
An MIS should be designed, viewing the organization. A company’s structure subdivides essential
tasks to be performed, assigns them to individuals, and spells out the interrelationships of their
tasks. The organizational structure and the tasks determine the information needs of the company.
The MIS designer must plan to deliver reports in line with the organization structure. This means
that the main decision makers and the power centers must be recognized in the MIS. If the decision-
making responsibilities are clearly defined and allocated in the organization, MIS must capture them.
If the organization culture provides sufficient incentives for efficiency and results, the MIS support
this culture by providing such information, which will aid the promotion of efficiency. The
organization system is an open system and MIS should be so designed that it highlights the changes
to the concerned level in the organization so that the action can be taken to correct the situation.
The designer of the MIS should take care of the data problems. The input data to the MIS may
contain bias and error. The inputs to the MIS must be controlled to ensure impartiality, reliability
and consistency. If the organization culture provides sufficient incentives for efficiency and results,
the MIS should provide information that will aid the promotion of efficiency. If the organization is an
open system then MIS should be designed to highlight critical changes in the system or in its
environment. In designing an MIS there are two types of situations one may come across. If the
organization has no experience of computing applications, which will create the maximum impact on
the organization, it can be identified by using Zani’s framework. Key success variables are however
seldom obtained through a questionnaire survey of managers. Data on environment, past company
performance must be analyzed and discussed to identify key success variable. It is sometimes useful
to pen down a quantitative measure of such variable. For example the performance of a textile unit
can be summed up through two indicators: contribution per loom shift and fixed cost per loom shift.
Similarly the performance of a shipping company may be measured as gross operating profit per day
per voyage. Precise definitions of performance indicators enable the analyst to understand and
quantify the likely impact of improvement in different task of planning and monitoring. An analysis
of the company’s key success variables can be done only after a thorough understanding of the
company’s operations. Consultants and vendors who do not spend adequate time in understanding
the operations are unlikely to throw up application areas, which will create the maximum impact.
They are likely to suggest “off-the-shelf” applications. One should use standard software, which is
available for such applications. For a company getting into computerization for the first time, a list of
applications would have to be generated, keeping in view a 4-5 year perspective on the basis of
which a suitable configuration would be decided. However the development and implementation of
the applications would have to be done in a phased manner. The first few applications must be
those, which can create an impact on the performance of the organization, are quick to implement
with the least amount of changes in the existing procedures and systems. Initial success can make
the later implementation of complex and more involved systems easier. For organizations, which
have been into data processing and would like to graduate to MIS, the choices are somewhat
limited. Existing computer technology, manpower, and past experience with computer applications
etc., all such factors will condition the future growth of MIS
By and large an effort is made to create useful databases, which capture data during the execution
of routine data processing systems. Such data are then analyzed to produce periodic planning report
for monitoring. Examples of such systems are the sales analysis based on invoice processing;
inventory control based on stock accounting; costing and profitability analysis on the basis of
financial accounting system. Marginal additions to data fields, new coding structure, and revised
procedures are introduced to make the data base and reporting more useful
Factors Facilitating Implementation of MIS
Q13- What is Outsourcing Information System? Discuss Advantages and Disadvantages of

Outsourcing? (v v v v v imp)
Ans – OUTSOURCING INFORMATION SYSTEMS
If a firm does not want to use its own internal resources to build and operate information systems, it
can hire an external organization that specializes in providing these services to do the work. The
process of turning over an organization’s computer central operations, telecommunications
networks, or applications development to external vendors of these services is called outsourcing.
Outsourcing information system is not a new phenomenon. Outsourcing options have existed since
the dawn of data processing. As early as 1963, Petrot’s Electronic Data Systems (EDS) handled data
processing services for Frito-Lay and Blue Cross. Activities such as software programming, operation
of large computers, time-sharing and purchase of packaged software have to some extent been
outsourced since the 1960s
Because information systems play such a large role in contemporary organizations, information
technology now accounts for about half of most large firms’ capital expenditure. In firms where the
cost of information systems function has risen rapidly, managers are seeking ways to control those
costs and are treating information technology as a capital investment instead of an operating cost of
the firm. One option for controlling these costs is to outsource
Advantages and Disadvantages of Outsourcing
Outsourcing is becoming popular because some organization perceive it as being more cost effective
than it would be to maintain their own computer center and information systems staff. The provider
of outsourcing services can benefit from economies of scale (the same knowledge, skills, and
capacity can be shared with many different customers) and is likely to charge competitive prices for
information systems services. Outsourcing allows a company with fluctuating needs for computer
processing to pay for only what it uses rather than to build its own computer center to stand
underutilized when there is no peak load. Some firms outsource because their internal information
systems staff cannot keep pace with technological change. But not all organizations benefit from
outsourcing, and the disadvantages of outsourcing can create serious problems for organizations if
they are not well understood and managed.
When to Use Outsourcing?

Since outsourcing has both benefits and liabilities and is not meant for all organizations or all
situations, managers should assess the role of information systems in their organization before
making an outsourcing decision. There are a number of circumstances under which outsourcing
makes a great deal of sense:
When there is limited opportunity for the firm to distinguish itself competitively through a particular
information systems application or series of applications. For instance, both the development and
operation of payroll systems are frequently outsourced to free the information systems staff to
concentrate on activities with a higher potential payoff, such as customer service or manufacturing
systems. Applications such as payroll or cafeteria accounting, for which the firm obtains little
competitive advantage from excellence, are strong candidates for outsourcing. If carefully
developed, applications such as airline reservations or plant scheduling could provide a firm with a
distinct advantage over competitors. The firm could lose profits, customers, or market share if such
systems have problems. Applications where the rewards for excellence are high and where the
penalties for failure are high should probably be developed and operated internally.
Companies may also continue to develop applications internally while outsourcing their computer
center operations when they do not need to distinguish themselves competitively by performing
their computer processing onsite. When the predictability of uninterrupted information systems
service is not very important. For instance, airline reservations or catalog shopping systems are too
“critical” to be trusted outside. If these systems failed to operate for a few days or even a few hours,
they could close down the business. On the other hand, a system to process employee insurance
claims could be more easily outsourced because uninterrupted processing of claims is not critical to
the survival of the firm. When outsourcing does not strip the company of the technical know-how
required for future information systems innovation. If a firm outsource some of its system but
maintains its own internal information systems staff, it should ensure that its staff remains
technically up to date and has the expertise to develop future applications. When the firm’s existing
information systems capabilities are limited, ineffective, or technically inferior. Some organizations
use outsourcers as an easy way to revamp their information systems technology. For instance, they
might use an outsourcer to help them make the transition from traditional mainframe-based
computing to a new information architecture – distributed computing environment. Despite the
conventional wisdom on when to outsource, companies sometimes do outsource strategic
functions. In any case, if systems development and the information systems function are well
managed and productive, there may not be much immediate benefit that can be provided by an
external vendor.
Managing Outsourcing
To obtain value from outsourcing, organizations need to make sure the process is properly managed.
With sound business analysis and an understanding of outsourcing’s strengths and limitations,
managers can identify the most appropriate applications to outsource and develop a workable
outsourcing plan. Segmenting the firm’s range of information systems activities into pieces that
potentially can be outsourced makes the problem more manageable and also helps companies
match an outsourcer with the appropriate job. Noncritical applications are usually the most
appropriate candidates for outsourcing. Firms should identify mission-critical applications and
mission-critical human resources required to develop and manage these applications. This would
allow the firm to retain its most highly skilled people and focus all of its efforts on the most mission-
critical applications development. Setting technology strategy is one area that companies should not
abdicate to outsourcers. This strategic task is best kept in-house. Ideally, the firm should have a
working relationship of trust with an outsourcing vendor. The vendor should understand the client’s
business and work with client as a partner, adapting agreements to meet the client’s changing
needs. Firms should clearly understand the advantages provided by the vendor and what they will
have to give up to obtain these advantages. For lower operating costs, can the client live with a five-
second-response time during peak hours or next-day repair of microcomputers in remote offices?
Organizations should not abdicate management responsibility by outsourcing. They need to manage
the outsourcer as they would manage their own internal information systems department by setting
priorities, ensuring that the right people are brought in, and guaranteeing that information systems
are running smoothly. They should establish criteria for evaluating the outsourcing vendor that
include performance expectations and measurement methods for response time, transaction
volumes, security, disaster recovery, backup in the event of a catastrophe, processing requirements
of new applications and distributed processing on microcomputers, workstations, and LANs. Firms
should design outsourcing contracts carefully so that the outsourcing services can be adjusted if the
nature of the business changes.
Q14- What is system software and application software? (v v v v v imp)
Ans – SYSTEM SOFTWARE
System software co-ordinates the various parts of computer system and mediates between the
application software and computer hardware. Operating system is system software, which manages
and controls the computers activities. The other system software consists of computer language
translation programs that convert programming languages into machine language and utility
programs that perform common processing tasks.
1 Operating Systems
An operating system is a set of computer programs that controls the computer hardware and acts as
an interface with the application programs. The operating system plays a central role in the
functioning of a computer system. It is usually stored on disk, after the computer system is started or
booted up portions of operating system are transferred to memory as required. The kernel as the
name suggests is the heart of the operating system and controls the most critical processes.
Windows by Microsoft, Linux, UNIX, and the Macintosh are the commonly used operating systems.
In some specialized or embedded computers the operating instructions are contained in their
circuitry; common examples are the microcomputers found in calculators, automobile engines,
mobile phones and microwave ovens.
Each of these basic functions requires a more detailed set of instructions to complete. The operating
system converts a simple, basic instruction into the set of detailed instructions required by the
hardware. In effect, the operating system acts as intermediary between the application program and
the hardware. The typical OS performs hundreds of such functions, each of which is translated into
one or more instructions for the hardware. The OS notifies the user if input/output devices need
attention, if an error has occurred, or if anything abnormal has happened in the system.
2 Language Translators
The CPU (also called processor) of a computer understands commands in machine language, where
each instruction is a series of binary digits. Programming in machine language is not easy, as
programmers have to remember the machine codes, which are in binary format. To help
programmers, other high level programming languages have been developed whose instructions are
easy to remember for programmers as these languages use English words. C, Java, SQL are examples
of high level programming languages. Programming languages can be divided into assembly
languages and high-level programming languages. For any program to be executed, it has to be first
converted into its equivalent machine language program and then loaded into the memory of
computer. To perform the translations of programs, language translators are used. As the process of
programming language translations are machine dependent, the translators fall in the system
software category.
3 Utility Programs
A utility program is designed for general support to the processes of a computer. They are usually for
routine, repetitive tasks and many users share them. Examples of utility programs include diagnostic
programs, trace programs, input routines, and programs used to perform routine tasks, i.e., perform
everyday tasks, such as copying data from one storage location to another. Utility programs are also
available commercially; for example, Norton Utilities package is a set of utility programs for checking
disks for computer viruses, checking hard drive for bad locations and removing them and for
performing disk compression.
APPLICATION SOFTWARE
Application software is a complete, self-contained program that performs a specific function directly
for the user. This is in contrast to system software, which exists to support application programs.
Application software may consist of a single program, such as an image viewer; a small collection of
programs (often called a software package) that work together to accomplish a task, such as a
spreadsheet or text processing system; a larger collection (often called a software suite) of related
but independent programs and packages that have a common user interface or shared data format,
such as Microsoft Office, which consists of closely integrated word processor, spreadsheet, database
manager, etc.; or a software system, such as a database management system, which is a collection
of fundamental programs that may provide some service to a variety of other independent
applications. Some of the example application software according to their types are given below in
the table.
Programming Languages
A programming language is an artificial language (as opposed to natural languages such as Hindi,
English etc.) that is used to generate or to express computer programs. Both system software and
application software are developed using one or many programming languages
Q15- Explain the FRAMEWORK FOR UNDERSTANDING MIS? (v v v v v imp)
Ans – FRAMEWORK FOR UNDERSTANDING MIS

There is too much data and information in an organization. In order to design a MIS successfully, we
need a framework to structure the information so that the data and information relevant for
decision-making can be separated from rest of the data. Before we talk about the design of MIS, let
us understand the strategic management of a business. An organization must respond to market
forces, competition, to environment and to technological changes. The scope of business is wide,
touching many fronts. A business, among other activities, must do a long-term strategic planning.
There are many methodologies for strategic planning. According to model presented by Robert
Anthony, the strategic planning is one of the major activities in business planning and control. The
other two are the management control and operational control. This framework is illustrated below:
Q16- Explain the CONVERGENCE OF IT AND CONSUMER ELECTRONICS: EMERGING

TRENDS? (v v v v v imp)
Ans – FRAMEWORK FOR UNDERSTANDING MIS
Whenever the issue of convergence is discussed in the context of information technology it is
imperative to refer the convergence of information and communication systems so that devices can
be unified for different application services. The third dimension of human needs, which occupies
the sphere of modern digital world with equal importance, is entertainment. The landmarks in
history of the developments in communication are telephone (1870s), radio (1890s) and television
(1930s) with increasing value addition for entertainment over information and communication. The
personal computer (1980s) evolved primarily to address the information processing needs and it was
the only device in the chain of revolutionary products developed which was digital by birth. The fast
development in digital technologies paved the way of merger or hybridization of these different
generation devices promoting the preferences for single device to cater information processing,
communication and entertainment needs. This resulted in need driven efforts for convergence of
technologies with an eye to develop innovative consumer products which can provide a common
platform for handling different services and applications. The mix of research & development of
technologies and innovative product development and design created a new paradigm to ever-
increasing urge for value-added products. This process of value addition is creating new dimensions
to existing products and setting newer trends for consumer preferences and needs well supported
by convergence of technologies.
Whenever the issue of convergence is discussed in the context of information technology it is
imperative to refer the convergence of information and communication systems so that devices can
be unified for different application services. The third dimension of human needs, which occupies
the sphere of modern digital world with equal importance, is entertainment. The landmarks in
history of the developments in communication are telephone (1870s), radio (1890s) and television
(1930s) with increasing value addition for entertainment over information and communication. The
personal computer (1980s) evolved primarily to address the information processing needs and it was
the only device in the chain of revolutionary products developed which was digital by birth. The fast
development in digital technologies paved the way of merger or hybridization of these different
generation devices promoting the preferences for single device to cater information processing,
communication and entertainment needs. This resulted in need driven efforts for convergence of
technologies with an eye to develop innovative consumer products which can provide a common
platform for handling different services and applications. The mix of research & development of
technologies and innovative product development and design created a new paradigm to ever-
increasing urge for value-added products. This process of value addition is creating new dimensions
to existing products and setting newer trends for consumer preferences and needs well supported
by convergence of technologies.
The consumer electronics industry, in short, is entering a new era based on the promise of utilizing
broadband and wireless technologies to promote the more widespread use of electronic devices.
Advanced in microelectronics further enhances the potential for consumer electronic devices to
proliferate and be utilized well beyond what is in the market today. The personal computer led to a
revolution in terms of how data could be managed and manipulated. The Internet enhanced this
function by providing direct access to more data. Mobile wireless and wideband provides the
consumer with all of the above in more places with greater access. The trend is leading many
markets that were traditionally separate on a competitive collision course.
In an interesting development, the convergence trend is leading both hardware and software
companies to become both hardware and software companies. Microsoft has unveiled its new Smart
Personal Objects Technology (SPOT). Chips in the devices pick up signals from a radio network built
on the under-used FM spectrum. It is part of the company’s strategy to produce a wide range of
software for the new devices of the future beyond a PC, as well as such common consumer
electronics products as watches, clocks, and even key chains. Microsoft has already developed
special software for Pocket and Tablet PCs (a derivative of laptops) in order to participate in the
wireless market. Clearly, this approach appears to be a copy of what Sony and other Japanese
electronics firms decided to do toward the beginning of the 1990s. Sony sought to develop seamless
networks of electronic devices for the home connected through wireless systems. Sony is making
serious efforts to establish the Linux operating system as the global and open standard for
transferring digital entertainment from device to device in the home as the use of broadband
expands. It is believed that the PC may be useful in transmitting downloaded content to the TV, or
even TV could bypass the PC entirely and get its content from devices like Sony’s proposed Cocoon
set-top box, which has already been tested in Japan. Cocoon is a Linux-based, Internet-connected
set-top box with a hard-disk drive that can transfer and play movies on devices connected to a home
network.
Microsoft, along with Dell, Hewlett Packard, and Gateway, are interested in expanding into the
consumer electronics business. Microsoft, which also produces products such as the Xbox, now likes
to be called a consumer electronics manufacturer. Companies in the increasingly commoditized PC
business are seeking to expand into consumer electronics by entering into product categories that
compliment to the PC via “gateways”, especially home entertainment devices. The gateways can
take the shape of a PC-centric system, a set-top box, or a handheld computer containing special
software that allows the user to control a variety of devices throughout the home. It should be
interesting to see future competition between firms such as Microsoft that are developing
proprietary standards for networked electronic appliances versus firms such as Sony that support
more open standards. It is evident that firms that have specialized in producing electronic devices
for the rest of the world, especially those in Japan and Asia, may benefit greatly from the
aforementioned trends. Such a trend may provide an advantage to hardware makers over software
companies and those that excel at branding and the farming out production to other firms
New emerging technologies feature new, innovative products with a focus on the convergence and
consumer adoption of 3G, highlighting the growth potential after the success of GSM. In developed
countries wireless phone owners prefer converged wireless phone/PDA devices to two stand-alone
products capable of performing the same functions. More advanced phones are made for more
advanced networks. Many advances in wireless technologies are seen for next-generation wireless
systems such as smart phones with high-definition screens, camera functionality and those that
double for PDAs. This has resulted due to better, faster networks being setup and strong demand
from consumers
Q17- Explain the Components of a Network and type of network? (v v v v v imp)
Ans – COMPONENTS OF A NETWORK
A network system consists of hardware components as well as software components. The hardware
components are the following:
TYPES OF NETWORKS
Q18- Explain the Group Decision Support Systems (GDSS)? (v v v v v imp)

Ans – GROUP DSS
Having basic understanding of decision-making process and DSS, let us find out what is Group
Decision Support Systems (GDSS). GDSS are interactive computer-based systems that facilitate
decision-makers working together as a group to arrive at a solution for unstructured problem. The
group of executives analyzes problem situations and performs group decision-making tasks. The
GDSS provides mechanisms to help the users to coordinate and keep track of on-going projects,
allow them to work together thru computer-supported communication, collaboration, and
coordination. Typical applications of GDSS include email, awareness and notification systems,
videoconferencing, chat systems, multi-player games, and negotiation systems.
The group decision support system addresses the vary issue of human behaviour in a given
environment along with computer science and management. It is found that a task assigned to a
group is a typical information processing system that usually provides a judicious solution with
alternatives. The GDSS has several implications that can be listed as follows
FIRST PRIORITY MOST IMPORTANT SHORT QUESTIONS

Q1- Explain business application of fuzzy logic? (v v v v v imp)
Ans -FUZZY LOGIC
Traditional logic has many limitations when one deals with uncertain and incomplete knowledge.
Unfortunately knowledge in the real world is never certain and complete. Fussy logic came into
picture as a concept that extends the expressive power of traditional logics. You would recall that in
standard set theory, an object is either a member of a set or it is not. There is no middle way. There
is no partial containment. The characteristic function of a traditional set assumes values 1 and 0, on
the basis of membership. If we generalize this concept and allow the characteristic function to
assume all values between 0 and 1, then we talk about the fuzzy sets and the value assumed by the
characteristic function denotes the degree or level of membership. Prof. Zadeh of University of
California, Berkley in 1965, first introduced fuzzy sets. The main objective was to define the fuzziness
and vagueness. Fuzzy set theory forms the basis of Fuzzy logic. It is a relatively new discipline that
has found applications in automated reasoning of expert systems. Fuzzy models require defining of
memberships functions. These functions can often be defined on the basis of intuitive knowledge.
Because of their simplicity to use and cost effectiveness, fuzzy logic and fuzzy computation are good
prospects for the next generation expert systems. The universe of fuzzy set can take any value in the
real interval 0 and 1. Let us take an example to explain the concept better. Suppose we want to
define the membership of batsmen of national level in a country
Q2- Explain the SYSTEMS ANALYSIS? (v v v v v imp)
Ans -SYSTEMS ANALYSIS

Systems analysis is the analysis of the problem that the organization will try to solve with an
information system. It consists of defining the problem, identifying its causes, specifying the
solution, and identifying the information requirements that must be met by a system solution.
The key to building any large information system is a thorough understanding of the existing
organization and system. Thus, the systems analyst creates a road map of the existing organization
and systems, identifying the primary owners and users of data in the organization. These
stakeholders have a direct interest in the information affected by the new system. In addition to
these organizational aspects, the analyst also briefly describes the existing hardware and software
that serve the organization. From this organizational analysis, the systems analyst details the
problems of existing systems. By examining documents, work papers, and procedures; observing
system operations; and interviewing key users of the systems, the analyst can identify the problem
are and objectives to be achieved by a solution. Often the solution requires buildings a new
information system or improving an existing one.
Q3- Explain Groupware? (v v v v v imp)
Ans -Groupware
A relatively new and still somewhat unshaped category, groupware helps teams work together by
sharing information and by controlling internal workflows. Coined in the late 1980s the term
groupware has attained wide recognition due to the increasing need for groups to work together
more effectively at a distance as a result of downsizing and rapid organizational change. Products
viewed as groupware are still new enough that their long-term direction is unclear even though the
competitive need to work effectively in dispersed teams is greater than ever. Groupware goes
beyond messaging by facilitative access to documents and controlling team-related workflow. Many
groupware products are related to specific group related tasks such as project management,
scheduling meetings (“calendaring”), and retrieving data from shared databases. Lotus Notes, a
prominent product in this category, is designed for sharing text and images and contains a data
structure that is a cross between a table-oriented database and an outline. For example, a law firm
in Seattle uses Lotus Notes to permit everyone working on a particular case to have access to the
most current memos and other information about that case, even if they are traveling. Other
companies use Lotus Notes to store and revise product information for salespeople selling industrial
products, thereby replacing the massive three-ring binders they formerly lugged around. Yet other
groupware functions are performed through computer conferencing, the exchange of text messages
typed into computers from various locations to discuss a particular issue. When done through the
Internet this is sometimes called a newsgroup. A computer conference permits people in dispersed
locations to combine their ideas in useful ways even though they cannot speak to each other face-
to-face. Any conference participant may be able to add new ideas, attach comments existing
messages, or direct comments to specific individuals or groups. Proponents of computer
conferencing recognize some disadvantages or working through computers but emphasize major
advantages, such as preventing a single forceful individual from dominating a meeting. Also, because
everything is done through a computer, a record of how ideas developed is automatically generated.
A different type of groupware product focuses primarily on the flow of work in office settings. These
products provide tools for structuring the process by which information for a particular multi-step
task is managed, transferred, and routed. A typical example is the approval of travel expenditure. In
this case, one person must propose the expenditure and someone else must approve it. The
workflow application is set up to make the approval process simple and complete. In effect,
groupware is being used as a small transaction processing system for multistep transaction
Q4- Explain the OPEN SOURCE SOFTWARE? (v v v v v imp)
Ans - Open Source Software (OSS) is primarily defined as software, which is freely re-distributable
and includes the source code. The licenses under which OSS is released vary greatly. The complete
Open Source Definition can be found at http:// www.opensource.org/osd.html. OSS is vastly
different from the mainstream software industry where source code is highly guarded and programs
are only distributed in their binary form, which is non-modifiable format. The most important aspect
of the open source movement is the participation of users. When a user wants a feature or a bug fix
for a commercial program, the user is at the mercy of the software vendor. However, with open
source, the user can modify the program according to his needs or fix a bug. Many users will help
develop the program for free, simply to improve the product and for the benefit of the community.
Q5- Explain the TCP/IP? (v v v v v imp)
Ans - TCP stands for Transmission Control Protocol a communications standard that enables
application programs and computing devices to exchange messages over a network. It is designed to
send packets across the internet and ensure the successful delivery of data and messages over
networks.
TCP is one of the basic standards that define the rules of the internet and is included within the
standards defined by the Internet Engineering Task Force (IETF). It is one of the most commonly used
protocols within digital network communications and ensures end-to-end data delivery.
TCP organizes data so that it can be transmitted between a server and a client. It guarantees the
integrity of the data being communicated over a network. Before it transmits data, TCP establishes a
connection between a source and its destination, which it ensures remains live until communication
begins. It then breaks large amounts of data into smaller packets, while ensuring data integrity is in
place throughout the process.
As a result, high-level protocols that need to transmit data all use TCP Protocol. Examples include
peer-to-peer sharing methods like File Transfer Protocol (FTP), Secure Shell (SSH), and Telnet. It is
also used to send and receive email through Internet Message Access Protocol (IMAP), Post Office
Protocol (POP), and Simple Mail Transfer Protocol (SMTP), and for web access through the Hypertext
Transfer Protocol (HTTP).
An alternative to TCP is the User Datagram Protocol (UDP), which is used to establish low-latency
connections between applications and decrease transmissions time. TCP can be an expensive
network tool as it includes absent or corrupted packets and protects data delivery with controls like
acknowledgments, connection startup, and flow control.
UDP does not provide error connection or packet sequencing nor does it signal a destination before
it delivers data, which makes it less reliable but less expensive. As such, it is a good option for time-
sensitive situations, such as Domain Name System (DNS) lookup, Voice over Internet Protocol (VoIP),
and streaming media.
The Internet Protocol (IP) is the method for sending data from one device to another across the
internet. Every device has an IP address that uniquely identifies it and enables it to communicate
with and exchange data with other devices connected to the internet.
IP is responsible for defining how applications and devices exchange packets of data with each other.
It is the principal communications protocol responsible for the formats and rules for exchanging data
and messages between computers on a single network or several internet-connected networks. It
does this through the Internet Protocol Suite (TCP/IP), a group of communications protocols that are
split into four abstraction layers.
IP is the main protocol within the internet layer of the TCP/IP. Its main purpose is to deliver data
packets between the source application or device and the destination using methods and structures
that place tags, such as address information, within data packets.
Q6- Explain inventory management system? (v v v v v imp)
Ans - An inventory management system is the combination of technology (hardware and software)
and processes and procedures that oversee the monitoring and maintenance of stocked products,
whether those products are company assets, raw materials and supplies, or finished products ready
to be sent to vendors or end consumers. A complete inventory management system consists of:
A system for identifying every inventory item and its associated information, such as barcode labels
or asset tags.
 Hardware tools for reading barcode labels, such as handheld barcode scanners or smartphones
with barcode scanning apps.
 Inventory management software, which provides a central database and point of reference for all
inventory, coupled with the ability to analyze data, generate reports, forecast future demand, and
more.
Processes and policies for labeling, documentation, and reporting. This should include an inventory
management technique such as Just in Time, ABC Analysis, First-In First-Out (FIFO), Stock Review, or
another proven methodology.
 People who trained to follow these policies and processes.
Inventory management as “the supervision of non-capitalized assets (inventory) and stock items.”
Inventory management is a component of supply chain management that oversees the flow of items
(products, goods, etc.) as they move from the manufacturer to the warehouse and then to the point
of sale. “A key function of inventory management is to keep a detailed record of each new or
returned product as it enters or leaves a warehouse or point of sale,” SearchERP explains, which
points to the importance of having a clear and established inventory management system to ensure
that the process and documentation are as streamlined and efficient as possible, as well as to
minimize error.
Q7- DATA WAREHOUSE ? (v v v v v imp) IN LONG QUESTION
Q8- CPU ? (v v v v v imp) IN LONG QUESTION

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MMPC 8 INFORMATION SYSTEMS FOR MANAGERS

Q1- What is INFORMATION SYSTEM/INFORMATION TECHNOLOGY? Describe type of information

COMPUTER AIDED DECISION MAKING

The Load Manager

Q3- What is meta data? Explain METADATA REPOSITORY? (v v v v v imp)

Q4- What is NEURAL NETWORKS? (v v v v v imp)

Q5- What is system developed life cycle(SDLC) and phases? (v v v v v imp)

Information Systems - II Given above is a pictorial representation of the generations of e-business.

SECOND PRIORITY MOST IMPORTANT QUESTIONS

data that can be handled. There are other differences as well.

Data Mining Technique

Data Mining Applications

Q9- Explain expert sysytem? (v v v v v imp)

Q10- Describe the competitiveness of information and communication technology? (v v v

telecommunications equipment, and related electronic devices. Technological improvement in

Q11- Explain the open source software? (v v v v v imp)

Factors Facilitating Implementation of MIS

Q13- What is Outsourcing Information System? Discuss Advantages and Disadvantages of

When to Use Outsourcing?

Q15- Explain the FRAMEWORK FOR UNDERSTANDING MIS? (v v v v v imp)

Ans – FRAMEWORK FOR UNDERSTANDING MIS

Q16- Explain the CONVERGENCE OF IT AND CONSUMER ELECTRONICS: EMERGING

Q18- Explain the Group Decision Support Systems (GDSS)? (v v v v v imp)

FIRST PRIORITY MOST IMPORTANT SHORT QUESTIONS

Q2- Explain the SYSTEMS ANALYSIS? (v v v v v imp)

Ans -SYSTEMS ANALYSIS

Q3- Explain Groupware? (v v v v v imp)

Q5- Explain the TCP/IP? (v v v v v imp)

Q7- DATA WAREHOUSE ? (v v v v v imp) IN LONG QUESTION

Q8- CPU ? (v v v v v imp) IN LONG QUESTION

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