Management Information Systems (MC261) : July 2007

Section A : Basic Concepts (30 Marks)1.Information systems that rely on computer hardware and software for processing and distributing information are called
(a)CRM Systems (b)Enterprise Systems (c)Computer- based Information Systems
(d)Knowledge Management Systems (e)Database Management Systems.
2.A prototype that is used as a reference for the new system and then is discarded best describes
(a)Throwaway Prototype (b)Evolutionary Prototype (c)Leveraged Prototype
(d)System Prototype (e)Software Prototype. 3.The process of helping users see patterns and relationship in large amounts of Data by presenting the data in graphical form is called
(a)GIS (b)Data visualization (c)DSS (d)An optimization model (e)MIS.
4.The process of buying and selling goods and services electronically involving transactions using internet and networks is defined as
(a)Electronic process (b)Digital process (c)E- commerce (d)Relational database management systems (e)E- goods.
5. Which of the following is not component of a DSS
(a) The data management system (b) The knowledge engine (c) DSS Kernel
(d) The user interface (e) Data base engine. 

6. The element for bridging the gap between

Management Information Systems (MC261) : January 2007

Section A : Basic Concepts (30 Marks)
1.The plastic card, that stores digital information like identification data, telephone numbers, and at times serves as “electronic purse” is
(a)Identity card (b)Ration card (c)Smart card (d)Playing card (e)All of the above.
2.‘CASE’ tools stands for
(a)Complex Algorithms for Software Engineering
(b)Computer – Aided Software Engineering
(c)Computer – Aided Software Estimation
(d)Complex Algorithms for Software Estimation
(e)Computer Algorithms for Selection and Evaluation.
3.A digital code attached to an electronically transmitted message that is used to verify the origin and contents of the message is
(a)Encryption (b)Parity bit (c)Profiling (d)Digital signature (e)Prototyping.
4.Plans for the restoration of computing and communications services after they have been disrupted by an event such as an earthquake, flood or terrorist attack is
(a)Calamity rehabilitation planning (b)Disaster recovery planning (c)Tsunami Warning system (d)Early Warning system (e)Data redundancy system.
5.Which of the following is not a step in prototyping?
(a)Identify the user’s basic requirements (b)Develop an initial prototype
(c)Cost estimation of the complete project (d)Use the prototype
(e)Revise and enhance the prototype.
6.The process of turning over an organization’s computer operation, telecommunication networks or application development to external vendors is called
(a)Resourcing (b)Outsourcing (c)Vendor development (d)Vendor management
(e)End - user management.
7.A specific measure of quality representing 3.4 defects per million opportunities, used to designate a set of methodologies and techniques for improving quality and reducing costs is
(a)Black belt (b)Seven sigma (c)Six sigma (d)Benchmarking (e)Business process Re-engineering. 8.Which of the following is not a challenge of managing the new information technology infrastructure?
(a)Loss of management control
(b)Connectivity and application integration challenges
(c)Hidden cost of enterprise computing
(d)Market share
(e)Scalability, Reliability and Security.
9.Private and multipath data – only third party managed network that multiple organizations use on a subscription basis is
(a)LAN (b)WAN (c)VAN (d)Twisted pair cables (e)Optical fibre.
10.A database, with reporting and query tools, that stores current and historical data extracted from various operational systems and consolidated for management reporting and analysis
(a)Data (b)Data base (c)Data Warehouse (d)Information (e)Report.
11.A form of distributed processing, that links computer via private networks or internet, so that they can share processing tasks is
(a)Grid computing (b)Parallel processing (c)Peer – to – peer computing
(d)Computing (e)Centralised processing.
12.Computer systems at any level of the organization that change goals, operations, products, services or environmental relationships to heep the organization gain a competitive advantage is
(a)Decision Support System (b)Market Information System (c)Personnel Information System (d)Strategic Information System (e)Financial Accounting System.
13.An analysis of organization – wide information requirements that examines the entire organization in terms of the organizationsal units, function, processes and data elements and helps to identify the key entities and attributes in the organisation’s data is
(a)System Analysis (b)Enterprise Analysis (c)Market Analysis (d)Self Analysis (e)SWOT Analysis.
14.Which of the following is not a Decision Model Classification?
(a)Deterministic (b)Stochastic (c)Opportunistic (d)Simulation (e)Domain specific.
15.Which of the following does not form the four basic levels of MDM (Multiparticipant Decision Maker) technology?
(a)Organisational Decision Support System (ODSS)
(b)Group Support System and Groupware (GSSG)
(c)Group Decision Support System (GDSS)
(d)Decision Support System (DSS)
(e)Single Support System (SSS).
16.Which of the following is not a method for determining Executive Information needs?
(a)Null method (b)Key indicator method (c)Total study method
(d)Budget method (e)Critical success factor method.
17. Which of the following is not a Taxonomy of knowledge types?
(a) Descriptive (b) Procedural (c) Linguistic (d) Art (e) Reasoning.
18. The characteristic of a Data Warehouse, where all inconsistencies regarding naming convention and value representations are removed is
(a) Subject Orientation (b) Integration (c) Summarization (d) Time Variance (e) Non Volatality.
19. Which of the following is not an advantage of “Simulation” method in Decision Support Systems?
(a) A great amount of time compression can be attained
(b) It is descriptive rather than normative, helping the user to pose ‘what-if’ question
(c) It automatically produces many important performance measures
(d) It can generally handle an extremely wide variety of problem types
(e) It is built for one particular problem and typically cannot handle any other problem.
20. Which of the following is a limitation of Decision Support Systems?
(a) Extend the decision maker’s ability to process information and knowledge
(b) Extend the decision maker’s ability to tackle large-scale, time consuming, complex problem
(c) Shorten the time associated with a decision making
(d) Cannot yet be designed to contain definitely human decision making talents such as creativity, imagination or intuition
(e) Improve the reliability of a decision process or outcome.
21. When designing a Decision Support System, the set of specifications that focuses on its capacity for the storage, record and production of knowledge useful to the problem context is
(a) Interface requirements (b) Coordination requirements (c) Functional requirements (d) Stationary requirements (e) Standard requirements.
22. In DSS, many type of tools help in building complex, systems. Which of the following come under complex system tools?
I. Knowledge Disposal.
II. Knowledge Acquisition.
III. Knowledge Validation.
IV. Knowledge Responsiveness.
V. Knowledge Verification.
(a) (I), (II) and (III) above
(b) (I), (II) and (IV) above
(c) (II), (III) and (IV) above
(d) (II), (III) and (V) above
(e) (I), (II) and (V) above.
23. Who among the following is considered as Doctor of DSS?
(a) Ralph Kimbell (b) Alter (c) Hosapple (d) Sprague (e) Carlson.
24. Which of the following decision making styles that describe people who approach a problem by structuring it in terms of some formal method?
(a) Systematic decision-making (b) Congnitive style (c) Rational model
(d) Intuitive decision makers (e) “Garbage can” model.
25. A decision support system should not be such that:
(a) The user is in a position to access the database easily
(b) It supports an interactive testing of solutions
(c) It helps the manager arrive at the most optimum solution
(d) It involves everyone in the organization in the decision-making process
(e) It helps to structure the problems and provide a systematized approach.
26. There is no pre-established decision procedure for
(a) Pre-planned decision (b) Adhoc decision (c) Structured decision
(d) Unstructured decision (e) Planned decision.
27. “Decision makers make use of past experience to evaluate the importance of a variance and don’t rely on just percentages or absolute difference,” said
(a) Lewis and Simon (b) Newell and Simon (c) Simon and Cummings
(d) Judd, Paddock and Wetherbe (e) Charles Babbage.
28. The assurance that stored data will remain unaltered is termed as
(a) Reliability (b) Authenticity (c) Integrity (d) Privacy (e) Scalability.
29. In which phase of the Herbert-Simon model, is the raw data collected, processed and examined?
(a) Intelligence (b) Design (c) Choice (d) Collection (e) All of the above.
30. Structured, programmable decisions
(a) Can be pre-specified (b) Cannot be pre-specified (c) Are very complex
(d) Are very simple (e) None of the above.
Section B : Problems/Caselets (50 Marks)
1. Atlas Limited wants to develop information system that meets its needs. The general manager of the company wants to develop it from a scratch, while the CEO wants to use an existing system as a reference for developing the new system. Which of these approaches is right? Do you suggest a mixture of the two approaches? (10 marks)
Caselet 1
Read the caselet carefully and answer following questions:
2. What are the business benefits of Maxwealth’s intranet? (10 marks)
3. How does Maxwealth’s extranet help strengthen its ties with its agents? (10 marks)
Maxwealth India Ltd, a Rs. 3000 crore diversified property and casuality insurer, largely bypassed client/server technology on its way to the intranet. It did so partly because of the insurance industry’s conservative stance on technology. However, the intranet’s simple application deployment and its potential as a competitive business tool drew Maxwealth’s attention. The web provided Maxwealth with the opportunity to distinguish itself with better, more informed services in an otherwise mature market. That meant a way to strengthen ties with its independent agent network. “This has always been a relationship business,” says the director of collaboration solutions.
MaxNet, Maxwealth’s first intranet application, was an enterprise wide risk management application that went up last year. It allows over 900 customer service representatives to track the account status and identify risk exposures by consulting a reference database of 40,000 policies and information from content experts on specific types of litigation or claims awards. Users make predefined queries, which offer 10 to 20 variables, against a SQL server database; that in turn accesses a DB2 database on the mainframe.
When this system worked well, Maxwealth developed an extranet application for agents selling worker’s compensation insurance. In insurance, where the name of the game is getting quick quotes, Maxwealth’s extranet guarantees response time of 10 minutes or less, compared to hours or days in the old way. The company is also planning an extranet admission system for worker’s compensation claims to streamline a costly process bogged down by paperwork.
And for its top customers, Maxwealth is considering adding a premium service extranet involving virtual private networks to get around the uncertain performance of public networks.
Caselet 2
Read the caselet carefully and answer following questions:
4. Why is Paradigm splitting its top information systems job into two positions? (10 marks)
5. Should other companies appoint CIO and CTO executive to manage their use of information technology? What are the limitations and benefits of this approach? (10 marks)
Most Chief Information Officers (CIOs) dream of creating innovative business applications so that their company gains a competitive advantage. However, they end up spending most of their time dealing with legacy systems maintenance. At Paradigm Consultants, management decided that one executive simply couldn’t shoulder the burden of IT strategy and infrastructure as the company sought to explore new growth opportunities. Hence, Paradigm Consultants split the top technologist position into the position of CIO and the position of Chief Technology Officer (CTO). Companies such as Merrill Lynch & Co., General Motors, and GE Capital Corporation have had CIOs setting and aligning business goals and strategies. But chief technology officers (CTOs) typically handled day-to-day operations.
Paradigm Consultants, split the duties of the CIOs because the time and resource constraints that weighted on them were just too much. Now Paradigm Consultants is in a position to leverage new business opportunities. It can make effective use of the terabytes of data it has on 25 million households and also try to expand the company’s catalog customers.
Paradigm Consultants is in the early stages of bolstering Paradigm Consultants Online with more products and services for sale. According to analysts, the company is also considered to be a technology leader because of its innovative use of database marketing and data mining capabilities.
Section C : Applied Theory (20 Marks)
6. Decisions differ with the structures that are used for making them. A highly structured decision, unlike a highly unstructured decision, may be pre-planned or pre-specified. Explain structured and unstructured decision making. (10 marks)
7. Management’s contribution and participation is indispensable for an effective MIS implementation. What role does managerial participation play in the implementation of MIS?
(10 marks)
Suggested Answers 1.
Answer : (c)
Reason : The plastic card, that stores digital information like identification data, telephone numbers, and at times serves as “electronic purse” is smart card.
2.
Answer : (b)
Reason : CASE’ tools stands for Computer – aided software engineering.
3.
Answer : (d)
Reason : A digital code attached to an electronically transmitted message that is used to verify the origins and contents of the message is Digital signature.
4.
Answer : (b)
Reason : Plans for the restoration of computing and communications services after they have been disrupted by an event such as an earthquake, flood or terrorist attack is Disaster recovery planning.
5.
Answer : (c)
Reason : Cost estimation of the complete project is not a step in prototyping.
6.
Answer : (b)
Reason : The process of turning over an organization’s computer operation, telecommunication networks or application development to external verndors is called outsourcing.
7.
Answer : (c)
Reason : A specific measure of quality representing 3.4 defects per million opportunities, used to designate a set of methodologies and techniques for improving quality and reducing costs is Six sigma.
8.
Answer : (d)
Reason : Market share is not a challenge of managing the new information technology infrastructure.
9.
Answer : (c)
Reason : Private, Multipath, data – only third party managed network that multiple organizations use on a subscription basis is VAN (Value Added Networks).
10.
Answer : (c)
Reason : A database, with reporting and query tools, that stores current and historical data extracted from various operational systems and consolidated for management reporting and analysis is known as Data Warehouse.
11.
Answer : (c)
Reason : A form of distributed processing, that links computer via private networks or internet, so that they can share processing tasks is Peer – to – peer computing.
12.
Answer : (d)
Reason : Computer systems at any level of the organization that change goals, operations, products, services or environmental relationships to heep the organization gain a competitive advantage is Strategic Information System.
13.
Answer : (b)
Reason : An Analysis of organization – wide information requirements that examines the entire organization in terms of the organizations units, function, processes and data elements and helps to identify the key entities and attributes in the organisation’s data is Enterprise Analysis.
14.
Answer : (c)
Reason : Opportunistic is not a Decision Model Classification.
15.
Answer : (e)
Reason : Support System (SSS) does not form the four basic levels of MDM (Multiparticipant Decision Maker) technology.
16.
Answer : (d)
Reason : Budget method is not a method for determining Executive Information.
17.
Answer : (d)
Reason: Art is not a Taxonrmy of knowledge type.
18.
Answer : (b)
Reason : The characteristic of a Data Warehouse, where all inconsistencies regarding naming convention and value representations are removed is integration.
19.
Answer : (e)
Reason : One of the disadvantage of “Simulation” method in Decision Support Systems It is built for one particular problem and typically cannot handle any other problem.
20.
Answer : (d)
Reason : Cannot yet be designed to contain definitely human decision making talents such as creativity, imagination or intuition is a limitation of Decision Support Systems.
21.
Answer : (c)
Reason : When designing a Decision Support System, the set of specifications that focuses on its capacity for the storage, record and production of knowledge useful to the problem context is Functional requirements.
22.
Answer : (d)
Reason : Knowledge Acquisition; Knowledge Validation; Knowledge Verification are the complete system tools that help in building a complete DSS.
23.
Answer : (a)
Reason : Ralph Kimbell is considered as doctor of DSS.
24.
Answer : (a)
Reason : Systematic decision-making describe people who approach a problem by structuring it in terms of some formal method.
25.
Answer : (d)
Reason : A decision support system should not be such that It involves everyone in the organization in the decision-making process.
26.
Answer : (d)
Reason : There is no pre-established decision procedure for Unstructured decision.
27.
Answer : (d)
Reason : “Decision makers make use of past experience to evaluate the importance of a variance and don’t rely on just percentages or absolute difference,” was said by Judd, Paddock and Wetherbe.
28.
Answer : (c)
Reason : The assurance that stored data will remain unaltered is termed integrity.
29.
Answer : (a)
Reason : In Intelligence phase of the Herbert-Simon model, is the raw data collected, processed and examined.
30.
Answer : (a)
Reason : Structured, programmable decisions Can be pre-specified.

Management Information Systems (MC261) : October 2006

Section A : Basic Concepts (30 Marks)
1. Which of these is not a stage in the development of an MIS?
(a) Programmer asks user what information is needed
(b) Designer asks user what information is needed
(c) Programmer implements system
(d) Designer works out a plan and gives it to the programmer
(e) Programmer develops the programming codes for the system.
2. There is no pre-established decision procedure for
(a) Pre-planned decision (b) Adhoc decision (c) Structured decision
(d) Unstructured decision (e) Policy decision.
3. The system that records all business transactions and other economic events and is based on the double entry bookkeeping concept is known as
(a) Operational control system (b) Workflow system (c) Personnel information system
(d) Accounting information system (e) Marketing information system.
4. Which of the following models helps in the decision-making process?
(a) Simon-Cummins Model (b) Lewis-Simon Model (c) Herbert-Simon Model
(d) Lewis-Cummins Model (e) Carl-Lewis Model.
5. Designing the logical development of sequential and concurrent tasks and task activities, which generally require a network of the PERT diagram is an example of
(a) Project planning (b) Project control (c) Project execution (d) Project evaluation
(e) Project closing.
6. The assurance that systems will be available when required and perform at acceptable levels of quality is termed
(a) Integrity (b) Reliability (c) Privacy (d) Authenticity (e) Authority.
7. The main software package that supports a database management approach is called
(a) Database structure (b) Data resource management (c) Data modeling
(d) Database management system (e) Policy decision.
8. Interactive marketing
(a) Is marketing via the Internet, intranet, extranets and other communication networks
(b) Is a one-way communication between business and customers
(c) Has a lesser reach to distinct market segments
(d) Does not use questionnaires and user forums
(e) Interesting and active marketing.
9. Who said “Decision makers make use of past experience to evaluate the importance of a variance and don’t rely on just percentages or absolute difference”?
(a) Lewis and Simon (b) Newell and Simon (c) Simon and Cummings
(d) Judd, Paddock and Wetherbe (e) Charles Babbage.
10. The assurance that stored data will remain unaltered is termed
(a) Reliability (b) Authenticity (c) Integrity (d) Privacy (e) Authority.
11. Prototyping is defined as
(a) An interactive and iterative process of developing and refining information system prototypes
(b) A multi-step process to conceive, design and implement an information system
(c) A detailed description of hardware and software
(d) Studying in detail the information needs of users
(e) Photographing an existing information system.
12. Structured, programmable decisions
(a) Can be pre-specified (b) Cannot be pre-specified (c) Are very complex
(d) Are very simple (e) Cannot be programmed.
13. Which of the following is not a valid step in the systems design phase?
(a) Support for identifying the problem
(b) Support for understanding the problem
(c) Support for evaluating solutions
(d) Support for generating solutions
(e) Support for testing the feasibility of solutions.
14. It may not be feasible to install a
(a) Management information system across the whole organization all at once
(b) Management information system across the whole organization part by part
(c) Management information system across the whole organization department by department
(d) Management information system across the whole organization function by function
(e) Management Information system across the whole organization section by section.
15.Except for one, all of the following are the benefits of the use of Decision Support Systems:
(a) Extend the decision maker’s ability to process information and knowledge
(b) Extend the decision maker’s ability to tackle large-scale, time-consuming, complex problems
(c) DSSs cannot yet be designed to contain distinctly human decision-making talents such as creativity, imagination, or intuition
(d) Shorten the time associated with making a decision
(e) Improve the reliability of a decision process or outcome.
16. Which of the following is not a function of the Presentation Language component of a Decision Support System?
(a) It allows for interaction with the DSS in a variety of dialog styles
(b) It provides for the presentation of data in a variety of formats
(c) It allows for detailed report definition and generation by the DSS user
(d) It allows for the creation of forms, tables and graphics for data output
(e) It can provide for multiple “windows” or views of the data to be available simultaneously.
17. A system under the control of one or more decision makers, that assists in the activity of decision making by providing an organized set of tools intended to impose structure on portions of the decision-making situation and to improve the ultimate effectiveness of the decision outcome is:
(a) Numeric Control System (b) Decision Support System (c) Feedback Control system
(d) Grievances Redressal System (e) Inventory Control System.
18. Which of the following is not a force acting upon a typical decision maker?
(a) Personal & Emotional Forces (b) Economic / Environmental Forces (c) Organizational Forces (d) Gravitational Forces (e) Contextual and Emergent Forces.
19. The degree to which decision task is unclear to a decision maker is
(a) Complexity (b)Accountability (c) Ability (d) Reversibility (e) Ambiguity.
20. Which of the following is not a factor contributing to Cognitive Limitations of individual decision maker?
(a) Humans can retain only a few bits of information in short – term memory
(b) Decision makers having better eye sight tend to enhance information search
(c) Decision makers display different types and degrees of intelligence
(d) Decision makers that embrace closed belief system tend to inordinately restrict information search
(e) Risk takers require less information than risk avoiders , i.e. propensity to risk varies among decision makers.
21. The Abstract Decision Model, in which atleast one of the variables is uncertain and must be described by some probability function is
(a) Stochastic Model (b) Deterministic Model (c) Simulation Model
(d) Domain – specific Model (e) Prototype Model.
22. Which of the following is not a Common Executive Information System Characteristic?
(a) It is useful for routine / repetitive operational process
(b) Used directly by top-level executives
(c) Tailored to individual executive users
(d) Designed to be easy to operate and require little or no training to use
(e) Focused on supporting upper-level management decisions.
23. A computer based application that employs a set of rules based upon human knowledge to solve problems that require human expertise is
(a) Management Information System (b) Operations Management System (c) Expert System (d) Decision Support System (e) Marketing Information System.
24. The detailed study of the information needs of users and any information system presently used is called
(a) Prototyping (b) System analysis (c) Systems design (d) Systems approach
(e) System Testing.
25. Business like airline, banks and online services are adversely affected by natural calamities. Such organizations therefore, develop
(a) Disaster recovery mechanisms (b) SOS systems (c) Network architectures
(d) Firewalls (e) Calamities warning system.
26. Who undertakes the tasks which the problem solver is not competent enough to perform?
(a) Staff assistant (b) Expert tool user (c) Staff analyst
(d) Staff clerk (e) Duty assistant.
27. Controls developed to ensure that the information being processed is complete and correct is
(a) Output controls (b) Procedural controls (c) Input controls (d) Storage controls
(e) Transaction controls.
28. A management information system
(a) Is the last stage of the systems development cycle
(b) Collects, organizes, and disseminates business know-how within a company
(c) Provides information for managers in a variety of structured formats
(d) Makes improvements to an operational system
(e) Provides information on how to manage the company.
29. Internet-like networks between a company and its business partners is called
(a) Intranet (b) Extranet (c) Protocol (d) Internetworks (e) Fishnet.
30. A huge repository of preprocessed operational data is
(a) Data (b) Database (c) Datamart (d) Information (e) Data Warehouse.
Section B : Problems/Caselets (50 Marks)
Caselet 1
Read the caselet carefully and answer the following questions.
1. How is the Deccan News responding to competition from online services? (10 marks)
2. What other strategic IT initiatives would you recommend to this newspaper? (10 marks)
The “Deccan News” is positioning itself for the future. Since the Indian newspapers are expected to lose about 10 percent of their revenue to online services, the newspaper has developed some IT strategies of its own. As part of its information technology (IT) strategy. The Deccan News has expanded its use of several electronic communication systems that provide its customers – advertising agencies, a greater control over the development of their display and classified ads.
As a result, the accuracy of ads in the Deccan News has improved. Fewer ads contain mistakes, and the Deccan News handles fewer rebates for its advertising customers. The newspaper hopes to triple the amount of display ads it receives electronically. The paper now uses the Associated Press’s Adsend system, which allows advertising agencies to send ad copy to the newspaper through dial-up connections. As a result, Deccan News production staffers who used to build the ads, can now spend more time laying out the pages. The project was the result of a company wide initiative to formulate a long-term technology strategy. Along with the consulting group, the top management identified certain strategic IT initiatives. Those initiatives included upgrading the newsroom’s outdated terminals and linking the newspaper’s production, advertising and other departments using groupware and electronic-mail systems.
Caselet 2
Read the caselet carefully and answer the following questions.
3. Why does SRC need a GIS? (10 marks)
4. How is GIS a decision support system? Answer this question using PATHPIC and PUTAWAY as examples. (10 marks)
Southern Roadways Corporation (SRC) successfully implemented a geographic information system (GIS) for home delivery routing. As a result, trucks then were able to make more deliveries in less time with greater efficiency. SRC then decided to implement PATHPIC. PATHPIC selects the most efficient route through the warehouse that allows a driver to pick the maximum number of items to be loaded in outbound trailers within the shortest amount of time. This idea of ‘picking for speed’ led SRC to estimate that adding an extra item per forklift per hour would garner them significant yearly financial savings. Not surprisingly, the results greatly surpassed the original estimate. SRC saved the equivalent of two weeks of operations time annually. Prior to PATHPIC, individual forklift drivers selected their own routes through the warehouse to complete a list of items to be loaded into a trailer. The truck drivers also had store delivery schedules to maintain. PATHPIC was implemented in three of SRC’s six warehouses. SRC will implement a GIS called PUTAWAY to streamline the routing of merchandise coming into the warehouses. PUTAWAY will focus on space planning for merchandise once it is offloaded from the delivery trucks onto the receiving docks. Factors such as where to off-load merchandise on the docks and how many stacks of merchandise to create are key to developing a system that will provide optimal efficiency when the merchandise is moved to its respective location within the warehouse. Thus, SRC has capitalized on the diverse contributions that GIS can provide at the macro level (the home delivery routing system) and the micro level (warehouse routing system).
5. The General Manager (MIS), of Infonet Limited is curious to know the management issues that one can come across in his functional area. How many such management issues can one come across? (10 marks)
Section C : Applied Theory (20 Marks)
6. Why is a Decision Support System (DSS) a powerful tool for decision makers? (10 marks)
7. 1. The Herbert Simon model describes the decision making process. Explain the Herbert Simon Model with the help of a diagram and describe its three phases. (10 marks)
Suggested Answers
1.
Answer : (a)
Reason : The stage which is not in the development of an MIS is programmer asking user what information is needed
2.
Answer : (d)
Reason : There is no pre-established decision procedure for unstructured decision
3.
Answer : (d)
Reason : The system that records all business transactions and other economic events and is based on the double entry bookkeeping concept is known as Accounting Information System.
4.
Answer : (c)
Reason : Herbert-Simon Model helps in the decision-making process.
5.
Answer : (a)
Reason : Designing the logical development of sequential and concurrent tasks and task activities, a network of the PERT diagram is an example of Project planning
6.
Answer : (b)
Reason : The assurance that systems will be available when required and perform at acceptable levels of quality is termed as Reliability.
7.
Answer : (d)
Reason : The main software package that supports a database management approach is called Database Management System.
8.
Answer : (a)
Reason : Interactive marketing is marketing via the Internet, Intranet, Extranets and other communication networks.
9.
Answer : (d)
Reason : “Decision makers make use of past experience to evaluate the importance of a variance and don’t rely on just percentages or absolute difference,” was quoted by Judd, Paddock and Wetherbe.
10.
Answer : (c)
Reason : The assurance that stored data will remain unaltered is termed as Integrity.
11.
Answer : (a)
Reason : Prototyping is defined as an interactive and iterative process of developing and refining information system prototypes.
12.
Answer : (a)
Reason : Structured, programmable decisions can be pre-specified.
13.
Answer : (c)
Reason : Support for evaluating solutions is not a valid step in the systems design phase.
14.
Answer : (a)
Reason : Installing Management information system across the whole organization all at once may not be feasible.
15.
Answer : (c)
Reason : DSSs cannot yet be designed to contain distinctly human decision-making talents such as creativity, imagination, or intuition is a limitation of DSS
16.
Answer : (a)
Reason : Allowance of interaction with the DSS in a variety of dialog styles is not a function of the Presentation Language component of a Decision Support System.
17.
Answer : (b)
Reason : A system under the control of one or more decision makers, that assists in the activity of decision making by providing an organized set of tools intended to impose structure on portions of the decision-making situation and to improve the ultimate effectiveness of the decision outcome is Decision Support System.
18.
Answer : (d)
Reason : Gravitational Forces is not a force acting upon a typical decision maker.
19.
Answer : (e)
Reason : The degree to which decision task is unclear to a decision maker is Ambiguity.
20.
Answer : (b)
Reason : Decision makers having better eye sight tend to enhance information search is not a factor contributing to Cognitive Limitations of individual decision maker.
21.
Answer : (a)
Reason : The Abstract Decision Model, in which at least one of the variables is uncertain and must be described by some probability function is Stochastic Model.
22.
Answer : (a)
Reason : Common Executive Information System Characteristic is not useful for routine / repetitive operational process.
23.
Answer : (c)
Reason : A computer based application that employs a set of rules based upon human knowledge to solve problem that require human expertise is Expert System
24.
Answer : (b)
Reason : The detailed study of the information needs of users and any information system presently used is called System analysis
25.
Answer : (a)
Reason : Business like airline, banks and online services are adversely affected by natural calamities. Such organizations therefore, develop Disaster recovery mechanisms.
26.
Answer : (b)
Reason : Expert tool undertakes the tasks which the problem solver is not competent enough to perform.
27.
Answer : (a)
Reason : Controls developed to ensure that the information being processed is complete and correct is Output controls,
28.
Answer : (c)
Reason : A management information system provide information for managers ina variety of structured formats.
29.
Answer : (b)
Reason : Internet-like networks between a company and its business partners is called Extranet. 30.
Answer : (e)
Reason : A huge repository of preprocessed operational data is Data warehouse.

Management Information Systems (MC261) : January 2006

Section A : Basic Concepts (30 Marks)
1.The person who designs a cryptosystem is called a
(a) Cryptographer (b) Cryptanalyst (c) Cryptologist (d) Cryptogenist (e) Cryptodentist.
2.Which of the following transmission media is most resistant to wiretapping?
(a) Optical fiber (b) Satellite microwave (c) Twisted-pair wire (d) Infrared (e) Ultra sound.
3.According to Simon (in 1960), the different stages of a decision making process are the following, except
(a) Intelligence (b) Design (c) Choice (d) Implementation (e) Contemplation.
4.The use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals is called
(a) Prototyping (b) Photographing (c) Profiling (d) Performing (e) Promoting.
5.One of these is not an information system that supports the major functions of an organization
(a) Sales & Marketing System (b) Manufacturing & Production System
(c) Finance & Accounting System (d) Audio Visual System
(e) Human Resources System.
6.In a decision making process, complete and accurate knowledge of the outcome of each alternatives, comes under _________ type of knowledge
(a) Certainty (b) Risk (c) Uncertainty (d) Unforeseen (e) Unpredictable.
7.Indicate which of following does not come under Classes of Decision Makers?
(a) Individual (b) Group (c) Organization (d) Multiple (e) Plural.
8.The first necessary step to effectively operate an MIS is
(a) Summarizing data (b) Analyzing data (c) Determining information needs (d) Gathering appropriate data (e) Generating systems from gathered data.
9.The element for comparison that helps in synchronizing the organization’s activities is
(a) The Communication System (b) The Detector (c) The Assessor (d) DBMS
(e) Reporting System.
10.Among the systems given below, one does not belong to the Knowledge Work and Office System (KWS)
(a) Word Processing (b) Payroll (c) Desk Top Publishing
(d) Document Image Processing (e) Power Point.
11.One recurring problem in Supply Chain Management in which the information about the demand for a product gets distorted as it passes from one entity to another is known as
(a) Chain effect (b) Visual effect (c) Blue tooth effect (d) Bullwhip effect (e) Gravitational effect.
12.The theory of decision making which states that organizations are not rational and decision making is largely accidental and is a product of a stream of solutions, problems and situations that are randomly associated, is
(a) ‘Organizational’ model (b) ‘Bureaucratic’ model (c) ‘Garbage Can’ model (d) ‘Political’ model (e) ‘Rational’ model.
13.Goal congruence is ___________
(a) The desire and the commitment to achieve a specific goal
(b) The extent to which superiors have the authority to make decisions
(c) The extent to which subordinates have the authority to make decisions
(d) The attempt to accomplish a specific goal
(e) The integration of the organizational and the employees personal goals.
14.A person who gains unauthorized access to a computer system to read, modify or delete programs or data or to disrupt services is called as
(a) Worm (b) Virus (c) Hacker (d) Data noise (e) Bacteria.
15.Which of the following statements about information systems personnel is false?
(a) Historically, information system personnel have been in short supply
(b) Information systems personnel have lacked a well-developed system of ethics
(c) Information systems personnel often perform tasks that are exceedingly complex
(d) Information systems personnel have less power vested in them than personnel who work in manual systems
(e) Due to advancement of computer technology, information systems personnel have been available in abundance.
16._______ is that system which automates the relationship between a firm and its suppliers?
(a) Customer Relationship Management System (b) Supply Chain Management System
(c) Enterprise System (d) Knowledge Management System (e) Responsive System.
17.Which of the following is used to monitor the progress of an MIS implementation?
(a) Reporting system (b) Mainframe system (c) Localized system
(d) Globalized system (e) Processing system.
18.Compared with a manual system, the assets and records in a computer based information system tend to be
(a) More concentrated at a single location.
(b) Dispersed across many more locations
(c) Concentrated to about the same extent
(d) More concentrated at different locations but less valuable
(e) More concentrated at few locations but more valuable.
19.The process of buying and selling goods and services electronically with computerized business transactions using internet, networks and other degraded technology is known as
(a) Exports (b) Imports (c) Domestic trade (d) Sale (e) E-commerce.
20.Which one of the following is not a parameter in the framework that evaluates the success of a Decision Support System implementation?
(a) Industry growth (b) System performance (c) Task performance (d) Business Opportunities (e) Evolutionary aspects.
21.In which model of decision making, is an unstructured approach made to a problem with multiple methods and also using trial and error method to find a solution is called as
(a) Bureaucratic model (b) Political model (c) Intuitive model (d) Organisational model
(e) Systematic decision makers.
22.Which one from the following is a production variable?
(a) Asset turnover (b) Raw material quality (c) Market share (d) Quality control
(e) Participation.
23.The process of building an experimental system rapidly and inexpensively for the end users to evaluate is called
(a) Producing (b) Proton testing (c) Prototyping (d) Photographing (e) Providing.
24.Which one of the following is least likely to be the characteristics of Common Executive Information system?
(a) Provide tools to select, extract, filter and fetch critical information.
(b) Can present information in graphical, tabular and / or textual
(c) Calculate the individual monthly salary of employees
(d) Tailored to individual executive users
(e) Focused on supporting upper-level management decisions.
25.Which one of the following is least likely to be a method to determine executive information needs?
(a) By-product method (b) Trial and Error method (c) Key indicator method (d) Total study method (e) Critical success factors method.
26.One of the following is not a factor that determines the quality of information.
(a) Accuracy (b) Precision (c) Timeliness (d) Relevance (e) Security.
27.When designing a Decision Support System, the set of specifications that focuses on its capacity for the storage, record and production of knowledge useful to the problem context is
(a) Interface requirements (b) Coordination requirements (c) Functional requirements(d) Stationary requirements (e) Standard requirements.
28.In which of the following analysis will help in identifying the critical control variables and latent factors?
(a) Sales analysis (b) Cost analysis (c) Multivariate analysis (d) Critical analysis (e) Competitive analysis.
29.One of the drawbacks of System Development Life Cycle (SDLC) approach to building Information System is
(a) Provides important discipline to system development
(b) Ensures that no important area has been overlooked
(c) Too rigid for systems whose requirements change rapidly
(d) It is based on a series of formal steps
(e) The formal contractual relationship between the developers and the eventual users.
30.Of the following, which one is not a physical component required for an organizational Information System?
(a) Hardware (b) Software (c) Data (d) Personnel (e) Vehicle.
Section B : Problems/Caselets (50 Marks)
1. “The explosive growth in computing power and networks, including the Internet, is turning organizations into network enterprises, allowing information to be instantly distributed within and beyond the organization.” Has Information Systems changed the Management process in Organization today? (10 marks)
Caselet 1
Read the caselet carefully and answer the following questions:
2. What type of information systems is being implemented by Red Flowers? (5 marks)
3. How will such systems benefit Red Flowers, its florists and consumers? (5 marks)
A nationwide florists’ network is hoping that a new web-based system will speed orders to their customers. Red Flowers Ltd. recently started rolling out the system, an overhaul of an old system which used direct dial-up modem links that florists used to download orders. The new network lets florists log in over the Internet and receive orders and queries in real time from Red Flowers at www.redflowers.com. Florists can then ask questions about orders, such as whether delivery times can be changed or certain flowers substituted.For Red Flowers, the system means florists can check on orders faster. For instance, florists are encouraged to automatically confirm order deliveries over the system. If they do, they receive Rs. 10 back on the order. Local florists pay Rs.20 for each order they receive from Red Flowers. So when customers call Red Flowers to find out if a delivery has been made, the information is already in the system, and it is easy for florists to answer customer’s questions.Red Flowers is also in the process of adding electronic mail and chat capabilities to its systems. That will let florists communicate with one another about design, marketing, and business ideas. The company plans to offer computer-based training and lectures in the near future. And the company hopes to test the chat-based customer service.The idea behind this is to let consumers log on to the Red Flowers website, go to a private chat room, ask about ordering, and receive a real time answer from a Red Flowers customer service representative.Customers can also email their queries. But even with a usual two-hour response time, many time pressed people ended up calling with their questions as well. That means two different representatives answered the same question. With 35 percent of Red Flowers’ consumers seeking delivery the same day, valuable time can be saved by offering realtime answers to consumers who are about to plan an order.
4. There are differing views on the role of Information system in the enhancement of productivity in Business. Explain your views on this. (10 marks)
Caselet 2
Read the caselet carefully and answer the following questions:
5. How did the implementation of a decision support system(DSS) help Frito-Lay overcome a slump in sales? (10 marks)
Frito-Lay chips experienced a major slump in the San Antonio and Houston supermarkets and no single reason could be attributed to this. The corporate marketers at Frito-Lay accessed their decision support system and identified that a regional competitor had introduced EI Galindo, a white-corn tortilla chip. In spite of the fact that the competitor did not have the resources to advertise extensively, the demand for its product increased through ‘word of mouth’ and resulted in the allocation of expanded shelf space for its product.Frito-Lay then developed a decision support system (DSS) that gathered data from supermarkets on a daily basis. The DSS scanned the data for information about local and regional trends. This helped Frito-Lay identify problems and opportunities in particular markets. Using the DSS, Frito-Lay could track the latest changes in sales. This information was used to respond quickly to market situations in a more proactive manner. When a competitor began a major promotional campaign, the results were identified almost immediately and a counter program could be launched. Also, Frito Lay’s new sales programs could be tracked and adjusted in response to customer purchases.
6. Information Processing for Decision Support will differ depending on whether the Decision is Structured or Unstructured. Explain. (10 marks)
Section C : Applied Theory (20 Marks)
7. What is e-commerce? Clearly indicate the various categories of e-commerce. (10 marks)
8. You are required to elaborate ROMC analysis? (10 marks)
Suggested Answers
1.
Answer : (a)
Reason : The person who designs a cryptosystem is called a Cryptographer.
2.
Answer : (a)
Reason : Optical fiber is most resistant to wiretapping
3.
Answer : (e)
Reason : According to Simon (in 1960), the different stages of a decision making process are the Intelligence, design, choice and implementation. Contemplation is the odd one
4.
Answer : (c)
Reason : The use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals is called Profiling.
5.
Answer : (d)
Reason : Audio Visual System is not an information system that supports the major functions of an organization.
6.
Answer : (a)
Reason : In a decision making process, complete and accurate knowledge of the outcome of each alternatives, comes under Certianity type of knowledge.
7.
Answer : (e)
Reason : Plural is not a class of Decision Makers. All others are classes of decision makers.
8.
Answer : (c)
Reason : The first necessary step to effectively operate an MIS is Determining information needs
9.
Answer : (c)
Reason : The assessor is the element for comparison which synchronizes the organization’s activities.
10.
Answer : (b)
Reason : Payroll does not belong to the Knowledge Work and Office System (KWS). All others are.
11.
Answer : (d)
Reason : One recurring problem in Supply Chain Management in which the information about the demand for a product gets distorted as it passes from one entity to another is known as Bullwhip effect
12.
Answer : (c)
Reason : The theory of decision making which states that organizations are not rational and decision making is largely accidental and is a product of a stream of solutions, problems and situations that are randomly associated, is ‘Garbage Can’ model.
13.
Answer : (e)
Reason : Goal congruence is the integration of the organizational and the employees personal goals.
14.
Answer : (c)
Reason : A person who gains unauthorized access to a computer system to read, modify or delete programs or data or to disrupt services is called as Hacker.
15.
Answer : (d)
Reason : The statement that Information systems personnel have less power vested in them than personnel who work in manual systems is false.
16.
Answer : (b)
Reason : Supply Chain Management System is that system which automates the relationship between a firm and its suppliers.
17.
Answer : (a)
Reason : Reporting system is used to monitor the progress of an MIS implementation.
18.
Answer : (a)
Reason : Compared with a manual system, the assets and records in a computer based information system tend to be More concentrated at a single location.
19.
Answer : (e)
Reason : The process of buying and selling goods and services electronically with computerized business transactions using internet, networks and other degraded technology is known as E-commerce.
20.
Answer : (a)
Reason : Industry growth is not a parameter in the framework that evaluates the success of a Decision Support System implementation.
21.
Answer : (c)
Reason : Intuitive model is an unstructured approach made to a problem with multiple methods, using trial and error method to find a solution.
22.
Answer : (d)
Reason : Quality control is a production variable.
23.
Answer : (c)
Reason : The process of building an experimental system rapidly and inexpensively for the end users to evaluate is called Prototyping.
24.
Answer : (c)
Reason : Calculating the individual monthly salary of employees is not a characteristics of Common Executive Information system.
25.
Answer : (b)
Reason : Trial and Error method is least likely to be a method to determine executive information needs.
26.
Answer : (e)
Reason : Security is not a factor that determines the quality of information.
27.
Answer : (c)
Reason : When designing a Decision Support System, the set of specifications that focuses on its capacity for the storage, record and production of knowledge useful to the problem context is Functional requirements.
28.
Answer : (c)
Reason : Multivariate analysis helps in identifying the critical control variables and latent factors.
29.
Answer : (c)
Reason : One of the drawbacks of System Development Life Cycle (SDLC) approach to building Information System is that SDLC too rigid for systems whose requirements change rapidly.
30.
Answer : (e)
Reason : Vehicle is not a physical component required for an organizational Information System.

Management Information Systems (MC261) : April 2006

Section A : Basic Concepts (30 Marks)
1.Low-volume data and analytical models are characteristics of which of the following Information System?
(a) Management Information System (b) Decision Support System
(c) Executive Support System (d) Transaction Processing System
(e) Office Automation System.
2.Networks within an enterprise that are similar to the Internet are called
(a) Intranets (b) Extranets (c) Teranet (d) WAN (e) Webnet.
3.The primary difference between program testing and system testing is:
(a) System testing focuses on testing the interfaces between programs, whereas program testing focuses on individual programs
(b) Program testing is more comprehensive than system testing
(c) System testing is concerned with testing all aspects of a system including job designs and reward system designs
(d) Programmers have no involvement in system testing, whereas designers are involved in program testing
(e) Program testing is for Managers and system testing is for workers.
4.Which amongst the following is the characteristic of a closed decision-making system?
(a) The manager has a known set of decision options and knows their results when fully implemented.
(b) The manager is not aware of all the decisions alternatives.
(c) The results of the decision are not known.
(d) No fixed method or model is available to arrive at a decision.
(e) The manger takes the decision inside a closed room.
5.Which of the following methods of validating PINs seems to result in the fewest control problems?
(a) Allow only a small number of PIN entry attempts, close the account after the limit has been reached, and retain the card
(b) Allow a reasonable number of PIN entry attempts, close the account after the limit has been reached, but do not retain the card
(c) Allow a reasonable number of PIN entry attempts, close the account after the limit has been reached, and retain the card
(d) Allow a small number of PIN entry attempts, do not close the account after the limit has been reached, but retain the card used to initiate the PIN entry
(e) Allow unlimited number & PIN attempts, close the account after the limit has been reached, but retain the card used to initiate the PIN entry.
6.Which of the following is not an assumption about the role of computers in decision making?
(a) Computers are meant to support the manager in decision-making, not replace him.
(b) Computers are the key constituents of an effective decision support system.
(c) Computers help structure the problems and provide a systematized approach.
(d) The key to effective problem-solving is having an interactive and enhanced dialogue between the user and the system.
(e) It helps the manager to arrive as the most optimum solution.
7.Businesses like airline, banks and online services are adversely affected by natural calamities. Such organizations therefore, develop
(a) Disaster recovery mechanisms (b) SOS systems (c) Network architectures (d) Firewalls (e) Accounting systems.
8.Which of the following systems caters to the strategic information needs of the top management?
(a) Human resource information systems (b) Expert systems
(c) Executive information systems (d) Reporting systems (e) Accounting system.
9.Which of the following is not likely a support provided by a Decision Support System?
(a) Identify the need for decisions.
(b) Solve or assist in solving problems
(c) Provide assistance in the form of advice, analysis or evaluation
(d) Get major market share for the company’s products.
(e) Help compensate for cognitive limitations of human decision makers.
10.Which of the following is true regarding the development of EIS information requirements?
(a) The focus should not be on stakeholder expectations because the organization intends to serve them.
(b) Stakeholder expectations need not be documented.
(c) Determine the various formats in which reporting is done and the frequency of reporting.
(d) The flow of information need not be outlined because it already exists and is obvious.
(e) EIS objectives does not match with the organization objectives.
11.Which of the following is not likely an advantage of the End-User-developed DSS?
(a) Major reduction in delivery time of the application.
(b) Elimination of time consuming process of gathering and formalizing end-user specifications for the system.
(c) Improved profit for the organization.
(d) Reduction of implementation problems following the design phase of the project.
(e) Lower cost of development.
12.Which of the following is central to successful MIS implementation?
(a) Apply latest technology (b) Save on effort (c) Save on time (d) Train the end-users of the system. (e) Save on cost.
13.Which of the following is not a parameter in the Framework that evaluates the success of a DSS implementation.
(a) Industry growth (b) System performance (c) Task performance (d) Business opportunities (e) Evolutionary Aspects.
14.In order to effectively control and maintain an MIS, the management must
(a) Build a review committee (b) Employ latest technologies (c) Conduct periodic tests (d) Employ process flexibility. (e) Change the system frequently.
15.In DSS, many type of tools help in building complex, systems. Some of the following come under complex system tools.
I. Knowledge Disposal
II. Knowledge Acquisition
III. Knowledge Validation
IV. Knowledge Responsiveness
V. Knowledge Verification
(a) (I), (II) and (III) above (b) (I), (II) and (IV) above (c) (II), (III) and (IV) above (d) II, III and V above (e) I, II and V above.
16.Business Process Re-engineering (BPR)
(a) Is the system that provides integrated approach in planning, distribution and control of material resources within an organization.
(b) Is the “fundamental rethinking and radical design of business processes to achieve dramatic improvements in critical and contemporary measures of performance”
(c) Led to the development of MRP-II.
(d) Is the system that provides for planning and control of manpower, material resources and machinery to manufacturing organizations.
(e) Changing the Business of the organization totally.
17.Which of the following is used to monitor the progress of an MIS implementation
(a) Reporting system (b) Mainframe system (c) Localized system (d) Globalized system (e) Processing system.
18.Which of the following is not true about ERP?
(a) There will not be any resistance towards the new system (ERP) by senior employees of the organization.
(b) Effectiveness of ERP is influenced by the extent to which the existing processes can adapt to the change and effectively utilize it.
(c) The kind of customer focus the company has, and the business strategy has an impact on the ERP solution.
(d) Improper evaluation of business processes can lead to problems in ERP implementation.
(e) ERP helps an organization to integrate its functions.
19.Compared with a manual system, the assets and records in a computer based information system tend to be
(a) More concentrated at a single location.
(b) Dispersed across many more locations
(c) Concentrated to about the same extent
(d) More concentrated at different locations but less valuable
(e) More concentrated at few locations but more valuable.
20.Information technology helps in evolving new types of organizations called ________
(a) Electronic conglomerates (b) Connected organizations (c) Virtual organizations (d) Sophisticated organizations (e) Big organizations.
21.One of the following, is not a reason for things going wrong in the development and successful implementation of an MIS.
(a) Lack of clear definition of mission and purpose
(b) Disorganisation
(c) Marketing and Advertising campaign.
(d) No Management participation
(e) Non-performance of key personnel.
22.Which of the following provides data protection over the internet, intranet and extranet?
(a) Encryption (b) Decryption (c) Server software (d) Artificial intelligence (e) Cable insulation.
23.One of the following is not a limitation of a Decision Support System.
(a) DSS’s cannot yet be designed to contain distinctly human decision-making talents such as creativity, imagination or intuition.
(b) Extend the decision maker’s ability to tackle large scale, time-consuming, complex problem.
(c) The power of a DSS is limited by the Computer system upon which it is running, its design and the knowledge it possesses at the time of its use.
(d) Language and command interfaces all not yet sophisticated enough to allow for natural language processing of user directives and inquiries.
(e) DSS’s are normally designed to the narrow in scope of application, thus inhibiting their generalisability to multiple decision-making contexts.
24.The most significant reason for an MIS to fail is
(a) Lack of coordination of the EDP and MIS function
(b) Lack of proper planning
(c) Lack of managerial participation
(d) Lack of proper analysis
(e) Lack of system resources.
25.The use of digital technologies to enable multiple organizations to collaboratively design, develop, build, move and manage products through their life cycles is called
(a) Domestic Trade (b) Export (c) Collaborative Commerce (d) Import (e) Barter deal.
26.Even with the best Management Information System in place,
(a) Managers should be tension free.
(b) Data must not be analyzed and interpreted by managers.
(c) Allowance must not be made for inadequacies or non-availability of data.
(d) Data must still be analyzed and interpreted by managers.
(e) Information should not be view by the managers.
27.The theory of decision making which states that “an individual identifies goal, ranks all possible alternative actions by their contribution to these goals, and chooses the alternative that contributed most to those goals” is
(a) ‘Organisational’ model (b) ‘Bureaucratic’ model (c) ‘Garnage Can’ model (d) ‘Political’ model (e) ‘Rational’ model.
28.If a decision is based on a rule or a method it is called a
(a) Programmed decision (b) Non-programmed decision (c) Semi-programmed decision (d) Set decision (e) Random decision.
29.Currency represented in electronic form that moves outside the normal network of money is
(a) Coins (b) Cheques (c) Debit Card (d) Digital Cash (e) Credit Card.
30.An MIS implementation may not result in:
(a) Enhanced productivity (b) Better time management
(c) Unanimous acceptance by employees (d) Better quality of work.
(e) Better Decision Making Process.

Section B : Problems/Caselets (50 Marks)
Caselet 1
Read the caselet carefully and answer the following questions:
1. Discuss the pros and cons of Plastic India Ltd. present structure of concentrating data department wis(e). (7 marks)
2. What are the problems Plastic India Ltd. might face while amalgamating the company’s data into a single database? (6 marks)
Plastic India Ltd. manufactures a wide range of plastic mouldings. The mouldings are used in diverse products such as motor vehicles, garden furniture and children’s toys. In order to serve this variety, there are six different sales departments, one manufacturing department and an ordering department. A separate IT department provides basic IT services to all the departments.Each department in the company has its own computerized records and databases. The IT department has been very successful in meeting the IT system requirements and providing high quality service to each user department in the past.
Plastic India Ltd. now plans to set up a centralized sales database that every user department can access. The database is intended to be very comprehensive, which will include among other things, details of goods, customers and debtor analysis. This would mean that the individual databases in each department will have to be amalgamated into this central database.
Caselet 2
Read the caselet carefully and answer the following questions:
3. Explain how IEL could improve its procedures to:
i. Ensure that only authorized sales reps have access to the main computer and
ii. Check that the data is completely and accurately transferred between the portable computers and the main court. 4. i What process could IEL use to include the daily order data within B&B’s MIS
ii. Indicate the various outputs that would be expected from the MIS to assist the senior management in decision-making. (7 marks) Indian Explosives Ltd. (IEL) sells industrial explosives which are used in tunneling, road building and demolishing of old buildings. IEL produces more than 500 types of explosives and related accessories.These explosives are sold to customers by highly trained sales representatives. In a typical transaction, each sales rep visits a customer site, ascertains the customer’s requirements and finally confirms the goods availability and lead time using his portable computer. The orders can be complex, involving many different types of explosives and related accessories.
At the end of the day, each sales rep links his computer to the company’s main database. Order details are transferred to the main computer, while updated stock balances are downloaded and are ready for use for the next day. In spite of the fact that the sales reps’ information may not be current, stockouts are infrequent.Every evening, after all the sales reps have fed the data to the main computer, the information is analyzed, production schedules are produced and the company’s management information system (MIS) is updated. Each rep logs on again in the morning and downloads a copy of the updated MIS.
5. “Although Information Systems have provided enormous benefits and efficiencies, they have also created new problems and challenges, of which managers should be aware of”
Discuss the benefits and the negative impacts of Information Systems. (10 marks)
Caselet 3
Read the caselet carefully and answer the following questions:
6. What are the business benefits of Reach’s intranet? (6 marks)
7. How does Reach’s extranet help strengthen its ties with its agents? (6 marks)
Reach Group, a Rs 3000 crore diversified property and casualty insurer, largely bypassed client/server technology on its way to the intranet. It did so partly because of the insurance industry’s conservative stance on technology.
However, the intranet’s simple application deployment and its potential as a competitive business tool drew Reach’s attention. The web provided Reach with the opportunity to distinguish itself with better, more informed services in an otherwise mature market. That meant a way to strengthen ties with its independent agent network. “This has always been a relationship business,” says the director of collaboration solutions.
RealNet, Reach’s first intranet application, was an enterprise wide risk management application that went up last year. It allows over 900 customer service representatives to track the account status and identify risk exposures by consulting a reference database of 40,000 policies and information from content experts on specific types of litigation or claims awards. Users make predefined queries, which offer 10 to 20 variables, against a SOL Server database; that in turn accesses a DB2 database on the mainframe.
When this system worked well, Reach developed an extranet application for agents selling worker’s compensation insurance. In insurance, where the name of the game is getting quick quotes, Reach’s extranet guarantees response time of 10 minutes or less, compared to hours or days in the old way. The company is also planning an extranet admission system for worker’s compensation claims to streamline a costly process bogged down by paperwork.
And for its top customers, Reach is considering adding a premium service extranet involving virtual private networks to get around the uncertain performance of public networks.

Section C : Applied Theory (20 Marks)
8. According to Simon (1960), what are the various stages of a Decision Making Process.
(8 marks)
9. Explain briefly the following:
a. Transaction Processing System
b. Management Information System
c. Decision Support System
d. Executive Support System (4 × 3 = 12 marks)
Suggested Answers
1.
Answer : (b)
Reason: Low- volume data and analytical models are characteristics of Decision Support System.
2.
Answer : (a)
Reason: Networks within an enterprise that are similar to the Internet are called Intranets.
3.
Answer : (a)
Reason: The primary difference between program testing and system testing is system testing focuses on testing the interfaces between programs, whereas program testing focuses on individual programs
4.
Answer : (a)
Reason: The characteristic of a closed decision-making system is that the manager has a known set of decision options and knows their results when fully implemented.
5.
Answer : (b)
Reason: The methods of validating PINs that will result in the fewest control problems are : to allow a reasonable number of PIN entry attempts, close the account after the limit has been reached, but do not retain the card.
6.
Answer : (b)
Reason: following is not an assumption about the role of computers in decision making : Computers are the key constituents of an effective decision support system.
7.
Answer : (a)
Reason: Businesses like airline, banks and online services are adversely affected by natural calamities. Such organizations therefore, develop Disaster recovery mechanisms.
8.
Answer : (C)
Reason: Executive Information systems caters to the strategic information needs of the top management.
9.
Answer : (d)
Reason: The following is not likely a support provided by a Decision Support System : get major market share for the company’s products.
10.
Answer : (c)
Reason: The following is true regarding the development of EIS information requirements: determine the various formats in which reporting is done and the frequency of reporting.
11.
Answer : (c)
Reason: The following is not likely an advantage of the End-User-developed DSS : improved profit for the organization
12.
Answer : (d)
Reason: The following is central to successful MIS implementation : train the end-users of the system.
13.
Answer : (a)
Reason: The following is not a parameter in the Framework that evaluates the success of a DSS implementation : industry growth.
14.
Answer : (c)
Reason: In order to effectively control and maintain an MIS, the management must conduct periodic tests.
15.
Answer : (d)
Reason: In DSS, many type of tools help in building complex, systems. Some of complex system tools are Knowledge Acquisition, Knowledge Validation and Knowledge Verification.
16.
Answer : (b)
Reason: Business Process Re-engineering (BPR) is the “fundamental rethinking and radical design of business processes to achieve dramatic improvements in critical and contemporary measures of performance.”
17.
Answer : (A) Reason: Reporting system is used to monitor the progress of an MIS implementation.
18.
Answer : (a)
Reason: The following is not true about ERP : there will not be any resistance towards the new system (ERP) by senior employees of the organization.
19.
Answer : (a)
Reason: Compared with a manual system, the assets and records in a computer based information system tend to be : more concentrated at a single location.
20.
Answer : (c)
Reason: Information technology helps in evolving new types of organizations called Virtual organizations.
21.
Answer : (c)
Reason: Marketing and Advertising campaign is not a reason for things going wrong in the development and successful implementation of an MIS.
22.
Answer : (a)
Reason: Encryption provides data protection over the internet, intranet and extranet.
23.
Answer : (b)
Reason: The following is not a limitation of a Decision Support System : extend the decision maker’s ability to tackle large scale, time-consuming, complex problem.
24.
Answer : (c)
Reason: The most significant reason for an MIS to fail is lack of managerial participation.
25.
Answer : (c)
Reason: The use of digital technologies to enable multiple organizations to collaboratively design, develop, build, move and manage products through their life cycles is called collaborative commerce.
26.
Answer : (d)
Reason: Data must still be analyzed and interpreted by managers even with the best Management Information System in place.
27.
Answer : (e)
Reason: The theory of decision making which states that “an individual identifies goal, ranks all possible alternative actions by their contribution to these goals, and chooses the alternative that contributed most to those goals” is ‘Rational’ model.
28.
Answer : (a)
Reason: If a decision is based on a rule or a method it is called a Programmed decision.
29.
Answer : (d)
Reason: Currency represented in electronic form that moves outside the normal network of money is digital cash.
30.
Answer : (c)
Reason: An MIS implementation may not result in Unanimous acceptance by employees.