CLASS TEST

MANAGEMENT INFORMATION SYSTEM

1) What is the difference between data and information? Give examples by instances
whereby data and information are required in business environment.

Most people believe that the terms "data" and "information" are interchangeable and
mean the same thing. However, there is a distinct difference between the
two words.Data can be any character, text, words, number, pictures, sound, or video and
if not put into context means nothing to a human or computer. However, information is
useful and can be understood by the human. Below is an example of the same data and
information and how they differ.
Example of Data
Joe,Smith, 1234 Circle,SLC,UT,8404,8015553211

Example of Information
Joe Smith
1234 Circle
Salt Lake City, UT 84084
(801)555-3211

As can be seen in the above example, looking at just the data you may be able to
understand some of the text on the line, but it isn't really useful. That same information,
when broken out into readable text and slightly formatted becomes much more useful and
allows you to identify it is contact information for Joe Smith.
In this example, the data could be a CSV file that can be parsed into
an Excel spreadsheet or database to make it usable information.

2) What are the four types of information systems? Explain each of the information systems
in detail, outlining the group level that uses each system.
a) Transaction Processing Systems
Transaction processing systems meet the data collection, storage, processing and
outputting functionalities for the core operations of a business. TPS information systems
collect data from user inputs and then generate outputs based on the data collected. An
example of TPS system could be an online air ticket booking system. In such a system,
travelers select their flight schedule and favorite seats (the input), and the system updates
the seats available list, removing those selected by the traveler (the processing). The
system then generates a bill and a copy of the ticket (the output). TPS information
systems can be based on real-time or batch processing, and can help business owners
meet demand without acquiring additional personnel.
b) Customer Relationship Management Systems
Business owners use customer relationship systems to synchronize sales and marketing
efforts. CRM systems accumulate and track customer activities, including purchasing
trends, product defects and customer inquiries. The capabilities of typically CRM
information systems allow customers to interact with companies for service or product
feedback and problem resolutions. Businesses may also use CRM systems internally as a
component of their collaboration strategies. As such, CRM information systems allow
business partners to interact with each other as they develop ideas and products.
Collaboration can occur in real time even when business partners are in remote locations.
c) Business Intelligence Systems
Business intelligence systems can be complex as they identify, extract and analyze data
for various operational needs, particularly for decision-making purposes. BIS information
systems may provide analyses that predict future sales patterns, summarize current costs
and forecast sales revenues. Business intelligence systems collect data from the various
data warehouses in an organization and provide management with analyses according to
lines of business, department or any breakdown that management desires. For example,
financial institutions use BIS systems to develop credit risk models that analyze the

number and extent of lending or credit given to various sectors. These systems may use
various techniques and formulas to determine the probability of loan defaults.
d) Knowledge Management Systems
Knowledge management systems organize and dissect knowledge and then redistribute or
share it with individuals of an organization. The purpose of these information systems is
to bring innovation, improve performance, bring integration and retain knowledge within
the organization. Although KMS information systems are typically marketed to larger
enterprises, small businesses can also benefit from harvesting knowledge. KMS
information systems serve as a central repository and retain information in a standard
format. These systems can help business owners maintain consistency and enable speedy
responses to customer and partner inquiries

3) In many occasions organizations faces repeated occurrence of mishandled data in

conventional data files. Determined the problems and explain each of them in detail.

A key problem for management information systems is the provision of the raw data
input and the maintenance of up-to-date information. Your company already generates
data on sales, revenue, expenses, payments and other fundamental business information.
Marketing departments often have additional databases. The right management
information system for your company can use this data in either its current form or
import it from a standard format. In this way, the data in the system is always the same
data as the company working level is using and generating. If the management
information system requires extra processing, the data will be less current and less
valuable.
Use
Usability is a major problem for management information systems. A powerful system
perfect for the data of your company is wasted if your employees don't use it.
Management information systems fail because their user interface is too complicated, it's

too hard to get useful results or the results are not in a useful form when the system
generates them. Before selecting your system, you have to check for these issues. The
reports have to be easy to understand and relevant for your company. Users have to be
able to generate the reports they want with a minimum of training and with little effort.

Changes
An important management information system characteristic is the ability to adapt to
changes in your company. The available information may change, the reports you want
may vary and often the personnel using the system changes. The system you put in place
has to allow for revisions in the inputs and outputs, either easily enough through your
own IT staff, or at agreed rates by the supplier. There has to be a simple method of adding
and deleting user accounts that you can handle internally, because old, active accounts
can be a security problem.
Many of the problems and failures of Management Information Systems (MIS) and
Management Science/Operations Research (MS/OR) projects have been attributed to
organizational behavioral problems. The millions of dol/ars organizations spend on MIS
and MS/OR development are of little benefit because systems continue to fail. Steps can
be taken to understand and solve these behavioral problems.

This article argues that in most cases these behavioral problems are the result of
inadequate designs. These bad designs are attributed to the way MIS systems designers
view organizations, their members, and the function of an MIS within them, i.e., systems
designers' frames of reference. These frames of reference cause faulty design choices and
failures to perceive better design alternatives. Seven conditions are discussed which
reflect current systems designers' points of view.

The discussion of these conditions demonstrates the need to reframe MIS design
methodology within the Socio- Technical Systems (STS) design approach and change
systems designers' peispectives. The STS approach is introduced as a realistic view of
organizations and a way to change them.

This article is the first of two to appear in consecutive issues of the MIS Quarterly. The
purpose of this first article is to demonstrate the need for the STS approach. The second
will present the basic concepts and principles of the STS methodology and how it can be
utilized in the design of an MIS.

4) Identify three improvement processes and briefly explain each of the process,
Information Storage and Analysis
At the date of publication, many companies no longer manage their data and information
manually with registers and hard-copy formats. Through the adoption of information
systems, companies can make use of sophisticated and comprehensive databases that can
contain all imaginable pieces of data about the company. Information systems store,
update and even analyze the information, which the company can then use to pinpoint
solutions to current or future problems. Furthermore, these systems can integrate data
from various sources, inside and outside the company, keeping the company up to date
with internal performance and external opportunities and threats.
Assist With Making Decisions
The long-term success of a company depends upon the adequacy of its strategic plans. An
organizations management team uses information systems to formulate strategic plans
and make decisions for the organization's longevity and prosperity. The business uses
information systems to evaluate information from all sources, including information from
external references such as Reuters or Bloomberg, which provide information on the
general economy. This analysis of and comparison to market trends helps organizations
analyze the adequacy and quality of their strategic decisions.

Assist With Business Processes

Information systems aid businesses in developing a larger number of value addedsystems in the company. For example, a company can integrate information systems with
the manufacturing cycle to ensure that the output it produces complies with the
requirements of the various quality management standards. Adoption of information
systems simplifies business processes and removes unnecessary activities. Information
systems add controls to employee processes, ensuring that only users with the applicable
rights can perform certain tasks. Further, information systems eliminate repetitive tasks
and increase accuracy, allowing employees to concentrate on more high-level functions.
Information systems can also lead to better project planning and implementation through
effective monitoring and comparison against established criteria.

5) What is the difference between structured methodologies and object oriented

development in modeling and designing system?

Structured Programming

Object Oriented Programming

Structured Programming is designed

Object Oriented Programming is

which focuses on process/ logical

designed which focuses on data.

structure and then data required for

that process.
Structured programming follows top-

Object oriented programming

down approach.

follows bottom-up approach.

Structured Programming is also

Object Oriented Programming

known as Modular

supports inheritance, encapsulation,

Programming and a subset

abstraction, polymorphism, etc.

of procedural programming
language.
In Structured Programming,

In Object Oriented Programming,

Programs are divided into small self

Programs are divided into small

contained functions.

entities called objects.

Structured Programming

Object Oriented Programming is

is less secure as there is no way

more secure as having data hiding

of data hiding.

feature.

Structured Programming can

Object Oriented Programming can

solve moderately complex

solve any complexprograms.

programs.
Structured Programming

Object Oriented Programming

provides less reusability, more

provides more reusability, less

function dependency.

function dependency.

Less abstraction and less flexibility.

More abstraction and

more flexibility.