Information Systems for Managers (ISM)

End term examination for MBA 2016 batch

Maximum Marks: 100

Time: 3 Hours

Answer:
1 (a) What is an information system? Discuss the different types of information systems for different
levels of management.

(2+8=10)
th

Ans) Schultheis book: 4 edition. Chapter 1.Pg (9-14)

An information system is a combination of hardware, software, infrastructure and trained personnel
organized to facilitate planning, control, coordination and decision making in an organization.
Information systems can be classified according (a) the different levels of management (viz.lower
level, middle level and upper level) (b) activities of the organization spread across time horizon (short
term-to long term) pertinent to each of these levels.
The activities are normally referred to as: (a) Operational activities (corresponding to lower level) (b)
Tactical activities (corresponding to middle level) (c) Strategic activities (corresponding to upper
level).
Now the information systems can be classified as (these can be further elaborated):
(a) Operational systems (for lower level managers)
(b) Tactical Systems (for middle level managers)
(c) Strategic Planning systems (for top level managers).
1.(b) Define BPR? List out and explain the five principles involved in the process of reengineering
work. (3+7=10)
Schultheis book: 4th edition. Chapter 4.Pg (94-95)
Ans: BPR is the acronym for Business process reengineering. It is the philosophy through which
companies radically restructure their organizations by focusing on the ground-up design of their
business processes. (Something similar to this should be ok, any valid definition making sense)

The process of re-engineering is based on key principles: (these points to be elaborated)

Organize around outcomes, not around tasks.
Have those who use the output of a process actually perform the process
Treat geographically dispersed units as if they were centralized
Link parallel activities during the process, rather than at the end of the process.
Capture information once at the source.

2) See the below Excel screenshot and answer the following questions.

a. Give the single function to be used in the cell F3 to get total amount received from selling all
the items.
Answer: SUMPRODUCT
b. To get the number of different items that are sold, which single function is more appropriate?
Answer: COUNTA
c. Explain the MS Excel process of finding the item that has generated the highest sales.
Answer: Either IF or VLOOKUP with MAX. (Explain is required)
d. Without changing the quantity of Sprite, which MS Excel function is useful to check the
extent to which its unit price can be changed to get a total amount of 350? Explain.
(1+1+2+2=6)
Answer: Goal seek. (Brief explanationis required).

3. (a) Describe how BI Tools (e.g. MS Excel) provides decision support for different levels of
management. Substantiate your stand by mentioning different available features /functions of MS
Excel. (8)
Ans:
Functions used for automation Operational level
Use of What-if Analysis tools Tactical level
Charts, Pivot tables Strategic level
Brief explanation of each tool is required.
3. (b) Describe Knowledge management Value chain with a neat diagram.

(6)

Ans:

4) (a) Define DBMS. Describe how this solves problems of a traditional file environment. (1+4)
Ans:Schultheis book: 4th edition. Chapter 6.Pg (215-219)
A database management system (DBMS) is special software that permits an organization to
centralize data, manage them efficiently, and provide access to the stored data by application
programs.
Problems with the traditional file environment include data redundancy and confusion, program-data
dependence, lack of flexibility, poor security, and lack of data sharing and availability. Data

redundancy is the presence of duplicate data in multiple data files. In this situation, confusion results
because the data can have different meanings in different files. Program-data dependence is the tight
relationship between data stored in files and the specific programs required to update and maintain
those files. This dependency is very inefficient, resulting in the need to make changes in many
programs when a common piece of data, such as the zip code size, changes. Lack of flexibility refers
to the fact that it is very difficult to create new reports from data when needed. Ad-hoc reports are
impossible to generate; a new report could require several weeks of work by more than one
programmer and the creation of intermediate files to combine data from disparate files. Poor security
results from the lack of control over data. Data sharing is virtually impossible because it is distributed
in so many different files around the organization.

How a DBMS solve the problem:

DBMS reduces data redundancy (may not be eliminated entirely, but control it) and inconsistence
by minimizing isolated files in which the same data are repeated.

DBMS uncouples program and data, enabling data to stand on their own.

Aces sans availability of information will be increased and program development and
maintenance costs reduced because users can perform ad-hoc queries of data in the database.

DBMS enables the organization to centrally manage data, their use, and security.

Answer (b) to (c) based on MS Access screenshot shown below.

4. (b) How can you display the name of Customer who is not an Indian citizen but holding Current
account? (3)
Ans:
1. Establish connection between CUSTOMER table and ACCOUNT table by linkingCustomerID in
CUSTOMER Table with CustomerID in ACCOUNT Table.
2. SelectCustomerName andIndianCitizen (criteria = No) from Customer Table, Type of Account
(criteria=Current account) from Account Table.
3. Run the query. (all the three steps should be given)
Or

SELECT CustomerName FROM CUSTOMER, ACCOUNT

WHERE CUSTOMER.CustomerID=ACCOUNT.CustomerID AND IndianCitizen= No AND [Type
of Account] =Current Account;
Or
1. Establish

connection

between

CUSTOMER

table

and

ACCOUNT

table

by

linkingCustomerID in CUSTOMER Table with CustomerID in ACCOUNT Table.

2.
Field CustomerName

IndianCitizen

Type of Account

Table CUSTOMER

CUSTOMER

ACCOUNT

Show Yes

No

No

No

Current Account

Criteria

3. Run the query.(all the three steps should be given).

4. (c) Describe different view options for MS Access Query menu. (2)
Ans:
Datasheet view
Design View
SQL View
Pivot Table view
Pivot chart view
One line explanation of each is required.

4. (d) List and explain briefly the core activities of building an information system (10)
Ans:
The core activities of building an information system are
a. System analysis
b. System design
c. Programming
d. Testing
e. Conversion
f. Production and maintenance
System analysis:
It consists of identifying and defining a problem, identifying the root
causes of the problem, analyzing and specifying a solution out of possible alternatives and
identifying the information requirements to implement the system solution. Feasibility study
of the solution with respect to financial, technical and organizational aspects also falls under
system analysis. A report on comparative study among possible alternative solutions is
desirable. Management can take the final decision taking into various aspects and discussing
the pros and cons of each solution considered. Very critical point in this phase is to identify
and consolidate on information requirements. Careful and detailed study of and recording the
requirements will help in developing a cost effective solution. Interaction with end user will
facilitate this process to a great extent.
System Design:This is the process of stream lining the information requirements and
integrating managerial, organizational and technical components required for the solution.
There is no unique design for a solution. The efficiency of the design depend on ease of

implementation, cost of implementation, complexity of implementation and other associated

support required for implementation( like training etc.). In this phase also the end user inputs
are very vital. The extent of inputs required or end user involvement depends on the problem
as such. Its not uncommon to prefer prototyping in cases where frequent changes are
envisaged from customer or end user.
Programming:During this stage the system requirements and specifications that were
designed are translated into program code. It could be internal development or outsourcing.
Each has its own merits and demerits.
Testing:It is very important phase to confirm if all system requirements captured are fulfilled
or not. It can be done in stages or can be done in parts. The program needs to be tested for
non-obvious conditions also. Generally the number of iterations required to clear the program
after successful testing indicates the proficiency of system analysts, designers and
programmers. If testing is done in parts, then it is mandatory to do integration test or System
testing. Till this stage it is considered internal and finally when it is offered for end user for
testing it is called Acceptance Testing or UAT(user acceptance testing). It is logical to
expect some extent of rework/repair work at each stage.
Conversion:This is the process of replacing the old system with new system(if replacement
or upgradation of existing system is planned). There are different strategies used in the like
parallel operation, direct cut over, pilot study or phased approach strategy.
Production and Maintenance:In this phase the system is monitored and reviewed for its
performance against planned requirements. It is done by both users and developers. It is
possible to do some modifications and changes as required based on feedback on these
observations. Maintenance is also a continuous process and needs support from maintenance
engineers who are trained and familiar with the system implemented.
5) (a) How enterprise systems help management decision making process? (6)
Ans:

Enterprise Systems collects data from many divisions of the firm and integrates organization-wide
spread data seamlessly to provide an input for the decision making process. Data are collected and
integrated from nearly all of firms internal business activities.

Enterprise Systems handles cross functional issues addressed by the decision making process.
Information entered in one process is immediately available for other processes.

Enterprise systems helps to execute high-volume decisions across the enterprise .

Enterprise Systems enable rapid responses to customer and supplier requests for information or
products.

Enable organizations to impart precision, consistency, and agility in the decision-making

processes.

When enterprise systems are implemented using enterprise software such as SAP, standard builtin processes that reflect best practices were enabled. Implemented world class practices and
processes enable the efficiency of the decision making process easier.

Enterprise systems facilitate to implement analytical tools to evaluate overall.

Organizational performance and hence the management decision making process.

5.(b) Supply chain management systems help businesses better manage relationships with their
suppliers: Explain. (5)
Ans:

SCM expands the scope of interaction with key suppliers beyond traditional buy-sell transactions.
Helps to manage the upstream portion of the supply chain which includes companys suppliers
and the suppliers suppliers.

Facilitate to encompass joint activities which are predicated on a shift in perspective and a change
in how relationships are managed. These activities may include Joint research and development,
systematic and often expanded information sharing.

While Supply chain management systems helps in modelling supply chain components essential
to interface the suppliers, information gathered from key supply partners help organization to
translate the same into product and service offerings for end customers.

Supply Chain Management Systems helps to identify supplier segmentation. It helps in

determining what kind of interactions organizations have to establish with various suppliers, and
how best to manage those interactions in a coordinated manner across the enterprise.

Systematic collaboration helps Joint demand forecasting and process re-engineering

5.(c) Discuss major security threats to e-commerce website and the potential impact while allowing
credit cards payments. What can be done to minimize these threats? (10)
Ans:
Major Security Threats: (elaborate the following threats)
1. Internet Vulnerabilities
2. Wireless Security Challenges
3. Malicious Software: Viruses, Worms, Trojan Horses, and Spyware
4. Hackers and Computer Crime
5. Spoofing and Sniffing
6. Denial of Service Attacks
Minimizing the threats: (Briefly explain the following)
1. Establish a framework for security & control
2. Using Technologies & Tools for protecting the information resources.

6) (a) Discuss about different Business Models of E-Commerce with Examples (7)
Answer:
E-Commerce business models are e-tailers, transaction brokers, market creators, content providers,
community providers, service providers and portals.Brief explanation of each model is required.
6. (b) Explain the Time-Space collaboration tool matrix with illustration (7)
Ans:

TheTime/SpaceCollaborationToolMatrix

6. (c) Distinguish between the three cloud computing platforms: SaaS, IaaS and PaaS. (6)
Ans: Three cloud computing platforms are:
(i) Software-as-a-Service (SaaS)
(ii) Platform-as-a-Service (PaaS)
(iii) Infrastructure-as-a-Service (IaaS)
Brief explanation of eachand how they are different from each other should be given.

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