Management Information System Questions

- MANAGEMENT INFORMATION SYSTEM Question 1(10 Marks) Discuss five (5) scraps of way Information constitution (MIS). Answers Introduction A Management Information System (MIS) provides selective information which is removeed to manage organizations effectively. Management information forms involve three first-string resources such(prenominal)(prenominal) as volume, technology and information or finding making. Management information outlines argon distinct from early(a) information constitutions in that they argon apply to analyze operation activities in the organization.Academically, the term is commonly functiond to refer to the group of information direction modes tied to the automation hurt of human decision making, e. g. decision support administrations, expert ashess and executive information arrangements. The Challenge of Management Information System (MIS) Although information technology is advancing at a rank pace, there is nothing easy or mechanical abo ut building and exploitation information systems. There argon five major challenges confronting managers 1. The information systems enthronement challengeIt is obvious that one of the greatest challenges facing managers today is ensuring that their companies do indeed obtain meaningful returns on the money they spend on information systems. Its one thing to use information technology to design, produce, deliver, and maintain crude harvest-homes. Its another thing to make money doing it. How tidy sum organizations obtain a sizable payoff from their investment in information systems? How puke management ensure that information systems contribute to corporate value?Senior management underside be expected to ask these questions How can we evaluate our information systems investments as we do other investments? Are we receiving the return on investment from our systems that we should? Do our competitors situate more? Far too many firms still cannot answer these questions. Their executives be likely to wipe out trouble determining how much they truely spend on technology or how to measure the returns on their technology investments. Most companies lack a clear-cut decision-making crop for eciding which technology investments to pursue and for managing those investments. 2. The strategic challenge What complementary assets ar infallible to use information technology effectively? Despite heavy information technology investments, many organizations are not realizing significant line of work value from their systems, because they lackor fail to appreciatethe complementary assets required to make their technology assets work. The power of computer hardware and software system has gr make much more rapidly than the ability of organizations to apply and use this technology.To benefit fully from information technology, realize genuine productivity, and become competitive and effective, many organizations actually need to be redesigned. They entrust hurt to make fundamental changes in meshee and management behavior, develop new work models, retire obsolete work rules, and eliminate the inefficiencies of change commerce processes and organizational structures. New technology alone impart not produce meaningful business benefits. 3. The world-wideization challengeHow can firms understand the requirements of a global economic environment? The rapid growth in international trade and the emergence of a global economy call for information systems that can support both producing and selling goods in many different countries. In the past, each regional office of a multinational corporation focused on resolving its own unique information problems. Given language, cultural, and political differences among countries, this focus frequently resulted in chaos and the failure of central management defends.To develop integrated, multinational, information systems, businesses moldiness(prenominal) develop global hardware, software, and commu nications standards create cross-cultural accounting and reporting structures and design transnational business processes. 4. The information technology infrastructure challenge How can organizations develop an information technology infrastructure that can support their goals when business conditions and technologies are changing so rapidly? Many companies are saddled with expensive and unwieldy information technology platforms that cannot adapt to innovation and change.Their information systems are so complex and brittle that they act as constraints on business schema and execution. Meeting new business and technology challenges whitethorn require redesigning the organization and building a new information technology (IT) infrastructure. Creating the IT infrastructure for a digital firm is an e specially formidable task. Most companies are crippled by fragmented and incompatible computer hardware, software, telecommunications mesh topologys, and information systems that prevent information from flowing freely between different parts of the organization.Although Internet standards are solving s constantlyal(prenominal) of these connectivity problems, creating selective information and computing platforms that span the enterpriseand, increasingly, link the enterprise to external business partnersis rarely as seam little as promised. Many organizations are still struggling to integrate their islands of information and technology. 5. Ethics and security challenge The responsibility and control challenge How can organizations ensure that their information systems are used in an ethically and socially responsible manner?How can we design information systems that people can control and understand? Although information systems have provided enormous benefits and efficiencies, they have similarly created new ethical and social problems and challenges. A major management challenge is to make informed decisions that are affectionate to the negative consequences o f information systems as well to the positive ones. Managers face an ongoing struggle to maintain security and control. Today, the terror of unauthorized penetration or disruption of information systems has never been greater.Information systems are so essential to business, government, and passing(a) manner that organizations must take special travel to ensure their security, accuracy, and reliability. A firm invites disaster if it uses systems that can be disrupted or accessed by outsiders, that do not work as intended, or that do not deliver information in a form that people can correctly use. Information systems must be designed so that they are secure, function as intended, and so that humans can control the process. QUESTION 2 (10 Marks)Explain with example (s) one (1) of the following Enterprise Applications a) ERP b) SCM c) CRM Answers a) ERP Introduction In 1990, Gartner radical first employed the acronym ERP as an extension of material requirements planning (MRP), late r manufacturing resource planning and computer-integrated manufacturing. Without supplanting these terms, ERP came to represent a biggishr whole, reflecting the evolution of lotion integration beyond manufacturing. Not all ERP packages were developed from a manufacturing core.Vendors variously began with accounting, guardianship and human resources. By the mid-1990s, ERP systems addressed all core functions of an enterprise. Beyond corporations, governments and non-profit organizations also began to employ ERP systems. Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) systems integrate internal and external management information across an entire organization, cover finance or accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application.Their purpose is to facilitate wherefore flow of information between all business functions inside the boundaries of the organ ization and manage the connections to outside stakeholders. ERP systems can run on a variety of computer hardware and ne devilrk varietys, typically employing a selective informationbase as a repository for information. Characteristics ERP systems typically include the following characteristics- * An integrated systems that operates in real m (or side by side(p) to real succession), without relying on periodic updates. * A common database, which supports all applications. * A consistent look and feel doneout each module. Installation of the system without elaborate application/data integration by the Information technology (IT) department. Examples * Finance/ Accounting General ledger, payables, cash management, fixed assets, receivables, budgeting and consolidation. * Human Resources payroll, training, benefits, 401K, recruiting and diversity management. * Manufacturing Engineering, bill of materials, work orders, scheduling, capacity, workflow management, tincture control , address management, manufacturing process, manufacturing projects, manufacturing flow, activity base following, product lifecycle management. Supply chain management Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, conduct processing, commissions. * Project management Costing, billing, time and expense, performance units, activity management. * Customer relationship management Sales and marketing, commissions, service, customer contact, call center support. * Data services motley selfservice interfaces for customers, suppliers and/or employees. * Access control Management of user privileges for various processes. Components- * Transactional database Management portal/dashboard * Business intelligence system * Customizable reporting * External access via technology such as web services * Search * Document management * Messaging/chat/wiki * Workflow management Connectivity to define F loor Information ERP systems connect to realtime data and transaction data in a variety of ways. These systems are typically configured by systems integrators, who bring unique knowledge on process, equipment, and vendor solutions. Direct integrationERP systems have connectivity (communications to plant floor equipment) as part of their product straiting.This requires the vendors to offer special(prenominal) support for the plant floor equipment that their customers operate. ERP vendors must be expert in their own products, and connectivity to other vendor products, including competitors. Database integrationERP systems connect to plant floor data sources through staging tables in a database. Plant floor systems deposit the infallible information into the database. The ERP system reads the information in the table. The benefit of staging is that ERP vendors do not need to master the complexities of equipment integration. Connectivity becomes the responsibility of the systems inte grator.Enterprise appliance transaction modules (EATM)These devices communicate directly with plant floor equipment and with the ERP system via methods supported by the ERP system. EATM can employ a staging table, Web Services, or systemspecific program interfaces (APIs). The benefit of an EATM is that it offers an offtheshelf solution. Customintegration solutionsMany system integrators offer custom solutions. These systems tend to have the highest level of initial integration cost, and can have a higher long term alimony and reliability costs. longsighted term costs can be minimized through careful system testing and thorough documentation.Customintegrated solutions typically run on workstation or server class computers. Implementation ERPs scope unremarkably implies significant changes to staff work processes and practices. Generally, three types of services are available to help appliance such changesconsulting, customization, and support. Implementation time depends on busin ess size, number of modules, customization, the scope of process changes, and the discretion of the customer to take ownership for the project. Modular ERP systems can be use in stages. The typical project for a large enterprise consumes about 14 months and requires around 150 consultants.Small projects can require months multinational and other large implementations can take years. Customization can substantially increase implementation times. Process preparation Implementing ERP typically requires changes in live business processes. Poor understanding of require process changes prior to starting implementation is a main reason for project failure. It is therefore crucial that organizations thoroughly analyze business processes before implementation. This psychoanalysis can identify opportunities for process modernization. It also enables an assessment of the alignment of reliable processes with those provided by the ERP system.Research indicates that the hazard of business process mismatch is decreased by * linking authentic processes to the organizations strategy * analyzing the effectiveness of each process * understanding existing automated solutions. ERP implementation is considerably more difficult (and politically charged) in decentralized organizations, because they ofttimes have different processes, business rules, data semantics, authorization hierarchies and decision centers. This may require migrating almost business units before others, delaying implementation to work through the necessary changes for each unit, possibly reducing integration (e. . linking via Master data management) or customizing the system to meet specific needs. A potential disadvantage is that adopting standard processes can lead to a loss of competitive advantage. While this has happened, losses in one area are often offset by gains in other areas, increasing overall competitive advantage. Configuration Configuring an ERP system is largely a matter of balancing the way the customer wants the system to work with the way it was designed to work. ERP systems typically build many changeable parameters that modify system operation.For example, an organization can select the type of inventory accountingFIFO or last in first outto employ, whether to recognize revenue by geographical unit, product line, or distribution channel and whether to pay for shipping costs when a customer returns a purchase. Customization ERP systems are theoretically based on industry best practices and are intended to be deployed as is. ERP vendors do offer customers configuration options that allow organizations to incorporate their own business rules but there are often functionality gaps remaining even after the configuration is get laid.ERP customers have several options to reconcile functionality gaps, each with their own pros/cons. practiced solutions include rewriting part of the delivered functionality, writing a homegrown bolt-on/add-on module deep down the ERP s ystem, or interfacing to an external system. All three of these options are vary degrees of system customization, with the first cosmos the most invasive and costly to maintain. Alternatively, there are non-technical options such as changing business practices and/or organizational policies to infract match the delivered ERP functionality.Key differences between customization and configuration include * Customization is always optional, whereas the software must always be configured before use (e. g. , setting up cost/profit center structures, organizational trees, purchase approval rules, etc. ) * The software was designed to handle various configurations, and behaves predictably in any allowed configuration. * The effect of configuration changes on system behavior and performance is predictable and is the responsibility of the ERP vendor. The effect of customization is less predictable, is the customers responsibility and increases testing activities. Configuration changes surv ive upgrades to new software versions. both(prenominal) customizations (e. g. code that uses predefined hooks that are called before/after displaying data screens) survive upgrades, though they require retesting. Other customizations (e. g. those involving changes to fundamental data structures) are overwritten during upgrades and must be re-implemented. Customization Advantages * Improves user espousal * Offers the potential to obtain competitive advantage vis-a-vis companies using only standard features. Customization Disadvantages * Increases time and resources required to both implement and maintain. Inhibits seamless communication between suppliers and customers who use the same ERP system un-customized. * Over reliance on customization undermines the principles of ERP as a standardizing software platform Extensions ERP systems can be extended with thirdparty software. ERP vendors typically provide access to data and functionality through published interfaces. Extensions offe r features such as- * archiving, reporting and republishing * capturing transactional data, e. g. using scanners, tills or RFID * access to specialized data/capabilities, such as syndicated marketing data and associated trend analytics. advanced planning and scheduling (APS) Data migration Data migration is the process of moving/copying and restructuring data from an existing system to the ERP system. Migration is critical to implementation success and requires significant planning. Unfortunately, since migration is one of the final activities before the production phase, it often receives skimpy attention. The following steps can structure migration planning * Identify the data to be migrated * Determine migration timing * Generate the data templates * Freeze the toolset Decide on migration- tie in setups * Define data archiving policies and procedures. Comparison to specialpurpose applications Advantages The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be do more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include * Sales forecasting, which allows inventory optimization * Chronological history of every(prenominal) transaction through relevant data compilation in every area of operation. Order tracking, from acceptance through fulfillment * Revenue tracking, from invoice through cash receipt * Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced) ERP systems centralize business data, bringing the following benefits * They eliminate the need to contemporise changes between multiple systemsconsolidation of finance, marketing and sales, human resource, and manufacturing applications * They bring legitimacy and transparency in each bit of statistical data. They enable standard product naming/coding. * They provide a comprehensive ent erprise view (no islands of information). They make realtime information available to management anywhere, any time to make proper decisions. * They protect sensitive data by consolidating multiple security systems into a single structure. Disadvantages * Customization is problematic. * Reengineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities * ERP can cost more than less integrated and or less comprehensive solutions. High switching costs associated with ERP can increase the ERP vendors negotiating power which can result in higher support, maintenance, and upgrade expenses. * Overcoming resistance to sharing sensitive information between departments can divert management attention. * Integration of truly independent businesses can create unnecessary dependencies. * Extensive training requirements take resources from daily operations. Due to ERPs architecture (OLTP, On-Line Transaction Processing) ERP system s are not well suited for production planning and supply chain management (SCM) The limitations of ERP have been accepted sparking new trends in ERP application maturation, the four significant developments being made in ERP are, creating a more flexible ERP, Web-Enable ERP, Enterprise ERP and e-Business Suites, each of which will potentially address the failings of the current ERP. QUESTION 3 (18 Marks) Describe with example all stages of System Development Lifecycle.Answers Introduction The Systems development life cycle (SDLC), or parcel development process in systems engineering, information systems and software engineering, is a process of creating or altering information systems, and the models and methodologies that people use to develop these systems. In software engineering the SDLC concept underpins many kinds of software development methodologies. These methodologies form the framework for planning and controlling the creation of an information system the software deve lopment process.Software development contains set of activities which when performed in coordination and in accordance with one another result in the desired result. Software development methodologies are used for the computer based information systems. The growth of the informations has to pass through various phases or stages these stages are known as System Development Life cps (SDLC). The SDLC follows a well defined process by which the system is conceived, developed and implemented. To understand system development, we need to recognize that a campaigner system has a life cycle, much like a living system or a new product.Systems analysis and design are based to the system life cycle. The stages are described below. The analyst must progress from one stage to another methodically, answering key questions and achieving results in each stage. Figure 1 System Development Life Cycle (SDLC) Stages Step 1 Recognition of Need What is the Problem? One must know what the problem is be fore it can be exploitd. The basis for a candidate system is recognition of a need for improving an information system or a procedure. For example, a supervisor may want to investigate the system flow in purchasing.Or a bank president has been getting complaints about the long lines in the drive in. This need leads to a preliminary survey or an initial investigation to determine whether an alternative system can solve the problem. It entails looking into the duplication of effort bottlenecks, inefficient existing procedures, or whether parts of the existing system would be candidates for computerization. If the problem is serious enough, management may want to have an analyst look at it, such an assignment implies a commitment, especially if the analyst hired from the utside. In larger environments, where formal procedures are the norm, the analysts first task is to prepare a statement specifying the scope and objective of the problem. He/she then reviews it with the user for accu racy at this stage, only a rough ball parle estimate of the development cost of the project may be reached. However, an accurate cost of the next phase the feasibility study can be produced. Step 2 Feasibility demand Depending on the results of the initial investigation, the survey is expanded to a more diminutive feasibility study.As we shall learn, a feasibility study is a test of a system proposition according to its workability usurpation on the organization, ability to meet user needs, and effective use of resources. It focuses on their major questions * What are the users positive needs and how does a candidate system meet them? * What resources are available for given candidate systems? Is the problem worth solving? * What are the likely impact of the candidate system on the organization? How will it fit within the organizations master MIS plan?Each of these questions must be answered carefully. They circulate around investigation and evaluation of the problem, ident ification and description of candidate systems, specification of performance and the cost of each system, and final selection of the best system. The objective of a feasibility study is not to solve the problem but to acquire a mavin of its scope. During the study, the problem definition is crystallized and aspects of the problem to be include in the system are determined. Consequently, costs and benefits are estimated with greater accuracy at this stage.The result of the feasibility study is a formal proposal. This is simply a report a formal document detailing the nature and scope of the proposed solution. The proposal summarizes what is known and what is going to be done. It consists of the following. 1. Statement of the Problem a carefully worded statement of the problem that led to analysis. 2. Summary of Findings and Recommendations a list of the major findings and recommendations of the study. It is ideal for the user who required quick access to the results of the analys is of the system under study.Conclusions are stated, followed by a list of the recommendations and a justification for them. 3. Details of Findings An outline of the methods and procedures undertaken by the existing system, followed by coverage of objectives procedures of the candidate system. Included are also discussions of output reports, file structures, and costs and benefits of the candidate system. 4. Recommendations and Conclusions special recommendations regarding the candidate system, including the personal assignments costs, project schedules, and target dates.Three key considerations are involved in the feasibility analysis economic, technical, behavioral. Lets briefly review each consideration and how it relates to the systems effort. * Economic Feasibility Economic analysis is the most frequently used method for evaluating the effectiveness of a candidate system. More commonly known as cost/benefit analysis, the procedure is to determine the benefits and savings tha t are expected from a candidate system and compare them with costs. If benefits outweigh costs, then the decision is made to design and implement the system.Otherwise, further justification or alterations in the proposed system will have to be made if it is to have a chance of being approved. This is an ongoing effort that improves in accuracy at each phase of the system life cycle. * Technical Feasibility Technical feasibility centers around the existing computer system (hardware, software etc. ) and to what extent it can support the proposed addition. For example, if the current computer is operating at 80 per cent capacity an arbitrary ceiling then track another application could overload the system or require additional hardware.This involves financial considerations to accommodate technical enhancements. If the budget is a serious constraint, then the project is judged not feasible. * Behavioral Feasibility People are inherently resistant to change, and computers have been k nown to facilitate change. An estimate should be made of how strong a reaction the user staff is likely to have towards the development of a computerized system. It is common knowledge that computer installations have something to do with turnover, transfers, retraining, and changes in employee job status.Therefore, it is understandable that the introduction of a candidate system requires special effort to educate, sell, and train the staff on new ways of conducting business. After the proposal is viewed by management it becomes a formal agreement that paves the way for actual design and implementation. This is a crucial decision point in the life cycle. Many projects die here, whereas the more promising ones continue through implementation. Changes in the proposal are made in writing, depending on the complexity, size, and cost of the project. It is simply common sense to verify changes before committing the project to design.Step 3 Analysis It is a detailed study of the various op erations performed by the system and their relationship within and outside of the system. A key question is what must be done to solve the problem? One aspect of analysis is defining the boundaries of the system and determining whether or not a candidate system should consider other related systems. During analysis, data are collected on available files, decision points, and transactions handled by the present system. We shall learn about some logical system models and tools that are used in analysis.It requires special skills and sensitivity to the subjects being interviewed. Bias in data collection and interpretation can be problem. Training, experience and common sense are required for collection of the information needed to do the analysis. Once analysis is completed the analyst has a firm understanding of what is to be done. The next step is to decide how the problem might be solved. Thus, in the systems design, we move from the logical to the physical aspects of the life cycl e. Step 4 Design The most original and challenging phase of the system life cycle is system design.The term design describes both a final system and a process by which it is developed. It refers to the technical specifications (analogous to the engineers blueprints) that will be applied in implementing the candidate system. It also includes the constructions of programs and programme testing. The key question here is How should the problem be solved?. The first step is to determine how the output is to be produced and in what format. Samples of the output (and input) are also available. Second, input data and master files (data base) have to be designed to meet the requirements of the proposed output.The operational (processing) phase are handled through programme construction and testing, including a list of the programmes needed to meet the systems objectives and complete documentation. Finally, details related to justification of the system and an estimate of the impact of the candidate system on the user and the organization are documented and evaluated by management as a step toward implementation. The final report prior to the implementation phase includes procedural flowcharts, record layouts, report layouts, and a workable plan for implementing the candidate system.Information on personnel, money, hardware, facilities and their estimated cost must also be available. At this point, projected costs must be close to actual costs of implementation. In some firms, separate groups of programmer do the scheduling whereas other firms employ analyst programmers who do analysis and design as well as code programs. For this discussion, we deport that analysis and programming is carried out by two separate persons. There are certain functions, though, that the analyst must perform while programs are being written operating procedures and documentation must be completed.Security and auditing procedures must also be developed. Step 5 Testing No system design is e ver perfect. Communication problems, programmers negligence or time constraints create errors that most be eliminated before the system is ready for user acceptance testing. A system is well-tried for online response, volume of transactions, stress, recovery form failure and usability. Then comes system testing, which verifies that the whole set of programs hangs together, following system testing is acceptance testing or running the system with live data by the actual use.System testing requires a test plan that consists of several key activities and steps for programs, string, system and user acceptance testing. The system performance criteria deal with turnaround time, backup, file protection, and the human factor. Step 6 Implementation This phase is less creative than system design. It is primarily relate with user training, site preparation, and file conversion. When the candidate system is linked to terminals and remote sites the telecommunication network and tests of the ne twork along with the system are also include under implementation.During the final testing, user acceptance is tested, followed by user training. Depending on the nature of the system, extensive user training may be required, conversion usually takes place at about the same time the user is being trained or later. In the extreme, the programmer is falsely viewed as someone who ought to be isolated from other aspects of system development. Programming is itself design work, however. The initial parameter of the candidate system should be modified as a result of programming efforts. Programming provides a reality test for the assumptions made by the analyst.It is therefore a mistake to exclude programmers from the initial system design. System testing checks the readiness and accuracy of the system to access, update and retrieve data from new files. Once the programmes become available, test data are read into the computer and processed against the file(s) provided for testing. If suc cessful, the program(s) is then run with live data. Otherwise, a diagnostic procedure is used to local and correct errors in the program. In most programs, a parallel run is conducted where the new system runs simultaneously with the old systems.This method, though costly, provides added assurance against errors in the candidate system and also gives the user-staff an opportunity to gain experience through operation. In some cases, however, parallel processing is not practical. For example, it is not plausible to run two parallel online point-to-sale (POS) systems for a retail chain. In any case, after the candidate system proves itself, the old system is phased out. Step 7 Evaluation During systems testing, the system is used experimentally to ensure that the software does not fail.In other words, we can say that it will run according to its specifications and in the way users expect. Special test data are input for processing, and the results examined. A limited number of users ma y be allowed to use the system so that analyst can see whether to use it in unforeseen ways. It is desirable to discover any surprises before the organization implements the system and depends on it. Implementation is the process of having systems personnel check out and put new equipment into use, train users, install the new application and construct any files of data needed to use it.This phase is less creative than system design. Depending on the size of the government that will be involved in using the application and the risk involved in its use, systems developers may choose to test the operation in only one area of the Firm with only one or two persons. Sometimes, they will run both old and new system in parallel way to compare the results. In still other situations, system developers stop consonant using the old system one day and start using the new one the next.Evaluation of the system is performed to identify its strengths and weaknesses. The actual evaluation can tak e place along any one of the following dimensions * Operational Evaluation Assessment of the manner in which the system functions, impact. * Organizational Impact Identification and measurement of benefits to the organisation in such areas as financial concerns, operational efficiency and competitive impact. * User Manager Assessment Evaluation of the attitudes of senior and user manager within the organization, as well as end-users. Development Performance Evaluation of the development process in accordance with such yardsticks as overall development time and effort, conformance to budgets and standards and other project management criteria. Step 8 Post Implementation and Maintenance Maintenance is necessary to eliminate errors in the working system during its working life and to tune the system to any variations in its working environment. Often small system deficiencies are found as a system is brought into operation and changes are made to remove them. System planners must alwa ys plan for resource availability to carry out these maintenance functions.The importance of maintenance is to continue to bring the new system to standards. After the installation phase is completed and the user staff is adjusted to changes created by the candidate system, evaluation and maintenance being. Like any system there is an ageing process the requires periodic maintenance of hardware software. If the new information is inconsistent with the design specifications, then changes have to be made. Hardware also requires periodic maintenance to keep in time with design specification. 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