MS – 07 Information Systems for Managers

ASSIGNMENT

Course Code :	MS - 07
Course Title :	Information Systems for Managers
Assignment Code :	MS-07/TMA/SEM - II/2014
Coverage :	All Blocks

Note: Attempt all the questions and submit this assignment on or before 31st October, 2014 to the coordinator of your study centre.

1. Is Information Technology as vital to modern, global business as money? Why or why not? Discuss some trends in IT development.

Answer : In the world of globalization, Information system is such where data are collected, classified and put into process interpreting the result thereon in order to provide an integrated series of information for further communicating and analyzing. In a progressively more spirited worldwide atmosphere, Information System plays the role as ‘enabler and facilitator’, which endows with tactical values to the officialdom and considerable step up to the excellence of administration. ‘An Information System is a particular type of work system that uses information technology to detain, put on the air, store, retrieve, manipulate or display information, thereby partisan one or more other work structure’. In totting up to taking sides assessment making, co-ordination and control, information systemsmay also help managers and workers investigate problems, envisage complex subjects and generate new merchandise or services. Information technology has become the backbone of fortune 500 companies and many a great wonders in medicine. The capabilities of information systems required depend on the type of business. I am specifying information systems capabilities for Professional Services.

Information technology has served as a big change agent in different aspect of business and society. It has proven game changer in resolving economic and social issues.

Advancement and application of information technology are ever changing. Some of the trends in the information technology are as follows:

Cloud Computing

One of the most talked about concept in information technology is the cloud computing. Clouding computing is defined as utilization of computing services, i.e. software as well as hardware as a service over a network. Typically, this network is the internet.

Cloud computing offers 3 types of broad services mainly Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

Some of the benefit of cloud computing is as follows:

·         Cloud computing reduces IT infrastructure cost of the company.

·         Cloud computing promotes the concept of virtualization, which enables server and storage device to be utilized across organization.

·         Cloud computing makes maintenance of software and hardware easier as installation is not required on each end user’s computer.

·         Some issues concerning cloud computing are privacy, compliance, security, legal, abuse, IT governance, etc.

Mobile Application

Another emerging trend within information technology is mobile applications (software application on Smart phone, tablet, etc.)

Mobile application or mobile app has become a success since its introduction. They are designed to run on Smartphone, tablets and other mobile devices. They are available as a download from various mobile operating systems like Apple, Blackberry, Nokia, etc. Some of the mobile app are available free where as some involve download cost. The revenue collected is shared between app distributor and app developer.

User Interfaces

User interface has undergone a revolution since introduction of touch screen. The touch screen capability has revolutionized way end users interact with application. Touch screen enables the user to directly interact with what is displayed and also removes any intermediate hand-held device like the mouse.

Touch screen capability is utilized in smart phones, tablet, information kiosks and other information appliances.

Analytics

The field of analytics has grown many folds in recent years. Analytics is a process which helps in discovering the informational patterns with data. The field of analytics is a combination of statistics, computer programming and operations research.

The field of analytics has shown growth in the field of data analytics, predictive analytics and social analytics.

Data analytics is tool used to support decision-making process. It converts raw data into meaningful information.

Predictive analytics is tool used to predict future events based on current and historical information.

Social media analytics is tool used by companies to understand and accommodate customer needs.

The every changing field of information technology has seen great advancement and changes in the last decade. And from the emerging trend, it can be concluded that its influence on business is ever growing, and it will help companies to serve customers better.

2. “MIS has become very important in modern organizations.” Explain this giving suitable examples.

Answer : A management information system (MIS) is an organized combination of people, hardware, communication networks and data sources that collects, transforms and distributes information in an organization. An MIS helps decision making by providing timely, relevant and accurate information to managers. The physical components of an MIS include hardware, software, database, personnel and procedures.

Management Information System in Restaurant

1. Management information is an important input for efficient performance of various managerial functions at different organization levels. The information system facilitates decision making. Management functions include planning, controlling and decision making. Decision making is the core of management and aims at selecting the best alternative to achieve an objective. The decisions may be strategic, tactical or technical. Strategic decisions are characterized by uncertainty. They are future oriented and relate directly to planning activity. Tactical decisions cover both planning and controlling. Technical decisions pertain to implementation of specific tasks through appropriate technology. Sales region analysis, cost analysis, annual budgeting, and relocation analysis are examples of decision-support systems and management information systems.

There are  three areas in the organization. They are strategic, managerial and operational control.

(a) Strategic decisions are characterized by uncertainty. The decisions to be made in the area of strategic planning are future oriented and relate directly to planning activity. Here basically planning for future that is budgets, target markets, policies, objectives etc. is done. This is basically a top level where up-to-the minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales is provided. The top level where strategic planning is done compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. Executive support systems function at the strategic level, support unstructured decision making, and use advanced graphics and communications. Examples of executive support systems include sales trend forecasting, operating plan development, budget forecasting, profit planning, and manpower planning.

(b) The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers. It is basically a middle level where planning of menus is done and whenever an order is voided, the reasons for the void are keyed in which later helps in management decisions, especially if the voids are related to food or service. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction.

(c) The decisions to be made in the area of operational control pertain to implementation of specific tasks through appropriate technology. This is basically a lower level where the waiter takes the order and enters it online via one of the six terminals located in the restaurant dining room and the order is routed to a printer in the appropriate preparation area. The item’s ordered list and the respective prices are automatically generated. The cooks send ‘out of stock’ message when the kitchen runs out of a food item, which is basically displayed on the dining room terminals when waiter tries to order that item. This basically gives the waiters faster feedback, enabling them to give better service to the customers. Transaction processing systems function at the operational level of the organization. Examples of transaction processing systems include order tracking, order processing, machine control, plant scheduling, compensation, and securities trading.

The information required to make such decision must be such that it highlights the trouble spots and shows the interconnections with the other functions. It must summarize all information relating to the span of control of the manager. The information required to make these decisions can be strategic, tactical or operational information.

Advantages of an online computer system:

·         Eliminates carbon copies

·         Waiters’ handwriting issues

·         Out-of-stock message

·         Faster feedback, helps waiters to service the customers

·         Advantages to management:

·         Sales figures and percentages item-wise

·         Helps in planning the menu

·         Cost accounting details

2. If the management provides sufficient incentive for efficiency and results to their customers, it would make the system a more complete MIS and so the MIS should support this culture by providing such information which will aid the promotion of efficiency in the management services and operational system. It is also necessary to study the keys to successful Executive Information System (EIS) development and operation. Decision support systems would also make the system a complete MIS as it constitutes a class of computer-based information systems including knowledge-based systems that support decision-making activities. DSSs serve the management level of the organization and help to take decisions, which may be rapidly changing and not easily specified in advance.

Improving personal efficiency, expediting problem solving (speed up the progress of problems solving in an organization), facilitating interpersonal communication, promoting learning and training, increasing organizational control, generating new evidence in support of a decision, creating a competitive advantage over competition, encouraging exploration and discovery on the part of the decision maker, revealing new approaches to thinking about the problem space and helping automate the managerial processes would make the system a complete MIS rather than just doing transaction processing.

3.  The management system should be an open system and MIS should be so designed that it highlights the critical business, operational, technological and environmental changes to the concerned level in the management, so that the action can be taken to correct the situation. To make the system a success, knowledge will have to be formalized so that machines worldwide have a shared and common understanding of the information provided. The systems developed will have to be able to handle enormous amounts of information very fast.

An organization operates in an ever-increasing competitive, global environment. Operating in a global environment requires an organization to focus on the efficient execution of its processes, customer service, and speed to market. To accomplish these goals, the organization must exchange valuable information across different functions, levels, and business units. By making the system more formal, the organization can more efficiently exchange information among its functional areas, business units, suppliers, and customers.

As the transactions are taking place every day, the system stores all the data which can be used later on when the restaurant is in need of some financial help from financial institutes or banks. As the inventory is always entered into the system, any frauds can be easily taken care of and if anything goes missing then it can be detected through the system.

3. Describe how IT facilitates recruiting, training and personnel development and labour planning.

Answer : Given the unlimited uses of Information Technology (IT), it is used in almost every department in an organization. When it comes to human resource, IT helps in the all process from recruiting to retire functions and it has greatly changed the way managers and employees gain access to human resource data.

Few uses of IT on human resource management

Recruitment:

Computers applications range from recruiting on the internet to automatically scanning and storing applicants’ resumes. A growing number of firms as well as many universities and federal government are already recruiting using the internet, World Wide Web and commercial on-line services like CompuServe.

Employers are using IT as an aid in recruiting in various other ways, too. For example, NEC Electronics, Inc., has internet based “Cyber Fairs” to recruit for applicants. The date and the time of the fair, along with detailed job descriptions, are advertised in advance by the employers and by the firms organizing the Cyber Fairs.

Many people have been recruited through social networks like facebook. A business simply posts a job position on its facebook page and its fans will apply, if any of them qualifies for the position they will get that job. This process has also made human resource management more social than ever.

Training and personnel development:

In order to develop the knowledge and skill, computer-based training is given to the employees. Computers are also used in different training programs to cope the rapid change in the business environment. Computers are also used to provide practice to help trainees learn materials such as grammar and basic mathematics. It is also used to develop the problem-solving skills.

Technology will allow the team to access required documents on every specific position via a decentralized computer ”Database” and they will read through to understand every aspect. If illustrations are required, the human resource manager can use a visual. illustration to explain some points in details. This saves time and makes the process easier.

Labour planning:

 Information systems keep track of critical employee data such as demographic information, job titles and Equal Employment Opportunity Commission (EEOC) identification codes. Storing this information in an electronic database allows you to analyze it more easily when working on recruitment strategies, progression planning and affirmative action programs. HR reps can quickly run reports to determine items such as how many employees were hired last year, average length of tenure and a breakdown of the employee population by specified EEOC criteria such as gender and race.

4. Distinguish between information and knowledge. Develop an information system for human resource department.

Answer : Information system for human resource department.

In most organizations, information flows at the heart of workplace activities. The effective management of information requires information technology, and that technology is therefore crucial to organizational success .

Companies are different in terms of their information needs, their existing technology and their commitment to technology. They are also different in terms of their ability to afford technology, the value they place on HR information, the size and culture of the organization, and the human resources available to devote to a technology upgrade.

Typically, organizations follow a process to select an IS for HRD , as shown in Figure 3.7  The process can be divided into three steps: (1) adoption phase, (2) implementation phase, and (3) institutionalization phase.

Adoption Phase

1. Needs analysis: It helps the organization decide on what the system should be capable of doing and what the technical specifications will be, and helps the organization develop an information policy

about how the information should be managed with respect to storage and access.

Needs analysis  do at macro level as well as at the micro level.

(A)  Human resource information macro Level

        The Data base required for purpose of making forecasts of manpower at the macro level is indicated in the table mentioned below

DATABASE  FOR DEMAND FORECASTING	DATABASE  FOR SUPPLY FORECASTING
a.       Population statistics b.      Economic Parameters c.       Existing Technologies d.      Emerging Technologies	a.       Age at entry age at exit. b.      Annual enrolment and outrun c.       Attrition rate d.      Retirement. e.      Migration f.        Mortality

(B) HUMAN RESOURCE INFORMATION AT MICRO LEVEL

With regard to data needs at the micro level for a well-defined and detailed manpower information system within the organization, the data modules and the particulars of information that each such module should carry are noted below:

Data Module

What it should contain

Personal Data Module Recruitment Module Job experiences Module Personal appraisal Module Training and Development Module

Identification Particulars Educational particulars Technical qualification , if any Special skills, if any Experiences Date of recruitment Grading in aptitude Over all grading Job preferences and choices Placement history Grade promotions Tasks performed grade wise Performance appraisal at each job held Communication rating Behavioural rating Commitment to corporate goals Nature of training  received Individual ‘s  Evaluation of effectiveness of training Current training assignments; if any Future training requirement , if any

2. Company Background: The industry, the size of the company, and the projected growth are important elements to consider.

3. Management Considerations: Typically, management would have some preconceived views regarding the type of software and what they will require the system to do.

4. Technical Considerations Such elements as hardware, operating systems, networking, databases, and telecommunications all need to be considered.

5. HR Considerations: The requirements of the HR function itself need to be assessed. What type of

daily requests and which employee transactions would make the most sense to automate?

6. Pricing: Organizations want to have the best possible system but might not be able to

afford all the “bells and whistles.”

Implementation Phase

1. The company selects a project team. This team typically comprises outside consultants who have the knowledge and expertise on the technical side and also expertise in change management to help the organization with the implementation.

2.The existing data are “converted” into the new system, requiring the transformation of data from the old system to make them compatible with the new system

3. The activities involved in this phase focus on getting the system “up and running”

 within a controlled environment so that the system can be tested to ensure it is functioning as the organization requires.

4. The software is tested and users are expected to provide feedback before the system goes “live.”

5. Major privacy concerns focus on what type of information can be stored on the system. For example, should personal medical histories be stored, who should have access to the computer hardware and software, and who should have access to the databases and be authorized to modify them?

Institutionalization Phase

The final step in implementing an IS is to train the users on the system. The organization’s goal is for the stakeholders to use the system and reap the benefits identified through the needs analysis

5. Write short notes on following:

(i) Programmed decisions

Answer : A routine or repetitive decision that can be handled by established business rules or procedures. These types of decisions are often called for at certain points in a standard process, and are decided based on recognized and easily identifiable factors. Programmed decisions typically do not require much consideration or discussion, and can generally be automated to ensure consistency and save time for decision-makers.

Information technology is providing mangers with a wealth of decision making support including expert systems, neural networks, groupware, and specific problem solving software. Expert systems use software programs to encode the relevant experience of an expert and allow a system to at like that expert in analyzing and solving ill-structured problem. The essence of expert systems is that

 (1) they use specialized knowledge about a particular problem area rather than general knowledge that would apply to all problems

(2) they use qualitative reasoning rather than numerical calculations and

(3) they perform at the level of competence that is higher than that of non-expert humans. They guide users through problems by asking tem a set of sequential questions about the situation and drawing conclusions based on the answers given.

 The conclusions are based on programmed rules that have been modeled on the actual reasoning processes of experts who have confronted similar problems before. Once in place, these systems allow employees and lower level mangers to make quality decisions that previously could have been made only by senior managers.

(ii) Emerging trends in convergence of IT

Answer : 21st century has been defined by application of and advancement in information technology. Information technology has become an integral part of our daily life. Advancement and application of information technology are ever changing. Some of the trends in the information technology are as follows:

1. Cloud Computing

One of the most talked about concept in information technology is the cloud computing. Clouding computing is defined as utilization of computing services, i.e. software as well as hardware as a service over a network. Typically, this network is the internet.

Cloud computing offers 3 types of broad services mainly Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

2. Mobile Application

Another emerging trend within information technology is mobile applications (software application on Smart phone, tablet, etc.)

 Mobile application or mobile app has become a success since its introduction. They are designed to run on Smartphone, tablets and other mobile devices. They are available as a download from various mobile operating systems like Apple, Nokia, etc. Some of the mobile app are available free where as some involve download cost. The revenue collected is shared between app distributor and app developer.

3. User Interfaces

User interface has undergone a revolution since introduction of touch screen. The touch screen capability has revolutionized way end users interact with application. Touch screen enables the user to directly interact with what is displayed and also removes any intermediate hand-held device like the mouse.

Touch screen capability is utilized in smart phones, tablet, information kiosks and other information appliances.

4.Analytics

The field of analytics has grown many folds in recent years. Analytics is a process which helps in discovering the informational patterns with data. The field of analytics is a combination of statistics, computer programming and operations research.

Data analytics is tool used to support decision-making process. It converts raw data into meaningful information.

Predictive analytics is tool used to predict future events based on current and historical information.

Social media analytics is tool used by companies to understand and accommodate customer needs.

The every changing field of information technology has seen great advancement and changes in the last decade. And from the emerging trend, it can be concluded that its influence on business is ever growing, and it will help companies to serve customers better.

(iii) Intranet and Internet

Internet

Answer : A means of connecting a computer to any other computer anywhere in the world via dedicated routers and servers. When two computers are connected over the Internet, they can send and receive all kinds of information such as text, graphics, voice, video, and computer programs.

No one owns Internet, although several organizations the world over collaborate in its functioning and development. The high-speed, fiber-optic cables (called backbones) through which the bulk of the Internet data travels are owned by telephone companies in their respective countries.

The Internet grew out of the Advanced Research Projects Agency's Wide Area Network (then called ARPANET) established by the US Department Of Defense in 1960s for collaboration in military research among business and government laboratories. Later universities and other US institutions connected to it. This resulted in ARPANET growing beyond everyone's expectations and acquiring the name 'Internet.'

The development of hypertext based technology (called World Wide web, WWW, or just the Web) provided means of displaying text, graphics, and animations, and easy search and navigation tools that triggered Internet's explosive worldwide growth.

Internet

Intranet

Answer : Internal or private network of an organization based on internet technology (such as hypertext and TCP/IP protocols) and accessed over the internet. An intranet is meant for the exclusive use of the organization and its associates (customers, employees, members, suppliers, etc.) and is protected from unauthorized access with security systems such as firewalls. Intranets provide services such as email, data storage, and search and retrieval functions, and are employed in disseminating policy manuals and internal directories for the employees, price and product information for the customers, and requirements and specifications for the suppliers. Some intranets are confined to a building whereas others span continents.