Management Information Systems
Q1. Data processing and its significance in the organization
Data processing refers to a systematic series of operations performed on raw data to provide significant and important information out of the data. It, however, involves a sequence of transactions and maintenance of files that would be used to create a database to be used in providing necessary information that will benefit members in different levels of an organization. Data processing systems are then designed to bring forth management information systems that are essential in running organizations. Organizations are associated with various business functions such as manufacturing and selling that need processing of data for record keeping and accountability hence data processing and MIS comes in handy.
Q2. Evolution of data processing (1890-1960 stagnation)
Initially, the concept of management information systems did not exist as programmers only focused on applications to aid math and science. The period of 1890s to the late 1960s did not see any significant change in organizational data processing because there was no programming activity towards enhancing operations in the business environment. Data processing was basically manual until 1970s when a field of management information systems was created. At this time, there were programmers ready to solve problems in the business environment hence creation of business programs.
Q3. Data processing as the foundation of CBIS elements
The major elements of a CBIS are hardware, software, data, procedures, people and communication, as well. These elements interrelate in that they require each other to perform. However, data and data processing remains to be fundamental and as the foundation of the other elements i.e. it is the main raw material that would be processed and provide the required main output, processed data, that would be used by the management for many reasons especially decision making and day-to-day running of operations.
Q4. Why early efforts at MIS fail
Organizations were only able to breakthrough to a successful use of MIS in the late 20th century. Early efforts often failed due to the big gap between programmers and business people. Initially, programmers concentrated in the field of math and science leaving business issues to be solved manually. However, the level of technology i.e. existence of basic mainframe computers was a major drawback to MIS.
Q5, 6. The Concept of Organizational Information Subsystems
Organizational information systems are smaller components of elements or systems that work unitedlywithin the organization system to aid its functionality. The components can be projects, departments or informal groups etc. that perform processes together.This concept is different from the common view of information systems; a set of interrelated components that work together in an organized way to ensure efficient functioning of a system of a whole. It is likened to a house which is completed with several elements such as hammers, nails, wood etc.
Q7. Decision activities by a manager that can be supported by a decision support system
DSS automates some of decision-making processes that are used at management level. It combines data and sophisticated analytical models to support semi-structured and structured decisions. Basically, a DSS helps managers make operational decisions i.e. decisions regarding products and services to customers. Examples of activities that DSS enhance decisions include; product to produce, competition strategies, forecasting, and inventory and materials management.
Q8, 9, 10.DSS and Differences between DSS and MIS
MIS collect both internal and external data, process it and provide routine information necessary to manage business processes. They convert transaction processing systems (TPS) data into information for monitoring performance and managing an organization. Transactions recorded in TPS are analyzed and reported by a MIS. MIS also provides people with data and information relating to an organization’s operations. They are generally reporting and control oriented and the major distinction with DSS is that they have little analytical capabilities.
DSS is computer-based to help managers select an alternative solution out of the many available. It has analytical models to unravel issues regarding both structured and unstructured decisions. DSSs always give managers easy to use system when making decisions. Input to a DSS is usually TPS, TPS, internal and external data, processing involves online modelling tools that facilitate summarized data, and output comprises wide variety of tabular and graphical information
Q11, 12, 13. Office Automation
Office automation refers to when an organization applies new and advanced information technology to office tasks such as clerical, documenting, and communication. Components of office automation can be system networks, programming computers, controllers, sensing devices etc. Office automation fits to the CBIS since it involves usage of the main CBIS elements such as hardware, software, procedures and people. Expense on an automation tool would be unquestionably be justified since automation tools or rather CBIS elements interrelate making one tool necessary for the whole system to work.
Q14. Expert System
It is also known as knowledge-based system. It is an artificial intelligence system that applies reasoning capabilities to reach a conclusion. They are excellent for diagnostic and prescriptive problems.The systems fits to the field of AI due to its capability to query users for data and then present them with results.
Q15. Expert systems and DSS
ES is appropriate for diagnostic and prescriptive problems whereas DSS is excellent for analytical problems. ES fall in the field of artificial intelligence due to its capabilities while the DSS does not. Also, ESs are limited to certain domain areas, and difficult and costly to maintain compared to relatively simpler DSS.
Q16. Advantages to a business in using Expert Systems as part of a manager’s support system
ESs give expert advice to management, rational decision making free from emotional overhead, continuous ability to work without being overworked, and it is human friendly due to interface with natural language.
Q17. Basic means of gathering marketing research data
Online data collection through mail and other internet services. It uses computers to reach out faster to respondents and at a shorter time.
Telephone and mobile data collection
Interviews and Questionnaires
Q18.Difference between industrial espionage and marketing intelligence
Industrial espionage refers to ‘theft’ or illegal acquisition of commercial or technological research data. It can also be designs or blueprints or plans of an organization. Whereas market intelligence is the ability of an organization to have a view of the market situation and characteristics e.g. potential new products, what the customers and competitors are doing.
Q19.Basic approaches to pricing
- Cost-based pricing whereby the selling price is determined by adding profit margin on product cost. This one receives support from the pricing subsystem due to analysis of various product costs and giving information of the most appropriate profit margins.
- Customer-based pricing whereby organizations determine selling prices by predicting what the customers may be prepared and willing to pay.
- Competitor-based pricing- whereby a firm determines its prices by considering what its competitors are offering.
Q20.How the manufacturing information system contribute to meeting product quality objectives
Manufacturing information systems are basically MISs that are used where production or manufacturing activities take place. They are highly computerized to enable managers have all necessary data to plan and control manufacturing operations.
Q21.Marketing managers’ be interests in manufacturing cost
Marketing managers are always interested in manufacturing cost because it is a fundamental element in the total production cost that is used for pricing purposes.
Just-in-time technique works in way that a firm receives or orders for goods only when they need them, and this is objectively towards avoiding holding costs. JIT then only requires specific working rate on the manufacturing site since the goods needed are the ones produced.
Q23.Reasons why firms have such well-established systems for gathering intelligence from the financial community
Firms have well-established systems because of the current advanced technology whereby there is possible use of better systems by competitors hence a firm needs to be updated to meet competitor’s competition. Also, firms need the developed systems in order to make processes efficient and faster.
Q24.Systemthat requires the most control and security in an organization
Systems that require mots control and security are usually the financial and communication systems. Financial systems are vulnerable to interference due to sensitivity of money as people may want to access information and steal money from the organization hence the most insecure system.
Q25. Why data communications and the database both potential weak points in system security
Database and data communication usually contain very crucial and sensitive information of any given organization hence potential weak points due to the common cybercrimes whereby people may hack information. This require strong measures such as firewalls to protect the data.