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NAME - KRUSHITHA.V.P

ROLL NO. - 520791371

ASSIGNMENT SET 2

SUBJECT - MC0076

MANAGEMENT

INFORMATION SYSTEMS

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Master of Computer Application (MCA) Semester 4

MC0076 Management Information SystemsAssignment Set 2

1. How hardware & software support in various MIS activities of theorganization? Explain the transaction stages from manual system toautomated systems?

Hardware support for MISGenerally hardware in the form of personal computers and peripherals like printers,faxmachines, copier, scanners etc are used in organization to support various MISactivities of theorganization.

Advantages of a PC

We can find the following advantages a personal computer offers:

a) Speed A PC can process data at a very high speed. It can process millionsof instructions within fraction of seconds.

b) Storage A PC can store large quantity of data in a small space. It eliminatesthe need of storing the conventional office flat files and box files which requires lots of space. The storagesystem in a PC is such that the information can be transferred from one placeto another place in electronic form.

c) Communication A PC on the network can offer great support as acommunicator incommunicating information in the form of text and images. Today a PC withinternet is used as apowerful tool of communication for every business activity.

d) Accuracy A PC is highly reliable in the sense that it could be used toperform calculationscontinuously for hours with a great degree of accuracy. It is possible to obtainmathematicalresults correct up to a great degree of accuracy.

e) Conferencing A PC with internet offers facility of video conferencingworldwide. Business people across the globe travel a lot to meet theirbusiness partner, colleagues, and customers etc to discuss about businessactivities. By video conferencing inconvenience of traveling can be avoided.

f)A block diagram of a computer may be represented as

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Block diagram of a Computer

Input unit is used to give input to the processor. Examples of input unitKeyboard, scanner, mouse, bar code reader etc.A processor refers to unit which processes the input received the way it hasbeen instructed. In a computer the processor is the CPU Central ProcessingUnit. It does all mathematicalcalculations, logical tasks, storing details in the memory etc.Output unit is used to give output s from the computer. Examples of outputunit Monitor, printer, speakers etc.

Transformation stage Manual systems to automated systems

The value of Information is not present day discovery. We have always observedthat theInformation is the asset of any organization. The existence of information is sincethe Big bang

happened and then on it went on. But the value of information is being used onlyafter theindustrial revolution. Before, it was only in the record which we are using now in anefficientway. The first information was binary. Information is generated by interactions;information isby interaction, as without comparison, without a context, without interaction, thereis nothing.

Traditional information systems are said to contain data, which is then processed. The processed data is called information. The processing of data takes place byselecting the required fact and organizing it in a way to form meaningfulinformation which is used for some organizational needs.

In Manual systems, a series of action takes which may be similar as well as differenttoprocessing in traditional systems. For instance, in hospital information systems thepatient details

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can be viewed by the administrator as well as patient. But the views perceived bythese aredifferent. One may view it as a record to take print and other may be the source of his ailmentdescription. What is common to the two systems is the idea of transformation.

Transformationoccurs when systems participants are faced with cues from their environment,which may be dataor situations, and the participants then define and redefine what to do next, eitherprocessing dataor developing a situation, altering the system each time to transform it to a statecloser to theparticipants goal or objective. When a fact from either type of system is presentedformanipulation, a transformation can occur. Thus, transformation is common to bothtypes of systems.A transformation had to necessarily go through the following stages:

a) appraisal of the proceduresb) Types of documentsc) Storage systemsd) Formulations and codinge) Verification and validationf) Reviewg) Documentation

After the industrial revolution slowly manual systems were transformed into digitalform by means of computer and related instruments.

2 . Explain the various behavioral factors of managementorganization? As per Porter, how can performance of individualcorporations be determined?

Behavioral factors

The implementation of computer based information systems in general and MSS inparticular is affected by the way people perceive these systems and by how theybehave in accepting them. User resistance is a major behavioral factor associatedwith the adoption of new systems. The following are compiled by Jiang et al. (2000);reasons that employees resist new systems:

Change in job contentLoss of statusChange in interpersonal relationshipsLoss of power

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Change in decision making approachUncertainty or unfamiliarity or misinformation

Job security

The major behavioral factors are

a) Decision styles symbolic processing of AI is heuristic; DSS and ANN areanalytic

b) Need for explanation ES provides explanation, ANN does not, DSS mayprovide partial explanation. Explanation can reduce resistance to change

c) Organizational climate some organizations lead and support innovationsand new technologies whereas others wait and lag behind in making changes

d) Organizational expectations over expectation can result in disappointmentsand terminationof innovation. Over expectation was observed in most early intelligent

systems.

e) Resistance to change can be strong in MSS because the impacts may besignificant

Performance

Out of many possible interpretations of a strategy an organization adopts inbusiness, it is foundthat a majority is concerned with competition between corporations. Competitionmeanscultivating unique strengths and capabilities, and defending them against imitationby otherfirms. Another alternative sees competition as a process linked to innovation inproduct, market,or technology. Strategic information systems theory is concerned with the use of informationtechnology to support or sharpen an enterprises competitive strategy. Competitivestrategy is anenterprises plan for achieving sustainable competitive advantage over, or reducingthe edge of,its adversaries. The performance of individual corporations is determined by theextent to which

they manage the following (as given by Porter)

a) the bargaining power of suppliers;b) the bargaining power of buyer;c) the threat of new entrants;d) the threat of substitute products; ande) Rivalry among existing firms.

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Porters classic diagram representing these forces is indicated below

Porters classic diagram

PortersForces Driving Industry Competition (Porter 1980). There are two basicfactors which may be considered to be adopted by organization in their strategies:

a) low costb) product differentiation

Enterprise can succeed relative to their competitors if they possess sustainablecompetitive advantage in either of these two. Another important consideration inpositioning is competitive scope, or the breadth of the enterprises targetmarkets within its industry, i.e. the range of product varieties it offers, thedistribution channels it employs, the types of buyers it serves, the geographic areasin which it sells, and the array of related industries in which it competes. UnderPorters framework, enterprises have four generic strategies available to themwhereby they can attain above-average performance.

They are:

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a) cost leadership;b) differentiation;c) cost focus; andd) focused differentiation.e)

Porters representation of them is indicated below -

PortersFour Generic Strategies (Porter 1980)

According to Porter, competitive advantage grows out of the way an enterpriseorganizes andperforms discrete activities. The operations of any enterprise can be divided into aseries of activities such as salespeople making sales calls, service technicians performingrepairs,scientists in the laboratory designing products or processes, and treasurers raisingcapital. Byperforming these activities, enterprises create value for their customers.

The ultimate value an enterprise creates is measured by the amount customers arewilling to payfor its product or services. A firm is profitable if this value exceeds the collectivecost ofperforming all of the required activities. To gain competitive advantage over itsrivals, a firmmust either provide comparable value to the customer, but perform activities moreefficientlythan its competitors (lower cost), or perform activities in a unique way that creates

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greater buyervalue and commands a premium price (differentiation).

As per Borden 1964, quoted in Wiseman 1988 many differentiation bases can beclassified as 4

Ps as given below:Product (quality, features, options, style, brand name, packaging, sizes,services, warranties, returns);Price (list, discounts, allowances, payment period, credit terms);Place (channels, coverage, locations, inventory, transport); andPromotion (advertising, personal selling, sales promotion, publicity).

The various attributes listed above can be sharpened the firms product by thesupport of a suitable information technology.

3. Compare various types of development aspect of InformationSystem? Explain the various stages of SDLC ?

Development of Information Systems

a) Development and Implementation of the MIS

Once the plan for MIS is made, the development of the MIS, calls for determiningthe strategy of development. As discussed earlier, the plan consists of various systems andsubsystems. Thedevelopment strategy determines where to begin and in what sequence the

development can takeplace with the sole objective of assuring the information support.

The choice of the system or the sub-system depends on its position in the total MISplan, the size of the system, the users understanding of the systems and thecomplexity and its interface with other systems. The designer first developssystems independently and starts integrating them with other systems, enlargingthe system scope and meeting the varying information needs.

Determining the position of the system in the MIS is easy. The real problem is the

degree of structure, and formalisation in the system and procedures which determine thetiming andduration of development of the system. Higher the degree of structured-ness andformalisation,greater is the stabilisation of the rules, the procedures, decision-making and theunderstanding of the overall business activity. Here, it is observed that the users and the designers

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interaction issmooth, and their needs are clearly understood and respected mutually. Thedevelopmentbecomes a method of approach with certainty in input process and outputs

b) Prototype Approach

When the system is complex, the development strategy is Prototyping of theSystem. Prototyping is a process of progressively ascertaining the informationneeds, developing methodology, trying it out on a smaller scale with respect to thedata and the complexity, ensuring that it satisfies the needs of the users, andassess the problems of development and implementation.

This process, therefore, identifies the problem areas, inadequacies in the prototypevis--visfulfilment of the information needs. The designer then takes steps to remove theinadequacies.

This may call upon changing the prototype of the system, questioning theinformation needs,streamlining the operational systems and procedures and move user interaction.

In the prototyping approach, the designers task becomes difficult, when there aremultiple users of the same system and the inputs they use are used by some otherusers as well. For example, a lot of input data comes from the purchasedepartment, which is used in accounts and inventory management.

The attitudes of various users and their role as the originators of the data need to

be developedwith a high degree of positivism. It requires, of all personnel, to appreciate that theinformation isa corporate resource, and all have to contribute as per the designated role by thedesigner to fulfilthe corporate information needs. When it comes to information the functional, thedepartmental,the personal boundaries do not exist. This call upon each individual to comply withthe designneeds and provide without fail the necessary data inputs whenever required as perthespecification discussed and finalised by the designer.

Bringing the multiple users on the same platform and changing their attitudestoward informa-tion, as a corporate resource, is the managerial task of the system designer. Thequalification,experience, knowledge, of the state of art, and an understanding of the corporate

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business, helpsconsiderably, in overcoming the problem of changing the attitudes of the multipleusers and theoriginators of the data.

c) Life Cycle Approach

There are many systems or sub-systems in the MIS which have a life cycle, that is,they have birth and death. Their emergence may be sudden or may be a part of thebusiness need, and they are very much structured and rule-based. They have 100%clarity of inputs and their sources, adefinite set of outputs in terms of the contents and formats. These details more orless remainstatic from the day the system emerges and remains in that static mode for a longtime. Minormodifications or changes do occur but they are not significant in terms of handlingeither by thedesigner or the user of the system. Such systems, therefore, have a life and theycan be developedin a systematic manner, and can be reviewed after a year or two, for significantmodification, if any.

Life Cycle Approach to the Development of MIS

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Examples of such systems are pay roll, share accounting, basic financial accounting,finished goods accounting and dispatching, order processing, and so on.

These systems have a fairly long duration of survival and they contribute in a bigway as sources

of data to the Corporate MIS. Therefore, their role is important and needs to bedesigned fromthe view point as an interface to the Corporate MIS.

d ) Implementation of the Management Information System

The implementation of the system is a management process. It brings aboutorganizationalchange; it affects people and changes their work style. The process evokes abehaviour responsewhich could be either favorable or unfavorable depending upon the strategy of

systemimplementation.In the process of implementation, the system designer acts as a change agent or acatalyst. For a successful implementation he has to handle the human factorscarefully.

The user of the system has a certain fear complex when a certain cultural workchange isoccurring. The first and the foremost fear is about the security to the person if thechange-overfrom the old to new is not a smooth one. Care has to be taken to assure the user

that such fearsare baseless and the responsibility, therefore, rests with the designer. The second fear is about the role played by the person in the organization and howthe changeaffects him. On many occasions, the new role may reduce his importance in theorganization, thework design may make the new job impersonal, and a fear complex may getreinforced that thecareer prospects may be affected. There are certain guidelines for the systemsdesigner for successful implementation of the system. The system designer shouldnot question beyond a limit the information need of the user.

1) Not to forget that his role is to offer a service and not to demand terms.2) Remember that the system design is for the use of the user and it is not the

designers prerogative to dictate the design features. In short, the designershould respect the demands of the user.

3) Not to mix up technical needs with the information needs. He should try todevelop suitable

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design with appropriate technology to meet the information needs. Thedesigner should notrecommend modifications of the needs, unless technically infeasible.

4) Impress upon the user the global nature of the system design which isrequired to meet the current and prospective information need.

5) Not to challenge the application of the information in decision-making. It isthe sole right of the user to use the information the way he thinks proper.

6) Impress upon the user that the quality of information depends on the qualityof input.

7) Impress upon the user that you are one of the users in the organization andthat the information is a corporate resource and he is expected to contributeto the development of the MIS.

8) Ensure that the user makes commitment to all the requirements of thesystem design speci-fications. Ensure that he appreciates that his commitments contribute largely

to the quality of the information and successful implementation of thesystem.9) Ensure that the overall system effort has the managements acceptance.10) Enlist the users participation from time to time, so that he is

emotionally involved in the process of development.11) Realise that through serving the user, he is his best guide on the

complex path of development.12) Not to expect perfect understanding and knowledge from the user as

he may be the user of anon-computerised system. Hence, the designer should be prepared to changethe systemspecifications or even the design during the course of development.

13) Impress upon the user that the change, which is easily possible inmanual system, is not as easy in the computer system as it calls for changesin the programs at cost.

14) Impress upon the user that perfect information is non-existent; his roletherefore still has an importance in the organization.

15) Ensure that the other organization problems are resolved first beforethe MIS is taken for development.

16) Conduct periodical user meetings on systems where you get theopportunity to know the ongoing difficulties of the users.

17) Train the user in computer appreciation and systems analysis as hisperception of the computerized information system will fall short of thedesigners expectation.

Implementation of the MIS in an organization is a process where organizationaltransformation takes place. This change can occur in a number of ways.

The Lewins model suggests three steps in this process. The first step is Unfreezingthe organisa-

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tion to make the people more receptive and interested in the change. The secondstep is choosinga course of action where the process begins and reaches the desired level of stability, and thethird step is Refreezing, where the change is consolidated and equilibrium is

reinforced. Many a times, this process is implemented through an external changeagent, such as a consultant playing the role of a catalyst.

The significant problem in this task is the resistance to change. The resistance canoccur due tothree reasons, viz., the factors internal to the users of information, the factorsinherent in thedesign of the system and the factors arising out of the interaction between thesystem and itsusers. The problem of resistance can be handled through education, persuasion,and participation.

This itself can be achieved by improving the human factors, and providingincentives to theusers, and eliminating the organizational problems before implementing thesystem.

SDLC

System development cycle stages are sometimes known as system study. Systemconcepts which are important in developing business information systems expediteproblem solving and improve the quality of decision-making. The system analyst

has to do a lot in this connection. They are confronted with the challenging task of creating new systems an planning major changes in the organization. The systemanalyst gives a system development project, meaning and direction.

The typical breakdown of an information systems life cycle includes a feasibilitystudy,requirements, collection and analysis, design, prototyping, implementation,validation, testingand operation. It may be represented in the form of a block diagram as shownbelow:

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a) Feasibility study It is concerned with determining the cost effectiveness of various alternatives in the designs of the information system and thepriorities among the various system components.

b) Requirements, collection and analysis It is concerned with understandingthe mission of the information systems, that is, the application areas of the

system within the enterprise and the problems that the system should solve.c) Design It is concerned with the specification of the information systemsstructure. There are two types of design: database design and applicationdesign. The database design is the design of the database design and theapplication design is the design of the application programs.

d) Prototyping A prototype is a simplified implementation that is produced inorder to verify in practice that the previous phases of the design were wellconducted.

e) Implementation It is concerned with the programming of the finaloperational version of the information system. Implementation alternativesare carefully verifies and compared.

f) Validation and testing It is the process of assuring that each phase of the

development process is of acceptable quality and is an accuratetransformation from the previous phase.

4 . Compare & Contrast E-enterprise business model with traditionalbusiness organization model? Explain how in E-enterprise managerrole & responsibilities are changed? Explain how manager is aknowledge worker in E-enterprise?

Managing the E-enterprise

Due to Internet capabilities and web technology, traditional business organizationdefinition hasundergone a change where scope of the enterprise now includes other companylocations,business partners, customers and vendors. It has no geographic boundaries as itcan extend itsoperations where Internet works. All this is possible due to Internet and web movingtraditional

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paper driven organization to information driven Internet enabled E-businessenterprise. E-business enterprise is open twenty-four hours, and being independent, managers,vendors,customers transact business anytime from anywhere.

Internet capabilities have given E-business enterprise a cutting edge capabilityadvantage toincrease the business value. It has opened new channels of business as buying andselling can bedone on Internet. It enables to reach new markets across the world anywhere duetocommunication capabilities. It has empowered customers and vendors / suppliersthroughsecured access to information to act, wherever necessary. The cost of businessoperations hascome down significantly due to the elimination of paper-driven processes, fastercommunicationand effective collaborative working. The effect of these radical changes is thereduction inadministrative and management overheads, reduction in inventory, faster deliveryof goods andservices to the customers.

In E-business enterprise traditional people organization based on CommandControl principleis absent. It is replaced by people organizations that are empowered by informationandknowledge to perform their role. They are supported by information systems,applicationpackages, and decision-support systems. It is no longer functional, product, andproject or matrix organization of people but E-organization where people work innetwork environment as a team or work group in virtual mode.

E-business enterprise is more process-driven, technology-enabled and uses its owninformation and knowledge to perform. It is lean in number, flat in structure, broadin scope and a learning organization. In E-business enterprise, most of the thingsare electronic, use digital technologies and work on databases, knowledge bases,directories and document repositories. The business processes are conductedthrough enterprise software like ERP, SCM, and CRM supported bydata warehouse, decision support, and knowledge management systems.

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Today most of the business organizations are using Internet technology, network,and wirelesstechnology for improving the business performance measured in terms of cost,efficiency,competitiveness and profitability. They are using E-business, E-commerce solutions

to reachfaraway locations to deliver product and services. The enterprise solutions like ERP,SCM, andCRM run on Internet (Internet / Extranet) & Wide Area Network (WAN). The businessprocesses across the organization and outside run onE-technology platform using digital technology. Hence todays business firm is alsocalled E-enterprise or Digital firm.

The paradigm shift to E-enterprise has brought four transformations, namely:

Domestic business to global business.Industrial manufacturing economy to knowledge-based service economy.Enterprise Resource Management to Enterprise Network Management.Manual document driven business process to paperless, automated,electronically transacted business process.

These transformations have made conventional organization design obsolete. Thebasis of conventional organization design is command & control which is nowcol l aborates& cont rol .

This change has affected the organization structure, scope of operations, reportingmechanisms,work practices, workflows, and business processes at large.

Comparison between Conventional Design and E-Organization

In E-enterprise, business is conducted electronically. Buyers and sellers throughInternet drivethe market and Internet-based web systems. Buying and selling is possible onInternet. Books,CDs, computer, white goods and many such goods are bought and sold on Internet.

The newchannel of business is well-known as E-commerce. On the same lines, banking,insurance,healthcare are being managed through Internet E-banking,E-billing, E-audit, & use of Credit cards, Smart card, ATM, E-money are the examplesof the E-commerce application.

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The digital firm, which uses Internet and web technology and uses E-business and E-commercesolutions, is a reality and is going to increase in number.

MIS for E-business is different compared to conventional MIS design of anorganization. Therole of MIS in E-business organization is to deal with changes in global market andenterprises.MIS produces more knowledge-based products. Knowledge management system isformallyrecognized as a part of MIS. It is effectively used for strategic planning for survivaland growth,increase in profit and productivity and so on.

To achieve the said benefits of E-business organization, it is necessary to redesignthe organisation to realize the benefits of digital firm. The organization structureshould be lean and flat. Get rid of rigid established infrastructure such as branchoffice or zonal office. Allow people to work from anywhere. Automate processesafter re-engineering the process to cut down process cycle time. Make use of groupware technology on Internet platform for faster response processing.

Another challenge is to convert domestic process design to work for internationalprocess, whereintegration of multinational information systems using different communicationstandards,country-specific accounting practices, and laws of security are to be adheredstrictly.

Internet and networking technology has thrown another challenge to enlarge thescope of organization where customers and vendors become part of the organization. Thistechnologyoffers a solution to communicate, co-ordinate, and collaborate with customers,vendors and

business partners. This is just not a technical change in business operations but acultural changein the mindset of managers and workers to look beyond the conventionalorganization. It meanschanging the organization behaviour to take competitive advantage of the E-business technology.

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The last but not the least important is the challenge to organize and implementinformationarchitecture and information technology platforms, considering multiple locationsand multipleinformation needs arising due to global operations of the business into a

comprehensive MIS.

E-commerce

E-commerce is a second big application next to ERP. It essentially deals with buyingand sellingof goods. With the advent of internet and web technology, E-commerce todaycovers an entirecommercial scope online including design and developing, marketing, selling,delivering, servicing, and paying for goods. Some E-commerce applications addorder tracking as a feature for customer to know the delivery status of the order.

The entire model successfully works on web platform and uses Internet technology.E-commerce process has two participants, namely buyer and seller, like intraditional business model. Andunique and typical to E-commerce there is one more participant known asMerchant Server. Merchant server in E-commerce secures payment to seller byauthorisation and authentication of commercial transaction.

E-commerce process model can be viewed in four ways and categories:

B2C: Business Organization to CustomerB2B: Business Organization to BusinessC2B: Customer to Business OrganizationC2C: Customer to Customer

In B2C model, business organization uses websites or portals to offer informationabout product,through multimedia clippings, catalogues, product configuration guidelines,customer histories and so on. A new customer interacts with the site and usesinteractive order processing system for order placement. On placement of order,secured payment systems comes into operation to authorize and authenticatepayment to seller. The delivery system then takes over to execute the delivery tocustomer.

In B2B model, buyer and seller are business organizations. They exchange technical&

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The customer is an individual consumer. The E-business applications in B2C are thefollowing:

Information delivery and sharing applicationOrganization manual

Database of knowledgeBusiness information

Transaction processing applicationPayments to employeeIssue of shares / bondsDelivery through courier

In C2B, the customer / consumer deals with business organization in individualcapacity. Information delivery and sharing application

Downloading of information from website / portal

Viewing the bank balanceSeeing manuals / drawings / pictures / images, and so on

Transaction processing applicationRequesting an itemObtaining travel advanceInquiry processingCredit card paymentCash withdrawal through ATM

In C2C, both the parties are individuals and play the role of buyer / seller as the casemay be.Information delivery and sharing application

Messaging e-mailReportsNews groupsInterests groups

Transaction processing applicationPayment approvals

MemosSanctions and confirmationsIssues and receipts

Broadly, information delivery and sharing application is built on back-end systems,which collect

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data and process it to create information databases. The users of these databasescould be organizations or individuals in the capacity of buyer or seller. Theparticipants have anauthorized access to information and have rights to read, write or use it in any of the application.

In B2C, messaging and information downloading is a big application. Interorganizationcommunication applications, like news bulletin, communicating change of rules,announcementsand price revisions are very common in B2C. In the case of bank, announcing newinterest rates,financial products, opening of new branch, and so on is a communicationapplication.

Crediting interest on fixed deposits, dividend on shares, refund of unused shareamount areapplications, which fall in the domain of B2C, where partner C an individual inB2C model is outside the organization.

In C2B model, a customer interacts with information databases such as productcatalogues, priceinformation, configures the product, compares the cost, places the order and have itdeliveredafter the electronic payment process. The products like computers, books, CDs,music systemsand different services are purchased through E-commerce application. Billpayments are a bigapplication of C2B model. The electronic mail, video conferencing and news groupsare otherbig application where information is shared through electronic communications.

In C2C model, E-business revolves around two individuals who deal with each otherin theirindividual capacities and play a designated role as buyer/seller, teacher/student,manager/officer,

brother/sister. E-mailing, sending E-greetings, payments, ordering and sending giftsare the C2Cmodel applications.

Paper Document vs. E-DocumentInformation on paperInformation on E-document

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Product information brochure Product catalogue document database:-

Order on paperElectronic orderConfirmation letter

E-mailPayment chequeElectronic cash, credit card, E-cheque

All transactions are paperless hence, confirmations, approvals, signatures areelectronicallycarried out and the participant is informed throughE-communications.

It should be noted that B2B business models actually run with the help of B2C, C2Band C2C

models. These models work under the umbrella of B2B. The execution process usingthesemodels is assisted by portals, websites, E-mail, web directories, Internet ServiceProviders (ISP).Each organization in E-business environment has its website and E-mail address andthey arelinked from portals, which provide basic information. The portal is a websitededicated tospecified class of items where focus is on information about the items and not somuch on who

makes it? They essentially are information providers to users to transact through E-business models. Some portals have scope of buying and selling besidesinformation sharing. Searchengines like Yahoo, Alta Vista, and Lycos are higher-level portals, which help youfind webaddress of buyers and sellers for you to choose your E-business partner.

In E-business models, we have considered two parties who engage in businessactivity. But to perform these activities certain intermediaries are required tohandle the communication traffic between the two parties in B2B, B2C, C2B andC2C. The intermediaries are:

E-business models are developed using these intermediaries. The components of E-business models are:

Internet / Extranet for internal communicationInternet for external communicationNetwork and TCP / IP protocols and tools for delivery mechanismWeb server and web browsers software for access, process and download andmailing.

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Back-end systems for application processes

The people involved in E-business model other than users of the models are:Web master Content providerWeb designer Content designer

Web developer / programmer Web administratorWeb master controls the website inflow/outflow, content management andregulation of thetraffic. The role is similar to DBA in RDBMS environment. Web designerconceptualizes andvisualizes the requirement of the parties and creates a web design, which isattractive, useful andeasy to handle. He plays a role of an architect and an interior designer of thewebsite. Webdeveloper/programmer writes web pages using HTML, DHTML, XML, CGI script and

othertools. They are also involved in programme writing for transaction processing,informationprocessing, providing links to other sites, writing interfaces for connectivity to otherdatabasesand to back-end ERI or legacy system. Content providers are responsible to createtext, imagesand a multimedia input to the site. These people are subject experts and are keypeople in makinga website a grand success. They have to write contents of the website looking intothe needs of the target website visitors. The contents should address the needs of the users of the website. Thecontent designers give website layout, icons, positioning and display ideas todeliver the contentsto the viewers immediately they provide input in terms of aesthetics, colours,navigating throughdifferent information layers and so on.

Web administrator maintains the website. He is a trouble-shooter. In case of anyproblem, the administrator is the first contact point of users / viewers to solve theirdifficulties. The job is to keep the website very responsive and keep contents latestand up-to-date. Web administrator is responsible to make viewer analysis in termsof visits to website, areas visited and business.

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iv) Fire hazard: it can happen because of electrical short circuits, flammable liquidsetc.

v) Sabotage and riots: sometimes the employees destroy the computer centre incase of strike, lockout or there may be chances of riots in the area.

vi) Natural Disasters: Natural disasters are not controllable. They are not frequenthazards but if they happen they destroy the things or ruin them. Examples areearthquake, floods, tornadoes and lightening.

vii) General hazards: this category covers many more hazards which are notcovered anywhere and difficult to define and come spontaneously.

Security Techniques

Security can be maintained at two levels: physical and procedural.

Physical Security Physical security is further divided into:

a) Physical Controlled Access : Access control protection is the basis to a securitysystem. If atentry level on can stop unwanted or unauthorized persons then half of the problemscan besolved and harm can be reduced. This can be done with the help of followingmethods guardand special escorts, sign-in/sign out, badges, closed circuit monitors, papershredders, one way

emergency door and a combination of various approach or control devices.

b) Physical location : Location of computer system is an important consideration insecurity planning. This can be achieved by having any one of them locating thecomputer centre at remote location that is distant from airport, heavy traffic, andsteam boiler.

2. The computer centre can be located in a separate building3. The computer site should not contain any sign identified by an outsider.4. Power and communication lines are under ground. Air intake devices should beduly fenced and placed very high.

5. Back up of the system is kept at a distant or places other than computer centre.

c) Physical Protection : Additional protective measures should be considered inthe overall protection plan.

These items are

Dumps and devicesEmergency power (UPS) are maintained

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Adequate and separate air conditioner, humidity control devices are there tocontrol environment.

The equipments in computer system are covered by plastic cover when not inuse.Fire and smoke detectors are kept to protect against fire break downs

Procedural Security Techniques

Physical security deals with a number of hazards like fire, natural disaster, etc. whileproceduralcontrols deals with access control only. Sometimes procedural techniques take thehelp ofphysical techniques. Procedural techniques comprises of the following ways:

a) Integrity - In the context of security the integrity means the assurance thatthe system is functionally correct and complete. The absence of integritymakes other concept ineffective. If auser is authorized to use item A from a file, he has seen only item A andnot any other item of the file. Integrity is also applicable when person has finished his work then hisinformationshould be erased from the screen.

b) Isolation - In any system in which a high level of security is to bemaintained, all components of the computer should be used in isolation. Incomputer based information system, this isolation should be maintainedbetween users and information as well as between hardware and softwareresources and processes.

c) Identification - If a system uses the technique of isolation then they musthave the ability to identify authorized and proper interfaces. The systemmust be able to distinguish which user can access the information or whichcannot.

d) Authorization - Once a person has been identified, the question arises whatauthority he has?

To maintain the security, procedures must be set up to determine who hasaccess to what files,who has the right to make addition and deletions, and who is responsible foradministration of

the database?e) Authentication - It is an action which determines the validity of something.

For this one of the following processes must be followed-

1) Physical observation2) Periodic disconnects and call back procedures3) Periodic requests for further information or re-verification from the

user.

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f) Monitoring - Monitoring is the act of watching or checking or guardingsomething. This activity eventually, either accidentally or intentionally,breaks the control. Some specific system capabilities which support themonitoring is the security system is installed for detection of

security violation, if violation is serious then it immediately locks the systemfor further work.All exceptional conditions shall be reported to the internal audit. The systemshould collect dataconcerning all user access like user, terminal and type of processing date,time of day and itemsaccessed. These reports are reviewed by auditor and security officerssystematically.

6. Case Study: Information system in a restaurant

A waiter takes an order at a table, and then enters it online via one of the sixterminals located in the restaurant dining room. The order is routed to a printer inthe appropriate preparation area: the cold item printer if it is a salad , the hot-itemprinter if it is a hot sandwich or the bar printer if it is a drink . A customers mealcheck-listing (bill) the items ordered and the respective prices are automaticallygenerated. This ordering system eliminates the old three-carbon-copy guest checksystem as well as any problems caused by a waiters handwriting. When the kitchenruns out of a food item, the cooks send out an out of stock message, which will bedisplayed on the dining room terminals when waiters try to order that item. Thisgives the waiters faster feedback, enabling them to give better service to the

customers. Other system features aid management in the planning and control of their restaurant business. The system provides up-to-the-minute information on thefood items ordered and breaks out percentages showing sales of each item versustotal sales. This helps management plan menus according to customers tastes. Thesystem also compares the weekly sales totals versus food costs, allowing planningfor tighter cost controls. In addition, whenever an order is voided, the reasons forthe void are keyed in. This may help later in management decisions, especially if the voids consistently related to food or service. Acceptance of the system by theusers is exceptionally high since the waiters and waitresses were involved in theselection and design process. All potential users were asked to give their

impressions and ideas about the various systems available before one was chosen.

Questions:

1. In the light of the system, describe the decisions to be made in the area of strategic planning, managerial control and operational control? Whatinformation would you require to make such decisions?

2. What would make the system a more complete MIS rather than just doingtransaction processing?

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3. Explain the probable effects that making the system more formal would haveon the customers and the management

Solution:

1. 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 decisionmaking by providing timely, relevant and accurate information to managers. Thephysical components of an MIS include hardware, software, database, personneland procedures.

Management information is an important input for efficient performance of variousmanagerial functions at different organization levels. The information systemfacilitates decision making. Management functions include planning, controlling anddecision making. Decision making is the core of management and aims at selecting

the best alternative to achieve an objective. The decisions may be strategic, tacticalor technical. Strategic decisions are characterized by uncertainty. They are futureoriented and relate directly to planning activity. Tactical decisions cover bothplanning and controlling. Technical decisions pertain to implementation of specifictasks through appropriate technology. Sales region analysis, cost analysis, annualbudgeting, and relocation analysis are examples of decision-support systems andmanagement information systems.

There are 3 areas in the organization. They are strategic, managerial andoperational control.

Strategic decisions are characterized by uncertainty. The decisions to be made inthe area of strategic planning are future oriented and relate directly to planningactivity. 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 minuteinformation 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 isdone compares the weekly sales totals versus food costs, allowing planning fortighter cost controls. Executive support systems function at the strategic level,support unstructured decision making, and use advanced graphics andcommunications. Examples of executive support systems include sales trend

forecasting, budget forecasting, operating plan development, budget forecasting,profit planning, and manpower planning.

The decisions to be made in the area of managerial control are largely dependentupon the information available to the decision makers. It is basically a middle levelwhere planning of menus is done and whenever an order is voided, the reasons forthe void are keyed in which later helps in management decisions, especially if the

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voids are related to food or service. The managerial control that is middle level alsogets customer feedback and is responsible for customer satisfaction.

The decisions to be made in the area of operational control pertain toimplementation 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 sixterminals located in the restaurant dining room and the order is routed to a printerin the appropriate preparation area. The items ordered list and the respectiveprices are automatically generated. The cooks send out of stock message whenthe kitchen runs out of a food item, which is basically displayed on the dining roomterminals when waiter tries to order that item. This basically gives the waiters fasterfeedback, enabling them to give better service to the customers. Transactionprocessing systems function at the operational level of the organization. Examplesof transaction processing systems include order tracking, order processing, machinecontrol, plant scheduling, compensation, and securities trading.

The information required to make such decision must be such that it highlights thetrouble spots and shows the interconnections with the other functions. It mustsummarize all information relating to the span of control of the manager. Theinformation required to make these decisions can be strategic, tactical oroperational 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 shouldsupport this culture by providing such information which will aid the promotion of efficiency in the management services and operational system. It is also necessaryto study the keys to successful Executive Information System (EIS) developmentand operation. Decision support systems would also make the system a completeMIS as it constitutes a class of computer-based information systems includingknowledge-based systems that support decision-making activities. DSSs serve the

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management level of the organization and help to take decisions, which may berapidly 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 newevidence in support of a decision, creating a competitive advantage overcompetition, encouraging exploration and discovery on the part of the decisionmaker, revealing new approaches to thinking about the problem space and helpingautomate the managerial processes would make the system a complete MIS ratherthan just doing transaction processing.

3. The management system should be an open system and MIS should be sodesigned that it highlights the critical business, operational, technological andenvironmental changes to the concerned level in the management, so that theaction 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 sharedand common understanding of the information provided. The systems developedwill 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 efficientexecution of its processes, customer service, and speed to market. To accomplishthese goals, the organization must exchange valuable information across differentfunctions, levels, and business units. By making the system more formal, theorganization 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 whichcan be used later on when the hotel is in need of some financial help from financialinstitutes or banks. As the inventory is always entered into the system, any fraudscan be easily taken care of and if anything goes missing then it can be detectedthrough the system