Question Paper

Management Information Systems (MC261 ): January 2008

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Section A : Basic Concepts (30 Marks)

 This section consists of questions with serial

number 1 - 30.
 Answer all questions.
 Each question carries one mark.
 Maximum time for answering Section A is 30
Minutes.

The type of systems that rests on accepted and fixed definitions of data and procedures for collecting, storing,
1. processing, disseminating, and using these data is called a (an)
(a) Network
(b) Intranet
(c) Formal system
(d) Extranet
(e) Informal system. <Answer>
The study of information systems focusing on their use in business and management best describes as
2.
(a) Information architecture
(b) Electronic commerce
(c) Management information system
(d) Computer-based information systems
(e) Knowledge and information based assessment.
<Answer>
A marketplace that is created by computer and communication technologies that link many buyers and sellers are
3. defines as
(a) Mobile commerce
(b) The Internet
(c) Digital markets
(d) The world wide web
(e) Electronic commerce.
<Answer>
Systems that support the creation, capture, storage, and dissemination of firm expertise and knowledge are known as:
4.
(a) Knowledge management systems
(b) Supply chain management systems
(c) Information systems
(d) Customer relationship management systems.
(e) Enterprise systems. <Answer>
The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans is known
5. as
(a) Processing
(b) Input
(c) Information
(d) Data
(e) Output. <Answer>
The element required for bridging the gap between the actual situation and the standard required that helps in synchronizing the organizations
6. activities is

(a) The detector

(b) The effector
(c) The assessor
(d) The processor
(e) The accessor. <Answer>
 Every DSS development tool contains
7.
(a) Knowledge variation
(b) Knowledge manipulation
(c) Knowledge transfer
(d) Knowledge representation
(e) Knowledge formulae. <Answer>
Projections and responses to queries are information output characteristics associated with a (an)
8.
(a) MIS
(b) ESS
(c) DSS
(d) GSS
(e) TPS. <Answer>
Summary transaction data, high-volume data, and simple models are information inputs characteristics of a (an)
9.
(a) ES
(b) MIS
(c) DSS
(d) TPS
(e) ESS.
<Answer>
Using advanced graphics and communications to address unstructured decision making is an example of an
10. information system at
(a) The operational level
(b) The knowledge level
(c) The management level
(d) The strategic level
(e) All levels.
<Answer>
Which of the following is a network of facilities for procuring materials, transforming raw materials into
11. intermediate and finished products, and distributing the finished products to customers?
(a) Supply chain
(b) Production chain
(c) Distribution chain
(d) Value chain
(e) Primary chain.
<Answer>
The most common models in a DSS software systems are
12.
(a) Libraries of statistical models
(b) Statistical graphs from multiple information sources
(c) Optimization models
(d) OLAP tools
(e) OLTP tools. <Answer>
Deciding how to carry out specific tasks specified by strategic and middle management and establishing criteria
13. for completion and resource allocation best describes as
(a) Strategic decision making
(b) Operational control
(c) Management control
(d) Knowledge-level decision making
(e) Administrative control.
<Answer>
A model of decision making stating that organizations are not rational and that decisions are solutions that become
14. attached to problems for accidental reasons best describes the
(a) Irrational model of decision making
(b) Bureaucratic model of decision making
(c) Organizational model of decision making
(d) Systematic model of decision making
(e) "Garbage can" model of decision making. <Answer>
 A (An) ______________ is the senior manager in charge of the information systems function in the firm.
15.
(a) Chief information officer
(b) Project manager
(c) System analyst
(d) Information systems manager
(e) Data administrator. <Answer>
Which of the following is the type of electronic commerce that involves consumers selling directly to consumers?
16.
(a) B2C
(b) B2B
(c) C2C
(d) Virtual storefront
(e) Electronic bartering.
<Answer>
A prototype that is used as a reference for the new system and then is discarded best describes as
17.
(a) Throwaway prototype
(b) Evolutionary prototype
(c) Leveraged prototype
(d) System prototype
(e) Software prototype.
<Answer>
Word processing, desktop publishing, and electronic calendars are examples of
18.
(a) Document imaging systems
(b) Knowledge work systems
(c) Decision support systems
(d) Office systems
(e) Group collaboration systems. <Answer>
The stored learning from an organization's history that can be used for decision-making and other purposes best
19. describes as
(a) Knowledge warehouse
(b) Organizational memory
(c) Organizational learning
(d) Knowledge base
(e) Tacit knowledge.
<Answer>
The most successful solutions or problem-solving methods that have been developed by a specific organization or
20. industry best describes as
(a) Best practices
(b) Knowledge management
(c) Standard operating procedures
(d) Explicit knowledge
(e) Business objectives.
<Answer>
Expertise and experience of organizational members that has not been formally documented is known as
21.
(a) Tacit knowledge
(b) Organizational learning
(c) Organizational memory
(d) Best practices
(e) Knowledge sharing. <Answer>
Which of the following modifies the Web pages presented to each customer?
22.
(a) Electronic customized marketing
(b) Micromarketing
(c) Web personalization
(d) Info-marketing
(e) HTML.
<Answer>
Internet-based supply chain management applications
23.
(a) Provide more responsive customer service
(b) Involve collaboration among different departments in a single firm
(c) Can follow a supply-driven model
(d) Are driven by production master schedules based on forecasts or best guesses of demand for product
(e) All of the above. <Answer>
 A manager has to make an unstructured decision, which means that:
24.
(a) The decision has a definite procedure to deal with the problem
(b) The manager has to use judgement based on previous experience, insight and careful evaluation
(c) The decision will result in no correct course of action
(d) No decision can be made
(e) The decision is not based on careful evaluation. <Answer>
A process of determining the goals and objectives and evolving strategies are
25.
(a) Controlling
(b) Planning
(c) Organizing
(d) Leading
(e) Managing. <Answer>
Top managers may use a (an) ________________, a combination of MIS and DSS, to support their decision making.
26.
(a) GIS
(b) ESS
(c) Expert system
(d) GDSS
(e) TPS. <Answer>
Comparisons between enterprise data and internal standards industry averages or data on competitors this example is related to which type of
27. information?

(a) Decision support

(b) Monitoring information
(c) Problem finding information
(d) Action information
(e) Analysis information.
<Answer>
The analysis that deals with information requirements derived from the critical factors for operating and managing an enterprise is
28.
(a) Normative analysis
(b) Strategy set transformation
(c) Critical factor analysis
(d) Process analysis
(e) End – means analysis. <Answer>
Making repeated changes to selected variables until a chosen variable reaches a target value is called as
29.
(a) What- if analysis
(b) Sensitivity analysis
(c) Goal-seeking analysis
(d) Optimization analysis
(e) Process analysis. <Answer>
The first question to ask in any evaluation of a DSS is
30.
(a) What data do you need to arrive at the solution?
(b) How much does it cost?
(c) How much training for users would be required?
(d) What kind of problem do you expect this system to solve?
(e) What is the situation of the problem? <Answer>

END OF SECTION A

Section B : Caselets (50 Marks)

 This section consists of questions with serial number 1 – 4 .
 Answer all questions.
 Marks are indicated against each question.
 Detailed explanations should form part of your answer.
 Do not spend more than 110 - 120 minutes on Section B.

Caselet 1
Read the caselet carefully and answer the following questions:
15 marks) <Answer>
CARD was a mammoth project aimed at computerizing the land registration process in AP. How did the (
1.
 government of AP go about implementing the CARD project? Briefly explain the implementation
process of CARD and its key components .What lessons can we learn about e-government project
implementation from the implementation of CARD? Discuss.
<Answer>
Prior to the launch of CARD, the citizens of AP found the land registrations process cumbersome. How
2. did the CARD project benefit the citizens and government of AP?
How, according to you, can government of AP capitalize on these benefits? ( 15 marks)

One of the earliest E-Government initiatives taken by the government of Andhra Pradesh was Computer
Aided Administration of Registration Department (CARD) . Conceived in 1996 as a pilot project for
testing the efficacy of computerizing the land registration process, CARD was later implemented across
the state. The quality and turnaround time for all registration services have dramatically improved. This
highly visible project has tremendous replication potential all over India.
Prior to the implementation of the CARD project, the process of registering land deeds was done
manually. The processes in the registration department included the valuation of property, to complete
the complicated registration process, citizens had to visit various government offices and private
agencies. The various private agencies involved in the registration process included stamp vendors,
document writers and registration agents.
The registration process itself created many problems .The process was highly procedure-bound,
complicated and rigid and could not be easily understood by the citizens. One of the most important
steps in the registration process was the valuation of property. The basic guidelines framed for
calculating the stamp duty, transfer duty, registration fee and miscellaneous fee weren’t normally
accessible to the public. Further the guidelines could not be easily comprehended by even the literate
citizens of the state. As a result, there was a lack of transparency in the valuation of property.
Problems could arise even after registration had taken place. Registers into which details of land
documents were copied could decay due to age, poor maintenance or repeated handling. Apart from
these problems, registering 12 million property transactions manually every year was an extremely
difficult task.
The primary objective of the CARD project was to utilize IT to reduce the time required for the
registration of land and property deeds such as sales deeds, mortgage deeds and gift deeds in AP.
Implementation of CARD
In order to test the utility of computerizing the registration process, the government of AP decided to
launch a pilot project in which 2 Sub Registrar Offices (SROs) were computerized. The government of
AP faced the mammoth task of computerizing about 387 SROs that registered 12 million documents
every year. It was planned to implement the project in different phases. In the first phase, 214 SROs
were computerized.
The initial step of the project involved the installation of the basic infrastructure- hardware and
software. In order to effectively implement CARD the government of AP trained employees in the
required IT skills. Another important task was the installation of CARD application software in the
SROs.
Benefits
The CARD was well received by the citizens because it helped them to save time. The simplicity of the
CARD process also contributed to its popularity. The quality and turnaround time for all registration
services have dramatically improved. This highly visible project has tremendous replication potential
all over India.
END OF CASELET 1

Caselet 2
Read the caselet carefully and answer the following questions:
<Answer>
Explain in detail how ABACUS International provides a facility for corporate clients to make their own
3. travel arrangements using a user-friendly Graphical User Interface?
( 10 marks)
<Answer>
What is Strategic planning? When does it assume importance in the business?
4. ( 10 marks)

ABACUS International is Asia-Pacific’s largest Global Distribution System(GDS) and Computer

Reservations System (CRS). Based in Singapore, ABACUS provides travel information and
reservations, specially tailored for the Asia-Pacific region. The ABACUS system allows travel
agents to book and gain access to information on hundreds of airlines, hotels and car rental
companies worldwide.
 ABACUS International chose SITA Link Emulator1 as the platform for developing the system and
chose SITA’s Passenger and Travel Solutions2, to build the application providing the online
connection to the CRS HOST and to their central database. The system is aimed at medium and
large-scale companies who value the benefits of automating the travel booking process for their
employees who travel frequently.
SITA is the world’s leading service provider of IT business solutions and communications services
to the air transport industry. SITA manages complex communication solutions for its air transport,
government and GDS customers over the world’s most extensive communication network,
complemented by consultancy in the design, deployment and integration of communication
services. Its extensive range of airline and airport applications and services includes airport
operations and integrated baggage services, common-use and desktop services, flight operations
and air-to-ground communications and end-to-end airline distribution and fares services.
SITA has two main subsidiaries: On Air, which is leading the race to bring in-flight mobile telephony to
the market, and CHAMP Cargo systems, the world’s only IT company solely dedicated to air cargo.
SITA also operates two joint ventures providing services to the air transport community: Aviareto for
aircraft asset management and CertiPath for secure electronic identity management and they sponsor
the Internet’s top level domain reserved exclusively for aviation – .aero. SITA covers 220 countries and
territories and the head office is in Geneva, Switzerland. SITA had aggregated revenues of US$ 1.554
billion in 2005 (€1.295 billion).
END OF CASELET 2

END OF
SECTION
B

Section C : Applied Theory (20 Marks)

 This section consists of questions with serial number 5 – 6 .
 Answer all questions.
 Marks are indicated against each question.
 Do not spend more than 25 -30 minutes on Section C.

<Answer>
“The Manager has a leadership role to play”. Explain how can MIS support this role.
5. ( 10 marks)

<Answer>
What is Prototyping? State the advantages and disadvantages of Prototyping.
6. ( 10 marks)

END OF SECTION C

END OF QUESTION PAPER

Suggested Answers
Management Information Systems (MC261): January 2008
Section A : Basic Concepts
Answer Reason
1. C Formal System is the system that rests on accepted and fixed definitions of data and procedures for < TOP >
collecting, storing, processing, disseminating, and using these data
2. C The study of information systems focusing on their use in business and management best describes a < TOP >
Management Information system.
3. C A marketplace that is created by computer and communications technologies that link many buyers and < TOP >
sellers defines a digital markets.
4. A knowledge management systems support the creation, capture, storage, and dissemination of firm expertise < TOP >
and knowledge.
5. A The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans is < TOP >
known as processing.
6. B The effector is the element which is used as a bridge between the actual situation and the standard required < TOP >
that helps in synchronizing the organizations activities.
7. D Every DSS tool contain Knowledge representation. < TOP >

8. B Projections and responses to queries are information output characteristics associated with an ESS. < TOP >

9. B Summary transaction data, high-volume data, and simple models are information inputs characteristics of an < TOP >
MIS.
10. D The strategic level is an example of an information system that uses advanced graphics and communications < TOP >
to address unstructured decision making.
11. A Supply chain is a network of facilities for procuring materials, transforming raw materials into intermediate < TOP >
and finished products, and distributing the finished products to customers.
12. A Libraries of statistical models are the most common models in a DSS software system. < TOP >

13. B Pperational control describes how to carry out specific tasks specified by strategic and middle management < TOP >
and establishing criteria for completion and resource allocation.
14. E A model of decision making stating that organizations are not rational and that decisions are solutions that < TOP >
become attached to problems for accidental reasons best describes the garbage can model of decision
making.
15. A chief information officer is the senior manager in charge of the information systems function in the firm. < TOP >

16. C C2C is the type of electronic commerce that involves consumers selling directly to consumers . < TOP >

17. A A prototype that is used as a reference for the new system and then is discarded best describes a Throwaway < TOP >
Prototype.
18. D Word processing, desktop publishing, and electronic calendars are examples of office systems. < TOP >

19. B The stored learning from an organization's history that can be used for decision-making and other purposes < TOP >
best describes a organizational memory.
20. A The most successful solutions or problem-solving methods that have been developed by a specific < TOP >
organization or industry best describes best practices .
21. A Expertise and experience of organizational members that has not been formally documented is known as < TOP >
tacit knowledge.
22. C Web personalization modifies the Web pages presented to each customer. < TOP >

23. A Internet-based supply chain management applications provide more responsive customer service. < TOP >

24. B A manager has to make an unstructured decision, which means that the manager has to use judgement based < TOP >
on previous experience, insight and careful evaluation.
25. B Planning is a process of determining the goals and objectives and evolving strategies < TOP >

26. B Top managers may use an ESS , a combination of MIS and DSS, to support their decision making. < TOP >

27. C Comparisons between enterprise data and internal standards industry averages or data on competitors this < TOP >
example is related to Problem finding information.
28. C The analysis that deals with information requirements derived from the critical factors for operating and < TOP >
managing an enterprise is calledCritical factor analysis.
29. C Goal-Seeking analysis is defined as making repeated changes to selected variables until a chosen variable < TOP >
reaches a target value.
30. D The first question to ask in any evaluation of a DSS is What kind of problem do you expect this system to < TOP >
solve?
 Section B : Problems
Implementation of CARD : < TOP >
1.
In order to test the utility of computerizing the registration process, the government of AP decided to launch a pilot
project in which 2 Sub Registrar Offices(SROs) were computerized . The government of AP faced the mammoth task
of computerizing about 387 SROs that registered 12 million documents every year . It was planned to implement the
project in different phases. In the first phase , 214 SROs were computerized.
The initial step of the project involved the installation of the basic infrastructure- hardware and software. In order to
effectively implement CARD the government of AP
trained employees in the required IT skills. Another important task was the installation of CARD application
software in the SROs.
Benefits
The CARD was well received by the citizens because it helped them to save time.The simplicity of the CARD
process also contributed to its popularity.The quality and turnaround time for all registration services have
dramatically improved. This highly visible project has tremendous replication potential all over India.
2. Prior to the implementation of the CARD project, the process of registering land deeds was done manually. The < TOP >
processes in the registration department included the valuation of property, to complete the complicated registration
process, citizens had to visit various government offices and private agencies. The various private agencies involved
in the registration process included stamp vendors, document writers and registration agents.
The registration process itself created many problems .The process was highly procedure-bound , complicated and
rigid and could not be easily understood by the citizens. One of the most important steps in the registration process
was the valuation of property. The basic guidelines framed for calculating the stamp duty, transfer duty , registration
fee and miscellaneous fee weren’t normally accessible to the public. Further the guidelines could not be easily
comprehended by even the literate citizens of the state. As a result, there was a lack of transparency in the valuation
of property.
Problems could arise even after registration had taken place. Registers into which details of land documents were
copied could decay due to age, poor maintenance or repeated handling. Apart from these problems , registering 12
million property transactions manually every year was an extremely difficult task.
In order to effectively implement CARD the government of AP trained employees in the required IT skills. Another
important task was the installation of CARD application software in the SROs.
The CARD was well received by the citizens because it helped them to save time.The simplicity of the CARD
process also contributed to its popularity.The quality and turnaround time for all registration services have
dramatically improved. This highly visible project has tremendous replication potential all over India.
3. The system comprises the following modules: < TOP >
Corporate booker module:
Allows the user to view availability and to request or book segments of their trip. The corporate user can use the
system at different levels to:
Request a trip with no online connection.
Connect online in order to view availability of air, car and hotel segments, and to make requests from these
availability views.
Connect online in order to view availability and to book segments.
Corporate authorizer module:
Used by a manager to authorize trips.
Travel agent booker module
Allows the travel agent to follow up on the booking made by their client. The agent can verify or book
segments, price the trip and issue the tickets.
System manager
Used by a system manager to set up relevant details about the company.
Policy manager
Used by a manager within a company to define the company policy details. This includes traveller
information, route deals for specific routes and Management Information System (MIS) details.
Report manager
Used to add, delete and edit reports. These reports may then be viewed in the other modules.
These reports are constructed in Crystal Reports.
The results
The advance system resulted in Abacus achieving the following successes:
 It is a more efficient and convenient way of making travel bookings than by using the
telephone or by employing labour-intensive travel agency implants.
Corporate clients can book their own trips according to their preferences while adhering to
corporate travel policies.
Junior personnel are restricted by company policy while more senior personnel are allowed
greater flexibility.
Companies can use the system to control and monitor travel within the company. The system
provides an automated and appropriate channel for getting the various approvals needed for travel.
Its built-in MIS features can capture relevant travel information so that corporate clients may
customize and generate relevant reports. Travel Agents can minimize the number of implants in their clients ’ offices,
freeing up valuable resources to provide more efficient customer service to their corporate clients.
4. Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on < TOP >
allocating its resources to pursue this strategy, including its capital and people.
The outcome is normally a strategic plan which is used as guidance to define functional and divisional plans,
including Technology, Marketing, etc.
Strategic Planning is the formal consideration of an organization's future course. All strategic planning deals with at
least one of three key questions:

1. "What do we do?"
2. "For whom do we do it?"
3. "How do we excel?"
In business strategic planning, the third question is better phrased "How can we beat or avoid competition?".
In many organizations, this is viewed as a process for determining where an organization is going over the next year
or more -typically 3 to 5 years, although some extend their vision to 20 years.
In order to determine where it is going, the organization needs to know exactly where it stands, then determines
where it wants to go and how it will get there. The resulting document is called the "strategic plan".
Vision, mission and values
Vision: Defines where the organization wants to be in the future. It reflects the optimistic view of the organization's
future. Mission: Defines where the organization is going now, basically describing the purpose, why this organization
exists. Values: Main values protected by the organization during the progression, reflecting the organization's culture
and priorities.
Methodologies:
There are many approaches to strategic planning but typically a three-step process may be used:
 Situation - evaluate the current situation and how it came about.

Target - define goals and/or objectives (sometimes called ideal state)

Path - map a possible route to the goals/objectives

In other terms strategic planning can be as follows:

 Vision - Define the vision and set a mission statement with hierarchy of goals

SWOT - According to the desired goals conduct analysis

Formulate - Formulate actions and processes to be taken to attain these goals

Implement - Implementation of the agreed upon processes

Control - Monitor and get feedback from implemented processes to fully control the operation

Situational analysis
When developing strategies, analysis of the organization and its environment as it is at the moment and how it may
develop in the future, is important. The analysis has to be executed at an internal level as well as an external level to
identify all opportunities and threats of the new strategy.
There are several factors to assess in the external situation analysis:
1. Markets (customers)
2. Competition
 3. Technology
4. Supplier markets
5. Labor markets
6. The economy
7. The regulatory environment.
It is rare to find all seven of these factors having critical importance. It is also uncommon to find that the first two -
markets and competition - are not of critical importance.
Analysis of the external environment normally focuses on the customer. Management should be visionary in
formulating customer strategy, and should do so by thinking about market environment shifts, how these could impact
customer sets, and whether those customer sets are the ones the company wishes to serve.
Analysis of the competitive environment is also performed, many times based on the framework suggested by
Michael Porter.
Importance of Strategic Planning:
Strategic planning is a very important business activity. It is also important in the public sector areas such as
education. It is practiced widely informally and formally. Strategic planning and decision processes should end with
objectives and a roadmap of ways to achieve those objectives.

Section C: Applied Theory

In order to build an effective management system, managers need to handle business risk and uncertainties < TOP >
5. effectively in an organization that helps them to reach their goals and objectives on time. MIS needs to furnish the
information to the managers to fine-tune and expand their knowledge so that they can know about the adverse
trends in business and any failures in the management process and it should be supported by a good decision
support system to help the managers to take up effective and timely decisions. Modern business management
requires the traditional controls to be shifted managerial control and hence it requires the managers to handle the
tasks efficiently, which they are responsible for . If a good MIS supports the manager in his specific task of
business management, he will be able to face any business risks and uncertainties that may arise. Moreover the
managers have to keep themselves abreast on the information of how the latest and forthcoming technologies can
affect their business prospects and hence they require an effective MIS to support their activities.
6. Prototyping is the process of quickly putting together a working model (a prototype) in order to test various aspects < TOP >
of a design, illustrate ideas or features and gather early user feedback. Prototyping is often treated as an integral
part of the system design process, where it is believed to reduce project risk and cost. Often one or more prototypes
are made in a process of incremental development where each prototype is influenced by the performance of
previous designs, in this way problems or deficiencies in design can be corrected. When the prototype is
sufficiently refined and meets the functionality, robustness, manufacturability and other design goals, the product is
ready for production.
Advantages of prototyping
 May provide the proof of concept necessary to attract funding

Early visibility of the prototype gives users an idea of what the final system looks like .

Encourages active participation among users and producer

Enables a higher output for user

Cost effective (Development costs reduced)

Increases system development speed

Assists to identify any problems with the efficacy of earlier design, requirements analysis and
coding activities

Helps to refine the potential risks associated with the delivery of the system being developed

Disadvantages of prototyping
 User’s expectation on prototype may be above its performance.

Possibility of causing systems to be left unfinished.

Possibility of implementing systems before they are ready.

Producer might produce a system inadequate for overall organization needs

Producer might get too attached to it (might cause legal involvement).

Often lack flexibility.

Not suitable for large applications .

Project management difficulties.

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