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IGNOU MBA MS-07 Solved Assignment December 2012

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1.What are Operating Systems? What are their functions? Describe the Open Systems Interconnection Reference Model (OSI Model) & its seven layers. Ans: What are Operating Systems An operating system is a set of computer programs that controls the computer hardware and acts as an interface with the application programs. The operating system plays a central role in the functioning of a computer system. It is usually stored on disk, after the computer system is started or booted up portions of operating system are transferred to memory as required. The kernel as the name suggests is the heart of the operating system and controls the most critical processes. Windows by Microsoft, Linux, UNIX, and the Macintosh are the commonly used operating systems. Functions of Operating System An operating system performs allocation and assignment of system resources, schedules the use of computer resources, monitors the computer system activities etc. The various activities performed by a typical operating system are: Performing common computer hardware functions. Providing a user interface Providing a degree of hardware independence Managing system memory Managing processing tasks Providing networking capability Controlling access to system resources Managing files Common Hardware Functions All application programs must perform certain tasks. For example Getting input from the keyboard or some other input devices Retrieving data from disks

 Storing data on disks Displaying information on a monitor or printer Open Systems Interconnection Reference Model (OSI Model) & its seven layers The International Standards Organization developed a framework for computer communication with an objective of providing a standard. The model provided by ISO is known as Open Systems Interconnection Reference Model, popularly as OSI model. The OSI model has seven layers. Each layer has a well-defined function and interface. Development and management of software has become simple due to the OSI model. The seven layers are briefly described here. Application Layer This is the top layer and provides user with an interface to the network. The primary purpose is to provide a set of utilities for application programs. Presentation Layer This layer formats the data for presentation to the user. This layers, for instance, might compress/uncompress the data. Session Layer This layer is responsible for initiating, maintaining, and terminating the network session on behalf of an application. Transport Layer This layer is responsible for creating data units called packets from the data that is to be transmitted. Each unit is appended with enough information about its source and destination so that it can travel independently on the network without having to worry about other packets. The packets are combined at the destination into the original message. This layer makes sure that each packet has been received and without error. It may request re-transmission of a packet if required. Network Layer

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This layer accepts messages generated by the transport layer. Its responsibility is to route packets to the destination. Data link Layer This layer is responsible for initiating the physical transmission of the data. This layer also detects and corrects errors that might have occurred during transmission. Physical Layer This layer is concerned with transmission of data bits. This layer defines rules for transmission, such as voltage. The TCP/IP model consists of four layers- application layers, network layer, data link layer, and physical layer. The network layer is equivalent to presentation layer, session layer, transport layer, and network layer of OSI model.

2.Define MIS. Describe the function that MIS supports in an organization. What are the various ways of assessing the value of information. Also explain each method briefly. Ans: MIS The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management, and the decisionmaking function in the organization. An MIS deals with information that is systematically and routinely collected in accordance with a well-defined set of rules. In other words, data collection is a planned activity for which resources are allocated and rules are defined. The Function That Mis Supports In An Organization The information provided by an MIS assists managers in planning, organizing, staffing, coordinating, directing and controlling the operations of an organization. The management experts have viewed these steps as Management Control system.

Information systems are used in all functional areas and operating divisions of business. In finance and accounting, information systems are used to forecast revenue and business activity, determine the best sources and uses of funds. Information systems have been used for managing cash and other financial resources, and analyzing investment. Financial health of an organization is also checked using IS. In sales and marketing, information systems are used to develop new goods and services (product analysis), determining the best location for production and distribution facilities (site analysis), determine the best advertising and sales approaches (promotion analysis) and set product prices to get the highest total revenues (price analysis). In manufacturing, information systems are used to process customer orders, develop production schedules; control inventory lends and monitor product quality. Service industries such as airline industry and railways use information systems to serve their customers better. Banks and other investment firms use IS to make good investments and sanction sound loans. Publishing houses, healthcare organizations, and retail companies all make use of information systems to serve their customers better and maximize their profit. Various Ways Of Assessing The Value Of Information The value of information is measured in terms of benefits to the organization. The benefits may be tangible that can be easily quantified. For example, 5% increase in sales is a tangible benefit, which corresponds to Rs. 50,000. If the cost of the information that led to this additional profit is Rs. 20,000. Then the value of the information is Rs. 30,000. Sometimes, the benefits may be intangible and cannot be easily quantified. For instance, the information may help consumers to connect to a company better. The employees may feel respected in an organization if more information is shared with them. In both the cases, the attrition rate will decrease

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and the corresponding benefit cannot be directly measured in terms of financial benefit to the organization. There are many methods to assess value of information system, which is explained below. 1) Cost-benefit analysis IT project and investments has to take its place in the queue for all too scarce cash resources, and the rules for justifying are the same as for any other project A more sophisticated argument is that, because the risks inherent in decision about IT are higher, the expected ROI needs to higher before an investment can be justified. Because of high sum, IT investment has a high potential to damage the organization. A new product is equally risky. But fundamentally, decision makers are less comfortable about IT because of their ignorance of the issues and they lack faith in the estimates presented to them. The main points: IT is high risk, high cost; at the same time IT has potential for substantial benefits Managers are not conversant with all aspects of the decision - due to rapid pace of change of technology. There is no trusted track record of benefits of IT investments IT decision should be made by IT professionals in consultation with general management of the organization IT investment should get integrated with organizations strategy/processes An organization should start with simple and inexpensive systems, gain experience and then move to better, more involved systems The systems being used by the competition may be used as a guideline. Identification of IT Costs IT cost is so hard to estimate that one may be off by 50% or more. One of reasons is that the overheads are excessive. If one unit of money is invested in IT, 57 units will be spent on human resources etc. The Table 6.1 gives the cost involved. a) Direct Cost Environmental operating cost

 Hardware cost Software cost Installation and configuration costs Overheads Training cost Maintenance cost b) Indirect Human Costs Indirect human cost is more significant than direct cost and it is very illusive in nature. Following is the taxonomy of indirect human costs: Management Time Management effort and dedication Employee Training Management Resources Personnel Issues Cost of ownership Employee Time Employee Motivation c) Indirect Organizational Costs Losses in productivity Organizational Productivity Strains on Organizational Resources Opportunity Cost and Risk Business Process Reengineering Covert Resistance 2) Return on Investment (ROI) Another measure of IS value is return on investment (ROI). This method tries to quantify additional profits that are generated as a percentage of the investment in information system technology. For an example, a manufacturing firm invested 5 lakh rupees in IS and an additional benefit due to increased sales is 50 thousand rupees, then the return on investment is 50,000 100 = 10%. 500,000 In other words, the return on investment is 10%. The company might perform this analysis before installing the information system with an objective of determining the utility of the system. The same analysis may be performed after the installation to check the delivered benefits of the IS against expected benefits.

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3) Earning Growth Another measure of IS value is the increase in earnings growth. Let us say, an organization experienced 6% sales growth in year 2000. After installing IS, the sales growth became 11%. Assuming that no other factors affected sales, 5% increase in the sales are due to information system. 4) Market Share Similar to earning growth one can also evaluate value of IS in terms of increased market share. 5) Customer Awareness and Satisfaction Customer satisfaction is one of the most valued intangible benefits of an information system. For instance, an information system may help customer track status of their orders. Customer may check the stock status before he places an order. The information may be available on-line or through an operation who has access to information system of the company. There are many companies that conduct survey on behalf of their client companys to determine the satisfaction level of their customers.

3.Distinguish between information and knowledge. Develop an information system for human resource department. Explain how a properly developed information system contributes to business development and company profits. Ans: Information And Knowledge Information:Data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions it reduces uncertainty, reveals additional alternatives or helps eliminate irrelevant or poor ones.

Knowledge: is an awareness and understanding of a set of information that help decision-making. Knowledge makes a person wise. The sequence is the following-data is processed to get information; information makes a person knowledgeable, knowledge adds to the wisdom. Information system for human resource department. HRIS Defined Human Resource Information System provides a method by which an organisation collects, maintains, analyses and reports information on people and jobs. The information contained in the HRIS serves as a guide to recruiters, trainers, career planners and other human resource specialists. It applies to information needs at macro level as well as to the micro level. Human resource information at macro Level The Data base required for purposes of making forecasts of manpower at the macro level is indicated in the table mentioned below

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

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BUSINESS PERSPECTIVE OF INFORMATION SYSTEMS The terms Information Systems and Information Technology are used synonymously. The impact of IT on a business has been tremendous. One of the advantages of IT

systems for a business is the cost-performance ratio, which is better in case of computers. The labor cost increases every year but the cost of computer does not increase. A better and more powerful computer can be bought for the same price after a year. It is better to use computers for routine jobs as far as possible. The IT has been used in every business and for every function of a business. Some of the applications are as follows. Finance and Accounting : IT has been used for forecasting revenues, determining the best sources and uses of funds and managing cash and other financial resources. IT has also been used to analyze investments and perform audits. Sales and Marketing : IT has been used to develop new services, which may not exist without IT. IT has helped management of various organizations to determine the best location for production and distribution facilities. The operational data has been analyzed using IT to determine the best advertising and sales approaches. The product prices have been set using IT to get the highest total revenues. In other words, IT has been used for product analysis and price analysis. Manufacturing : IT has been extensively used for processing customer orders, controlling inventory levels, developing production schedules and for monitoring product quality. A whole new discipline Computer Aided Design and Computer Aided Manufacturing has evolved due to application of IT to design and manufacturing. The manufacturing is not what is used to be due to the use of computers, Computer Integrated Manufacturing (CIM) dominates the manufacturing sector. Human Resource Management : Companies are using IT systems for screening applicants and conducting various tests. Project Management : A range of software packages are available in the market for managing projects. These software products let the management set the schedules, milestones, facilitate communication among group members, and monitor the project progress. These products help in document and report

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preparation. Data Analysis : Investment firms heavily use information systems to analyze stocks, bonds and options to provide better service to their clients.

4.Discuss the steps involved in system analysis and design. What specific considerations are required for proper implementation and maintenance? Ans: SYSTEMS ANALYSIS Systems analysis is the analysis of the problem that the organization will try to solve with an information system. It consists of Defining the problem, Identifying its causes, Specifying the solution Identifying the information requirements that must be met by a system solution. The key to building any large information system is a thorough understanding of the existing organization and system. Thus, the systems analyst creates a road map of the existing organization and systems, identifying the primary owners and users of data in the organization. These stakeholders have a direct interest in the information affected by the new system. In addition to these organizational aspects, the analyst also briefly describes the existing hardware and software that serve the organization. From this organizational analysis, the systems analyst details the problems of existing systems. By examining documents, work papers, and procedures; observing system operations; and interviewing key users of the systems, the analyst can identify the problem are and objectives to be achieved by a solution. Often the solution requires buildings a new information system or improving an existing one. Feasibility

In addition to suggesting a solution, systems analysis involves a feasibility study to determine whether that solution is feasible, or achievable, given the organizations resources and constraints. Three major areas of feasibility must be addressed: Technical Feasibility: Whether the proposed solution can be implemented with the available hardware, software, and technical resources. Economic Feasibility: Whether the benefits of the proposed solution outweigh the costs. Organizational Feasibility: Whether the proposed solution is desirable within the existing managerial and organizational framework. Normally the systems analysis process will identify several alternative solutions that can be pursued by the organization. The process will then assess the feasibility of each. Three basic solution alternatives exist for every systems problem: 1. To do nothing, leaving the existing situation unchanged 2. To do modify or enhance existing systems 3. To develop a new system Establishing Information Requirements Perhaps the most difficult task of the systems analyst is to define the specific information requirements that must be met by the system solution selected. This is the area where many large system efforts go wrong and the one that poses the greater difficulty for the analyst. At the most basic level, the information requirements of a new system involve identifying who needs what information, where, when, and how. Requirements analysis carefully defines the objectives of the new or modified system and develops a detailed description of the functions that the new system must perform. Requirements must consider economic, technical, and time constraints, as well as the goals, procedures, and decision processes of the organization. Faulty requirements analysis is a leading cause of systems failure and high systems development costs. Some problems do not require an information system solution, but instead need an

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adjustment in management, additional training, or refinement of existing organizational procedures. If the problem is information-related, systems analysis may still be required to diagnose the problem and arrive at the proper solution. SYSTEMS DESIGN While systems analysis describes what a system should do to meet information requirements, systems design shows how the system will fulfill this objective. The design of an information system is the overall plan or model for that system. Systems design has three objectives. First, the systems designer is responsible for considering alternative technology configurations for carrying out and developing the system as described by the analyst. This may involve analyses of the performance of different pieces of hardware and software, security capabilities of systems, network alternatives, and the portability or changeability of systems hardware. Second, designers are responsible for the management and control of the technical realization of systems. Detailed programming specifications, coding of data,documentation, designers are responsible for the actual procurement of the hardware,consultants, and software needed by the system. Third, the systems designer details the system specifications that will deliver thefunctions identified during systems analysis. These specifications should address all of the managerial, organizational, and technological components of the system solution. Logical and Physical Design The design for an information system can be broken down into logical and physical design specifications. Logical design lays out the components of the system and their relationship to each other, as they would appear to users. It showed what the system solution would do as opposed to how it is actually implemented physically. It describes inputs and outputs, processing functions to be performed, business procedures, data models, and controls. (Controls specify standards for acceptable performance and

methods for measuring actual performance in relation to these standards. They are described in detail). Physical design is the process of translating the abstract logical model into the specific technical design for the new system. It produces the actual specifications for hardware, software, physical databases, input/output media, manual procedures, and specific controls. Physical design provides the remaining specifications that transform the abstract logical design plan into a functions system of people and machines. Design Alternative Before the design of an information system is finalized, analysts will evaluate various design alternatives. Based on the requirements definition and systems analysis, analysts construct high-level logical design models. They then examine the costs, benefits, strengths, and weaknesses of each alternative IMPLEMENTATION AND MAINTENANCE The remaining steps in the systems development process translate the solution specifications established during systems analysis and design into a fully operational information system. These concluding steps consist of programming, testing, conversion, and production and maintenance. Programming During the programming stage,system specifications that were prepared during the design stage are translated into program code. On the basis of detailed design documents for files, transaction and report layouts, and other design details, specifications for each program in the system are prepared. Testing Exhaustive and thorough testing must be conducted to ascertain whether the system produces the right results. Testing answers the question, Will the system produce the desired results under known conditions? Testing information system can be broken down into three types of activities: Unit testing, or program testing, consists of testing each program separately in the system. While it is widely believed that the purpose of such testing each program separately

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in antee that programs is error free, this goal is realistically impossible. Testing should be viewed instead as a means of locating errors in programs, focusing on finding all the ways to make a program fail. Once pinpointed, problems can be corrected. System testing the functioning of the information system as a whole. It tries to determine if discrete modules will function together as planned and whether discrepancies exist between the ways the system actually works and the way it was conceived. Among the areas examined are performance times, capacity for the storage and handling peak loads, recovery and restart capabilities, and manual procedures. Acceptance testing provides the final certification that the system is ready to be used in a production setting. Systems tests are evaluated by users and reviewed by management. When all parties are satisfied that the new system meets their standards, the system is formally accepted for installation. Conversion Conversion is the process of changing from the old system to the new system. It answers the question, Will the new system work under real conditions? Four main conversion strategies can be employed: the parallel strategy, the direct cutover strategy, the pilot study strategy, and the phased approach strategy In a parallel strategy, both the old system and its potential replacement are run together for a time until everyone is assured that the new one functions correctly. The direct cutover strategy replaced the old system entirely with the new system on an appointed day. At first glance, this strategy seems less costly than parallel conversion strategy. However, it is a very risky approach that can potentially be more costly than parallel activities if serious problems with the new system are found.

There is no other system to fall back on. Dislocations, disruptions, and the cost of corrections may be enormous. The pilot study strategy introduces the new system only to a limited area of the organization, such as a single department or operating unit. When this pilot version is complete and working smoothly, it is installed throughout the rest of the organization, either simultaneously or in stages. The phased approach strategy introduces the new system in stages, either by functions or by organizational units. If, for example, the system is introduced by functions, a new payroll system might begin with hourly workers who are paid weekly, followed six months later by adding salaried employees who are paid monthly to the system. If the system is introduced by organizational units, corporate headquarters might be converted first, followed by outlaying operating units four months later. Production and Maintenance After the new system is installed and conversion is complete, the system is said to be in production. During this stage, both users and technical specialists to determine how well it has met its original objectives and to decide whether any revisions or modifications are in order will review the system. Changes in hardware, software, documentation, or improve processing efficiency are termed maintenance.

5.What do you understand by Intranet and Internet? E-commerce has emerged as vital component in todays business. Explain by giving its features, constraints and examples. Ans: Internet Internet or Inter-Network is the connection of two or more networks so that a computer on one network can communicate with a computer on another network. The Internet is a set of thousands of networks linked together around the world. The communication between two computers takes place such that the user does not have

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to worry about the technology used by the networks. It is easy to find out the location of another system on the network. The router (also called gateway) acts as an interface between two networks. The Internet has no central administration but there are protocols, which are followed by each network of Internet. Intranet An Intranet is a network that connects the internal computing resources of an organization. The prime motive of Intranet is to facilitate information sharing within the organization with the help of tools such as web browsers. For instance, a manager can check the inventory level sitting in his own room. Email becomes an easy way to communicate, without having to worry about the physical presence of the person on his seat. Intranets operate within the companys firewalls. A firewall is a method of isolating the companys computers behind a device that acts as a gatekeeper. All outgoing requests for information go to a special computer, which hides the senders machine address but passes on the request. All incoming information is also checked by the firewall computer. Employees can venture out into the Internet but unauthorized users cannot come in. Features And Contraints Of E-commerce Features Of E-commerce Lower Cost Doing e-business is cost effective; it reduces logistical problems and puts a small business on a par with giants such as Amazon.com or General Motors. In a commercial bank, for example. a basic over-the-counter transaction costs 0.50 to process; over the Internet, the same transaction costs about 0.01. Every financial transaction eventually turns into an electronic process. The sooner it makes the conversion, the more cost-effective the transaction becomes. Economy Unlike the brickandmortar environment, in ecommerce there is no physical store space, insurance, or infrastructure investment. All you need is an idea, a unique product, and a welldesigned web storefront to reach your

customers, plus a partner to do fulfillment. This makes ecommerce a lot more economical. Higher Margins Ecommerce means higher margins. For example, the cost of processing an airline ticket is 5. According to one travel agency, processing the same ticket online costs 1. Along with higher margins, businesses can gain more control and flexibility and are able to save time when manual transactions are done eletronically. Better Customer Service Ecommerce means better and quicker customer service. Online customer service makes customers happier. Instead of calling your company on the phone, the web merchant gives customers direct to their personal account online. This saves time and money. For companies that do business with other companies, adding customer service online is a competitive advantage. The overnight package delivery service, where tracking numbers allow customers to check the whereabouts of a package online, is one good example. Quick Comparison Shopping Ecommerce helps consumers to comparison shop. Automated online shopping assistants called hopbots scour online stores and find deals on everything from apples ro printer ribbons. Productivity Gains Weaving the web throughout an organisation menas improved productivity. For example IBM incorporated the web into every corner of the firm products, marketing, and practices. The company figured it would save $750 million by letting customers find answers to technical questions via its website. The total cost savings in 1999 alone was close to $1 billion. Teamwork Email is one example of how people collaborate to exchange information and work on solutions. It has transformed the way organisations interact with suppliers, vendors, business partners, and customers. More interactions means better results. Knowledge Markets Ecommerce helps create knowledge markets. Small groups inside big firms can be funded with seed money to develop new ideas. For example, DaimlerChrysler has created small teams to look for new trends and products. A Silicon Valley team is doing consumer research on electric cars and advising car designers. Information Sharing, Convenience, And Control Eletronic marketplaces improve information sharing between merchants and customers and promote quick, justintime deliveries. Convenience for the consumer is a major driver for changes in various industries. Customers and merchants save money; are online 24 hours a day, 7 days a week;

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experience no traffic jams, no crowds, and do not have to carry heavy shopping bags. Disadvantages Of Ecommerce Security Security continues to be a problem for online businesses. Customers have to feel confident about the integrity of the payment process before they commit to the purchase. System And Data Integrity Data protection and the integrity of the system that handles the data are serious concerns. Computer viruses are rampant, with new viruses discovered every day. Viruses cause unnecessary delays, file backups, storage problems, and other similar difficulties. The danger of hackers accessing files and corrupting accounts adds more stress to an already complex operation. System Scalability A business develops an interactive interface with customers via a website. After a while, statistical analysis determines whether visitors to the site are onetime or recurring customers. If the company expects 2 million customers and 6 million show up, website performance is bound to experience degradation, slowdown, and eventually loss of customers. To stop this problem from happening, a website must be scalable, or upgradable on a regular basis. Ecommerce Is Not Free So far, success stories in ecommerce have forced large business with deep pockets and good funding. According to a report, small retailers that go headtohead with ecommerce giants are fighting losing battle. As in the brickandmortar environment, they simply cannot compete on price or product offering. Brand loyalty is related to this issue, which is supposed to be less important for online firms. Brands are expected to lower search costs, build trust, and communicate quality. A search engine can come up with the best music deals, for example, yet consumers continue to flock to trusted entities such as HMV. Consumer Search Is Not Efficient or Costeffective On the surface, the electronic marketplace seems to be a perfect market, where worldwide sellers and buyers share and trade without intermediaries. However, a closer look indicates that new types of intermediaries are essential to ecommerce. They include electronic malls that guarantee legitimacy of transactions. All these intermediaries add to transaction costs. Customer Relations Problems Not many businesses realise that even ebusiness cannot survive over the long term without loyal customers.

Products People won't buy online Imagine a website called furniture.com or living.com, where venture capitalists are investing millions in selling home furnishings online. In the case of a sofa, you would want to sit on it, feel the texture of the fabric etc. Beside the sofa test, online furniture sotres face costly returns which makes the product harder to sell online. Corporate Vulnerability The availability of product details, catalogs, and other information about a business through its website makes it vulnerable to access by the competition. The idea of extracting business intelligence from the website is called web framing. High Risk Of Internet Startup Many stories unfolded in 1999 about successful executives in established firms leaving for Internet startups, only to find out that their getrich dream with a dot.com was just that a dream.