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University of Malakand
Question No 2: What is information system? Explain different Types of information system in detail.
ANSWER:
An Information System (IS) is a system composed of people and computers that processes or
interprets information.
Types of Information system:
1) Transaction Processing System (TPS)
A small business processes transactions that result from day-to-day business operations, such as the creation of
paychecks and purchase orders, using a transaction processing system, or TPS. The TPS, unlike a batch system,
requires that users interact with the system in real time to direct the system to collect, store, retrieve and modify
data.
2) Management Information System (MIS)
Small-business managers and owners rely on an industry-specific management information system, or MIS, to get
current and historical operational performance data, such as sales and inventories data. Periodically, the MIS can
create prescheduled reports, which company management can use in strategic, tactical and operational planning and
operations
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University of Malakand
Question No 3: What is decision support? Explain what-if analysis and sensitivity analysis.
ANSWER:
A decision support system (DSS) is a computer program application that analyzes business data and presents it so
that users can make business decisions more easily.
What-if Analysis:
What-if analysis is a brainstorming technique used to determine how projected performance is affected by changes
in the assumptions that those projections are based upon. What if analysis is often used to compare different
scenarios and their potential outcomes based on changing conditions. Often used scientific research and in
conjunction with business and financial risk assessments, sensitivity analysis is applicable to virtually any activity or
system..
Sensitivity analysis
Sensitivity analysis is the study of how the uncertainty in the output of a mathematical model or system (numerical
or otherwise) can be apportioned to different sources of uncertainty in its inputs. A related practice is uncertainty
analysis, which has a greater focus on uncertainty quantification and propagation of uncertainty. Ideally, uncertainty
and sensitivity analysis should be run in tandem.
Question No 4:- What is interactive marketing? How marketing information system (MKIS) is developed.
ANSWER:
Interactive marketing is an evolving trend in marketing where marketing has moved from a transaction-based
effort to a conversation.
Developing Marketing Information System;1) Internal data:- Internal data is gathered via customer databases, financial records, and operations reports.
Advantages include quick and easy access to information. Disadvantages stem from the incompleteness or
inappropriateness of data to a particular situation.
2) Marketing intelligence:- Marketing intelligence is the systematic collection and analysis of publicly
available information about competitors and trends in the marketing environment. Competitive intelligence
gathering activities have grown dramatically. Many sources of competitive information exist.
3) Marketing research:- Marketing research is the systematic design, collection, analysis, and reporting of data
relevant to a specific marketing situation facing an organization.
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University of Malakand
Question No.5: Explain LAN and WAN with the help of examples. Also write advantages of computer network.
ANSWER:
local area network (LAN) is a group of computers and associated devices connected to a server using a shared
common communications line or wireless link. LANs are for smaller, more localized networking in a home,
business, school, etc. LANs are typically faster and more secure. LANs tend to be owned, controlled and managed
in-house by the organization where they are deployed,
EXAMPLES:- Ethernet and Wi-Fi are the two most commonly used LAN technologies
Wide area network (WAN) A wide area network (WAN) is a network that covers a broad area using leased
telecommunication lines. Business and government entities use WANs to relay data among employees, clients,
buyers, and suppliers from various geographical locations. In essence, this mode of telecommunication allows a
business to effectively carry out its daily function regardless of location.
Examples: For home routers the port the router connects to your Internet connection is often labeled as a WAN,
Network
Question No.6:- What is the difference between Database and DBMS? Write down advantages and disadvantages of database
approach.
Difference between Database and DBMS: - A database is any collection of data; it can be words you write on a piece of
paper or a digital file. A Database Management System (DBMS) is a piece of software that manages databases and
lets you create, edit and delete databases, their tables and their data. Examples of a DBMS are MySQL, MS SQL
Server, Oracle, PostgreSQL and SQLite.
Advantages and disadvantages of database approach:ADVANTAGES of database approach :
1. Data Independence:
The data is held in such a way that changes to the structure of the database do not effect any of the programs used to
access the data.
2. Consistency of Data:
Each item of data is held only once therefore no danger of item being updated on one system and not on another.
5. Greater Security of Data:
The DBMS can ensure only authorized users are allowed access to the data.
6. Centralized Control of Data :
The Database Administrator will control who has access to what.
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University of Malakand
Larger Size :
More disk space is required and probably a larger and more powerful computer.
2. Greater Complexity :
For optimum use the database must be very carefully designed. If not done well, the new system may fail to
satisfy anyone.
3. Greater Impact of System Failure :
"All eggs in one basket."
4. More Complex Recovery Procedures :
If a system failure occurs it is vital that no data is lost.
Information quality.
Characteristics of a system.
Various phases of system development life cycle. (SDLC)
1) Information quality (IQ) is a term to describe the quality of the content of information systems.
Here are the key criteria used to determine quality of information:
ACCURATE - The information must be true, verifiable, and not deceptive.
CURRENT - The information must be applicable to the present time.
RELEVANT - Relevant information applies to the interests of the individuals who use it for the decisions they are
facing.
SPECIFIC - For information to be specific, it must contain concrete facts.
UNDERSTANDABLE - People using information must be able to comprehend it before they can use it.
COMPREHENSIVE - The information should include all the important categories within its scope of coverage.
2) Characteristics of a system:a) Objective: Every system has a predefined goal or objective towards which it works.
b) Standards: It is the acceptable level of performance for any system.
c) Environment: Every system whether it is natural or manmade co-exists with an environment. It is very
important for a system to adapt itself to its environment.
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University of Malakand
d) Feed Back: Feedback is an important element of systems. The output of a system needs to be observed and
feedback from the output taken.
e) Boundaries: Every system has defined boundaries within which it operates. Beyond these limits the system has to
interact with the other systems.
f) Interface: Interfaces are another important element through which the system interacts with the outside world.
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