5.

22 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

Chapter 3 — COMMUNICATION THROUGH COMPUTERS

(i )

Distinguish between Centralised processing and Distributed processing.

i.
Centralised processing refers to an environment consisting of a large main frame computer, which supports multiple
users and multiple application programs. Users have access to computer resources via numerous remote computer
devices, including on-line terminals.
Distributed processing on the other hand, seeks to spread the computing needs across the organisation. There may
be one large, central computer with series of small computers, even mini computers or microcomputers, or there
may be a number of computers of equal size scattered geographically. In distributed processing, the individual
computers are tied together through a high-speed data communication network. This allows individual computers to
communicate with one another in a variety of ways, depending on the organisation.

(ii )

Distinguish between serial vs. parallel transmission.

ii.
In serial transmission, the bits of each byte are sent along a single path one after another.
In parallel transmission, there are separate, parallel path corresponding to each bit of the byte so that all character
bits are transmitted simultaneously.

(iii )

Distinguish between Synchronous vs. Asynchronous transmission.

iii.
In asynchronous transmission, each character to be transmitted is preceded by a start bit and terminated by a stop
bit. It is also called start/stop transmission. The start bit informs the receiver that a new character is being sent. The
character is then sent, followed by a stop bit designating that the transfer of that bit is complete. Between data units
that are transmitted, there exists a gap.

(iv )

Distinguish between Internet and Intranet

iv.
The Internet is the network of inter-connected networks scattered all over the World. The Inter-connected network
consists of participation of commercial, Governmental, non-profit making, etc. organisations.
The Intranet is an inter-organisational network.
 5.23 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

(v )

What are the essential control techniques for security of client/server environment?

v.
To increase the security of client/server environment, the following points may be considered —
 Diskless workstation, to prevent unauthorised access
 Authentication
 Disabling automatic boot or startup batch files, thereby forcing only authorised users to participate
 Network monitoring software
 Application controls, such as using firewalls, etc.
 Implementation of data encryption techniques

(vi )

What are the risks associated with client/server model?

vi.
One of the drawbacks of client/server computing is security. Client/server computing did not originate with the
security that is needed for organisations to operate in today’s environment. But as client/server computing is
growing and expanding, its security is definitely improving and client/server computing is getting significantly
closer to its ultimate goal. However, online transaction model needs to be more safeguarded.
The risks associated with client/server model can be summarised as —
 Technological risks as to obsolescence of the technology being used, since IT is a very fast moving
industry.
 Operational risks regarding performance that this new system can deliver
 Economic risks. In short run, firms are susceptible to hidden costs associated with the initial
implementation of the new client/server system. Cost will rise in the short term since one needs to maintain
the old system (mainframe) and the new client server architecture development. In the long run, the
concern centers on the support costs of the new system.

(vii )

Why there is a rise in Internet Computer fraud? Give examples of some of the Internet frauds.

vii.
Major external threat is fraud perpetrated over the Internet. Just as the internet can be used for legitimate
commerce, so can its power be harnessed for criminal and fraudulent purposes? There are a number of
characteristics of Internet, which attract
i) Internet is unregulated, in so far as who may set up a site. There is no license fees payable to any central
authority.
ii) Internet allows fraudsters to have global as they can set up site anywhere in the world at a very low cost
 Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.24
and can reach any where else
iii) An impressive site with links to established companies or financial institutions may be no more than an
empty shell there is no easy ways of separating the genuine from the false
iv) The glamour and novelty of the Internet may cause otherwise prudent investors to become involved in
fraudulent schemas
v) A site may, and probable will, operate outside the legal jurisdiction of the country in which the victim of
the fraud resides.
Organisation that tracks computer frauds estimates that 80% of businesses have been victimized by at least one
incident of computer fraud. However, for the following reasons no one knows, exactly how many companies loose
to computer fraud —
 There is no unanimous or undisputed agreed upon definition of malpractices which constitutes computer
fraud
 It is estimated that only 1% of all computer crime is detected
 80%-90% of the frauds data that are uncovered are not reported
 Most networks have a low level of security, it is estimated that two out of three sides have serious
vulnerabilities, and most firewalls and other protective measures at the sites are ineffective
 Law enforcement is unable to keep up with the growing number of computer frauds
 Many Internet pages give step by step instructions on how to perpetrate computer fraud and abuses.

(viii )

What is video conferencing, and what are its applications?

viii.
• Video conferencing can be defined as a type of audio-visual meeting, where data is visuals captured by
video camera and audio by microphone, both sent over electronic media.
• Video conferencing can be applied to — (i) Finance, (ii) Education, (iii) Manufacturing

(ix )

Write short notes on

a. Network Topologies
b. Intranet
c. ERP
d. Data Mining
e. Switching Networks

ix.
• Refer § 11.0 (chapter 3) for Network Topologies
• Refer § 13.8 (chapter 3) for Intranet
• Refer § 15.0 (chapter 4) for ERP
Part (d) Data mining
 5.25 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
Data mining basically refers to a knowledge discovery based data analysis, which enables the extraction of
implicit and useful information from the database. It is also known as knowledge data discovery. Careful
analysis of data might reveal the pattern, which could be used for marketing of the product.
Data mining is primarily used today by companies with a strong consumer focus — retail, financial,
communication and marketing organisations. It enables these companies to determine relationships among
“internal” factors such as price, product positioning or staff skills and ‘external’ factors such as economic
indicators, competition and customer demographics.
Part (e) Switching Networks
Switching networks are means of establishing the relationship between two nodes so that communication can
take place.
• Circuit switching, also known as line-switching network, is a technique employed in telephone network for
an end-to-end transmission path to be set up for full duration of the communication.
• Message switching
• Packet switching

(x )

What are the disadvantages of Internet?

x.
The disadvantages of Internet are summarised below —
 Security threat is defined as a circumstance, condition or event with the potential to cause economic
hardship to data or network resources in the form of destruction, disclosure, modification of data and
denial of service.
 Four components of costs involved with Internet are:
o Connection costs to the Internet
o Hardware/Software cost
o Set-up cost
o Maintenance cost
 Lack of skilled personnel
 Uncertainty and lack of information.

(xi )

What do you understand by the following:–

a. Secure Sockets Layer (SSL)
b. Secure Electronic Transactions (SET)

xi.
Part (a) SSL
Secure Socket Layer (SSL) is a protocol developed by Netscape for transmitting private documents via the Internet.
SSL works by using a private key to encrypt data that is transferred over the SSL connection. SSl comes in two
strength, 40-bit and 128-bit, which refer to the length of the “session key”, generated by every encrypted
transaction. The longer the key, the more difficult it is to break the encryption code.
 Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.26
Part (b) SET
Secure Electronic Transaction is a standard that will enable secure credit card transactions on the Internet. SET has
been endorsed by virtually all the major players in the e-commerce arena, including Microsoft, Netscape, Visa,
MasterCard, etc. by employing digital signature, SET enable merchants to verify that buyers are who they claim to
be. It also protects buyers by providing a mechanism for their credit card number to be transferred directly to the
Credit card issuer for verification and billing without the merchant being able to see the number.
SET makes use of Netscape’s SSL, Microsoft’s Secure Transaction Technology (STT) and Secure Hypertext
Transfer Protocol (S-HTTP) for the verification and security purposes.

(xii )

Write note on Search Engines

xii.
Search Engine is a program that searches documents for specified keywords and returns a list of the documents
where the keywords were found. Although search engine is really a general class of programs, the term is often
used to specifically describe systems like Google, Alta Vista, Yahoo, etc. that enables users to search for documents
on the WWW and Usenet, newsgroups.
Typically, a search engine works by sending out a robot, spider or crawler program to fetch as many documents as
possible. A robot is a piece of software that automatically follows hyperlinks from one document to the next around
the Web. Another program called an indexer then reads these documents and creates an index based on the words
contained in each document. Each search engine uses a proprietary algorithm to create its indices such that, ideally,
only meaningful results are returned for each query. Broadly, there are two types of search engines:
i) Individual. Individual search engines compile their own searchable databases on the web
ii) Meta. Meta-searchers do not compile databases. Instead, they search the databases of multiple sets of
individual engines simultaneously.

(xiii )

Answer the following:

a. What is an electronic mail?
b. What is modem? Why is it required in data communication?

xiii.
Part (a)
E-mail is the single most important reason to use the internet. It is quite similar to the postal mailing system. The
service is provided by E-mail service provider, who maintains a computer with a large storage place. The customers
are provided an address, which is used for communication. A customer desiring to communicate with another sends
the mail to the address of the receiver using a special software. If the computer of the receiver is not in use, the
message gets stored in the service provider’s computer. When the receiver switches on his computer, he is
immediately informed that he has a ‘‘mail’’, he can read the mail and answer it. The advantage of e-mail is that the
messages get delivered even when the receiver is not available. But the system, in addition to a telephone needs a
computer with proper software and a modem.
Part (b)
A modem is an electronic device which is used converting digital signals to analog waves and vice versa. The
process of converting a digital signal to analog signal is called modulation and reverse process is called
demodulation. Modem is a short form for Modulator/Demodulator. Modem is essential for data communication. If
 5.27 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
the telephone system is to be used for connecting up with distant computers, as the signal generated in a computer
is digital and those handled by the telephone system, so far is analog — modem is used to convert digital signal into
analog for transmission over telephone line and re-transfer analog into digital for using signals received through the
telephone line.

(xiv )

Explain the main differences between LAN and WAN.

xiv.
The main differences between LAN and WAN are —
• A LAN is restricted to a limited geographical coverage of a few kilometers, but a WAN span greater
distance and may operate nationwide or even worldwide.
• The cost to transmit data in a LAN is negligible since the transmission medium is usually owned by user
organisation. However in case of WAN, this cost may be very high because the transmission medium used
are leased lines or public systems such as telephone lines, microwave and satellite links.
• In a LAN the computer terminals and peripheral devices are usually physically connected with wires and
coaxial cables, whereas in a WAN there may not be a direct physical connection between various
computers.
• Data transmission speed is much higher in LAN than in a WAN.
• Fewer data transmission errors occur in case of a LAN as compared to a WAN. This is mainly because in
case of a LAN the distance covered by the data is negligible as compared to a WAN.

(x v )

What do you mean by ‘protocol’? What does it include?

xv.
Protocol refers to computer software that handles transmission between computers and allows computers to
communicate. It is a set of standards defining the procedure and the format for data to be transmitted via
communication links.

(x vi)

A company having multiple offices all over India has decided to install an ERP package for its financial accounting
in all its offices. Two options were considered:
i. a centralized architecture in which the database will be stored centrally in Head Office and all offices will
access it via VSAT connectivity, and
ii. a decentralized architecture in which each office will maintain its own database, which would periodically
be merged at Head Office for consolidation.
What are the advantages and disadvantages of the two architectures?

xvi.
Advantages of Centralized Architecture:
 Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.28
• Hardware setup for this architecture is less expensive.
• This system provides us all the data related to the entire company. Hence, at any point of time we can fetch
any data from a single point.
• We can get the consolidated MIS report much faster.
• Overall control on operations is much compact
• Database administration is centralized, hence tampering is not possible.
Disadvantages of Centralized Architecture:
• Network setup is very expensive and its maintenance cost is also very high.
• If the network system breaks down then the entire system will be handicap.
Advantages of Decentralized Architecture:
• It is an efficient and prompt processing of jobs assigned to different processor.
• The system can be easily expanded as per requirement, by addition of more units as required.
• At any particular point we can get, to the point report for a specific data.
• If any network hazard occurs, the system can run smoothly because the operation can be done from various
points.
• Failure of one particular system does not, seriously, affect working of the entire system.
Disadvantages of Decentralized Architecture:
• Hardware setup is expensive.
• Consolidate MIS generation is cumbersome
• Database administration is decentralized hence tampering chance is higher.

(x vii )

“The Internet represents the transformation and evolution of the entire information age. It has unleashed the power
to communicate”. Define Internet and describe the various purposes for which Internet can be used.

xvii.
Internet is a network of network spread throughout the world. You can compare the Internet to an ocean with a
variety of aquatic animals. Just as the ocean can accommodate a number of animals at the same time, so can the
Internet. In fact, even a single computer with very weak configuration can participate in the world of Internet by
connecting to the network or service providers which in turn are connected to the Internet.
Use of Internet:
• As a network. Any organization can use internet as the networking media for data transmission between
their different offices and their employees.
• As a medium. Internet can be used as a communication channel for dealing with product marketing to
corporate communications.
• Electronic Commerce. It is nothing but the process of buying and selling products and services
electronically.
• Electronic Mail. It helps you to pass on message in a fraction of a second anywhere in the world.
 5.29 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
• Electronic Banking (E-banking). It facilitates 24 hour access to cash using computer and electronic
devices like ATM. By using this, we can withdraw cash or deposit a cheque at any time of the day or transfer
amounts from one account to another just sitting in front of a computer.
• Electronic Chat. Way to discuss any thing with some body from any distance.
• Electronic Journalism.
• Electronic Education and lots more.

(x viii)

What do you understand by the following terms in the context of the Internet?
a. HTML
b. Web Browser,
c. Home Page,
Internet Service Provider (ISP)

xviii.
Part (a) HTML.
Hyper Text Markup Language (HTML). A scripting language which is used in World Wide Web that informs
browsers how to display a document’s text, links, graphics, and other media.
Part (b) Browser
It is machine independent software which enables us to down load the Web pages from the web sites. This type of
software can interpret and present texts, graphics, sound and video files. Examples of Browser are - Microsoft
Internet Explorer, Netscape Navigator, Lynx, Mosaic etc.
Part (c) Home Page
It is basically the first page of a particular Web site. The home page is the main page displayed for an organizations’
or person’s Web site. This page shows us a brief about the website and shows some links (called hyperlinks) by
which we can browse the entire website.
Part (d) Internet Service Provider (ISP)
ISP is an organization or company that serves to link the subscriber to the Internet whenever access is needed.

(xix )

Your company, which has offices in different parts of the country, has decided to link all the offices by a computer
network. You are a member of the team which is evaluating the proposal. As a member, you have been asked to
suggest various technologies that can be used for transmission of data between the computers in various locations.
What options would you consider?

xix.
There are, at present, five different types of technologies available viz.
• Telephone lines
• Coaxial Cable
 Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.30
• Fibre-optic Cable
• Microwaves
• Satellites

(x x )

Distinguish between — Voice Mail and Electronic Mail.

xx.
Voice making is a new communication approach which is similar to electronic mail except that it is audio message
rather than text messages that are processed. A sender speaks into a telephone giving the name of the recipient and
the message and that sender’s voice signal is then digitised and stored. The system can then either deliver the
message at a specified time in future or it can be retrieved from a data base by the recipient. The message is
reconverted back into analogue format when it is delivered or retrieved so that the recipient bears it as the original
sender’s voice on a telephone.
E-mail functions by transferring messages created by someone on a computer to the addressee’s terminal through
data communication modes. E-mail can be connected by telephone or fax.

(x xi)

What is World Wide Web? How would you distinguish it from Internet?

xxi.
The World Wide Web or www as it is called is a concept based on the internet technology. It is a concept that
provides the technology to navigate the vast resources available on the internet. The concepts of hypertext, internet
and multimedia are integral to the concept of www. The word ‘web’ in the www signifies the ability to navigate
through the multitude of computers and access texts, graphics, sound files etc. in a web-like fashion.
Internet is the network of hundreds or thousands of computers and computer networks worldwide, which are
connected with each other, exchanging information. The network is not controlled by central authority or
organisation. Instead of data going to a central computer and then to its destination with Internet, the data has many
points to go from one computer to another, over a web of computers.
www is a concept while Internet is the physical aspect of it.

(x xii )

“Middleware is a crucial component of modern IT infrastructure”. Elucidate.

xxii.
Middleware is a set of common business services that enable applications and end users to interact with each other
across a network. In essence, middleware is the software that resides above the network and below the business
application software. It is a type of software that acts as a layer between other softwares to assist in data transfer
between incompatible systems. The services provided by these routes are available to the applications through
application programming interfaces and to the human users through commands and/or graphical user interfaces. A
 5.31 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
common example of middleware is e-mail, because it provides business services that reside above networks and
interconnect users.

(x xiii)

Draw a chart to represent the basic components of a telecommunication system.

xxiii.

Basic components of any Telecommunication System are depicted below:

T e le c o m m u n ic a tio n
S y s te m

C h an n el &
S en d er H a rd w a re S o ft w a r e R eceiv er
M ed ia

In p u t d evices C h a nn el » H o s t co m p u ter » A c c es s c o n tro l O u tp u t d evices

» P h on e ch a r a cter istics » F ro n t-e n d » T ran s m is s io n » T e rm in a ls
» C o m p u ter » T ran s m is s io n P ro c e s s o r C o n tro l » P rin te rs
» W o rk s ta tio n s sp eed » M od em » N etw o rk » C o m p u te rs
» V id eo » T ra n s m is s io n » M u ltip lexer C o n tro l &
T e rm in a ls mo de » S w itch M anag emen t
» T ra n s m is s io n » B rid g e a n d » E rro r d e te c tio n
d irectio n G atew ay & C o rre c tio n
» B u s » N etw o rk
M ed iu m S e c u rity
» C a b l e ( i .e . b o u n d e d )
» W i r e l e s s ( i .e .
u nb ou n d ed )
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.32