5.

32 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

Chapter 4 — BUSINESS INTEGRATION AND E-BUSINESS

(i )

Distinguish between On-line vs. Off-line

i.
Equipment that is connected directly via cables to the CPU is on-line. On the other hand, equipment that operates
independently and is not cable connected to the CPU is off-line, for example data preparation devices. All on-line
equipments are under control of the CPU and communicate directly with the CPU whereas off-line devices do not
communicate directly with the CPU.

(ii )

What does EFT stands for and where is it used.

ii.
EFT stands for Electronic Fund Transfer. EFT is used for e-commerce related transactions, where there is electronic
transfer of funds (i.e., funds are transferred electronically).

(iii )

Write a brief note on the evolution of ERP.

iii.
In the ever-growing business environment, the following demands are placed on the industry —
 Aggressive cost control initiatives
 Need to analyse costs/revenues on a product or customer basis
 Flexibility to respond to changing business requirements
 More informed management decision making
 Changes in ways of doing business
The difficulty in getting accurate data, timely information and proper interface of complex business functions have
been identified as the hurdles in the growth of any business. Time and again, depending on the velocity of the
growing business needs, one or the other applications and planning systems have been introduced into the business
world for crossing these hurdles and achieving growth.
It all started with MRP-I (Manufacturing Requirement Planning, part I), which was later revised and named MRP-II
(Manufacturing Resource Planning). MRP-II later became MRP-III (Money Resource Planning). Although money
is the central focus of any business, it is only the background because resources of that organisation, drives money.
This was the beginning of ERP or Enterprise Resource Planning. ERP promises one database, one application and
one user interface for entire enterprise, where desperate systems ruled manufacturing, personnel, finance and sales.
 5.33 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
(iv )

Mention the role of Client/Server computing in ERP

iv.
Implementation of ERP requires the use of sophisticated technology like Client/Server technology, which allows to
tightly integrating business resources and also allows distributed computing.
Most ERP packages exploit the power of three tier Client/Server architecture. In three tier Client/Server
environment, data is stored on backend database server and application logic or business rules are stored on the
middleware and presentation for data entry and viewing is kept at client workstation. The load of data processing
and application logic is divided between the server and the client. The three-tier architecture adds a middle stratum,
embodying all applications logic and the business rules that are not part of the application, enforcing appropriate
validation checks. Organisation implementing ERP solutions have multiple locations of operation and control to
facilitate online data transfer across various locations. To facilitate these online transactions, other important
enabling technologies for ERP systems are Workflow, Work Group, EDI, Internet, Intranet, Data Warehousing, etc.

(v )

What is e-commerce? What are the elements of e-commerce?

v.
• Read § 18.1 (chapter 4) for definition and explanation of e-commerce.
• Read § 18.2 (chapter 4) for elements of e-commerce

(vi )

What is the meaning of EDI? Discuss how EDI benefits a business organisation.

vi.
• Read § 14.1 (chapter 4) for Electronic Data Interchange
• Refer § 14.3 (chapter 4) for benefits of EDI

(vii )

Write short notes on:

a. Online Analytical Processing (OLAP)
b. Corporate Information Management System (CIMS)

vii.
Part (a) OLAP
• Online Analytical Processing (OLAP) provides analysis of data stored in a database. OLAP tools enable
users to analyse different dimensions of multi-dimensional data, by providing Time series and Trend
analysis views, Data mining, etc.
• OLAP server (which sits between a client and a DBMS), is the chief component of OLAP; responsible for
 Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.34
data organisation and data-analysis in database systems.
• OLAP refers to the ability to analyse in real time, the type of multi-dimensional information stored in data
warehouses. The term online indicates that the users can formulate their own queries compared to standard
paper reports.
Part (b) CIMS
• Refer § 17.0 (Chapter 4) for CIMS

(viii )

Write a paragraph on ‘Global Village’

viii.
The development in IT could provide great facilities to Business Enterprises, thereby converting the world into a
Global Village of communication. Globalisation has made us increasingly dependent on creative management and
distribution of Information. Efficient communication has been made possible mostly due to Information-technology
dependent and enabled Information Systems and reliable connectivity World over. This has alone made conducting
trade and managing business on a global scale possible. Industries can now operate 24×7, even in remote locations
of the World.

(ix )

Write note on M-Commerce.

ix.
Mobile commerce enables to pay for merchandise services or information through mobile phone. WAP is an
enabling technology for it to bring the Internet content and services to mobile phones and other wireless terminals.
WAP provides a much-needed medium to connect in a secure, fast nimble, on time and interactive ways with
services, information and other users.

(x )

You as a Finance Manager have received a proposal from your IT Department to enter into an Annual Maintenance
Contract (AMC) for ERP software that has been implemented in the company. Considering the fact that ERP
packages are proven software packages, why should the company enter into a maintenance contract?

x.
All software irrespective of how well it has been designed and developed and irrespective of whether it is an ERP
or any other packaged software requires maintenance over it's life time. Maintenance of information systems means
enhancement modifications and corrections to the software. There are several reasons why all information systems
need maintenance viz.
• Changing business environment.
• Changes in users' expectations.
• Changes in technology.
• Deterioration in software quality due to patches over time
 5.35 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
• For time savings.

(xi )

What is a Dotcom company? Explain the meaning of a ‘Portal’ in the context of the Internet technology.

xi.
A “dotcom” company is popular term for e-commerce companies. It is derived from the prefix “.Com” that is
associated with identification of web sites e.g. Hotmail.com, Yahoo.com etc.
PORTAL: Usually used as a marketing term to describe a Web site that is or is intended to be the first place people
see when using the Web. Typically a “Portal site” has a catalogue of web sites, a search engine, or both. A portal
site may also offer e-mail and other service to entice people to use that site as their main “point of entry” (hence
“portal”) to the Web.

(xii )

State how the marketing personnel of a firm can make best utilisation of Geographic Information System (GIS) to
boost their sales.

xii.
GIS is a computer system that combines database management system functionality with information about
location. In this way, it is able to capture, manage, integrate, analyse and display data that is spatially referenced to
the Earth’s surface.
The most crucial area of information needs for sales manager are: sales potential and trends in different market
segments, geographical territories, competitive conditions and so on. Information is needed on weekly sales
turnover from different zones and for different products, customer complains, delays in dispatches, finished goods
inventory position, etc. for the purposes of control
A GIS can provide managers with the information necessary to make future plans for deciding the marketing mix,
predict the future sales in a particular area, compare it with the sales in other areas and develop strategies to
improve sales in a particular area.
Further, this kind of information can help managers select an ideal location for stores. It can also help the managers
in cost-effectively advertising to the target audience, because it facilitates exactly targeting where the customers
live and work, this is known as outdoor advertising such as billboards. Another example of the dynamic impact of
mapping on advertising is direct mail. Mapping allows managers to do true micro-marketing because it can
precisely target the address of the customers. This helps managers avoid blindly sending advertisements to a
mailing list that may include part of your target audience, but also people who do not fit business’s demographic
profile.

(xiii )

What do you mean by “Virtual Corporation”?

xiii.
Virtual Corporation consists of a group of employers and employees who are not bound by a physical work
environment, but instead use technology to come together temporarily and communicate to achieve a shared
business goal.
The concept of virtual corporation was popularized by William Davidow.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.36
In a virtual corporation, employees don’t come to a work-place or office; instead they can work from anywhere, at
any time; thus businesses need not invest in office space, furnitures and other amenities. Mobile computing will
allow workers at remote locations to dial up the office, retrieve messages and urgent documents via touch-tine
phones or voice recognition systems, and give directions to their co-workers in the organisation as easily as if they
were in the same office building.
Managers very well know when it is appropriate to use technology to share resources and when a face-to-face
meeting is called for. Perhaps the greatest challenge will be the culture shock and the lack of control that managers
may feel when they face quiet corridors and invisible employees. The personal lives of employees will also be
affected, because the virtual office guarantees around-the-clock electronic access to any employee, any time,
anywhere in the world, thus increasing the potential for employee burnout. Since the access of the virtual office
depends to a large extent on technology and its applications, technology decisions and failure will be critical to
organisational success.