Applications Of Artificial Intelligence MBA 1st Year Semester Long Question Answers Study Material Notes Sample Modal paper examination Paper 3 Mock Papers For Self Assesment Unit wise division of the content Solved case studies for practise.
LONG ANSWER QUESTIONS
Q.1. Explain the term ‘Information’.
Ans. Information: The word ‘Information is used commonly in our day-to-day working management information system, information has a precise meaning and it is different from data information has a value in decision-making while data does not have. Information brings clarity creates an intelligent human response in the mind.
In management information system, a clear distribution is made between data and information Data is like raw material while information is somewhat equivalent to the finished goods produce after processing the raw materials. Information has certain characteristics which are as follows:\Sdb;
1. Improves representation of an entity. 2. Update the level of knowledge 3. Has a surprise value.
4. Reduces uncertainty.
The quality of information could be called good or bad depending on the combination of these characteristics.
Davis and Olson defines information as a data that has been processed into a form that is meaning to the recipients and is of real or perceived value in the current or the prospective actions or decisions of the recipient. Data is defined as groups of non-random symbols in the form of text, images or voices representing quantities, actions and objects.
Whether an entity is a data or information, it must be transferred through communication from the ‘Source’ to the ‘Destination’ without having any content. The general model for such communications given in information.
The model of communication is used in the management information system. The management information system is equivalent to the transmitter, which provides information and sends through reports (channel) to the various receivers, which is decoded or interpreted by the receiver at the destination
The poor quality of information due to various factors would create confusion in management information system understanding, which is equivalent to a ‘Noise’ and ‘Distortion’ in the communication model. A good management information system communicates the information without a noise and a distortion to the user.
Q.2. What do you understand by the quality of Information? The quality of information could be called good or bad depending upon some characteristics. Discuss those characteristics.
Or What do you understand by the term information quality? Explain in detail.
Or Describe the information quality and characteristics of successful managing with information.
Ans. Quality of information refers to its fitness for use or its reliability. Some of the attributes or information, which influence the quality of information are discussed as follows:
1. Timeliness: Timeliness means that information must reach the recipients within the preachy time frame. For effective decision-making, information must reach the decision-maker at the time, i.e. recipients must get information when they need it. Delays of whatever nature, destroy value of information. Timely information can ensure correct executive action at an early stashA expected losses regarding these could be eliminated/minimised and pains are maximised by proper management of operations. The report which is required by an execu presented later, is considered of doubtful value and decision taken on its basis would not be as effective as might have been otherwise.
B.K. Chatterjee (1974) has gone one step jed. Similarly, many short term busines has gone one step further and said that information delayed is information urchase offered by a supplier may be lost because term business opportunities may be lost. For example, a discount on bulk effective, should also include up-to-date, i.e. current information. In other words, timely information.
2. Accuracy: Accuracy is another key attribute of management information. As per John G. Burch hat information is free from mistakes and errors, is clear and accurately reflects the meaning of data in graphical form rather than tabular form. Accuracy also means that the information should be information given to management would result in
(1975) has advocated the importance of accuracy by stating that wrong has cautioned that the accuracy should be within limits or as desired and should not be achieved by all managers need accurate information. If MIS supplies in MIS reports, managers strengthens.
3. Relevance: Relevance is yet another key attribute said to be relevant if it answers specifically for the recipient what, where, when, who and why. In other words, the MIS should serve reports to managers which are useful and serve reports to managers which are useful and the information helps them in making decisions. Howver, what is relevant information for one recipient is not necessarily relevant for another. The relevance of information from a specific customer order, e.g, will vary among the employees of the company. The individuals most directly responsible for processing customer orders will regard the detailed content of a specific order as necessary information to perform their respective jobs. Individual sales persons will most likely be interested in only orders that are pertaining to their customers and perhaps, in the aggregate of all the orders received in a given commission period. The sales manager may be interested in all customer orders but finds the data relevant only when it is reported or presented in reference to quotas, forecasts or budgets.
4. Adequacy: Adequacy means information must be sufficient in quantity, i.e. MIS must provide reports containing information which is required in the decision-making deciding processes. The report should not give inadequate or for that matter, more than adequate information, which may create a difficult situation for the decision-maker. Whereas inadequacy leads to crisis, information overload results in chaos. Therefore, adequacy is a vital attribute of information which underscores that a report should cover all related aspects about a particular event or situation which is reported.
5. Completeness: The information which is provided to a manager must be complete and should meet all his needs. Incomplete information may result in wrong decision and thus may prove costly to the maordinary situations, where providing complete information is not feasible for one organisation. In extraordinary situations, where providing complete information is not feasible for one reason or the other, the manager must be informed of this fact dso that due care in this regard may be taken.
6. Explicitness: A report is said to be of good quality if it does not require further analysis by the recipient for decision-making. On the other hand, a poor quality report requires further analysis or processing of its contents. Thefrefore, explilcitness is a prominent attribute of management information procedure through the MIS of and organissation. Thsu, the reports should be such that manager does not waste any time on the processing of the report, rather he should be able to extract the required information directly.
7. Exception Based: Today more and more organisations are being run on the principle of management by exception. Top managers need on\ly exception reports regardiing the performance of the organisation. Exception reporting principle states that only those itfems of information which will be of particular interests to a manager are reported. Usually, these items indicate that normal operations have gone away. This approach results in saving precious time of the top management and enabless the managers to devote more time in pursuit of alternativ does not follow the exception reporting principle required by managers and thus lot of their time would is a result, they will not be able to spend much time on other important activities of the Organisation.
Quality, however is not an absolute concept, rather it is defined within a context. Roman R. Andrus has suggested a utility approach to determine the quality following four types of utilities of information, which may facilitate or retard its use:
(a) Form Quality: In order to be of greater value, the form of information should closely requirements of the user.
(b) Time Quality: Information, if available when needed, has a greater value.
(C) Place Utility: The value of information will be more if it can be accessed or delivered
(d) Possession Utility: The person who had the information, influences its value by contro determination to others in the organisation.
Applications Of Artificial Intelligence MBA 1st Year Semester Long Question Answers
Q.3. What are the various types of Information?
Ans. The information can be classified in a number of ways so as to provide a better understand John Dearden of Harward University classifies information in the following manner:
1. Action Versus No-action Information: The information which induces action is called action information. The information which communicates only the status of a situation is a no action information ‘No stock’ report calling a purchase action is an action information but the stock ledger showing the store transactions and the stock balances is a no action information.
2. Recurring Versus Non-recurring Information: The information generated at regular intervals is a recurring information, e.g. monthly sales reports, the stock statements, the trial balances, etc. are recurring information. The financial analysis or the report on the market research study is a nonrecurring information.
3. Internal Versus External Information: The information gathered through the internal sources of the organisation is termed as an internal information, while the information generated through the government reports, the industry surveys, etc. are termed as an external information, as source of the data is outside the organisation.
The action information, the recurring information and the internal information are the prime areas of computerisation and they contribute qualitatively to the MIS.
The timing and accuracy of the action information is usually important. The mix of the internal and external information changes, depending on the level of the management decision. At the top management level, the stress is more on the external information and at the operatioknal and middle management level, the stress is more on he internal information.
The information can also be classified as under, in terqms of its applications:
1. Planning Information: Certain standards, norms and specifications are used in the planning of nay activity. Hence, such information is called the planning informaiton, e.g. the time standards, the operational standards, the design standards, etc. are planning informations.
2. Control Information: Reporting thef status of an activity through a feedback mechanism is called the control information. Whe nsuch information. When such information shows a deviation from the goal or objective, it will induce a decision or and action that is leading to control.
3. Knowledge Information: A collection of into research studies to build up a knowledge base as an in as knowledge information. Such a connection is the knowledge is perceived as a power or strength of the organisation.
When the information is used by everybody information. When the information has a multiple use and information. When the information is used in the operacione the operational information.
Q.4. What are the different types of information system?
Or Explain management support system, executive information system and management information system.
Fig. Operations and management classification of information systems.
Conceptually information systems in the real world can be classified into several different ways. For example, several types of information system can be classified information systems. The above figure illustrates this conceptual classification of Information system is categorised in this way to spotlight the major roles which each plays in the operations and management of business.
The relationship of management opetation support systems to business opetations and management makes various types of information system:
1. Operation Support System: It supports the information processing requirements of day-to-day operations of a business, as well as some lower level operations management functions. It provides variety of information products for external and internal uses. However, it does not emphasises on ariety of information products for external and intern
ific information products that can be best used by manager. Further processing by
management information system is usually required. The role of a business firm’s operation system is to efficiently process business transactions, control industrial processes, support communications and productivity and update corporate databases
(a) Transaction Processing System: It is an important example of operation support system records and processes data resulting from business transactions. It processes trans, into two basic ways. In batch processing, transaction data is accumulated over an time and processed periodically. In real time (or online) processing, data is pro immediately after a transaction occurs. For example, point of sale system at many retail st uses electronic cash register terminals to electronically capture and transmit sales data telecommunication links to regional computer centres for immediate or right processing,
(b) Process Control System: It monitors and controls physical processes. For example, a petroleum refinery using electronic sensors linked to computers to continually monitor
chemical processes and make instant (real time) adjustment that control the refinery process
(c) Office Automation System: It enhances office communications and productivity. For example, a corporation may use word processing for office correspondence, electronic mail to send and receive electronic messages and teleconferencing to hold electronic mailing.
2. Management Support System: It supports the decision-making needs of strategic (top) management, tactical (middle) management and operating (supervisory) management. When information system focuses on providing information and support for effective decision-making by managers, they are called management support system. Providing information and support for decision-making by all levels of management is a complex task. Conceptually several major types of information systems support a variety of managerial end user responsibilities:
(a) Management Information System: It provides information in the form of reports and displays to managers.
For examples, sales managers may use their computer workstations to get instantaneous displays about the sales results of their products and to access weekly sales analysis reports that evaluate sales made by each sales person.
(For more detail, Refer to Section-C, Q.5.)
(b) Decision Support System: Give direct computer support to managers during the decision-making process.
For example, advertising managers may use an electronic spreadsheet package to do what-it analysis as they test the impact of alternatives advertising budgets on the forecasted sales of new products.
(c) Executive Information System: It provides critical information in easy-to-use displays to top and middle management.
For example, top executives may use touch screen terminals to instantly view text and graphics displays that highlights key areas of organisational and competitive performance.
(For more detail, Refer to Section-B, Q.13)
Other Classifications of Information System: Several other categories of information system provide more unique or broad classification than those we have just mentioned. That’s because this information system can support either operations or management applications.
(a) Expert System: It can provide expert advice for operational chores like equipment diagnostics
or managerial decision, such as loan portfolio management.
(b) End User Computing System: Information system that provides hardware, software, and network resources for direct hands on computing by end users for either operational managerial applications.
(c) Business Information System: Information system that focuses on opetational and managerial applications in support of basic business functiosn, such as accounting or marketing are known as business information system.
(d) Strategic Information System: Aply information technology to a firm’s products, service or business process to help it gain a strategic advantage over its competitiors.
It is also important to realise that information systems in the real world are typically integrated combinations of several types of information systems that are mentioned above. That’s because conceptual classifications of information systems are designed to emphasise many different roles of information systems. In Practice, these role are integrated into composite or cross-functional information system that provides a variety of functions. So whenever you analyse business information systfem, you will probably see thats it provides information for a variety of managerial levels and business functions.
Q.5. Discuss management, information, system and information system. Elaborate different types of reports in Management Information System (MIS).(2013-14)
Or Define the term management information system.
Ans. The modern management needs new approach to solve its basic problems. The present dya advance techniques for solving its basic requirements. Tmanagement needs more advance techniques for solving its basic requirements. The MIS is a new idea which is associated with men, machine, marketing and methods for collecting pertinent information from the internal and external source and processing these information for the purpose of facintating the process of decision-making of the business.
MIS is not new, only its computerisation is new. Before computers, MIS techniques existed only to supply managers with the information that would permit them to plan and control business operations. The computer has added one or more dimensions, such as speed, accuracy and increased volumes of data that permit the consideration of more alternatives in a decision-making process.
The scope and purpose of MIS is better understood if each part of them is defined. Thus,