Business Information Systems Exam Question Solution BITM 6th sem
Group “A” — Brief Answer Questions
(Attempt all questions) [10 × 1 = 10 Marks]
Thank you for reading this post, don't forget to subscribe!1. List out any components of information system.
The main components of an information system are:
- Hardware
- Software
- Data
- Procedures
- People
- Networks
They work together to collect, process, store, and distribute information.
2. Define the term competitive advantage.
Competitive advantage refers to the unique attributes or capabilities that allow a company to outperform its competitors, such as superior quality, lower cost, innovative products, or customer loyalty.
3. Mention any one difference between data warehouse and database.
A database stores current operational data for daily transactions, whereas a data warehouse stores historical data used for analysis and decision-making.
4. Define mobile commerce.
Mobile commerce is the buying and selling of goods and services using mobile devices such as smartphones and tablets through wireless networks.
5. Mention any one enhancement in Web 2.0 over Web 1.0.
Web 2.0 enables user interaction and content creation, whereas Web 1.0 was mainly limited to static information display.
6. List out any two desirable characteristics of TPS.
Two desirable characteristics of a Transaction Processing System (TPS) are accuracy and reliability in handling routine business transactions.
7. What is supply chain management?
Supply chain management is the coordination and management of the flow of goods, services, information, and finances from suppliers to customers.
8. What is predictive analytics?
Predictive analytics is the use of historical data, statistical models, and machine learning techniques to forecast future outcomes and trends.
9. Define cloud computing.
Cloud computing is the delivery of computing resources such as storage, software, and processing power over the internet on a pay-as-you-use basis.
10. List out any two Functional Area Information Systems.
Two examples of Functional Area Information Systems are Human Resource Information System (HRIS) and Marketing Information System (MkIS).
Group “B” — Short Answer Questions
(Attempt any FIVE questions) [5 × 3 = 15 Marks]
11. Explain any three types of Information System.
An Information System (IS) is a structured framework consisting of people, hardware, software, data, processes, and communication networks that work together to collect, process, store, and disseminate information.
Any three types of Information System are explained below:
- Transaction Processing Systems (TPS)
- Management Information Systems (MIS)
- Decision Support Systems (DSS)
1. Transaction Processing Systems (TPS)
A Transaction Processing System is designed to handle and record the routine, day-to-day transactions that are essential for business operations.
- It helps to manage repetitive business activities like sales, billing, and payroll.
- Examples: Payroll systems, order processing systems, billing systems.
- It is used by Operational staff and first-line supervisors.
- It handles high volumes of repetitive transactions quickly and accurately; ensures data integrity and consistency.
2. Management Information Systems (MIS)
A Management Information System provides structured and summarized reports based on data extracted from TPS for managerial use.
- It helps middle managers monitor organizational performance and make short-to-medium-term decisions.
- Examples: Inventory control systems, sales performance tracking systems.
- It is used by Middle-level managers.
- It uses data from TPS, generates regular reports like summaries and comparisons; less interactive than DSS.
3. Decision Support Systems (DSS)
A Decision Support System is an interactive software tool that aids in complex decision-making by analyzing large sets of data.
- It supports managers in making data-driven decisions for semi-structured or unstructured problems.
- Examples: Financial planning systems, logistics and route optimization tools.
- It is used by Managers, business analysts, strategic planners.
- It provides features like models and simulations, allows user interaction, supports “what-if” analysis and forecasting.
12. Explain the steps of business process re-engineering.
Business Process Reengineering (BPR) is a strategic approach where organizations fundamentally rethink and radically redesign their core business processes to achieve significant improvements in performance measures such as cost, quality, service, and speed.
Business Process Reengineering is carried out through a series of well-defined steps that help an organization redesign its core processes to achieve major improvements in performance. Each step is important and must be completed carefully to ensure successful implementation.
- Identify the Processes to Be Reengineered
- Understand and Analyze the Existing Process
- Define Objectives and Performance Goals
- Redesign the Process
- Implement the New Process
- Monitor, Evaluate, and Improve
1. Identify the Processes to Be Reengineered
The first step in Business Process Reengineering is identifying the key business processes that need improvement. These are usually core processes that have a direct impact on customers, costs, quality, or service delivery. Management selects processes that are outdated, slow, costly, or unable to meet customer expectations.
2. Understand and Analyze the Existing Process
In this step, the organization studies the current process in detail to understand how it actually works. This includes identifying activities, decision points, delays, costs, and responsibilities. The purpose of this analysis is not to improve the old process but to recognize its weaknesses, bottlenecks, and non-value-adding activities.
3. Define Objectives and Performance Goals
After analyzing the existing process, clear objectives are set for the new process. These objectives may include reducing costs, improving quality, shortening cycle time, increasing flexibility, or enhancing customer satisfaction. Performance goals provide a clear direction for the redesign effort.
4. Redesign the Process
Redesigning the process is the core step of Business Process Reengineering. The organization creates a new process by radically rethinking how work should be done. This may involve eliminating unnecessary steps, combining tasks, reducing approvals, empowering employees, and using information technology to integrate activities.
6. Implement the New Process
Implementation involves putting the redesigned process into practice. This step includes training employees, changing job roles, updating policies, and installing new systems. Effective communication and strong management support are essential to overcome resistance to change.
7. Monitor, Evaluate, and Improve
The final step is monitoring the performance of the new process and comparing results with the defined objectives. Feedback is collected, problems are identified, and corrective actions are taken when necessary. Continuous evaluation ensures that the benefits of Business Process Reengineering are sustained over time.
13. What is the importance of knowledge management? Explain with example.
Knowledge management (KM) is the process of creating, capturing, organizing, and sharing knowledge within an organization to improve productivity and learning.
- Improves Decision Making: KM provides timely and accurate knowledge, enabling managers and employees to make better and faster decisions.
- Enhances Efficiency and Productivity: By organizing and sharing knowledge, employees can avoid redundant work and complete tasks more efficiently.
- Encourages Innovation: Sharing ideas and experiences stimulates creativity and helps develop new products, services, and processes.
- Supports Organizational Learning: KM facilitates continuous learning by capturing best practices, lessons learned, and expertise.
- Preserves Organizational Knowledge: Tacit and explicit knowledge is documented and retained, reducing the impact of employee turnover.
- Improves Customer Service: Access to relevant knowledge allows employees to respond to customer queries quickly and accurately.
14. Explain any three contemporary wireless technologies.
Wireless technologies refer to communication systems that allow data to be transmitted and received over the air without the need for physical cables or wires.
- Wi-Fi (Wireless Fidelity):
- Wi-Fi enables high-speed wireless internet access within a local area network (LAN), such as in homes, offices, cafes, and public hotspots.
- Bluetooth:
- Bluetooth is a short-range wireless communication technology used to connect devices like headphones, keyboards, speakers, smartwatches, and more.
- Infrared (IR):
- Infrared technology uses light waves for short-range communication, often seen in remote controls and some older mobile phones for file transfer.
- NFC (Near Field Communication):
- NFC allows contactless communication between devices over very short distances, widely used in mobile payments, smart cards, and access control systems.
15. Explain the concept of social computing in human resource management.
Social Computing in Human Resource Management refers to the use of social media platforms and collaborative digital tools to enhance various human resource functions such as recruitment, employee engagement, training, performance recognition, and internal communication.
In HR, social computing enhances recruitment, employee engagement, and internal communication.
- Recruitment:
- Social platforms like LinkedIn, Facebook, and Twitter are widely used by HR professionals to find, evaluate, and contact job candidates.
- Employee Collaboration:
- Organizations use internal social networks or enterprise platforms like Slack, Microsoft Teams, or Workplace by Meta to improve team collaboration.
- Training and Development:
- Online communities and learning platforms provide interactive spaces for employees to gain new skills and knowledge. HR can offer webinars, discussion forums, and training modules.
- Performance Recognition:
- Employees are publicly appreciated using internal portals, digital dashboards, or social media posts. These recognitions foster a positive workplace culture by boosting morale and motivating others.
16. Mention any three benefits of cloud computing.
Cloud Computing is a technology model that enables on-demand access to a shared pool of computing resources—such as servers, storage, applications, and services—over the internet, without the need for direct management by the user.
- Cost Efficiency: Cloud computing reduces the need for investing in physical hardware, servers, and maintenance. Organizations can pay for only the resources they use, lowering upfront and operational costs.
- Scalability and Flexibility: Cloud services can be easily scaled up or down based on business needs. This allows organizations to handle increased workloads, seasonal demand, or expansion without major infrastructure changes.
- Remote Accessibility and Collaboration: Cloud computing enables employees to access applications, data, and systems from anywhere with an internet connection. This improves collaboration, supports remote work, and enhances productivity.
Group “C” — Long Answer Questions
(Attempt any THREE questions) [3 × 5 = 15 Marks]
17. How does the implementation of ERP support business processes? Explain with example.
ERP systems strongly support business processes by integrating and automating activities across different functional areas. A business process usually involves multiple departments, and ERP ensures that these departments work together smoothly using shared data and coordinated workflows.
ERP supports business processes in the following ways:
- Integration of Processes
- Automation of Activities
- Real-Time Information Flow
- Improved Coordination and Communication
- Process Standardization
- Better Decision Making
1. Integration of Processes
ERP integrates business processes across different functional areas such as sales, production, procurement, and finance. When a transaction is entered in one department, it is automatically updated throughout the system, ensuring data consistency and smooth process flow.
2. Automation of Activities
ERP automates routine and repetitive business activities such as order processing, billing, payroll, and inventory updates. Automation reduces manual effort, minimizes errors, and increases operational efficiency.
3. Real-Time Information Flow
ERP provides real-time access to data across the organization. Managers and employees can view up-to-date information on sales, inventory, production, and finances, enabling faster response and better control.
4. Improved Coordination and Communication
Since all departments use a common database, ERP improves coordination and communication among different functional areas. Information is shared instantly, reducing misunderstandings and delays.
5. Process Standardization
ERP enforces standardized business processes and best practices across the organization. Standardization improves consistency, quality, and control in business operations.
6. Better Decision Making
ERP generates accurate reports, summaries, and analytical tools that support managerial planning, monitoring, and decision making at all levels of the organization.
18. “Supply chain management process can be made efficient with the support of IT.” Justify this statement.
Information Technology (IT) plays a crucial role in enhancing the efficiency and effectiveness of supply chain management (SCM). By providing tools and systems for communication, data analysis, and process automation, IT helps organizations manage the flow of goods, information, and finances across the entire supply chain.
1. Improved Coordination and Communication
IT enables real-time communication among suppliers, manufacturers, distributors, and retailers. Systems such as Electronic Data Interchange (EDI) and cloud-based platforms allow stakeholders to share information instantly, reducing delays, misunderstandings, and bottlenecks.
2. Real-Time Inventory Management
IT systems, including Enterprise Resource Planning (ERP) and inventory management software, allow organizations to track stock levels in real time. This reduces overstocking or stockouts, optimizes warehouse space, and ensures timely replenishment of materials and products.
3. Demand Forecasting and Planning
Advanced IT tools such as data analytics, artificial intelligence, and predictive modeling help organizations forecast demand accurately. Accurate demand forecasting enables better production planning, procurement scheduling, and resource allocation.
4. Automation of Processes
IT automates routine supply chain tasks, such as order processing, invoicing, and shipment tracking. Automation reduces manual errors, speeds up operations, and frees employees to focus on higher-value activities.
5. Enhanced Supplier and Customer Relationships
IT systems provide a centralized database of supplier and customer information. This allows organizations to monitor supplier performance, manage contracts, respond quickly to customer orders, and improve overall satisfaction.
6. Cost Reduction
By optimizing logistics, transportation routes, inventory levels, and procurement processes, IT helps reduce operational costs. Technologies like GPS tracking and supply chain analytics help identify inefficiencies and areas for cost savings.
7. Decision Support and Monitoring
IT provides dashboards, reports, and real-time analytics that support managerial decision-making. Supply chain managers can monitor key performance indicators (KPIs), identify problems early, and make informed strategic decisions.
The integration of IT into supply chain management transforms it into a more responsive, flexible, and efficient system. IT enhances coordination, reduces errors, improves planning, and lowers costs, thereby enabling organizations to gain a competitive advantage in a dynamic market environment.
19. Explain the importance of different stages of business analytics in decision making with example.
Business analytics involves the use of data, statistical methods, and technology to analyze business performance and support decision-making. Different types of business analytics play specific roles in helping organizations make informed and effective decisions. The main types are descriptive, diagnostic, predictive, and prescriptive analytics, each providing unique insights.
1. Descriptive Analytics
Descriptive analytics answers the question: “What has happened?” It summarizes historical data to provide insights into past performance.
- Importance: Helps organizations understand trends, patterns, and outcomes of previous actions.
- Example: A retail company uses descriptive analytics to analyze last year’s sales data and identify the best-selling products and seasonal sales patterns. This information helps in inventory planning and marketing strategies.
2. Diagnostic Analytics
Diagnostic analytics answers the question: “Why did it happen?” It examines data to identify causes and relationships.
- Importance: Helps managers understand reasons behind successes or failures, enabling corrective actions.
- Example: An e-commerce company notices a sudden drop in online sales. Using diagnostic analytics, it finds that website downtime and poor payment processing caused customer drop-offs. This insight allows the company to fix the technical issues.
3. Predictive Analytics
Predictive analytics answers the question: “What is likely to happen?” It uses historical data and statistical models to forecast future trends.
- Importance: Supports proactive decision-making by anticipating future outcomes and risks.
- Example: A bank uses predictive analytics to assess which customers are likely to default on loans based on past behavior and credit history. This helps the bank manage risk and offer targeted financial products.
4. Prescriptive Analytics
Prescriptive analytics answers the question: “What should we do?” It recommends actions based on data analysis, optimization, and simulation techniques.
- Importance: Guides managers to make optimal decisions and take specific actions to achieve desired outcomes.
- Example: A logistics company uses prescriptive analytics to optimize delivery routes, reduce fuel consumption, and improve delivery times. The system suggests the best routes and schedules for drivers.
20. “Advancement in networking technologies and mobile computing has transformed business in various areas.” Justify with example.
Advancements in networking technologies and mobile computing have significantly changed how businesses operate, interact with customers, and manage internal processes. These technologies enable faster communication, remote access, real-time collaboration, and the automation of business operations, which enhances efficiency, competitiveness, and customer satisfaction.
1. Improved Communication and Collaboration
Networking technologies such as high-speed internet, cloud platforms, and video conferencing allow employees to communicate and collaborate seamlessly across locations. Mobile computing enables access to emails, messaging apps, and collaborative tools on smartphones and tablets. For example, companies like Microsoft and Google use platforms like Teams and Google Workspace to enable real-time collaboration among global teams.
2. Remote Work and Flexibility
Mobile computing and networking advancements allow employees to work from anywhere, increasing flexibility and productivity. Cloud-based ERP and CRM systems can be accessed remotely, enabling managers and field staff to make decisions without being physically present. During the COVID-19 pandemic, organizations like Zoom and Slack became critical tools to maintain operations and employee engagement remotely.
3. Enhanced Customer Engagement
Mobile computing and networking allow businesses to interact with customers through mobile apps, social media, and instant messaging. For example, e-commerce platforms like Amazon and Alibaba use mobile apps to provide personalized offers, track orders, and handle customer inquiries in real time, improving customer satisfaction and loyalty.
4. Real-Time Data Access and Decision Making
Advancements in networking enable real-time data transfer and cloud computing, allowing businesses to monitor operations, track inventory, and analyze market trends instantly. For example, FedEx and UPS use real-time tracking systems that rely on mobile computing and networking to update customers and optimize delivery routes.
5. E-commerce and Digital Payments
Networking technologies and mobile computing have transformed retail and banking. Mobile payment systems such as PayPal, Apple Pay, and mobile banking apps allow transactions anytime, anywhere, reducing the reliance on physical branches and cash handling.
6. Supply Chain and Logistics Optimization
Networking technologies enable seamless communication among suppliers, manufacturers, and distributors. Mobile computing allows logistics personnel to update shipment status in real time. For example, companies like Walmart and DHL use mobile devices and IoT-enabled sensors to track inventory and shipments efficiently.
Group “D” — Comprehensive Questions
(Attempt all questions) [2 × 10 = 20 Marks]
21.1 How did ABC Corp use information systems to gain a competitive advantage?
ABC Corp leveraged information systems strategically to improve efficiency, decision-making, and customer satisfaction, which helped the company gain a competitive edge in its industry. The key ways ABC Corp used information systems are:
1. Streamlining Operations
ABC Corp implemented Enterprise Resource Planning (ERP) systems to integrate functions like production, inventory, procurement, and finance. This integration reduced operational inefficiencies, minimized delays, and lowered costs, allowing the company to respond faster to market demands.
2. Enhancing Decision Making
The company used Management Information Systems (MIS) and Business Intelligence (BI) tools to analyze sales trends, customer behavior, and market conditions. These systems provided managers with accurate and timely information, enabling informed strategic and operational decisions.
3. Improving Customer Relationship Management (CRM)
ABC Corp adopted a CRM system to track customer interactions, preferences, and feedback. This allowed personalized marketing, improved customer service, and stronger customer loyalty, differentiating the company from competitors.
4. Optimizing Supply Chain
By implementing Supply Chain Management (SCM) systems, ABC Corp coordinated activities among suppliers, manufacturers, and distributors. Real-time inventory tracking and automated ordering helped reduce stockouts, improve delivery speed, and cut costs.
5. Supporting Innovation
Information systems allowed ABC Corp to collect market data, monitor competitors, and analyze customer needs. This facilitated innovation in products and services, helping the company introduce offerings that met customer demands more effectively than competitors.
6. Enhancing Communication and Collaboration
Networking technologies and collaborative platforms enabled better communication between departments, as well as with suppliers and partners. This reduced errors, improved project coordination, and sped up decision-making.
21.2 What role did business analytics, cloud computing, and knowledge management play in improving ABC Corp’s operations?
ABC Corp leveraged modern information technologies such as business analytics, cloud computing, and knowledge management to enhance its operational efficiency, decision-making, and competitive position.
1. Business Analytics
Business analytics enabled ABC Corp to collect, process, and analyze large volumes of operational and market data. By using descriptive, predictive, and prescriptive analytics, the company could:
- Identify sales trends, customer preferences, and market opportunities.
- Forecast demand accurately, reducing overproduction and stockouts.
- Optimize pricing strategies and resource allocation.
Overall, business analytics improved operational efficiency, reduced costs, and supported informed decision-making.
2. Cloud Computing
Cloud computing allowed ABC Corp to host applications, data, and systems on cloud platforms rather than on-premises infrastructure. This provided several benefits:
- Scalability: The company could quickly scale IT resources to meet changing business needs.
- Accessibility: Employees and managers could access critical systems and data from anywhere, enabling remote work and faster decision-making.
- Cost Efficiency: Reduced the need for large upfront investments in hardware and minimized IT maintenance costs.
- Collaboration: Cloud-based collaboration tools improved communication among teams and departments.
3. Knowledge Management (KM)
Knowledge management systems helped ABC Corp capture, store, and share both explicit and tacit knowledge within the organization. Through KM, the company could:
- Preserve expertise and best practices, reducing dependency on individual employees.
- Facilitate training and onboarding by providing easy access to knowledge resources.
- Promote innovation by sharing insights, lessons learned, and market intelligence across teams.
- Enhance customer service by providing employees with quick access to relevant information.
21.3 How did social computing and CRM contribute to enhancing customer engagement and satisfaction?
ABC Corp used social computing and Customer Relationship Management (CRM) systems to strengthen its relationship with customers, improve service quality, and enhance overall satisfaction.
1. Social Computing
Social computing involves using social media platforms, online communities, blogs, and collaborative tools to interact with customers. ABC Corp leveraged social computing to:
- Engage Customers in Real Time: The company responded quickly to customer queries, feedback, and complaints on platforms like Facebook, Twitter, and LinkedIn.
- Gather Customer Insights: Social media interactions provided valuable data about customer preferences, opinions, and emerging trends.
- Promote Brand Awareness: By sharing updates, promotions, and product launches on social platforms, ABC Corp increased customer interest and loyalty.
- Foster Community: Online communities and forums allowed customers to share experiences, provide feedback, and interact with the brand and other users, creating a sense of connection.
2. Customer Relationship Management (CRM)
CRM systems helped ABC Corp manage customer information and interactions systematically. The CRM contributed to customer engagement and satisfaction in the following ways:
- Personalized Services: CRM stored customer profiles, purchase history, and preferences, allowing ABC Corp to tailor offers and communications to individual customers.
- Efficient Issue Resolution: CRM tracked customer complaints and service requests, ensuring timely follow-up and resolution.
- Loyalty Programs: CRM enabled the management of loyalty programs, rewards, and targeted campaigns to retain high-value customers.
- Data-Driven Insights: CRM analytics identified trends in customer behavior, helping ABC Corp anticipate needs and proactively address concerns.