THE CATHOLIC UNIVERSITY OF EASTERN AFRICA

A. M. E. C. E. A
MAIN EXAMINATION
JANUARY – APRIL 2019 TRIMESTER
FACULTY OF SCIENCE
DEPARTMENT OF COMPUTER AND LIBRARY SCIENCE
REGULAR PROGRAMME
CMT 403: MANAGEMENT INFORMATION SYSTEMS

Date: APRIL 2019

INSTRUCTIONS: Answer Question ONE and any other TWO Questions

Q1.

a) i) What is Management Information system? (2 marks)

A Management Information System (MIS) is a computer-based information system
that provides managers with the tools and information they need to make decisions
effectively. MIS is a combination of hardware, software, data, procedures, and people
that helps in managing, analyzing, and organizing information related to a business or
organization.
The primary objective of an MIS is to provide timely and relevant information to
decision-makers to enable them to make informed decisions. MIS can provide a wide
range of information, including financial, marketing, sales, inventory, and other types
of information that can be used for planning, controlling, and decision-making.
Some of the key features of an MIS include:
1. Data collection: MIS collects and stores data from various sources, such as
databases, spreadsheets, and other information systems.
2. Data processing: MIS processes data to generate information that is useful for
decision-making.
3. Information analysis: MIS analyzes information to identify patterns and trends
that can help in decision-making.
 4. Reporting: MIS generates reports that provide decision-makers with relevant
information in a format that is easy to understand.
5. Decision-making support: MIS provides decision-making support by
providing relevant and timely information that can be used to make informed
decisions.
MIS can be used in various industries, including healthcare, finance, manufacturing,
and government. MIS is an essential tool for managers as it provides them with the
information they need to manage their operations effectively and make informed
decisions.
ii) Explain what an ERP system does. (2 marks)
An Enterprise Resource Planning (ERP) system is a software application that
manages and integrates core business processes and data within an organization. An
ERP system allows an organization to automate and manage business operations, such
as production planning, procurement, inventory management, human resources,
accounting, and financial management, among others. The system provides a
centralized database and standardized processes that enable efficient management of
data and processes across various departments and functions within an organization.
Here are some of the key features of an ERP system:

1. Integration of business processes: An ERP system integrates various business

processes, allowing departments to share information and resources
seamlessly. For example, the system can integrate sales, finance, and
production processes to enable efficient management of the order-to-cash
process.
2. Standardization of processes: An ERP system provides a standardized set of
processes that can be used across the organization. This helps to ensure that
processes are consistent and efficient, and reduces the risk of errors or
duplications.
3. Automation of tasks: An ERP system automates various tasks, such as
inventory management, accounting, and payroll, reducing the manual effort
required to complete these tasks.
4. Real-time information: An ERP system provides real-time information about
business operations, enabling managers to make informed decisions quickly.
 5. Reporting and analysis: An ERP system provide reports and analysis that help
managers to evaluate the performance of the organization and make informed
decisions.
ERP systems can benefit organizations in various ways, including increased
efficiency, improved data accuracy, streamlined business processes, and enhanced
collaboration. The system can also help organizations to reduce costs, improve
customer service, and increase profitability. However, implementing an ERP system
can be complex and requires significant investment and organizational change. It is
important to carefully plan and execute an ERP implementation to ensure its success.

iii) Explain three reasons why Information Systems is important in an

Organization? (3 marks)

Information Systems (IS) are critical to the success of an organization, as they provide
many benefits and advantages that support the achievement of organizational goals.
Here are three reasons why Information Systems are important in an organization:

1. Improved decision-making: Information Systems provide managers with

timely, accurate, and relevant information that they can use to make informed
decisions. The availability of such information enables organizations to make
more effective and efficient decisions, reducing the risk of errors and
increasing the likelihood of success. For example, a marketing manager can
use customer data collected through an IS to identify patterns and trends,
which can help in developing effective marketing strategies and improving
customer engagement.
2. Increased efficiency and productivity: Information Systems automate
routine tasks, reducing the time and effort required to complete them. For
example, an accounting system can automate the billing process, reducing the
time and resources required to complete it manually. IS also eliminates the
need for manual data entry, reducing the risk of errors and increasing the
speed of data processing. As a result, organizations can improve their
efficiency and productivity, which can lead to cost savings and increased
profitability.
3. Improved collaboration and communication: Information Systems provide
a platform for employees to communicate and collaborate effectively. With IS,
 employees can share information and work on projects together, regardless of
their location. This enhances teamwork and improves communication, which
leads to better decision-making and increased productivity. Additionally, an IS
can help an organization to manage its supply chain more effectively,
improving communication with suppliers and partners, and reducing the risk
of delays or errors in the supply chain.

In summary, Information Systems are essential to the success of an organization as

they provide managers with timely and relevant information, improve efficiency and
productivity, and enhance collaboration and communication. By investing in
Information Systems, organizations can improve their competitiveness, reduce costs,
and increase profitability.

b) i) What are the four purposes of the operation support system? (2marks)
The Operation Support System (OSS) is a set of software tools that help network
operators manage and maintain the operations of telecommunications networks. There
are four main purposes of the Operation Support System:
1. Fault Management: This purpose of OSS involves detecting and resolving
network faults. Fault management tools in the OSS monitor the network and
detect problems as they occur, such as a loss of connection or a hardware
failure. Once a fault is detected, the OSS initiates a process to resolve the
issue, such as triggering an alarm or sending an alert to a network technician.
2. Configuration Management: This purpose of OSS involves managing the
network configurations, such as device configurations, service provisioning,
and security policies. Configuration management tools in the OSS enable
network operators to configure, update, and manage network devices and
services, such as adding new subscribers or adjusting network bandwidth.
3. Performance Management: This purpose of OSS involves monitoring and
analyzing network performance. Performance management tools in the OSS
collect and analyze data on network performance, such as traffic flows,
network congestion, and response times. This information is used to optimize
network performance and identify potential issues before they impact network
users.
 4. Security Management: This purpose of OSS involves protecting the network
from security threats. Security management tools in the OSS enable network
operators to manage security policies, such as authentication and access
controls, and detect and respond to security incidents, such as virus or
malware attacks.

In summary, the Operation Support System has four primary purposes: fault
management, configuration management, performance management, and security
management. These purposes work together to help network operators manage
and maintain the operations of telecommunications networks, ensuring that the
network runs smoothly and efficiently.

ii) What is the difference between data, information, and

knowledge? (3 Marks)
Data, information, and knowledge are terms that are often used interchangeably, but
they have distinct meanings.
1. Data: Data refers to raw facts and figures that are collected and stored in a
structured or unstructured format. Data can be in the form of numbers, text,
images, audio, or video. Data is usually meaningless and lacks context, and it
needs to be processed and organized to make it useful.
2. Information: Information is data that has been processed and organized into a
meaningful and useful context. Information is data that has been analyzed and
interpreted, and it provides answers to who, what, when, where, and how
questions. For example, sales figures are data, but a report that summarizes
sales figures by region or product is information.
3. Knowledge: Knowledge is information that has been processed and
interpreted to provide insights and understanding. It is the application of
information to a specific context or problem, and it requires experience,
judgment, and reasoning. Knowledge is the result of understanding
information and its implications, and it enables individuals or organizations to
make informed decisions and take appropriate actions.

In summary, data is raw and unprocessed facts, while information is data that has
been processed and organized to provide context and meaning. Knowledge is the
application of information to a specific context or problem, which provides
 insights and understanding. While data is the foundation for generating
information and knowledge, it is through the processing and interpretation of data
that it becomes useful to make informed decisions and take appropriate actions.

iii) Briefly define each of the three members of information security

triangle. (3 Marks)
The three members of the information security triangle are:
1. Confidentiality: Confidentiality refers to the protection of information from
unauthorized disclosure. It involves ensuring that sensitive or confidential
information is only accessed by authorized individuals or systems, and that it
is protected from eavesdropping, interception, or theft. Confidentiality is
important for protecting sensitive information such as financial data, personal
information, and trade secrets.
2. Integrity: Integrity refers to the protection of information from unauthorized
modification or alteration. It involves ensuring that data is accurate, complete,
and trustworthy, and that it is protected from unauthorized changes or
deletions. Integrity is important for ensuring the reliability of information,
such as financial records, medical records, and other important data.
3. Availability: Availability refers to the assurance that information and services
are available when needed. It involves ensuring that systems and data are
accessible to authorized individuals or systems, and that they are protected
from disruptions, outages, or denial of service attacks. Availability is
important for ensuring that critical services, such as online banking, e-
commerce, and emergency services, are always available when needed.
In summary, the three members of the information security triangle are
confidentiality, integrity, and availability. These three components work together to
protect information from unauthorized access, modification, or disruption, and to
ensure the reliability and availability of critical information and services.
c) i) The value of Information is directly linked to how it helps decision makers
achieve their organization’s goals. What are the two ways that value of
information can be measured? (2 Marks)
The value of information can be measured in two ways:
1. Tangible value: The tangible value of information can be measured in terms
of its monetary value. This is the direct financial benefit that the information
 provides to the organization. For example, if the information helps the
organization increase sales, reduce costs, or improve efficiency, then it has a
tangible value that can be measured in terms of dollars or other currency.
2. Intangible value: The intangible value of information is more difficult to
measure because it is not directly linked to monetary benefits. This includes
the value of information that is used to support decision-making processes,
such as improving customer satisfaction or reducing risks. The intangible
value of information can be measured in terms of its impact on the
organization's strategic goals, such as improving customer loyalty or
enhancing the organization's reputation.

In summary, the value of information can be measured in both tangible and

intangible ways. While the tangible value is easier to measure in terms of direct
financial benefits, the intangible value of information can be just as important in
supporting an organization's strategic goals.

ii) Explain the three System Performance and Standards (3 Marks)

System performance and standards are essential considerations for ensuring that a
system functions optimally and provides the desired outcomes. There are three key
system performance and standards that are commonly used to evaluate system
performance:
1. Throughput: Throughput refers to the number of transactions or operations
that a system can handle over a specified period. This performance standard is
used to measure the system's processing speed, and it is typically measured in
transactions per second (TPS). Higher throughput means that a system can
handle a larger number of transactions in a given time, which is desirable in
many applications, such as online transaction processing systems or high-
traffic websites.
2. Response Time: Response time is the time it takes for a system to respond to
a user request or transaction. This performance standard is critical for systems
where user experience is a key consideration, such as online customer service
or e-commerce websites. Faster response time means that a system can
provide a more satisfactory user experience, which can lead to increased user
satisfaction and loyalty.
 3. Availability: Availability refers to the percentage of time that a system is
operational and available for use. This performance standard is critical for
systems that are expected to be available 24/7, such as financial transaction
systems or emergency services. Higher availability means that the system is
less likely to experience downtime, which can lead to lost revenue, lower user
satisfaction, and even safety issues in critical applications.

It's important to note that different systems may have different performance
requirements and standards. For example, a high-frequency trading system may
have significantly different throughput and response time requirements than a
healthcare information system. Therefore, it's crucial to establish the appropriate
performance and standards for each system based on its specific requirements and
the expected outcomes.

iii) Name two advantages of using a data warehouse. (2 Marks)

There are many advantages of using a data warehouse, but two of the most important
ones are:
1. Improved data quality: Data warehouses are designed to store large volumes
of data from multiple sources in a standardized format. This helps to ensure
that the data is accurate, consistent, and reliable. Data quality is improved
because data is extracted from the source systems, cleaned, transformed, and
loaded into the data warehouse. This process helps to eliminate errors and
inconsistencies that are common in operational systems. With improved data
quality, decision-makers can trust the information in the data warehouse and
make informed decisions.
2. Business intelligence and analytics: Data warehouses are designed to support
business intelligence and analytics by providing a single, centralized
repository for all the organization's data. By combining data from multiple
sources, data warehouses allow decision-makers to gain insights into business
performance and identify trends and patterns that may not be visible in
individual systems. Data warehouses can also be used to support advanced
analytics such as data mining and predictive modeling, which can help
organizations identify new opportunities and make more informed decisions.
d) i) Explain the three Fundamental roles of Information Systems in Business
(3marks)
The three fundamental roles of information systems in business are:

1. Support business operations and decision-making: Information systems are

used to support and automate business operations and decision-making
processes. This includes activities such as processing transactions, managing
inventory, scheduling resources, and generating reports. Information systems
can improve the speed and accuracy of business operations, and provide
decision-makers with timely and relevant information to support their
decision-making.

2. Enable business innovation and strategy: Information systems can enable

business innovation by providing new ways to create and deliver products and
services, or by opening up new markets. For example, e-commerce systems
can enable businesses to sell their products and services online, reaching a
wider customer base. Information systems can also help organizations to
implement new business strategies by providing new ways to collect, analyze,
and use data to inform strategic decisions.

3. Facilitate collaboration and communication: Information systems can facilitate

collaboration and communication within and between organizations. This
includes communication tools such as email, instant messaging, and video
conferencing, as well as collaboration tools such as shared workspaces and
document management systems. By enabling collaboration and
communication, information systems can improve productivity, reduce costs,
and increase the speed and effectiveness of decision-making.

In summary, the three fundamental roles of information systems in business are to

support business operations and decision-making, enable business innovation and
strategy, and facilitate collaboration and communication. By performing these roles
effectively, information systems can help organizations to achieve their strategic goals
and gain a competitive advantage in the marketplace.
ii) Discuss three roles of IT in Strategic Management (3 Marks)
The use of information technology (IT) in strategic management can help
organizations gain a competitive advantage, streamline operations, and achieve their
strategic goals. Here are three roles of IT in strategic management:
1. Enabling data-driven decision-making: One of the primary roles of IT in
strategic management is to provide decision-makers with accurate, timely, and
relevant data. This includes data on market trends, customer behavior,
operational performance, and financial results. With this data, decision-makers
can make informed decisions that are based on data rather than intuition or
guesswork. IT systems such as data warehouses, business intelligence tools,
and analytics software can help organizations collect, store, analyze, and
report on this data.
2. Supporting process automation and optimization: IT can help organizations to
streamline their operations by automating routine processes and optimizing
workflows. This includes processes such as inventory management, order
fulfillment, and customer service. IT systems such as enterprise resource
planning (ERP) software, customer relationship management (CRM) software,
and supply chain management (SCM) software can help organizations
automate and optimize these processes, reducing costs and increasing
efficiency.
3. Enabling innovation and digital transformation: IT can help organizations to
innovate by providing new ways to create and deliver products and services.
This includes technologies such as cloud computing, mobile devices, and
social media. IT can also enable organizations to undergo digital
transformation, which involves using technology to fundamentally change the
way the organization operates. For example, a traditional brick-and-mortar
retailer could use IT to transform itself into an e-commerce business. IT
systems such as digital marketing tools, e-commerce platforms, and social
media analytics can help organizations to innovate and transform.
In summary, IT can play a critical role in strategic management by enabling data-
driven decision-making, supporting process automation and optimization, and
enabling innovation and digital transformation. By leveraging IT effectively,
organizations can gain a competitive advantage and achieve their strategic goals.
iii) What are the four main categories of access control? (2 Marks)
 Access control is a security mechanism that regulates who can access or use specific
resources or information in a system. There are four main categories of access control:
1. Mandatory Access Control (MAC): In a MAC system, the access to resources
is determined by a set of rules, policies, and labels. These rules are set by the
system administrator, and they are enforced at the system level. MAC is
commonly used in government and military environments, where the security
requirements are high and the access control is strict.
2. Discretionary Access Control (DAC): In a DAC system, access to resources is
determined by the resource owner, who sets the permissions for the resource.
The resource owner can grant or revoke access rights to other users or groups
of users. DAC is commonly used in commercial environments, where the
access control is less strict and more flexible.
3. Role-Based Access Control (RBAC): In an RBAC system, access to resources
is determined based on the user's role in the organization. Users are assigned
specific roles, and the access rights are predefined based on the role. This
simplifies the administration of access control as the access rights are set
based on the user's job function, rather than the individual user.
4. Attribute-Based Access Control (ABAC): In an ABAC system, access to
resources is determined based on a set of attributes, such as user identity, role,
location, time of day, and other contextual information. The access control
rules are set based on a combination of these attributes, which provides more
granular control over access to resources.
Each category of access control has its strengths and weaknesses and is suitable for
different types of systems and environments. It's essential to understand the
requirements and the risks associated with the system to determine the appropriate
access control mechanism to use.

Q2. a) What are the six IT Infrastructure Management and their Challenges? (6
marks)

IT infrastructure management refers to the management of an organization's entire IT

infrastructure, including hardware, software, networks, data centers, and cloud services. The
six main areas of IT infrastructure management and their associated challenges are:
1. IT Service Management (ITSM): ITSM involves managing the delivery of IT
services to end-users, including incident management, change management, and
service-level agreements (SLAs). Challenges in ITSM include balancing the need for
stability and reliability with the need to quickly respond to changing business
requirements, as well as managing IT service costs.
2. Network Management: Network management involves managing an organization's
networks, including local area networks (LANs), wide area networks (WANs), and
wireless networks. Challenges in network management include maintaining network
security, ensuring network availability and reliability, and managing network
complexity.
3. Storage Management: Storage management involves managing an organization's
data storage infrastructure, including storage hardware and software, backup and
recovery processes, and data archiving. Challenges in storage management include
managing data growth, ensuring data security, and balancing the cost of storage with
the need to store and manage large amounts of data.
4. System Management: System management involves managing an organization's
servers, operating systems, and applications. Challenges in system management
include maintaining system availability and performance, managing system updates
and patches, and ensuring system security.
5. Security Management: Security management involves managing an organization's
information security, including physical security, network security, data security, and
access control. Challenges in security management include protecting against
increasingly sophisticated cyber threats, managing access to sensitive data, and
ensuring compliance with regulations and standards.
6. Cloud Management: Cloud management involves managing an organization's cloud
services, including cloud infrastructure, platform, and software-as-a-service (SaaS)
offerings. Challenges in cloud management include managing cloud costs, ensuring
data security and compliance in the cloud, and integrating cloud services with existing
IT infrastructure.

In summary, the six main areas of IT infrastructure management are IT service

management, network management, storage management, system management, security
management, and cloud management. Each area presents unique challenges, and effective
 management requires a combination of technical expertise, strategic planning, and
business acumen.

b) What are the four Key features of the Strategic Information Systems (4 marks)

The four key features of Strategic Information Systems (SIS) are:

1. Support of Business Strategy: SIS aligns with an organization's overall business

strategy and goals. It is designed to support the organization's competitive advantage
by improving performance, creating new products and services, and enabling new
business models.
2. Impact on Organization: SIS has a significant impact on an organization's structure,
processes, and culture. It involves changes to the organization's business processes,
workflows, and decision-making practices. SIS also requires a high level of
management involvement and collaboration across different functional areas.
3. Leverage of IT Resources: SIS leverages advanced information technologies such as
artificial intelligence, big data analytics, and cloud computing. These technologies are
used to support new business processes, automate tasks, and provide real-time data
and insights for decision-making.
4. Long-term Focus: SIS is focused on long-term goals and outcomes, rather than short-
term operational performance. It requires a strategic vision and planning process to
identify and prioritize strategic initiatives and investments in IT. SIS also involves
continuous monitoring and evaluation of the system's effectiveness and impact on the
organization's performance.

c) Describe five Management challenges involved in building, operating and

maintaining information systems today (5 marks)

There are various management challenges involved in building, operating, and maintaining
information systems today. Here are five of them:

1. Security Management: One of the most critical challenges in building and maintaining
information systems is ensuring the security and privacy of the data. It involves
managing access control, preventing unauthorized access, protecting against cyber
threats, and ensuring compliance with regulations and standards.
2. Technology Management: Technology management involves selecting, deploying,
and managing technology solutions that support an organization's strategic objectives.
 The challenge is to stay current with new technologies while balancing the cost of
investment with the expected benefits.
3. Data Management: Data management involves managing an organization's data
assets, including data quality, data integration, data warehousing, and data analytics.
The challenge is to ensure that data is accurate, reliable, and available in a timely
manner to support decision-making.
4. Change Management: Change management involves managing the people, processes,
and culture of an organization to adapt to new technologies and business processes.
The challenge is to manage resistance to change, ensure effective communication, and
provide training and support to ensure successful adoption of new systems.
5. Project Management: Building and maintaining information systems requires a
structured approach to project management. The challenge is to ensure that projects
are completed on time, within budget, and to the required quality standards. Effective
project management involves managing resources, stakeholders, and risks to ensure
successful project outcomes.

In summary, the five management challenges involved in building, operating, and

maintaining information systems today are security management, technology management,
data management, change management, and project management. Addressing these
challenges requires a combination of technical expertise, strategic planning, and effective
management practices.

d) Using the right reporting tools and having the appropriate reporting procedures in
place help IT departments to drive value. Explain the five key reasons why IT reporting
is important for a business. (5 marks)

IT reporting is an essential process that helps organizations to manage and optimize their IT
infrastructure and investments. Here are five key reasons why IT reporting is important for a
business:

1. Provides Visibility: IT reporting provides real-time visibility into the performance and
status of the IT systems, infrastructure, and applications. It helps stakeholders to
monitor and track key metrics, identify potential issues, and take corrective actions in
a timely manner.
2. Facilitates Decision-making: IT reporting provides stakeholders with the necessary
information to make informed decisions about IT investments, projects, and
 resources. It helps to align IT strategies with business objectives and prioritize IT
initiatives based on their impact on the business.
3. Enhances Performance: IT reporting provides insights into the performance of IT
systems and infrastructure. It helps to identify opportunities for optimization and
improvement, and to drive continuous improvement of IT operations.
4. Supports Compliance: IT reporting helps organizations to comply with regulatory
requirements and standards. It helps to monitor and track compliance-related
activities, identify areas of non-compliance, and implement corrective actions to
mitigate risks.
5. Demonstrates Value: IT reporting provides a clear and measurable demonstration of
the value that IT brings to the organization. It helps stakeholders to understand the
impact of IT on the business, justify IT investments, and communicate the value of IT
to the broader organization.

In summary, IT reporting is important for businesses as it provides visibility, facilitates

decision-making, enhances performance, supports compliance, and demonstrates value.
By using the right reporting tools and procedures, IT departments can drive value for the
organization and achieve their business objectives.

Q3. a) Explain four characteristics of MIS? How do MIS differ from TPS and DSS?
(6marks)

MIS (Management Information Systems) are computer-based systems that provide managers
with the tools to organize, evaluate, and efficiently manage information. Here are four
characteristics of MIS:

1. Management-oriented: MIS is designed to support the decision-making needs of

managers by providing them with timely and accurate information.
2. Integrated: MIS is a system that integrates data from various sources and departments
within an organization to provide a comprehensive view of the organization's
operations.
3. User-friendly: MIS is designed to be easy to use and understand for non-technical
users. The system provides users with intuitive interfaces, clear navigation, and easy
access to information.
 4. Future-oriented: MIS provides information about the present and past performance of
the organization but also includes forecasting and prediction capabilities to support
future decision-making.

MIS differs from TPS (Transaction Processing Systems) and DSS (Decision Support
Systems) in several ways:

1. Purpose: TPS is designed to process large volumes of transactions, while DSS is

designed to support decision-making processes. MIS, on the other hand, provides
information for managerial decision-making.
2. Data: TPS processes and stores data about day-to-day business transactions, while
DSS is designed to process and analyze large amounts of data to support specific
decision-making activities. MIS integrates data from both sources to provide
managers with comprehensive information.
3. Level of analysis: TPS typically provides operational data, while DSS provides more
complex data analysis to support strategic decision-making. MIS provides a
combination of both operational and strategic data analysis.
4. Time horizon: TPS processes and reports data in real-time or near-real-time, while
DSS and MIS typically analyze data over longer periods to support strategic decision-
making.

In summary, MIS is a management-oriented, integrated, user-friendly, and future-oriented

computer-based system that provides managers with comprehensive information for decision-
making. While TPS processes transactions and DSS supports decision-making, MIS
integrates data from both sources to provide a complete view of the organization's operations.

b) Describe the three roles of Management Information Systems in Decision- Making (6

marks)

Management Information Systems (MIS) play a critical role in decision-making. Here are
three roles of MIS in decision-making:

1. Providing information: MIS provides managers with the information they need to
make informed decisions. The system collects, processes, and analyzes data from
various sources within the organization and presents it in a format that is easy to
understand and use.
 2. Improving decision-making efficiency: MIS streamlines the decision-making process
by providing real-time data, reducing the time it takes to collect and process
information. MIS also allows for collaboration and communication among decision-
makers, enabling faster and more effective decision-making.
3. Supporting strategic decision-making: MIS provides information that supports
strategic decision-making. The system can provide managers with information on
market trends, customer preferences, and competitor activities, among others. This
helps managers to make informed decisions that support the organization's long-term
goals.

In summary, MIS plays a crucial role in decision-making by providing information,

improving decision-making efficiency, and supporting strategic decision-making. By utilizing
MIS, managers can make better-informed decisions, leading to better outcomes for the
organization.

c) Explain the four activities that composes a typical transaction processing system (4
Marks)

d) What is the difference between Batch processing and Real-time transaction

processing? Give examples for each of them (4 marks)

Batch processing and real-time transaction processing are two different methods for
processing data in information systems. Here are the differences between the two:

1. Batch processing: Batch processing is a method of processing data in which a large

volume of data is collected and processed at a specific time or in batches. In this
method, data is collected, sorted, and processed in groups, and the results are typically
stored for later use. Examples of batch processing include:
 Payroll processing: In payroll processing, employee data is collected, and paychecks
are calculated at the end of the pay period.
 Billing systems: Billing systems generate invoices for customers at the end of the
billing period, typically on a monthly basis.
 End-of-day processing: In some industries, such as finance and banking, end-of-day
processing involves consolidating all of the day's transactions and generating reports.
 2. Real-time transaction processing: Real-time transaction processing is a method of
processing data as it occurs, allowing for immediate updates and responses to
changes. In this method, data is processed as soon as it is entered, and the results are
immediately available. Examples of real-time transaction processing include:
 Online banking: When a customer makes a transaction using online banking, the
system immediately records the transaction and updates the account balance.
 Inventory control: In a retail store, inventory levels are updated in real-time as items
are sold or returned.
 Airline reservation systems: When a customer makes a reservation through an airline's
website, the reservation system immediately records the booking and updates seat
availability.

In summary, batch processing is a method of processing data in which a large volume of data
is collected and processed at a specific time, while real-time transaction processing is a
method of processing data as it occurs, allowing for immediate updates and responses to
changes. The choice of processing method depends on the nature of the data and the needs of
the organization

Q4. a) Explain the two approaches to measurement of system effectiveness (4 marks)

When measuring the effectiveness of a system, there are two common approaches:

1. Efficiency approach: The efficiency approach measures the system's ability to use its
resources optimally to achieve a specific objective. This approach focuses on
measuring the inputs and outputs of the system and comparing the two. For example,
in a transaction processing system, the efficiency approach might measure how many
transactions the system can process in a given time frame, or how many errors are
made in processing those transactions.
2. Effectiveness approach: The effectiveness approach measures the degree to which a
system achieves its intended goals or objectives. This approach is concerned with
measuring the impact of the system on the overall business or organizational
outcomes. For example, in a transaction processing system, the effectiveness
approach might measure how well the system reduces processing time, improves data
accuracy, or enhances customer satisfaction.
 While both approaches are essential for measuring the overall performance of a system,
the effectiveness approach tends to be more critical as it focuses on the ultimate goals and
objectives of the system. By measuring the effectiveness of the system, it is possible to
evaluate its contribution to the overall business outcomes, and whether it is fulfilling its
intended purpose.

It's important to note that both approaches to measuring system effectiveness should be
used in conjunction with each other, as measuring efficiency alone may not capture the
full impact of the system on the organization, while measuring effectiveness alone may
not provide insights into how the system can be improved or optimized for maximum
efficiency.

b) What are the four challenges in Information system planning? (4 marks)

Information system planning is a crucial process that involves identifying the organization's
needs, selecting appropriate technology, and designing and implementing an effective
system. Here are four challenges that organizations may face when planning for information
systems:

1. Uncertainty: One of the main challenges in information system planning is dealing

with uncertainty. The rapidly changing technology landscape can make it difficult to
predict which technology solutions will be the most effective in meeting the
organization's needs.
2. Complexity: Information system planning can be complex, especially in large
organizations where there are multiple departments and stakeholders involved. There
may be conflicting needs and priorities, and it can be difficult to ensure that
everyone's needs are met.
3. Cost: Implementing an information system can be costly, especially if the
organization needs to invest in new hardware, software, and other resources. There
may also be ongoing maintenance costs associated with the system.
4. Resistance to change: People can be resistant to change, especially if they are used to
doing things a certain way. Implementing a new information system can require
changes to existing business processes, which can be met with resistance from
employees.

In summary, the four challenges in information system planning are uncertainty,

complexity, cost, and resistance to change. To overcome these challenges, organizations
 need to carefully plan and execute the implementation of their information systems,
considering the needs of all stakeholders and ensuring that the system aligns with the
organization's goals and objectives.

c) Describe the five basic objectives of Management Information Systems (MIS) (5

Marks)

Management Information Systems (MIS) are designed to support the decision-making

process by providing accurate and relevant information to managers. The five basic
objectives of MIS are:

1. Providing information: MIS aims to provide timely and accurate information to

managers to help them make informed decisions. This information may come from
various sources, including internal systems, external data sources, and data analysis
tools.
2. Improving decision-making: MIS should improve the quality of decision-making by
providing managers with the right information at the right time. This will help
managers make more effective decisions and improve overall business performance.
3. Enhancing organizational efficiency: MIS should automate routine tasks, streamline
processes, and reduce manual effort wherever possible. This will help organizations
save time and resources, leading to greater efficiency and productivity.
4. Supporting business strategy: MIS should align with the organization's overall
business strategy and help achieve its objectives. The system should be designed to
support the organization's goals, whether they relate to growth, cost reduction, or
other strategic priorities.
5. Enhancing competitive advantage: MIS should provide a competitive advantage by
providing managers with insights that help them identify new opportunities, improve
business processes, and respond to changing market conditions. This will enable
organizations to stay ahead of the competition and succeed in the marketplace.

In summary, the five basic objectives of Management Information Systems are providing
information, improving decision-making, enhancing organizational efficiency, supporting
business strategy, and enhancing competitive advantage. An effective MIS system can help
organizations achieve these objectives and succeed in today's fast-paced business
environment.
d) Describe the four phases in project management process (7 Marks)

Project management is a structured approach to achieving specific goals and objectives

within a defined timeline and budget. The project management process typically consists of
four phases:

1. Initiation: The initiation phase is the first stage of the project management process.
During this phase, the project is defined and its feasibility is assessed. The project's
goals and objectives are determined, and the project manager is assigned. The project
team is assembled, and the initial plan is developed. The scope of the project is
defined, and the project's requirements are established.
2. Planning: The planning phase is the second stage of the project management process.
During this phase, the project plan is developed in detail. The project manager works
with the project team to identify the specific tasks and resources required to complete
the project. The project schedule is developed, and the project budget is established.
Risk management is also a key component of the planning phase.
3. Execution: The execution phase is the third stage of the project management process.
During this phase, the project plan is put into action. The project team works to
complete the specific tasks defined in the project plan. The project manager monitors
progress and adjusts the plan as necessary. Communication is critical during the
execution phase, as stakeholders need to be informed of progress and any issues that
arise.
4. Closure: The closure phase is the final stage of the project management process.
During this phase, the project is completed, and the final deliverables are provided to
the stakeholders. The project manager conducts a final review to ensure that all goals
and objectives have been met. Lessons learned are documented, and the project is
closed out.

In summary, the four phases of the project management process are initiation, planning,
execution, and closure. A successful project requires effective management throughout
each of these phases to ensure that goals and objectives are achieved within the defined
timeline and budget
Q5. a) Discuss the four components of Transaction Processing system (4 marks)

A transaction processing system (TPS) is a type of computerized system designed to process

large volumes of routine transactions efficiently and accurately. It's widely used in various
industries like banking, healthcare, retail, manufacturing, and many others. A typical TPS
consists of four components:

1. Data Entry: The first component of a TPS is data entry, where transaction data is
captured and entered into the system. This may be done through various methods,
such as manual data entry, bar code scanners, or automated sensors. The accuracy and
timeliness of data entry are crucial for the overall effectiveness of the TPS.
2. Data Processing: The second component of a TPS is data processing, where the
system validates, updates, and processes the transaction data entered in the system.
This includes checking for errors, data redundancy, and data inconsistency. Data
processing also involves running data through a set of predefined rules and algorithms
to ensure the integrity and consistency of the data.
3. Data Storage: The third component of a TPS is data storage, where transaction data
is stored in a secure and accessible database. The data is organized and stored in a
way that allows quick retrieval and processing when required. The data storage
component is crucial for the TPS to be able to handle large volumes of transactions
and provide real-time access to the data.
4. Data Retrieval and Reporting: The final component of a TPS is data retrieval and
reporting, where users can retrieve transaction data and generate reports. This
component is critical for decision-making, analysis, and planning. The TPS provides
various types of

b) A transaction is any event that passes the ACID test in which data is generated or
modified before storage in an information system, explain the four ACID test that a
transaction needs to pass through (6 marks)

ACID is an acronym that stands for Atomicity, Consistency, Isolation, and Durability. These
four characteristics describe the properties that a transaction must possess in order to ensure
reliable data processing and storage.

1. Atomicity: Atomicity refers to the "all or nothing" property of a transaction. A

transaction is treated as a single, indivisible unit of work, which means that all its
operations must either succeed or fail as a single entity. If any part of the transaction
 fails, the entire transaction must be rolled back, undoing any changes that were made
to the data.
2. Consistency: Consistency means that a transaction must ensure that the database is in
a valid state after it completes. This means that the transaction must follow all the
integrity constraints and business rules that apply to the database. If a transaction
violates any of these constraints, it must be aborted and rolled back to its original
state.
3. Isolation: Isolation ensures that each transaction is executed independently of other
transactions. This means that a transaction cannot access or modify data that is
currently being accessed or modified by another transaction. This is necessary to
prevent data inconsistencies and conflicts that can arise when multiple transactions
access the same data concurrently.
4. Durability: Durability refers to the property of a transaction that ensures that once the
transaction is committed, its changes are permanent and cannot be undone, even in the
event of a system failure. This is typically achieved by writing the changes to non-
volatile storage such as a hard disk or solid-state drive.

In summary, a transaction must pass the ACID test to ensure that it is reliable and that
data is processed and stored accurately. Atomicity ensures that transactions are
indivisible, consistency ensures that the data is valid, isolation ensures that multiple
transactions do not conflict with each other, and durability ensures that the changes made
by the transaction are permanent.

c) Explain the six roles information technology plays in strategic management. (6

Marks)

Information technology (IT) plays a crucial role in supporting strategic management by

providing the necessary tools and infrastructure for decision-making and strategic planning.
Here are six roles that IT plays in strategic management:

1. Enabling communication and collaboration: IT provides the infrastructure for

communication and collaboration between different departments and stakeholders,
enabling the sharing of information and ideas to support strategic decision-making.
2. Providing data analysis and decision-making tools: IT systems provide data
analysis and decision-making tools that enable organizations to process and analyze
 large amounts of data quickly and accurately. These tools help organizations identify
trends, patterns, and insights that support strategic decision-making.
3. Supporting business process automation: IT enables the automation of business
processes, reducing costs, and increasing efficiency. This allows organizations to
focus on strategic initiatives rather than routine tasks.
4. Enabling innovation and product development: IT supports innovation and product
development by providing tools and platforms that facilitate collaboration and idea
sharing. This helps organizations to develop new products and services that can give
them a competitive advantage.
5. Enabling strategic partnerships and alliances: IT systems provide the
infrastructure for partnerships and alliances between organizations. This enables
organizations to share resources and expertise, and to collaborate on strategic
initiatives that can benefit both parties.
6. Facilitating organizational agility and flexibility: IT supports organizational agility
and flexibility by enabling organizations to quickly adapt to changing market
conditions and customer needs. This allows organizations to stay ahead of the
competition and to take advantage of new opportunities as they arise.

d) Explain the four major guidelines that an organization has to consider in

the process of looking for a software application (4 marks)

When an organization is looking for a software application, there are several major guidelines
that should be considered in the process:

1. Identify business requirements: The organization should identify the specific

business requirements that the software application needs to address. This involves a
comprehensive analysis of the organization's needs and objectives, including the
business processes that the software needs to support.
2. Evaluate software options: Once the business requirements have been identified, the
organization should evaluate the available software options that meet those
requirements. This involves conducting research on software vendors, comparing
features, and considering factors such as cost, support, and scalability.
3. Conduct a proof of concept: Before committing to a software application, the
organization should conduct a proof of concept to test the software's functionality and
performance in a real-world environment. This involves creating a prototype or pilot
 project to evaluate the software's suitability and to identify any issues or areas for
improvement.
4. Consider implementation and maintenance: The organization should also consider
the implementation and maintenance requirements of the software application. This
includes factors such as installation, customization, training, and ongoing support.
The organization should ensure that it has the necessary resources and expertise to
implement and maintain the software effectively.