1. Compare data and information?

Data:

 Definition: Raw facts, figures, or symbols that have not been processed or organized.
 Nature: Often unstructured and context-free; can be quantitative (numbers) or qualitative
(descriptive).
 Example: A list of temperatures (e.g., 72°F, 68°F, 75°F) or a collection of survey
responses.

Information:

 Definition: Data that has been processed, organized, or structured in a way that gives it
meaning and context.
 Nature: Contextualized and useful for decision-making or understanding; it often helps
to answer questions.
 Example: Analyzed weather data showing that temperatures are rising over the week, or
a report summarizing survey findings.

2. Give a information on functional information system?

A functional information system (FIS) is designed to support specific functions or departments

within an organization. It focuses on the operational needs of particular areas, such as finance,
human resources, marketing, or production.

Key Features:

 Specialization: Tailored to meet the unique requirements of each department.

  Integration: Often interfaces with other systems to facilitate data sharing across the
organization.
 Efficiency: Streamlines processes and improves productivity by automating routine tasks.
 Decision Support: Provides relevant information and tools that aid in decision-making at
the departmental level.

Examples:

 Financial Information Systems: Manage budgeting, accounting, and financial reporting.

 Human Resource Information Systems (HRIS): Handle employee records, payroll, and
recruitment processes.
 Customer Relationship Management (CRM): Support sales and marketing functions
by managing customer interactions and data.

3. Define system design?

System design is the process of defining the architecture, components, modules, interfaces, and
data for a system to satisfy specified requirements. It involves translating user needs and
system specifications into a blueprint for building the system.
4. Classify the information system based on functions and hierarchy?

Information systems can be classified based on their functions and hierarchy. Here’s a
breakdown of these classifications:

Based on Functions:

1. Transaction Processing Systems (TPS):

o Handles day-to-day transactions.
o Examples: Point of Sale systems, payroll systems.
2. Management Information Systems (MIS):
o Provides routine information for management decision-making.
o Examples: Sales management systems, inventory control systems.
3. Decision Support Systems (DSS):
o Supports complex decision-making and problem-solving.
o Examples: Financial forecasting systems, risk analysis tools.
4. Executive Information Systems (EIS):
o Provides top executives with easy access to internal and external information
relevant to their strategic goals.
o Examples: Dashboard systems for tracking key performance indicators (KPIs).
5. Knowledge Management Systems (KMS):
o Facilitates the collection, organization, and sharing of knowledge within an
organization.
o Examples: Document management systems, collaborative platforms.
6. Customer Relationship Management Systems (CRM):
o Manages a company’s interactions with current and potential customers.
 o Examples: Salesforce, HubSpot.

Based on Hierarchy:

1. Operational Level:
o Systems that support daily operations and transaction processing (e.g., TPS).
2. Management Level:
o Systems that help middle management with tactical decision-making (e.g., MIS).
3. Strategic Level:
o Systems that assist top management in long-term strategic planning and decision-
making (e.g., EIS).
4. Knowledge Level:
o Systems that support the creation, sharing, and application of knowledge (e.g.,
KMS).

5. What does DFD refer to? Write the steps of developing DFD? Draw a student
university enrollment?
The Data Flow Diagram (DFD) is a graphical representation of the flow of data through
an information system. It enables you to represent the processes in your information
system from the viewpoint of data. The DFD lets you visualize how the system operates,
what the system accomplishes and how it will be implemented, when it is refined with
further specification.

Data flow diagrams are used by systems analysts to design information-processing

systems but also as a way to model whole organizations. You build a DFD at the very
beginning of your business process modeling in order to model the functions your
system has to carry out and the interaction between those functions together with
focusing on data exchanges between processes. You can associate data with conceptual,
logical, and physical data models and object-oriented models.

There are two types of DFDs, both of which support a top-down approach to systems
analysis, whereby analysts begin by developing a general understanding of the system
and gradually break components out into greater detail:

 Logical data flow diagrams - are implementation-independent and describe the

system, rather than how activities are accomplished.
 Physical data flow diagrams - are implementation-dependent and describe the
actual entities (devices, department, people, etc.) involved in the current
system.
Steps for Developing a Data Flow Diagram (DFD)
Identify the Purpose:
Determine what process you want to model and its boundaries.
Gather Requirements:
Collect information from stakeholders about how the system should operate.
Identify Processes:
Break down the system into key processes that transform inputs into outputs.
Identify Data Flows:
Determine how data moves between processes, data stores, and external entities.
Identify External Entities:
Recognize outside actors (users or systems) that interact with the system.
Identify Data Stores:
Define where data is stored within the system.

Draw the DFD:

Create the diagram using standardized symbols:
Circles or ovals for processes
Arrows for data flows
Open rectangles for data stores
Squares for external entities
Review and Validate:

Ensure the DFD accurately represents the system by reviewing it with stakeholders.
Example DFD: Student University Enrollment
Level 0 DFD (Context Diagram)
+-------------------+
 | |
| External Entity |
| (Student) |
| |
+---------+---------+
|
| Enrolls
|
v
+-----+-----+
| Enrollment|
| Process |
+-----+-----+
|
| Enrollment Info
v
+-----+-----+
| Database |
| (Records)|
+-----------+

Level 1 DFD
+-------------------+
| |
| Student |
| |
 +---------+---------+
|
| Enrolls
|
v
+-----+-----+
| Enrollment|
| Process |
+-----+-----+
| |
| | Enrollment Info
| |
+------+ +-------+
| |
v v
+--------+------+ +-----+-----+
| Payment | | Course |
| Processing | | Selection |
+----------------+ +-------------+
| |
| Payment Details | Course Choices
v v
+-----+-----+ +-----+-----+
| Database | | Database |
| (Payments)| | (Courses)|
+-------------+ +-----------+
CASE STUDY
A waiter takes an order at a table, and then enters it online via one of the six
terminals located in the restaurant dining room. The order is routed to a printer in
the appropriate preparation area: the cold item printer if it is a salad, the hot-item
printer if it is a hot sandwich or the bar printer if it is a drink. A customer’s meal
check-listing (bill) the items ordered and the respective prices are automatically
generated. This ordering system eliminates the old three-carbon-copy guest check
system as well as any problems caused by a waiter’s handwriting. When the kitchen
runs out of a food item, the cooks send out an ‘out of stock’ message, which will be
displayed on the dining room terminals when waiters try to order that item. This
gives the waiters faster feedback, enabling them to give better service to the
customers. Other system features aid management in the planning and control of
their restaurant business. The system provides up-to-the-minute information on the
food items ordered and breaks out percentages showing sales of each item versus
total sales. This helps management plan menus according to customers’ tastes. The
system also compares the weekly sales totals versus food costs, allowing planning
for tighter cost controls. In addition, whenever an order is voided, the reasons for
the void are keyed in. This may help later in management decisions, especially if
the voids consistently related to food or service. Acceptance of the system by the
users is exceptionally high since the waiters and waitresses were involved in the
selection and design process. All potential users were asked to give their
impressions and ideas about the various systems available before one was chosen.

n the light of the system, describe the decisions to be made in the area of strategic planning,
managerial control and operational control? What information would you require to make such
decisions?
What would make the system a more complete MIS rather than just doing transaction
processing?
Explain the probable effects that making the system more formal would have on the customers
and the management.
Solution of Management Information System in Restaurant Case Study:
1. A management information system (MIS) is an organized combination of people, hardware,
communication networks and data sources that collects, transforms and distributes information
in an organization. An MIS helps decision making by providing timely, relevant and accurate
information to managers. The physical components of an MIS include hardware, software,
database, personnel and procedures.
Management information is an important input for efficient performance of various managerial
functions at different organization levels. The information system facilitates decision making.
Management functions include planning, controlling and decision making. Decision making is
the core of management and aims at selecting the best alternative to achieve an objective. The
decisions may be strategic, tactical or technical. Strategic decisions are characterized by
uncertainty. They are future oriented and relate directly to planning activity. Tactical decisions
cover both planning and controlling. Technical decisions pertain to implementation of specific
tasks through appropriate technology. Sales region analysis, cost analysis, annual budgeting,
and relocation analysis are examples of decision-support systems and management information
systems.
There are 3 areas in the organization. They are strategic, managerial and operational control.
Strategic decisions are characterized by uncertainty. The decisions to be made in the area of
strategic planning are future oriented and relate directly to planning activity. Here basically
planning for future that is budgets, target markets, policies, objectives etc. is done. This is
basically a top level where up-to-the minute information on the food items ordered and breaks
out percentages showing sales of each item versus total sales is provided. The top level where
strategic planning is done compares the weekly sales totals versus food costs, allowing planning
for tighter cost controls. Executive support systems function at the strategic level, support
unstructured decision making, and use advanced graphics and communications. Examples of
executive support systems include sales trend forecasting, operating plan development, budget
forecasting, profit planning, and manpower planning.
The decisions to be made in the area of managerial control are largely dependent upon the
information available to the decision makers. It is basically a middle level where planning of
menus is done and whenever an order is voided, the reasons for the void are keyed in which
later helps in management decisions, especially if the voids are related to food or service. The
managerial control that is middle level also gets customer feedback and is responsible for
customer satisfaction.
The decisions to be made in the area of operational control pertain to implementation of
specific tasks through appropriate technology. This is basically a lower level where the waiter
takes the order and enters it online via one of the six terminals located in the restaurant dining
room and the order is routed to a printer in the appropriate preparation area. The item’s
ordered list and the respective prices are automatically generated. The cooks send ‘out of
stock’ message when the kitchen runs out of a food item, which is basically displayed on the
dining room terminals when waiter tries to order that item. This basically gives the waiters
faster feedback, enabling them to give better service to the customers. Transaction processing
systems function at the operational level of the organization. Examples of transaction
processing systems include order tracking, order processing, machine control, plant scheduling,
compensation, and securities trading.
The information required to make such decision must be such that it highlights the trouble
spots and shows the interconnections with the other functions. It must summarize all
information relating to the span of control of the manager. The information required to make
these decisions can be strategic, tactical or operational information.

Advantages of an online computer system:

 Eliminates carbon copies
 Waiters’ handwriting issues
 Out-of-stock message
 Faster feedback, helps waiters to service the customers
Advantages to management:
 Sales figures and percentages item-wise
 Helps in planning the menu
 Cost accounting details
2. If the management provides sufficient incentive for efficiency and results to their customers,
it would make the system a more complete MIS and so the MIS should support this culture by
providing such information which will aid the promotion of efficiency in the management
services and operational system. It is also necessary to study the keys to successful Executive
Information System (EIS) development and operation. Decision support systems would also
make the system a complete MIS as it constitutes a class of computer-based information
systems including knowledge-based systems that support decision-making activities. DSSs serve
the management level of the organization and help to take decisions, which may be rapidly
changing and not easily specified in advance.

Improving personal efficiency, expediting problem solving (speed up the progress of problems
solving in an organization), facilitating interpersonal communication, promoting learning and
training, increasing organizational control, generating new evidence in support of a decision,
creating a competitive advantage over competition, encouraging exploration and discovery on
the part of the decision maker, revealing new approaches to thinking about the problem space
and helping automate the managerial processes would make the system a complete MIS rather
than just doing transaction processing.

3. The management system should be an open system and MIS should be so designed that it
highlights the critical business, operational, technological and environmental changes to the
concerned level in the management, so that the action can be taken to correct the situation. To
make the system a success, knowledge will have to be formalized so that machines worldwide
have a shared and common understanding of the information provided. The systems developed
will have to be able to handle enormous amounts of information very fast.
An organization operates in an ever-increasing competitive, global environment. Operating in a
global environment requires an organization to focus on the efficient execution of its processes,
customer service, and speed to market. To accomplish these goals, the organization must
exchange valuable information across different functions, levels, and business units. By making
the system more formal, the organization can more efficiently exchange information among its
functional areas, business units, suppliers, and customers.

As the transactions are taking place every day, the system stores all the data which can be used
later on when the hotel is in need of some financial help from financial institutes or banks. As
the inventory is always entered into the system, any frauds can be easily taken care of and if
anything goes missing then it can be detected through the system.