Chapter 1 Questions
Fudamentals of Information Systems
Complete the following sentences:
 Why study information systems and information tehnology?
 ……… An Information System…… is a vital component of successful
businesses.
 ……… An Information System……Helps businesses expand and compete.
 Businesses use IS and IT to …………… To improve efficiency and effectiveness
of business processes ……………
 Businesses use IS and IT to ………… For managerial decision making ………….
 Businesses use IS and IT to …………… For workgroup collaboration ……………
 What is a system?
 …………A System………… Is a set of interrelated components with a clearly
defined boundary working together to achieve a common set of objectives.
 What is an Information System?
 .........An Information System........ is an organized combination of people,
hardware, software, communications networks, data resources, and policies
and procedures, that stores, retrieves, transforms, and disseminates
information in an organization
 What is Information Technology (IT)?
 ……….. Information Technology (IT) ……… is hardware, software, networking
and data management.
 What should a Business Professional know about IS?
 A Business Professional should know the following about IS:
…………..………. Foundation Concepts - Information Technology - Business
Applications - Development Processes - Management Challenges …………….
 ………… IS Foundation Concepts ……….. is the fundamental behavioral,
technical, business and managerial concepts.
 ………… Information Technology……….. is Hardware, software, networks, data
management and Internet-based technology
 ………… IS Management Challenges……….. The challenges of effectively and
ethically managing IT
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 Explain the Business applications expanding role over time shown in the
figure below.
 What is E-business?
 …………E-business……….. is an online exchange of value.
 …………E-business……….. is The use of Internet technologies to work and
empower business processes, electronic commerce, and enterprise
collaboration, within a company and with its customers, suppliers, and other
business stakeholders.
 Explain how e-business is being used using the figure shown below.
 …………. Enterprise collaboration systems ……….. is the use of SW tools to
support communications, coordination and collaboration among teams and
work groups, e.g., virtual teams.
 Buying, selling, marketing and servicing of products and services over
computer networks is called ........ Electronic commerce …….
 …………Transaction Processing Systems ………….. Record and process data
resulting from business transactions. Give an example.
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 …………Process Control Systems ………….. Monitor and control physical
processes. Give an example.
 …………Enterprise Collaboration Systems ………….. Enhance team and work
group communications. Give an example.
 Knowledge management systems support creation, organization and
dissemination of business knowledge throughout company.
 ........... Batch Processing …………. Accumulate transactions over time and
process periodically. Give an example.
 ........... Online Processing …………. Process transactions immediately. Give
an example.
 ........... Management Information Systems (MIS) …………. Provide
prespecified reports and displays to managers. Give an example.
 ........... Decision Support Systems (DSS) …………. Provide interactive ad hoc
support for decision making. Give an example.
 ........... Executive Information Systems (EIS) …………. Provide critical
information from MIS, DSS, and other sources for executives and managers.
Give an example.
 ........... Functional business systems …………. Focus on operational and
managerial applications of basic business functions.
 ........... Strategic information systems …………. Help get a strategic
advantage over its customers.
 ........... Cross-functional information systems …………. Systems that are
combinations of several types of information systems and provide support
for many functions.
 ………… Efficiency of an IS …………… is the minimization of cost, time and use
of information resources.
 ………… Effectiveness of an IS …………… Support business strategies, enable
business processes, enhance organizational structure and culture, and
increase the customer and business value
 Using the figure shown below, explain the development of IS solutions.
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 What uses of IT might be considered improper or harmful to other
individuals or society? .......... is one of IS ethical responsibilities ……………
 What is the proper business use of the Internet or a company’s IT
resources?................ is one of IS ethical responsibilities ……………
 How can you protect yourself from computer crime and other risks of
information technology? .......... is one of IS ethical responsibilities ……………
 Rising labour costs in North America, Canada, and Europe have resulted in a
large-scale movement to outsource basic software programming functions
to India, the Middle-East and Asia-Pacific countries .......... is one of
challenges of IT careers……………
 Shortage of qualified IS personnel .......... is one of challenges of IT
careers……………
 Among the fastest growing IS occupations: .............. Systems Analyst,
Database administrators, Other managerial-level positions Network
specialists and Information security …………..
 What is a system?
 Systems have three basic functions:
……………… input, processing, and
output ……………
 ………… input …………. involves capturing and assembling elements that enter
the system to be processed.
 ………… output ………… involves transferring elements that have been
produced by the transformation process to their ultimate destination.
 ……….. processing ………. involves transformation process that convert input
into output.
 ………… A cybernetic system ………. is a self-monitoring, self-regulating
system, adds feedback and control.
 ……….. Feedback …………. is data about the performance of a system
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 ……….. Control …………. involves monitoring and evaluating feedback to
determine whether a system is moving towards the achievement of its goal
 What are the components of an information system?
 ………. End users ……… are the people who use the IS or the information from
the IS.
 ………. Software Resources …… are System software, application software
and procedures.
 Software resources are all information processing instructions including
programs and procedures.
 E-business is the use of the Internet, intranets, and extranets to empower
internal business operations, electronic commerce, and enterprise
collaboration.
 MICR is the Identification of numbers of bank and account printed in
magnetic ink on bottom of check.
 ………. IS specialists ………. are the people who develop and operate IS.
 All information processing instructions including programs and procedures
 ........... Hardware Resources ……….. are all physical devices used in
information processing.
 Explain “the business as a system” diagram shown below.
 Explain the information systems model shown below.
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 ………… Network Resources ………. are communications media, network
infrastructure , the Internet, intranets and extranets.
 ........ Data ………… are raw facts about physical phenomena or business
transactions. Give an example.
 ........... Information ………… is data that has been converted into meaningful
and useful context for end users. Give an example.
 What are an IS activities?
Input of data resources (Data entry activities) - Processing of data into
information (E.g., calculate, compare, sort, classify, summarize) - Output of
information products (Messages, reports, forms and graphic images) Storage of data resources (Data elements and databases) - Control of system
performance (Monitoring and evaluating feedback).
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