Week 3 – Mini Test
(75 minutes)
1. What is an information system? How does it work? What are its management,
organization, and technology components?
An information system (IS) is a set of interrelated components that collect, process, store,
and disseminate information, transform raw data into meaningful information to support
decision-making, coordination, control, and help with analysis, and visualization in an
organization.
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How it works:
o
Input: Captures raw data from the organization or external environment.
o
Processing: Converts raw data into a meaningful form through
computational, analytical, or logical operations.
o
Output: Produces information for decision-makers and end-users, delivering
insights or enabling action.
o
Feedback: Output is returned to appropriate members of organization to
help evaluate or correct input stage
The effectiveness of an IS depends on its ability to provide accurate, timely, and relevant
information.
6 components of an information system:
1. hardware
2. software
3. database
4. network communication
5. people (most important)
6. procedure (how to)
Blue components are Technology – Red components are Management – Black components
are Organization.
2. Why is it important to understand the difference between computer literacy and
information literacy?
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Computer literacy refers to the ability to operate and use computers and software
efficiently, including understanding hardware and software capabilities, which
focuses primarily on knowledge of information technology.
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Information literacy means the understanding the broader organization,
management, and information technology dimensions of systems and their power to
provide solutions to challenges and problems in the business environment.
Importance:
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While computer literacy focuses on tools and technologies, information literacy
focuses on making strategic use of information for business objectives. This
distinction helps professionals leverage data and technology for value creation
rather than just operational tasks. MIS deals with behavioral issues as well as
technical issues surrounding the development, use, and impact of information
systems used by managers and employees in the firm.
Please read case study “UPS Competes Globally with Information Technology” and
answer the following questions:
3. What are the inputs, processing, and outputs of UPS’s package tracking system?
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Inputs:
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Package information (e.g., weight, dimensions, destination).
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Customer details.
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Scans of package barcodes using handheld devices (detailed information about
the sender, the destination, and when the package should arrive).
o
GPS data and delivery updates from drivers (The DIAD also automatically
captures customers’ signatures along with pickup and delivery information).
Processing:
o
Data integration from various points (e.g., hubs, vehicles).
o
Route optimization using algorithms (use special routing software called
ORION to create the most efficient delivery route)
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Tracking updates consolidated in real time. (Customer service representatives
are able to check the status of any package from desktop computers linked to the
central computers and respond immediately to inquiries from customers.)
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Outputs:
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Package tracking details accessible to customers and employees.
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Delivery status updates via web or mobile platforms.
o
Performance reports and logistical insights for management.
4. What technologies are used by UPS? How are these technologies related to UPS’s
business strategy?
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Technologies Used:
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Barcode scanning systems for tracking packages.
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GPS technology for real-time route tracking and optimization.
o
ORION (On-Road Integrated Optimization and Navigation): UPS's
advanced analytics system for delivery route optimization.
o
Mobile devices for real-time data entry and updates by drivers.
o
Customer-facing platforms (e.g., UPS.com and My Choice).
Relation to Business Strategy: UPS employs these technologies to:
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Ensure operational efficiency by minimizing delivery costs and times.
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Enhance customer experience with real-time tracking and reliable delivery.
o
Maintain competitive advantage by integrating advanced analytics and
automation.
5. What strategic business objectives do UPS’s information systems address?
UPS’s information systems address several strategic objectives, including:
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Operational Excellence: Using ORION and other technologies to streamline
delivery processes and reduce fuel consumption.
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Customer and Supplier Intimacy: Offering real-time tracking and tailored
delivery options enhances trust and satisfaction.
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Innovation: Leveraging advanced technologies like predictive analytics and IoT for
cutting-edge logistics.
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Improved Decision-Making: Providing managers with data insights to make
informed operational and strategic choices.
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Competitive Advantage: Staying ahead by using technology to deliver superior
services at lower costs.
6. What would happen if UPS’s information systems were not available?
If UPS’s information systems were unavailable:
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Operational Disruptions: Package tracking, route optimization, and delivery
scheduling would be severely impacted.
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Customer Dissatisfaction: Real-time updates and delivery accuracy would decline,
eroding trust.
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Higher Costs: Without route optimization, fuel and labor costs would increase.
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Loss of Competitive Edge: UPS would struggle to compete with technologydriven rivals like FedEx and Amazon.
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Decision-Making Challenges: Managers would lack critical insights for planning
and problem-solving.
P/S: Please submit the Answer Sheet in Word format with file name is your full name and
student ID (e.g. Tran Van An – 12345678) – OK TEACHER!