Questions & Answers for mid-term examination
Chapter 1:
1- List and describe four reasons why information systems are so important for business
today?
Answer:
- Capital Management
- Foundation of doing business
- Productivity
- Strategic opportunity and advantage
2- Describe five technology and business trends that have enhanced the role of
information systems in today’s competitive business environment:
Answer: (chapter 1: page 8)
- Internet growth and technology convergence
- Transformation of the business enterprise
- Globalization
- Rise of the information economy
- Emergence of the digital firm
3- Describe the capabilities of a digital firm. Why are digital firms so powerful?
Answer:
- Digital firm is one in which nearly all of the organization’s significant business
relationships with customers, suppliers, and employers are digitally enabled
and mediated.
- Digital firms are so powerful because all companies can use internet
technology for e-commerce transactions with customers and suppliers, for
managing internal business process, and for coordinating with suppliers and
other business partners. E-commerce includes e-commerce as well the
management and coordination of the enterprise. And also digital management
of key corporate assets.
4- What is information system? Distinguish between a computer, a computer program,
and an information system. What is the different between data and information?
Answer:
- An information system can be defined technically as a set of interrelated
components that collect, process, store and distribute information to support
decision making and control in an organization.
- Data: streams of raw facts representing events such as business transactions.
- Information: clusters of facts meaningful and useful to human beings in the
processes such as making decisions.
5- What activities convert raw data to make information in information systems? What is
their relationship to feedback?
Answer:
- Three basic activities produce the information organizations need: Input,
processing and output.
- Feedback is output returned to appropriate people or activities in the
organization to evaluate and refine the input.
6- What is purpose of an information system from a business perspective? What role
does it play in the business information value chain?
Answer:
- From a business perspective, information systems are part or a series of valueadding activities for acquiring, transforming, and distributing information that
managers can use to improve decision making, enhance organizational
performance, and, ultimately, increase firm profitability.
- Using information systems effectively requires an understanding of the
organization, management, and information technology shaping the systems.
An information system creates value for the firm as an organizational and
management solution to challenges posted by the environment.
7- What is information systems literacy? How does it differ from computer literacy?
Answer:
- Information systems literacy: broad-based understanding of information
systems that includes behavioral knowledge about organization, management
and individuals using information systems as well as technical knowledge
about computers.
- Computer literacy: Knowledge about information technology, focusing on
understanding how computer technologies work.
8- What are the organizational, management, and technology dimensions of information
systems?
Answer:
- Organizational dimension: people, structure, business processes, politics, and
culture.
- Management dimension: Sense makers, decision makers, planners, innovators
or new processes, and leaders (set agendas).
- Technology dimensions: Hardware, software, storage, communication
technology, and network.
9- What are the Internet and the World Wide Web? How have they changed the roles
played by information systems in organizations?
Answer:
- Internet is the world’s largest and most widely used network.
- World Wide Web is a system with universally accepted standards for storing,
retrieving, formatting, and displaying information a networked environment.
10- Why do some firms obtain greater value from their information systems than others?
What role do complementary assets and organizational and management capital play?
Answer:
- Some firms obtain greater value from their information systems than others
because……………………………………………..
- Role of complementary assets play: New business processes, Management
behavior, Organizational culture and training.
- Role of organizational and management capital play: supportive business
culture that values efficiency and effectiveness, Efficient business processes,
decentralization of authority. Highly distributed decision rights and a strong
information system development team.
11- Distinguish between a behavioral and a technical approach to information systems in
terms of the questions asked and the answers provided. What major disciplines
contribute to an understanding of information systems?
Answer:
-
The technical approach to information systems emphasizes mathematically
based models to study information systems. And Behavioral approach
concentrates on changes in attitudes, management and organizational policy,
and behavior.
-
Major disciplines contribute to an understanding of information systems are:
+ Technical approaches: computer science, management science and
Operations research.
+ Behavioral approaches: Psychology, sociology and economics.
12- What are the key management challenges involved in building, operating and
maintaining information systems today?
Answer:
- The information systems investment challenge: How can organization obtain
business value from their information system?
- The strategic business challenge: What complementary assets are needed to
use information technology effectively?
- The globalization challenge: How can firm understand the business and system
requirements of a global economic environment?
- The information technology infrastructure challenge: How can organization
develop an information technology infrastructure that can support their goals
when business conditions and technologies are changing so rapidly?
- Ethic and security: The responsibility and control challenge: How can
organization ensure that their information systems are used in an ethically and
socially responsible.
Chapter 2:
1- Identify and describe the three levels of the organizational hierarchy. Which types of
information systems serve each level?
Answer:
The three levels of the organizational hierarchy:
- Senior Managers
- Middle Managers
- Operational Managers
Types of information systems serve each level:
- Operational-level systems: support operational mangers, keeping track of the
elementary activities and transactions.
- Management-level systems: serve the monitoring, controlling, decisionmaking, and administrative activities of middle managers.
- Strategic-level systems: help senior management tackle and address strategic
issues.
2- List and briefly describe the major types of system in organization?
Answer:
- Transaction Processing Systems (TPS): are the basic business systems that
serve the operational level of the organization. And it is also a computerized
system that performs and records the daily routine transactions necessary to
conduct business.
- Management Information Systems (MIS): serve the management level of the
organization, providing managers with reports and often-online access to the
organization’s current performance and historical records and primarily serve
the functions of planning, controlling, and decision-making.
-
-
Decision-Support System (DSS): also serve the management level or the
organization. DSS help mangers make decisions that are unique, rapidly
changing, and not easily specified in advance.
Executive Support System (ESS): serve the strategic level of the organization.
They address nonroutine decisions requiring judgment, evaluation, and insight
because there is no agreed on procedure for arriving at a solution.
3- What are the five types of TPS in business organizations? What functions do they
perform? Give example of each.
Answer:
Five types of TPS with example:
- Sale/Marketing Systems (eg. Sale management, customer service…)
- Manufacturing/Production Systems (eg. Purchase order, scheduling,…..)
- Finance/Accounting Systems (eg. General ledger, payroll…….)
- Human Resources Systems (eg. Personnel records, training,…….)
- Other types of TPS that are unique to a particular industry. (eg. University:
admissions, grade records,…..)
4- What are the characteristics of MIS? How do MIS differ from TPS? From DSS?
Answer:
-
Characteristics of MIS: (Inputs: high volume transaction level data;
Processing: simple models; Outputs: summary reports; Users: Middle
Manager)
-
MIS differ from TPS: MIS serve at management level and TPS serve at
Operational level.
-
MIS differ from ESS: MIS serve at management level and ESS serve at
strategic level.
5- What are the characteristics for DSS? How do they differ from those of ESS?
Answer:
- Characteristics for DSS: (Inputs: transaction level data; Processing: Interactive;
Outputs: Decision analysis; Users: Professional and staff)
- DSS differ from ESS: DSS serve at management level and ESS serve at
strategic level and its characteristics are: Inputs: Aggregate data; Outputs:
projections; Users: senior managers.
6- Describe the relationship between TPS, MIS, and ESS.
Answer:
- The relationship between TPS, MIS, and ESS: TPS are typically a major
source of data for other systems, data also be exchanged to MIS to produce
reports, whereas ESS are primarily a recipient of date from lower-level
systems.
7- List and describe the information systems serving each of the major functional areas of
a business.
Answer:
- Sale and Marketing Systems:
System
Description
Order processing
Pricing analysis
Enter, process, and track orders
Determine prices for products
and services
Prepare 5 years sales forecasts
Sale and forecasting
-
Manufacturing and Production Systems
System
Description
Machine control
Production planning
Facilities location
-
Finance & Accounting Systems
System
Description
Account Receivable
Budgeting
Profit planning
-
Control the actions of machines
and equipment
Decide when and how many
products should be produced
Decide where to locate new
production facilities.
Tracks money owed the firm
Prepares short-term budgets
Plans long-term profits
Human Resource Systems
System
Description
Training and
Development
Compensation analysis
Human Resource
planning
Organizational
Level
Operational
Management
Strategic
Organizational
Level
Operational
Management
Strategic
Organizational
Level
Operational
Management
Strategic
Organizational
Level
Operational
Tracks employee training,
skills, and performance
appraisals
Monitors the rang and
Management
distribution of employee wages,
salaries, and benefits
Plans the long-term labor force Strategic
needs of the organization
8- What is a business process? Give two examples of processes for functional areas of
the business and one example of a cross functional process.
Answer:
- Business process refer to sets of logically related activities for accomplishing a
specific business result, and also refer to the unique ways in which
organization and management coordinate these activities.
- Example for functional area of business process: (Finance and Accounting:
paying creditors, creating financial statements and managing cash accounts);
(Human Resources: hiring employees, evaluating employees’ job performance
and enrolling employees in benefits plans)
- Example of a cross functional process: Order fulfillment process (Sales
Department: Generate order and submit order; Accounting Department: Check
credit and approve credit and then Manufacturing & Production department:
Assemble product and ship product, and finally Accounting Department:
Generate invoirce).
9- Why are organizations trying to integrate their business processes? What are the four
key enterprise applications for organization-wide process integration?
Answer:
- Organizations are trying to integrate their business processes because they
want to enhance the performance of the organizations as a whole. The system
takes advantage of corporate intranets and web technologies that enable the
efficient transfer of information within the firm and to partner firms. And these
systems are inherently cross-level, cross-functional, and business process
oriented.
- The four key enterprise applications: Enterprise Systems, Supply Chain
Management Systems, Customer Relationship Management Systems, and
Knowledge Management Systems.
10- What are enterprise systems? How do they change the way an organization work?
Answer:
- Enterprise Systems, also known as enterprise resource planning systems,
provide a single information system for organization-wide coordination and
integration of key business processes.
- Information that was previously fragmented in different systems can
seamlessly flow throughout the firm so that it can be shared by business
processes in manufacturing, accounting, human resources, and other areas.
11- What are supply chain management systems: How do they benefit business?
Answer:
- Supply chain management systems are more outward facing, focusing on
helping the firm manage its relationship with suppliers to optimize the
planning, sourcing, manufacturing, and delivery of products and services.
Theses systems provide information to help suppliers, purchasing firms,
distributors, and logistics companies coordinate, schedule, and control business
processes for procurement, production, inventory management, and delivery or
products and services.
- Benefit to business: Decide when and what to produce, store, and move;
Rapidly communicate orders; Track the status of orders; Check inventory
availability and monitor inventory levels; Reduce inventory, transportation,
and warehousing costs; Track shipments; Plan production based on actual
customer demand; Rapidly communicate changes in product design.
12- What are customer relationship management systems? How do they benefit business?
Answer:
- Customer Relationship Management Systems focus on coordinating all of the
business processes surrounding the firm’s interactions with its customers in
sales, marketing, and service to optimize revenue, customer satisfaction, and
customer retention.
- Users can manage and evaluate marketing campaigns across multiple channels,
including e-mail, direct mail, telephone, the web, and wireless message.
13- What is the role of knowledge management systems in the enterprise? What
organizational processes are supported by knowledge management applications?
Answer:
Role of Knowledge Management Systems:
- Collects relevant knowledge and make it available wherever and whenever it is
needed.
- Support business processes and management decisions
- Also link the firm to external sources of knowledge
- Support processes for acquiring, storing, distributing, and applying knowledge.
Organizational process that supported by KM applications:
- Acquiring knowledge
- Storing knowledge
- Distributing knowledge
- Apply knowledge
14- What are the challenges posed by the existence of various types of information
systems in the enterprise? How can these challenges be addressed?
Answer:
Challenges:
- Integration and the whole firm view: Given the different interests and
perspectives within a firm, it is difficult to achieve consensus about the need
for the whole firm viewpoint.
- Management and employee training: Training a large number of employees on
many systems in a large organization involves commensurately large
investments.
- Accounting for the cost of systems and managing demands for systems: Given
the large number of different types of systems in a firm, and the large number
of people involved with using them. It is a complex task to understand which
systems are truly necessary and productive with high returns on investment.
Challenges be addressed:
- Inventory the firm’s information systems: Develop a list of firm-wide
information requirements to give a 360-degree view of the most important
information needs of the firm.
- Employee and Management education: Ensure that you understand how much
training is required.
- Account for the costs and benefits: Develop an accounting system for
information services firm-wide.