Module 1 - Management Information Systems and Business Functions

True

An information system is a system that accepts input data and processes it into information as output. True or False?

True

An information system is the collection of data, hardware and software, people, and procedures to help run a business. TRUE or FALSE

True

Synergy is the cooperation between several businesses to produce a better product or service than would be possible if each business worked independently. True or false.

b - Information systems

People, processes, hardware, software, networks, and data comprise the six major components of a computer-based ( ). a. information technology b. Information systems c. Information security

d - Executive information systems

( ) are a specific class of DSS that support the strategic decision-making process of top-level executives. These systems incorporate summarized information from decision support systems and management information systems, along with external factors to forecast and analyze trends. a. Management information systems (MIS) b. Transaction processing system (TPS) c. Decision-support systems (DSS) d. Executive information systems (EIS)

a - People

( ) are the most important component of an information system (IS) and their requirements are the primary reason IS are developed. a. people b. software c. networks

c - decision support systems

( ) focus on supporting all phases of specific decision-making processes and procedures for arriving at a solution. While MIS are generally applied to structured problems at the organizational level, ( ) are often developed to handle unstructured problems at all levels (i.e., single user, group, or organization). a. Management information systems (MIS) b. Transaction processing system (TPS) c. Decision-support systems (DSS) d. Executive information systems (EIS)

b - Information systems

( ) provide managerial and operational support to businesses by collecting and processing data into useful information as well as providing for storage, retrieval, and security of data and the information it's transformed into. a. information technology b. Information systems c. Information security

a - management information systems

( ) represent a category of information systems that serve lower to middle managers. It provides performance reports based on the results from transaction processing systems, such as product cost data, sales data, and expense data. a. Management information systems (MIS) b. Transaction processing system (TPS) c. Decision-support systems (DSS) d. Executive information systems (EIS)

CRM ERP

( ) systems are more externally focused on customer relationships and ( ) systems are primarily focused on integrating internal business functions. Answers: CRM or ERP

b - transaction processing

A ( ) system is a computer system that tracks transactions required to run a business. This system provides critical information to other departments and systems within the organization. a. Management information systems (MIS) b. Transaction processing system (TPS) c. Decision-support systems (DSS) d. Executive information systems (EIS)

supply chain management

A (SCM) system works to increase the efficiency of the process of getting materials developed into the products and pushed out to the customer. (SCM) software provides tools to help the business manage supplier relationships, develop strategies to ensure quality products or services, create production schedules, procedures for returning defective products, and delivering the product or service to the customers. What is SCM?

b - One of the key business benefits of enterprise resource planning is the foundation that it provides for a business to standardize its business procedures across all business units.

A business benefit of enterprise resource planning systems is? a. higher salaries for executives. b. standardized business procedures. c. ease of implementation. d. ease of use.

COMPETENCY

A core ( ) is an activity for which a business is a marketplace leader.

c - EIS: A digital dashboard is an example of an executive information system (EIS). These systems incorporate summarized information with external factors to forecast and analyze trends for top level executives.

A digital dashboard displays charts and graphs with up-to-the-minute performance indicators on sales, profit, expenses and inventory. This is an example of a ( )? a. TPS b. MIS c. EIS d. DSS

a - DSS is designed to solve a specific problem. In this question, an investment DSS is loaded with all sorts of investment information to help a financial consultant narrow down the choices appropriate for his/her clients.

A financial consultant can use a(n) ________ to help his/her clients select investment choices and make informed financial decisions. a. TPS b. DSS c. MIS d. EIS

d - TPS, MIS, DSS, EIS

A four-level pyramid depicts different types of information systems, as they relate to different hierarchical levels within an organization. Select the correct ascending ordered list of four systems (i.e., bottom to top of the pyramid), that relates to the end users' increasing hierarchical level within an organization. a. EIS, MIS, TPS, DSS b. TPS, DSS, MIS, EIS c. EIS, DSS, MIS, TPS d. TPS, MIS, DSS, EIS

c - 3

A large part of IS management's main agenda changes every ( ) year(s) due to the constant evolvement of information systems, confirming the highly dynamic nature of the IS management function. a. 1 b. 2 c. 3 d. 4

c - Business ecosystems

A network of businesses, such as suppliers and distributors, are involved in providing delivery of a service or product through cooperation. The ecosystem must be flexible and adaptable to meet market demands. The rapid changes in technology have caused businesses to work together, aligning talents and resources, to reach a common goal or vision in a mutually beneficial relationship. a. virtual company model b. Network economics c. Business ecosystems

True

A system is a collection of related parts working together to achieve a specific purpose or task. TRUE or FALSE?

strategic - The process of developing strategic information systems is one that never ends but is ongoing throughout the life of the business.

A value chain is a set of inputs used by a ( ) information system and put into meaningful outputs to help a company gain a competitive advantage in the marketplace.

INFORMATION

An ( ) system consists of all the components that work together to process data into useful information.

learning management system

An LMS is a software platform used for the administration and delivery of electronic educational courses and programs. What is an LMS?

Customer relationship management

CRM systems use technology to merge marketing with business processes to strengthen relationships and organize customer information. What is CRM?

IS IT IT IT IS IS

Choose whether the following examples are either IT or IS. •Online reservation booking? •Telephone and radio equipment? •Data, voice, and video equipment? •Computer peripherals? •Track customer activities? •Predicting future sales patterns?

Enterprise resource planning - Popular ERP software vendors include SAP and Oracle

Enterprise systems can run on many different types of computer and network configurations, but ERP systems use a common database and software platform to integrate the various facets of the business. What is ERP?

a - information technology

Hardware, software, data, and networks make up ( )? a. information technology b. Information systems c. Information security

c - E-learning is one of the latest growing benefits to train and educate new health care professionals as well as current ones so they can advance in their careers and stay up to date with the many tools and systems involved in the medical field.

How is information technology impacting the health care industry? a. Information technology eliminates data entry errors. b. Records are maintained electronically and allow easy access to anyone who needs them. c. E-learning supports the health care demand by training workers more quickly.

a - TECHNOLOGIES b - SYSTEMS

INFORMATION ( ) have shown tremendous growth in the last few decades, leading to more sophisticated INFORMATION ( ). a. technology b. systems c. security

a - technology

Information ( ) refers to the hardware and software required to manage and deliver information. Examples of information ( ) include server hardware, personal computers, switches, telephones, and peripheral devices. a. technology b. systems c. security

True - Data that are organized is significant and can become useful information.

Information is data that have been organized to provide value to an organization. True or False?

SECURITY

Information systems executives must make difficult hardware decisions regarding ( ) issues that pose possible outside threats to the system.

a - IT helps improve processes by helping to identify, analyze, and improve upon existing business practices within an organization.

Joe and Mary work for a tax preparation company that is implementing new computer technology. What is a likely impact of this new technology to their jobs? a. Improved processes b. Reduced stress c. More job security

a - first level managers

Management information systems focus on technology, people, and organizations. They primarily serve? a. first level managers b. executives c. consumers d. front-line staff

e - This information can easily be attained with the Internet and a database; it is not significant enough to invest in an information system.

NOT essential enough for a business to make the costly investment in an information system. a. Achieve operational excellence b. Promote competitive advantage c. Develop new products and services d. Improve decision making e. Attain customer information

virtual company model

Networks of people and resources join together to provide a service or create a product without the traditional storefront boundaries. a. virtual company model b. Network economics c. Business ecosystems

d - NETWORK-BASED STRATEGY

One business owner specializes in Web design and graphic design. A second business owner specializes in email marketing and social media marketing. A third business owner focuses on Web programming. The three business owners work together with some clients and refer some clients to each other. These business owners have a created a ( ) among their businesses. a. virtual company model b. Network economics c. Business ecosystems d. Network based strategy

True

One of the most important IS management issues facing businesses today is hiring skilled IS workers. True or False?

True

Organizational knowledge is the result of people using systems to generate, manage, and use information to achieve organizational goals. TRUE or FALSE

True - Strategic systems link computer strategies with business strategies.

TRUE or FALSE: Strategic Information systems use technology resources to enable an organization to meet a specific business goal or initiative and to provide a competitive advantage.

True

TRUE or False: Information is the meaningful organization of data, and Knowledge is the practical application of that information.

people, processes, hardware, software, networks, and data.

The 6 primary component categories that make up a "computer-based information system" (CBIS)?

HORIZONTAL

The IS function is ( ) in structure and its success depends on its cooperation and relationship with the other functions in an organization.

Network economics

The cost of adding another business participant to a business venture is small, and the potential gain is great. a. virtual company model b. Network economics c. Business ecosystems

MARKETING AND SALES PRODUCTION AND OPERATIONS ACCOUNTING AND FINANCE HUMAN RESOURCE

There are four major business functions in every organization. Select the correct business function label to the appropriate description for the role of that function. • Planning, promoting, and selling of goods and services to satisfy customer needs and the objectives of the organization ( ) • Functions range from receiving raw material to shipping finished goods or from production itself to equipment maintenance ( ) • Managing financial assets and maintaining financial records ( ) • Recruiting, training, and maintaining employees and their records ( ) Answers: PRODUCTION AND OPERATIONS, HUMAN RESOURCE MARKETING AND SALES ACCOUNTING AND FINANCE

a - E-learning is one of the latest growing benefits to train and educate new health care professionals as well as current ones so they can advance in their careers and stay up to date with the many tools and systems involved in the medical field.

Thousands of fields use information technology to boost effectiveness. The need for health care is especially important to everyone, and technology has helped the medical field meet the demand. Of the items listed below, select the primary growing benefit of information technology to the health care industry. a. E-learning has become very popular in the medical field to help support the health care demand and supply the field with the necessary workers more quickly through the use of information technology. b. Information technology helps reduce human error in medicine and gives health care workers the tools they need to diagnose and treat patients with new devices and methods. c. Communication plays a huge role in healthcare and information technology is able to provide the communication tools to reach patients and staff more easily through the Internet. d. Information technology helps to ensure the safety and privacy of a patient's records and then use that information to treat them properly.

False - ERP systems are very complex, and many companies have difficulty adjusting to the system.

True or false. A business benefit of enterprise resource planning (ERP) systems is ease of use.

False - An information system is a system that accepts input data and processes it into information as output.

True or false. A storage device consists of all the components that work together to process data into useful information.

True - A supply chain management system is one in which businesses are interconnected and work together to create a product or service for the customer.

True or false. A system where businesses work together to create a product or service for a customer is called a supply chain management system.

False - A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.

True or false. A transaction processing system is created to meet a specific business goal and to provide a competitive advantage.

False - Hardware, software, data, and networks make up information technology, not information systems. People, processes, machines, and information technology make up information systems.

True or false. Hardware, software, data, and networks make up information systems.

False - Even though no money is exchanged, this simple transaction might impact student fees, faculty schedules, or classroom availability.

True or false. If a student decides to switch classes because she wants a different teacher, this would be considered a transaction to the college's information system but would not involve any interaction with its accounting or human resources systems.

True - Costs include installation of the systems, as well as employee training, but long-term benefits should be greater.

True or false. Implementing information systems within an organization should be carefully considered. It can be quite costly, but the long-term benefits can be even greater.

True - Information systems help managers to perform numerous business roles and activities, including tasks such as long-range strategic planning, decision making, and assessing external threats and opportunities.

True or false. Information systems help managers to perform long-range strategic planning, decision making, and to assess external threats and opportunities.

False - Product development is not one of Michael Porter's five competitive forces. His forces include threat of new entrants, threat of substitute products or services, bargaining power of customers (buyers), bargaining power of suppliers, and intensity of competitive rivalry.

True or false. Michael Porter's five competitive forces include the following: threat of new entrants, threat of substitute products or services, bargaining power of customers (buyers), bargaining power of suppliers, and product development.

True - Implementing SCM systems helps businesses lower their costs by reducing waste, overhead costs, and shipping delays. The benefits of lowering those costs can help improve product quality and order turnaround times

True or false. One benefit of a supply chain management system is for U.S. businesses to lower costs by relocating their operations to cheaper, overseas locations.

True - Although most people know supply chain management as the systems used to manage the flow of products or information into consumer's hands, it also helps with planning daily operations, improving sales forecasting, predicting transportation requirements, building partnerships, and improving business strategies, among other things.

True or false. One benefit of a supply chain management system is to plan daily operations of the company.

True - The ATM is an information system because it has an input (customer bank card), a process (conduct banking transaction), and an output (dispatch cash, receipts, etc).

True or false. The ATM (automated teller machine) at a bank is an example of an information system.

False - Instead of participating in a single industry, some of today's firms are participating in industry sets—collections of industries that provide related services and products.

True or false. The term "business ecosystem" describes the relationship between the various departments within a firm.

False - Two types of business strategies include growth and product differentiation.

True or false. Two types of business strategies include growth and product competition.

b - software and data

What are two of the six major components of a "computer-based information system"? a. Software and telecommunications b. Software and data c. Data and external influences d. Telecommunication and hardware

A - Knowledge management is the process of sharing knowledge among people for the benefit of the business.

What is knowledge management? a. The process of sharing knowledge across business units and amongst employees of a business b. The process of combining customer data into one system

YES No YES YES YES

Which of the following are common organizational features that should be considered when building and using information systems "Organizational Feature"? Yes or No? *Structure *Incentives *Environment *Culture *Politics

b - Incentives are not an organizational feature managers use to build information systems. They are something a business uses to encourage employees to reach goals.

Which of the following is NOT an organizational feature that managers should consider when building and using information systems? a. Politics b. Incentives c. Environment d. Structure

a - Employees are not considered when consolidating information systems because employees may transfer or depart the organization, but the cultures, environments, and structures change less frequently.

Which of the following is NOT an organizational feature that should be considered when consolidating an information system? a. Employees b. Structures c. Environments d. Cultures

a - Hardware, software, data, and networks make up information technology. People, processes, machines, and information technology make up information systems.

Which of the following is the best description of an information system? a. A network of servers is set up to share and manage client data across multiple satellite offices for a healthcare provider so the staff at any location can access the same data. b. A restaurant's important recipes are stored in a database on their desktop computer. c. A program is written to create mailing labels for marketing company.

b - A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.

Which one of the following scenarios describes a strategic information system? a. Starfish Seafood Restaurant implemented a new system to help track transactions, manage employee hours, and help with routine questions about inventory. b. Big Bean Coffee shop implemented a new system to determine trends and identify new operational methods in order to improve customer service.

a - A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.

Which one of the following systems represents a strategic information system? a. Superior Real Estate Company created a mobile application to allow prospective clients to view information about listed properties from their smartphone. No other real estate agents in their area currently offer such technology. b. Superior Real Estate Company created a mobile application to allow its realtors to track their annual sales. This application will also calculate the realtor's commission on each sale.