Business Information Systems Quiz

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Questions and Answers

How does Walmart’s Vendor Managed Inventory (VMI) system primarily benefit the company?

  • By enabling suppliers to have real-time visibility of its stocks. (correct)
  • By allowing customers to access supply chain information.
  • By tracking recurring customers choices for personalized offerings.
  • By reducing shipping costs through its FBA system.

Which of these scenarios illustrates the usage of IT for improved decision-making?

  • A shipping company using blockchain to inform captains about insurance coverage. (correct)
  • A hotel chain providing personalized rooms based on tracked customer preferences.
  • A retailer offering a wider variety of products to compete with other retailers.
  • A company launching a new product with augmented reality features.

What is the primary function of the Verizon Digital Dashboard for its managers?

  • To provide real-time data on various performance metrics for informed decisions. (correct)
  • To track customers choices for personalized offerings.
  • To allow customers to access information relating to the supply chain.
  • To offer augmented reality visualizations of products.

Which choice below is NOT a typical consequence of poor information leading to flawed decision-making?

<p>Effective resource allocation. (B)</p> Signup and view all the answers

How does Amazon utilize its Fulfillment by Amazon (FBA) system to gain a competitive advantage?

<p>By listing a growing share of Chinese suppliers and lowering shipping costs. (D)</p> Signup and view all the answers

What main benefit does Ford derive from using virtual work teams?

<p>To integrate global engineers, reduce costs, and foster creativity. (C)</p> Signup and view all the answers

What is the primary purpose of IKEA's augmented reality application, IKEA Place?

<p>To allow users to visualize furniture in their homes. (B)</p> Signup and view all the answers

Which type of information is primarily focused on the daily, repetitive activities essential for a company's functioning?

<p>Operation information (C)</p> Signup and view all the answers

Why do businesses often invest in IT according to the text?

<p>To survive and adapt to a changing environment. (B)</p> Signup and view all the answers

What is a key feature of influence information, distinguishing it from operational information?

<p>Its aim to modify or motivate the behavior of stakeholders. (C)</p> Signup and view all the answers

Which type of information is most relevant for identifying potential risks or opportunities in the socio-economic environment?

<p>Anticipation information (D)</p> Signup and view all the answers

Which of the following is an example of 'operation' information?

<p>An employee's pay slip (A)</p> Signup and view all the answers

What potential negative impact can result from poorly structured operation information?

<p>It can cause issues at work flow between departments and employees. (C)</p> Signup and view all the answers

What is a distinctive feature of influence information in terms of its form and structure?

<p>It varies greatly in form and can be both structured and informal. (D)</p> Signup and view all the answers

Which of the following best describes what would be categorized as 'anticipation information'?

<p>Updates on competitor activities and industry trends. (A)</p> Signup and view all the answers

Why is it critical to analyze anticipation information with caution?

<p>Because it may involve uncertainties and potential negative facets. (D)</p> Signup and view all the answers

Which level of change primarily focuses on making manual tasks more efficient?

<p>Automate (D)</p> Signup and view all the answers

At what level of change does the redefinition of user roles within the company primarily happen?

<p>Inform (C)</p> Signup and view all the answers

Which change level involves a fundamental shift in business operations and structure?

<p>Transform (A)</p> Signup and view all the answers

Which of the following is an effect primarily associated with the 'Automate' level of change?

<p>Reducing labor costs and user efforts (C)</p> Signup and view all the answers

At which level is the use of resources rationalized?

<p>Inform (B)</p> Signup and view all the answers

Which level of change aims to empower decision-makers with information?

<p>Inform (D)</p> Signup and view all the answers

Which level of change has the effect of 'Reengineering the interaction between processes'?

<p>Transform (B)</p> Signup and view all the answers

What is the primary goal of the 'Automate' level of IS change?

<p>Increasing production capacity (C)</p> Signup and view all the answers

Which level of management is primarily responsible for decisions that impact the entire organization?

<p>Strategic Management (A)</p> Signup and view all the answers

What type of decision is most likely made by Middle Management?

<p>Decisions for each division independently (C)</p> Signup and view all the answers

Which of the following is an example of a decision made at the Operational Management level?

<p>Deciding the quantity of a product to be produced (C)</p> Signup and view all the answers

Which level of management focuses on the control of daily operations?

<p>Middle Management (C)</p> Signup and view all the answers

Which function typically reports to Operational Management?

<p>Plant and administration operators (C)</p> Signup and view all the answers

Which of these options best describes how IT can improve user experience?

<p>By improving both instrumental qualities, non-instrumental qualities and producing positive emotional reactions. (D)</p> Signup and view all the answers

Which of the following illustrates a business model that uses direct delivery to customers?

<p>An airline selling tickets directly to passengers. (D)</p> Signup and view all the answers

In the context of business models, what is the core idea behind a subscription model?

<p>The value is determined by the continuous access and usage. (D)</p> Signup and view all the answers

Which of these technologies is most associated with enhancing the ‘immersive interface’ aspect of user experience?

<p>Technology that gives users a strong sense of presence within a digital world. (A)</p> Signup and view all the answers

What does the term 'disintermediation' refer to in the context of business models?

<p>Delivering a service directly to customers by cutting out intermediaries. (C)</p> Signup and view all the answers

What does 'outside in' mean in the context of business innovation?

<p>Using external sources and ideas to drive innovation and value. (C)</p> Signup and view all the answers

Which of the following is an example of a company using a 'data-driven' business model?

<p>A company that is monetizing collected data by selling or trading it. (A)</p> Signup and view all the answers

Which of the following is NOT described as a dimension of Digital Transformation?

<p>Marketing Strategies (B)</p> Signup and view all the answers

What does ‘inside out’ refer to in the context of business innovation?

<p>Exploiting internal ideas and assets by giving access to external partners. (B)</p> Signup and view all the answers

How can IT assist in improving the non-instrumental qualities of a product?

<p>By considering design aspects such as aesthetic and the values that the product conveys. (B)</p> Signup and view all the answers

Which type of information system is primarily used to support the day-to-day operations of a company?

<p>Transactional Processing System (TPS) (A)</p> Signup and view all the answers

A system that manipulates highly aggregated information derived from a large volume of data at a middle management level, is best described as which of the following?

<p>Management Information System (MIS) (A)</p> Signup and view all the answers

Which of the following best describes the characteristics of a Transactional Processing System (TPS)?

<p>Records routine, daily transactions and consists of highly structured tasks. (C)</p> Signup and view all the answers

Which of the following is an example of a system that would typically be part of a Transactional Processing System (TPS)?

<p>Machine control system in production (D)</p> Signup and view all the answers

What is the primary focus of a Management Information System (MIS)?

<p>Manipulating aggregated data for middle management decision making (D)</p> Signup and view all the answers

Which level of management would typically use a Transactional Processing System (TPS)?

<p>Operational management (C)</p> Signup and view all the answers

All of the following are examples of functions using TPS except:

<p>Budgeting and Forecasting System (B)</p> Signup and view all the answers

Information systems differ based on the needs of the organisation, which system would be most commonly used by sub-division managers?

<p>Management Information System (B)</p> Signup and view all the answers

Flashcards

Improved decision making with IT

The ability to access and analyze real-time data allows managers to make more informed decisions, reducing errors and improving efficiency.

Competitive advantage with IT

Companies invest in IT to gain a competitive edge by offering innovative products, services, or processes that competitors cannot easily replicate.

Survival in a dynamic environment with IT

Investing in IT enables businesses to adapt to dynamic market conditions and survive in a rapidly changing environment.

Personalized customer experiences with IT

Tracking customer preferences and providing personalized experiences helps companies build stronger relationships and increase customer loyalty.

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Efficient supply chain management with IT

By using IT, businesses can optimize their supply chain, ensuring the right products are in the right place at the right time.

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Cost optimization with IT

Using IT to streamline processes and reduce manual tasks can significantly reduce costs and improve operational efficiency.

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Improved communication and collaboration with IT

IT enables quicker and more effective communication within a company, facilitating faster decision-making and improved collaboration.

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Global reach with IT

By leveraging IT, businesses can reach wider audiences and gain global market reach, expanding their customer base and increasing potential revenue.

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User Experience (UX) in Digital Transformation

How technology enhances user interactions with a company and its products, focusing on aspects like ease of use, visual appeal, and emotional response.

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Business Model Transformation

The use of technology to change how a business makes profits, including integrating digital components into products and leveraging customer data.

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Operational Processes Transformation

The application of technology to improve internal processes, making them more efficient and effective.

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Instrumental Qualities in UX

Improving the ease of use and functionality of a product or service for users.

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Non-Instrumental Qualities in UX

Enhancing the aesthetics and values conveyed by a product or service.

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Emotional Reactions in UX

Generating positive feelings and reactions in users through a product or service.

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Disintermediation

Using technology to deliver a product or service directly to customers, bypassing intermediaries.

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Data-Driven Selling

Leveraging insights gained from customer data to improve products, marketing, and sales strategies.

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Outside-In Approach

Seeking external ideas and inputs from customers and other sources to generate new opportunities.

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Inside-Out Approach

Sharing unused ideas or assets with external partners to create value.

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Operational Information

Information that is crucial to the daily operations of a company, such as transaction control, job control, and results information.

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Influence Information

Information aimed at shifting the behavior of individuals or groups, both within and outside the company. It can motivate, stimulate, or guide actions.

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Anticipation Information

Information valuable for predicting future changes, both within and outside the company, like competitor moves or shifts in legislation.

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Formalized Information

A common property of operational information; it often involves highly structured, repetitive tasks and is frequently computerized.

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Steering Information

A key property of anticipation information; it often exists in various forms and can be analyzed to understand potential risks and opportunities.

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Influence Information - Potential Problems

A potential negative impact of influence information; if handled poorly, it can create a negative work environment and affect company performance.

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Anticipation Information - Caution

A key characteristic of anticipation information; it often requires careful analysis as it can contain both positive and negative implications.

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Operational Information - Smooth Interface

A critical factor in making operational information effective; ensuring a seamless transition between different units and employees.

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Automate

Replacing manual tasks with automated processes, like using software to handle calculations instead of doing them by hand.

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Inform

Providing information to decision-makers to help them make informed decisions. This involves gathering, analyzing, and presenting data.

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Transform

Fundamentally changing how a business operates, often involving significant restructuring and process redesign. This goes beyond simply automating or informing.

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Increase production capacity

Increases production capacity by automating tasks, freeing up human resources to focus on other activities.

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Reduce labor costs and user efforts

Reduces labor costs by automating tasks, and also reduces user effort by making processes more efficient.

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Redfine user roles in the company

Clarifies the roles and responsibilities of users within the organization, making them more focused and efficient.

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Rationalize the use of resources

Streamlines processes and the use of resources to make them more efficient and effective. This can involve eliminating redundancies and optimizing workflows.

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Reform the company structure

Fundamentally restructures how a company operates, often making it more agile and adaptable to change. This can involve flattening hierarchies, decentralizing decision-making and focusing on customer needs.

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Strategic Management Information Systems (SMIS)

Information systems designed to support the strategic decision-making process of top management. These systems provide insights and data to guide high-level decisions about the organization's direction and future.

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Management Information Systems (MIS)

Information systems that help middle managers control daily operations within their specific divisions or departments. They provide data and analysis for decision-making that affects the division's performance.

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Operational Information Systems (OIS)

Information systems designed to support operational managers in carrying out daily tasks and activities. They provide real-time data and information to monitor and control production, sales, finance, etc.

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Levels of Management

The different levels of management in an organization, each with their own specific information needs and decision-making responsibilities.

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Functional Areas of Information Systems

The various functional areas within an organization, each with its own specialized information systems to support its specific tasks. Common examples include Sales & Marketing, Production, Finance, Accounting, and Human Resources.

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Transactional Processing System (TPS)

A type of information system used by lower-level managers to track and manage routine daily tasks, such as sales, production, and finance.

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Decision Support System (DSS)

A type of information system designed to support strategic decision-making at the highest levels of an organization, often involving complex analyses and modeling.

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Order Management System

A specific type of TPS within sales and marketing, designed to manage customer orders, track inventory, and analyze sales performance.

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Machine Control System

TPS for manufacturing that monitors and controls the production process, ensuring quality and efficiency.

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General Ledger System

A TPS used for finance and accounting, designed to manage financial transactions, track cash flow, and generate financial reports.

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Payroll Management System

A TPS for human resources, used to track employee information, manage payroll, and handle employee benefits.

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Employee Skills Inventory

A TPS for human resources, used to track employee skills and qualifications, manage training programs, and facilitate career development.

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Study Notes

IS402: IS Management & ERP

  • Didactic Contract:
    • Behaviors expected of the professor and students are outlined
    • Professor's expected behaviors include course preparation, respect for diversity, providing course materials on Moodle, responding to queries, and fair grading.
    • Student's expected behaviors include punctuality, respectful conduct, responsible use of technology in class, and communication through Moodle or pre-approved channels.
  • Professor's Behavior:
    • Course presence and engagement
    • Respect for student diversity
    • Timely course material distribution on Moodle
    • Opportunities for interaction (email, Teams)
    • Exercises for mastering theoretical and practical material
    • Equitable grading
  • Student's Behavior:
    • Punctuality (15 minutes grace period, absence penalty)
    • No eating/drinking/sleeping or leaving class without permission
    • Restricted electronic device usage
    • Communication through Moodle and designated channels.
  • Course Goals:
    • Understand IS/IT/ERP concepts
    • Familiarize students with digital technologies and applications
    • Analyze IS functionality, business needs
    • Understand IS contributions to operational improvement and competitive advantage
  • Course Contribution to UIR RBS mission:
    • Develop ethically responsible and innovative managers
    • Promote international perspective and strong communication skills
    • Encourage innovation in professional environment
  • Pedagogical Approach:
    • Interactive courses and media content
    • Group case studies and interactive quizzes
    • Use of digital tools (Socrative, Kahoot!, Mentimeter, Wooclap)
  • Course Planning:
    • Overview of digital transformation (Session 1)
    • Information to Information System (Session 2)
    • IS & Value Creation - Group pitches (Session 3)
    • IOS (Session 4)
    • IS Professions (Session 5)
    • Individual Midterm exam (Session 6)
    • Group Presentations on digital transformation (Session 7)
    • ERP (Session 8)
    • SAP Overview (Session 9)
    • SAP Lab First Login (Session 10)
    • SAP practical work (Sessions 11-13)
  • Group Project:
    • Group size: 5-6 students
    • Analyze business transformations in the digital age
    • Select a sector and a digital technology
    • Analyze how the chosen technology transforms business models, user experience, and operational processes
    • Provide recommendations to companies in the selected sector
  • Project Deliverables:
    • Deliverable 1 (Pre-Session 3): Chosen subject (sector, technology, companies)
    • Deliverable 2 (Pre-Session 5): Detailed report (20-25 pages)
    • Deliverable 3 (Session 7): Presentation (10-15 minutes followed by Q&A)
  • Group Project Grading Criteria:
    • Conceptual understanding and insight
    • Clarity of argument and expression
    • Quality of conclusions and recommendations
    • Presentation persuasiveness and clarity
    • Effectiveness in answering questions
    • Contribution to class learning
  • Course Grading System:
    • 10% Attendance
    • 20% Group Project
    • 20% Individual Midterm
    • 50% Final Exam

Information Technology (IT)

  • Definition:
    • All technologies related to the creation, processing, storage, securing and exchange of information electronically.
  • Examples:
    • Computers, networks, connected devices, cloud, fax machines.
  • Historic Development:
    • ENIAC (1945), IBM 5100 (1975), Windows 1.0 (1983), World Wide Web (1989), Quantum Computer (2019)
  • Current Status:
    • Increasing computer capacity and storage, decreasing costs
    • Expanding accessibility to the wider population
    • Increased connectivity and intelligent machines present in daily life
  • Gartner Hype Cycle:
    • Shows the life cycle of various technological innovations, from early hype to established productivity.

Information Systems (IS)

  • Definition:
    • A structured organizational system for communication that tracks past and future business activity reliably, efficiently, and objectively.
  • Dimensions:
    • Hardware, software, personnel, data, procedures.
    • Business Processes, Organization (culture & structure), Technology (Management)

Digital Transformation Era

  • Definition:
    • A process of change driven by the intensive use of digital technologies (digitization), encompassing products, services, and processes.
  • Fundamental Digital Technologies:
    • Data Analysis(Data Viz, Data Lake, etc.)
    • Mobile devices(BYOD)
    • Cloud computing
    • Social technologies
    • Artificial Intelligence (AI)

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