18 Questions
What are the primary horizontal flows of information used for?
Capture transaction and operations data
Which direction do upward flows of information typically move in an organization?
Aggregated transaction and operations data
What characterizes the information requirements of different user groups within an organization?
They are unique to each group
What is the relationship between the level of an organization and its need for information detail?
Higher organizational levels need less detail
The text suggests that information is a vital business resource that requires what kind of management?
Appropriate management
How is a system defined in the context of the text?
A group of interrelated components serving a common purpose
What is the primary difference between a centralized data processing system and a distributed data processing system?
Control of data processing units
Which of the following is not a potential advantage of distributed data processing systems?
Reduced need for regular maintenance
In a distributed data processing system, who has more control over the information processing units?
End users
What is one advantage of a centralized data processing system over a distributed system?
Better backup of data
Which organizational structure is more likely to lead to improved user satisfaction in information processing?
Distributed structure
What does distributed data processing offer in terms of data storage site redundancy and reliability?
Improved redundancy
What is one of the characteristics of useful information as mentioned in the text?
Relevance: serves a purpose
Which of the following is not an information system objective in a business context according to the text?
Enhancing creativity in employees
What does the organizational structure help to allocate?
Responsibility, authority, accountability
In the context of information generation, what does completeness refer to?
Presence of all essential information for a decision or task
What is a key goal of an information system as per the text?
Supporting management decision making
Which characteristic of useful information means that it should be free from material errors?
Accuracy
Study Notes
Characteristics of Useful Information
- Relevance: serves a purpose
- Timeliness: no older than the time period of the action it supports
- Accuracy: free from material errors
- Completeness: all information essential to a decision or task is present
- Summarization: aggregated in accordance with the user's needs
Information System Objectives in a Business Context
- The goal of an information system is to support the stewardship function of management
- Support management decision making
- Support the firm's day-to-day operations
Organizational Structure
- The structure of an organization helps to allocate responsibility, authority, and accountability
- Segmenting by business function is a common method of organizing
Internal Information Flows
- Horizontal flows of information are used primarily at the operations level to capture transaction and operations data
- Vertical flows of information include:
- Downward flows: instructions, quotas, and budgets
- Upward flows: aggregated transaction and operations data
Information Requirements
- Each user group has unique information requirements
- The higher the level of the organization, the greater the need for more aggregated information and less need for detail
Information in Business
- Information is a business resource that needs to be appropriately managed
- Information is vital to the survival of contemporary businesses
What is a System?
- A system is a group of interrelated multiple components or subsystems that serve a common purpose
Centralized Data Processing
- All data processing is performed by one or more large computers housed at a central site
- Primary areas: database administration, data processing systems development, and systems maintenance
Organizational Structure for a Centralized System
- Figure 1-10 shows the organization of IT function in a centralized system
Organizational Structure for a Distributed Processing System
- Figure 1-11 shows the organizational structure for a distributed processing system
Potential Advantages of Distributed Data Processing
- Cost reductions in hardware and data entry tasks
- Improved cost control responsibility
- Improved user satisfaction since control is closer to the user level
- Backup of data can be improved through the use of multiple data storage sites
Test your knowledge on the 22 characteristics of useful information, including relevance, timeliness, accuracy, completeness, and summarization. Evaluate your understanding of what makes information valuable and effective for decision-making.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
