EIS, DSS, and Systems Overview
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Questions and Answers

An Executive Information System (EIS) is primarily used by whom?

  • Senior executives for strategic decision-making. (correct)
  • IT departments for system maintenance.
  • Entry-level employees for daily task management.
  • Middle managers for operational control.

Why is a user-friendly visual display, such as a dashboard, a key characteristic of an EIS?

  • Because executives are often not technically inclined. (correct)
  • To limit data access to only IT professionals.
  • To increase the complexity of data analysis.
  • To reduce the amount of data presented to executives.

How does an EIS support organizational strategy?

  • By identifying risks and trends. (correct)
  • By managing employee schedules.
  • By automating routine tasks.
  • By processing financial transactions.

What does 'drilling down' refer to in the context of an EIS?

<p>Obtaining more detailed information about a specific data point. (B)</p> Signup and view all the answers

In what way does centralizing data from various departments improve decision-making in an EIS?

<p>It ensures data is available quickly and accurately. (B)</p> Signup and view all the answers

How can Business Intelligence (BI) tools enhance the functionality of an EIS?

<p>By forecasting and predicting future trends. (B)</p> Signup and view all the answers

What is the primary function of a Decision Support System (DSS)?

<p>Supporting business and organizational decision-making activities. (D)</p> Signup and view all the answers

How could McDonald’s utilize data to make strategic decisions for 2025?

<p>By analyzing customer preferences, market trends, and supply chain efficiencies. (A)</p> Signup and view all the answers

In the context of a tropical fish tank, how does the external environment primarily interact with and affect this aquatic ecosystem?

<p>By exchanging energy and matter, such as sunlight affecting temperature and gases dissolving in the water. (A)</p> Signup and view all the answers

Why is a spacecraft in deep space considered an example of an open system, rather than a closed system?

<p>Because it exchanges energy with its surroundings through radiation and potentially matter. (B)</p> Signup and view all the answers

If a new predator species completely eradicates a rabbit population in an ecosystem, what type of feedback is demonstrated?

<p>External feedback, because the introduction of the predator is an external intervention in response to the rabbit population. (A)</p> Signup and view all the answers

What is the underlying common thread that unifies all aspects of a business, from marketing to financial planning?

<p>A unifying strategic direction and core values. (B)</p> Signup and view all the answers

Which of the following best represents 'information' according to the data-information-knowledge-wisdom hierarchy?

<p>A graph showing the trend of monthly sales over the past year. (B)</p> Signup and view all the answers

In the data-information-knowledge-wisdom pyramid, what distinguishes 'knowledge' from 'information'?

<p>Knowledge involves understanding patterns and relationships derived from information. (C)</p> Signup and view all the answers

Considering the data-information-knowledge-wisdom pyramid, which of the following actions demonstrates the application of 'wisdom'?

<p>Using market predictions to decide whether to launch a new product line with consideration to market position. (B)</p> Signup and view all the answers

In the context of a business, which of the following best illustrates the transformation of data into knowledge?

<p>Predicting future sales based on seasonal trends and marketing campaigns. (B)</p> Signup and view all the answers

Which of the following is a key characteristic of cloud ERP systems compared to traditional on-premise ERP systems?

<p>Enhanced accessibility and flexibility through remote access. (A)</p> Signup and view all the answers

What is a primary advantage of using cloud ERP for data storage and management?

<p>Simplified data backup and disaster recovery processes. (B)</p> Signup and view all the answers

In what way does cloud ERP typically improve collaboration among different departments within an organization?

<p>By providing a centralized platform for real-time data access and sharing. (D)</p> Signup and view all the answers

How can companies benefit from the scalability offered by cloud ERP systems as their business grows?

<p>By adapting the system quickly to handle increased data and user loads. (B)</p> Signup and view all the answers

What role do automated updates play in cloud ERP systems, and how does this differ from traditional on-premise ERP?

<p>They are automatically applied by the vendor, reducing IT workload. (A)</p> Signup and view all the answers

According to the provided content, what is the most accurate definition of a 'system'?

<p>A group of components that interact for a specific purpose, with a defined boundary. (C)</p> Signup and view all the answers

In the context of an Information System (IS), what role does data primarily play?

<p>It acts as the central element around which the system functions. (B)</p> Signup and view all the answers

Consider a fast-food restaurant as an information system. Which of the following correctly identifies a 'procedure' within that system?

<p>The steps for taking customer orders and processing payments. (D)</p> Signup and view all the answers

In the context of a system, what is the primary function of 'feedback'?

<p>To provide information about the output and its impact, which is then used to adjust the processes. (D)</p> Signup and view all the answers

Imagine a university as a system. If the number of graduating students significantly decreases, how would this 'feedback' likely affect the system?

<p>The university would likely analyze and adjust its teaching methods or admission criteria. (A)</p> Signup and view all the answers

Which of the following best illustrates the 'input-process-output' model in a clothing retail system?

<p>Customer orders (input), order fulfillment (process), delivered items (output). (C)</p> Signup and view all the answers

Using the context of Amazon or Takealot, which of the following items is most likely to be categorized as 'hardware'.

<p>Web servers that host the company's website. (D)</p> Signup and view all the answers

Which of the following would be considered part of the 'people' component in Takealot's order processing system?

<p>The delivery drivers who transport packages to customers. (D)</p> Signup and view all the answers

Which of the following best characterizes the primary focus of front office ERP applications as depicted in the provided diagram?

<p>Customer relationship management and sales optimization. (C)</p> Signup and view all the answers

According to the diagram, which department is most likely to use inventory management applications?

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

How do major ERP vendors like SAP typically approach the market in terms of product offerings and pricing models?

<p>They provide a diverse suite of products with varied pricing models to cater to different business needs. (B)</p> Signup and view all the answers

What is a key feature that differentiates major ERP vendors like Oracle and SAP from smaller vendors?

<p>A broader range of applications and services catering to diverse business sizes and needs. (B)</p> Signup and view all the answers

Which department is least likely to directly utilize customer service applications?

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

What is the relationship between Corporate Reporting and Financial Applications within an ERP system?

<p>Corporate Reporting relies on data generated and managed by Financial Applications. (D)</p> Signup and view all the answers

Which of the following is the best definition of ERP based on the content?

<p>An integrated system that manages a company's various business functions and data. (A)</p> Signup and view all the answers

Which factor most likely drives SAP to offer a 'dizzying number of products and services'?

<p>An attempt to cater to a wide range of companies with diverse needs. (A)</p> Signup and view all the answers

Which of the following scenarios would most likely lead a company to choose a smaller ERP vendor over a larger one?

<p>The company requires a highly customized ERP system tailored to a niche industry with unique processes. (B)</p> Signup and view all the answers

A manufacturing company with multiple international locations is evaluating ERP solutions. Which deployment model would provide the most centralized control and real-time data visibility across all locations?

<p>A cloud-based ERP solution hosted by a single vendor. (B)</p> Signup and view all the answers

A startup with limited capital needs an ERP system. Which of the following access methods would be most suitable?

<p>Utilizing a cloud-based ERP solution with a subscription fee. (C)</p> Signup and view all the answers

Company X initially adopts a cloud-based ERP system. Over time, they become concerned about data security for sensitive financial information. What approach could they take to address these concerns while still leveraging some benefits of cloud ERP?

<p>Implement a hybrid approach, keeping sensitive data on-premises while using the cloud for other processes. (C)</p> Signup and view all the answers

How does the Software as a Service (SaaS) model change a company's relationship with its ERP software?

<p>The company accesses the software via subscription and it's treated as a service. (A)</p> Signup and view all the answers

A small business is trying to decide between a large ERP vendor and a smaller one. What is one potential advantage of choosing a larger ERP vendor?

<p>A wider range of pre-built integrations with other popular software applications. (B)</p> Signup and view all the answers

Consider a scenario where a business requires an ERP system but is committed to maintaining strict control over its data and infrastructure. Which deployment method aligns best with this requirement?

<p>An on-premises ERP installation. (D)</p> Signup and view all the answers

A retail company wants to implement an ERP system primarily to improve inventory management and supply chain efficiency. Which ERP module is MOST crucial for them?

<p>Supply Chain Management (SCM) (E)</p> Signup and view all the answers

Flashcards

System

A group of components that interact to achieve a specific purpose and has a defined boundary.

Information System (IS)

A system specifically designed to process information. It consists of hardware, software, data, people, and procedures.

Hardware

Tangible parts of a computer system such as the CPU, monitor, keyboard, and mouse.

Software

A set of instructions that tells the hardware what to do. E.g., operating systems, applications.

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Procedures

A series of actions conducted in a certain order to ensure a task is completed.

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People (in IS)

Individuals who use and manage the information system.

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Data

Raw facts and figures that are processed by the information system to produce meaningful information.

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System Process

Takes inputs, processes them, and produces an output, with output often influencing future inputs through feedback.

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Open System

A system that interacts with its external surroundings, exchanging matter and energy.

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Internal Feedback

A system where outputs (e.g., dead organisms) serve as inputs (e.g., nutrients) within the same system.

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External Feedback

An external response to a system's output, such as introducing a new species to control a population.

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The Common Thread in Business

Every decision and action taken within a company, driving its direction and success.

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Information

Data that has been organized and structured to provide context and meaning.

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Knowledge

Understanding gained through experience or study; the practical application of information.

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Data-Information-Knowledge-Wisdom Pyramid

Data transformed for increasing value through processing.

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Executive Information System (EIS)

An information system designed to help senior executives make strategic decisions.

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Dashboard (in EIS)

User-friendly visual displays used in EIS to present information, often with charts and graphs.

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EIS Strategic Support

Identifying risks and trends to support strategic decision-making.

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EIS Data Access

The ability to access and analyze large amounts of data within an EIS.

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Drill Down

Obtaining more granular data about a specific data point in EIS.

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Centralized Data (in EIS)

The centralization of data from various departments in an EIS for quick and accurate access.

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Business Intelligence

Using data analysis to forecast future trends and predict outcomes.

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Decision Support System (DSS)

An information system that supports business and organizational decision-making activities.

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Cloud ERP

Cloud ERP is a type of enterprise resource planning software accessed over the Internet.

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DIKW Pyramid

A structured arrangement of data, information, knowledge, and wisdom, often visualized as a pyramid.

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Supply Chain Management (SCM)

Managing the flow of goods and services, involving the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

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Storytelling

Using narrative to convey information and insights in a compelling and memorable way.

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Enterprise Resource Planning (ERP)

A comprehensive approach to managing and integrating various facets of a business, ensuring alignment and efficiency across all functions.

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Front Office

The part of a company that directly interacts with customers, like sales and customer service.

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Back Office

The part of a company that supports the front office, including functions like manufacturing, HR, and finance.

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ERP Systems

Systems that integrate various business functions (like HR, finance, manufacturing) into one centralized system.

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Largest ERP vendors

Oracle, SAP, Microsoft, and Infor

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SAP

A major ERP vendor with a wide range of products and services, offering various pricing models.

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Sales and distribution

A type of business activity which focuses on selling assistance and solutions to current customers.

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Customer service applications

Activities related to assisting customers before, during, and after a purchase.

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Human resources management

The management of a company's workforce, from hiring to retirement.

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Cloud-based ERP

Software that is hosted on the internet and accessed through a browser.

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Software as a Service (SaaS)

A subscription-based model where the ERP software is accessed as a service rather than owned.

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On-Premises ERP

Installing and running the ERP software on the company's own hardware and infrastructure.

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Hybrid ERP Deployment

Some ERP components are SaaS, while others with sensitive data are kept on-premises.

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Advantages of smaller ERP vendors

Smaller ERP Vendors may offer more flexibility, niche expertise, and tailored customer service.

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Traditional ERP Software Access

The traditional ERP software access method, purchased and installed directly on company computers.

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Challenges for Small Businesses (vs Large)

Having more limited resources and potentially struggling to compete with larger companies.

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When to use a smaller ERP vendor

Situations that require higher flexibility, niche capabilities, or more personalized attention.

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Study Notes

  • ERP261 is a course offered at Belgium Campus.
  • It is part of the Enterprise Resource Planning set of courses.
  • The course duration is one week.
  • There are the following assessments:
  • One assignment worth 25% of the grade
  • One summative test worth 75% of the grade
  • Information Systems: What a Business Student Needs to Know by Efrem Mallach is used in this module and referred to as Mallach.
  • Information Systems, IT Architecture, Data Governance, and Cloud Computing by Efraim Turban, Carol Pollard, and Gregory Wood is used and referred to as Turban et al.
  • According to the Mallach textbook, a system is a group of components that interact for a purpose and has a boundary.
  • An information system (IS) is a system that processes information.
  • The Mallach textbook defines five components of IS, while Turban et al. names six.
  • An important aspect of a system is feedback, where the output becomes the new input.
  • Most systems are open systems.
  • A terrarium would be the closest example to a closed system.

Forest Ecosystem Feedback

  • A forest ecosystem is an open system as it interacts with sunlight and weather patterns.
  • An internal feedback cycle in the forest is when animals die and become nutrients for plants.
  • The output of dying animals becomes inputs for the soil in the form of nutrients.

External System Feedback

  • Introducing a new species to manage a rabbit population is an example of external feedback.
  • The output of reducing the rabbit population leads to a new species being brought in, resulting in external feedback.
  • Data, information, and knowledge each play a role.
  • Data is the current temperature, humidity, and wind speed.
  • Information is a weather report, where data exists in a structured format.
  • Knowledge is when there is a prediction of 70% chance of rain.

DIKW Pyramid

  • The data-information-knowledge-wisdom pyramid shows how data becomes more and more valuable as it is processed and transformed.
  • Turban explains information answers who, what, when, and where questions.

Activity

  • Data, information and knowledge play a role in:
  • The Mars climate orbiter
  • Chernobyl nuclear disaster
  • Y2K bug
  • Operation Barbarossa
  • Dewey defeats Truman
  • The Titanic

Considerations

  • Differentials can occur between what should no be shared or rather be kept separate
  • Access depends various roles in different companies
  • Doing the right things vs doing things right is an informal description of effectiveness vs efficiency.
  • Poor quality data causes companies to lose an average of $15 million annually.

Information Quality Examples

  • Unclear medication dosing instructions lead to medication errors, and adverse patient effects.
  • Errors in analyst calculations in a financial report lead to misinformed investment decisions and a loss in the client's portfolio value.
  • Providing reliable temperature predictions can lead to residents to plan their outdoor activities and ensure their comfort.
  • Example information systems include the human resources department, a school, and a classroom.

Information Systems

  • Many kinds of information systems exists, and anything that revolves around data could be viewed as an IS.
  • One IS can perform various functions.

Executive Information System (EIS)

  • Big companies with lots of data and departments need a specific EIS.
  • EIS helps senior executives make strategic decisions using both internal and external information.
  • The system includes a user-friendly and visual display for executives who may not be tech-savvy.

EIS Characteristics

  • EIS provides a user-friendly experience.
  • EIS is presented through either text, visuals, or tables.
  • EIS enables access to large quantities of data and ensures data is quickly and accurately available.
  • Business Intelligence (BI) aids in forecasting and predicting, allowing users to drill down for more detail.

Decision Support System (DSS)

  • A DSS is a particular class of information systems supporting business and organizational decision-making activities.
  • A DSS gathers an inventory of current information assets, sales figures, revenue projections, and decision alternatives.
  • A GPS route planner works as a DSS.
  • DSS Benefits:
  • Improves efficiency
  • Provides faster problem solving
  • Generates new evidence
  • Encourages exploration and discovery

Enterprise Resource Planning (ERP)

  • Large companies need to carefully manage their resources using Enterprise Resource Planning.
  • ERP, put into software, can operate on a massive scale and function as an EIS, an MIS, or a DSS.
  • ERP software is a company-wide computer software system.
  • ERP optimizes the flow of information, materials, and finances throughout an organization.
  • All departments share the same data within the system.
  • Raw data comes in from all over the company and is organized for storage in the database.
  • Decision makers need to know how to use information, and they need to have the knowledge.

Typical ERP setup:

  • Front office
  • Back office
  • Corporate Reporting
  • Financial Applications
  • Sales & Distribution
  • Customer Service Application
  • Database
  • Human Resources
  • Management
  • Manufacturing Applications
  • Inventory Management
  • Oracle, SAP, Microsoft, and Infor are among the largest ERP vendors available today.
  • Companies also consider smaller ERP Vendors
  • ACS Embrace is a South African ERP vendor.

ERP Software Access

  • Traditionally, software is purchased and installed on computers.
  • Cloud-based hosting and licensing, also known as SaaS, where software is accessed via the internet
  • Some companies use a hybrid approach, where sensitive parts are kept on-premises.

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Related Documents

ERP261 - Enterprise Resource Planning Introduction PDF

Description

Explore Executive Information Systems (EIS) and Decision Support Systems (DSS). Understand data utilization for strategic decisions, system interactions, and feedback mechanisms. Discusses interactions within ecological and mechanical contexts.

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