Information Systems and Business Processes

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Questions and Answers

What is a primary function of an information system in relation to business processes?

  • To serve as a repository for all company data without analysis
  • To ensure that all processes operate independently of data inputs
  • To facilitate communication and coordination among functional areas (correct)
  • To eliminate all manual tasks within the organization

How does an information system capture and store process data?

  • Using hardware devices that do not interact with software systems
  • Through manual entries only from external sources
  • By automatically extracting data from both internal and external operations (correct)
  • By analyzing data in real-time without user input

What role does monitoring process performance play in information systems?

  • It provides a way to evaluate real-time performance against established standards. (correct)
  • It relies on manual reports to determine process efficiency.
  • It guarantees that all processes will meet customer demands.
  • It exclusively focuses on reducing costs without regard for quality.

Which statement best describes Robotic Process Automation (RPA)?

<p>It automates business processes that were typically performed by human employees. (D)</p> Signup and view all the answers

What happens when an information system indicates that a process is not performing to standard?

<p>It suggests that a fundamental problem may exist within the process. (C)</p> Signup and view all the answers

In what way does an information system provide feedback once data is captured?

<p>By creating automated receipts and alerts for users. (C)</p> Signup and view all the answers

Which level does process performance monitoring NOT evaluate?

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

What is a primary function of metadata in a data warehouse?

<p>To provide definitions and support for users (B)</p> Signup and view all the answers

Which of the following best describes knowledge management (KM)?

<p>A process for managing unstructured information across various formats (B)</p> Signup and view all the answers

What is a significant limitation faced by organizations using data warehouses and data marts?

<p>Challenges in maintaining data quality from source systems (D)</p> Signup and view all the answers

What role do committees play in effective business intelligence (BI) governance?

<p>They prioritize projects and align BI with business strategies (D)</p> Signup and view all the answers

Which statement about data marts is correct?

<p>They store data in formats tailored for specific uses, enhancing query performance (C)</p> Signup and view all the answers

What problem does a database system minimize that involves having the same data stored in multiple locations?

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

Which benefit of database systems ensures that applications can independently access data without being linked?

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

In the data hierarchy, what is the term used for a logical grouping of related fields?

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

What is the smallest unit of data that a computer can process?

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

Which issue arises when different copies of the same data do not agree?

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

What type of data field could hold a variety of data types, including multimedia?

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

Why must databases have high security measures in place?

<p>To protect against data loss or attacks (D)</p> Signup and view all the answers

What constitutes a collection of logically related records within a database?

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

Which of the following best describes the term 'data integrity' in the context of a database?

<p>Data conforming to defined constraints (D)</p> Signup and view all the answers

What is a primary distinction between multidimensional databases and relational databases?

<p>Multidimensional databases can store data in more than two dimensions. (C)</p> Signup and view all the answers

What role does metadata play in a data warehouse environment?

<p>It provides descriptions of the data in the repository. (B)</p> Signup and view all the answers

Which of the following is NOT a typical source system for data warehouses according to the provided information?

<p>Modern mobile applications (B)</p> Signup and view all the answers

What might be a major consequence of using ‘bad data’ from source systems in a data warehouse?

<p>Higher operational costs due to data cleansing. (A)</p> Signup and view all the answers

Which statement best describes the role of data-integration technology in a data warehouse environment?

<p>It prepares data for use and ensures consistency across systems. (C)</p> Signup and view all the answers

What is a common requirement for organizations when selecting source systems for an enterprise-wide data warehouse?

<p>To choose among hundreds of available systems. (A)</p> Signup and view all the answers

What can data profiling software help organizations understand in a warehousing project?

<p>The quality and documentation of the data from source systems. (A)</p> Signup and view all the answers

Which of the following represents a typical subject that organizes data in data warehouses or marts?

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

What is a growing trend in the types of data incorporated into modern data warehouses?

<p>Integrating diverse data types including RFID sensing data. (A)</p> Signup and view all the answers

How do organizations typically respond to specific business challenges in the context of Business Intelligence?

<p>By developing tailored BI applications and identifying data requirements. (D)</p> Signup and view all the answers

What does the term 'dirty data' refer to in the context of Big Data?

<p>Data that is inaccurate, incomplete, or duplicated (C)</p> Signup and view all the answers

What is a major challenge associated with relying on external data sources for Big Data?

<p>The reliability of external sources can be questionable (D)</p> Signup and view all the answers

How do modern organizations typically manage isolated information systems?

<p>By integrating them into a centralized database environment (C)</p> Signup and view all the answers

What is a critical consideration when analyzing data streams in Big Data?

<p>Conditions under which the data are captured may change (B)</p> Signup and view all the answers

What characterizes the processing method known as massively parallel processing?

<p>Multiple processors work on different parts of an application simultaneously (B)</p> Signup and view all the answers

Which aspect of Big Data refers to the variety of formats it can take?

<p>Big Data encompasses many forms, such as tweets and audio streams (C)</p> Signup and view all the answers

Why might a company analyzing social media data find inflated positive sentiment about a competitor?

<p>The use of press releases across multiple outlets prompts retweets (B)</p> Signup and view all the answers

What is the initial focus of organizations after integrating isolated information systems?

<p>Development of data warehouses for decision-making (B)</p> Signup and view all the answers

What is not a form of data that Big Data can contain?

<p>Machine-generated reports in fixed formats (A)</p> Signup and view all the answers

What does the term 'information silos' refer to in the context of data management?

<p>Isolated information systems that are not integrated (C)</p> Signup and view all the answers

Flashcards

Information System (IS)

A system that enables business processes by facilitating communication and coordination among different departments; it helps in executing, capturing data of, and monitoring these processes.

Executing a Process

Using an IS to carry out business tasks efficiently and effectively; systems can inform users about needed tasks and provide relevant information for completing each step.

Capturing Process Data

IS record and store data from business operations (like dates, times, products, etc).

Monitoring Process Performance

Using information systems to evaluate how well a process is performing by comparing actual results against standards. Identifying problems with processes.

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Process Data/Transaction Data

Data created or captured by business processes.

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Robotic Process Automation (RPA)

Using software robots (bots) to automate business tasks.

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Instance Level/Process Level

Two methods for monitoring performance: a specific action or the overall process.

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Data File

A collection of related records, organized by application.

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Data Redundancy

Storing the same data in multiple locations.

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Data Isolation

Applications not able to access data used by other applications.

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Data Inconsistency

Different versions of the same data are not the same.

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Database

A structured collection of related data files.

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Data Security

Protecting database data from unauthorized access or loss.

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Data Integrity

Ensuring database data meets specified constraints.

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Data Independence

Applications don't directly depend on data structure, allowing for changes.

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Bit

The smallest unit of data in a computer, either 0 or 1.

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Big Data Variety

Big Data comes in diverse formats like images, audio, and social media posts; it's often unstructured or semi-structured, unlike traditional data.

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Big Data Sources

Big Data comes from many sources - internal and external, like emails, social media, and customer databases.

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Untrusted Data Sources

External Big Data sources can be unreliable because the information might be false or misleading.

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Dirty Data

Inaccurate, incomplete, or duplicate data in Big Data sets. This can include misspellings or repeated information, affecting analysis reliability.

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Data Streams and Change

Big Data quality, and the data itself, can change over time due to altered conditions during data capture.

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Information Silos

Isolated information systems that need integration.

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Data Warehouses

Databases designed to support decision-making.

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Relational Databases

Databases organized into tables with rows and columns, each row with a unique record and columns defining attributes.

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Massively Parallel Processing

Processing applications using multiple processors working on different parts.

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Big Data Management

The process of managing Big Data and gaining value from it.

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Data Mart

A smaller, focused data store that draws data from a data warehouse, tailored for specific business needs.

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Metadata

Information about data, describing its structure, format, meaning, source, and usage.

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Multidimensional Data

Data organized in more than two dimensions, often visualized as a data cube, unlike relational databases' two-dimensional tables.

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Data Warehouses/Marts

Organized repositories of business intelligence data, often by dimensions like product, geography, or time.

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Source Systems

Systems providing data to data warehouses or data marts. These could be operational systems, ERP, websites, or external data.

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Data Integration

Processes and technologies that prepare data retrieved from multiple sources before loading it into warehouses/marts.

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Data Quality

Ensuring the data's accuracy, consistency, and completeness in a data warehouse/mart.

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Business Dimensions

Categories (e.g., product, region, time) that organize data in data warehouses and marts.

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Bad Data

Inaccurate or inconsistent data present in source systems; needs fixing or analysis.

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Data Profiling

Software used to analyze data from source systems at the start of a data warehousing project.

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Data Governance

Processes and policies to ensure data quality, integrity, and security in a data warehouse or mart.

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Study Notes

Introduction to Management Information Systems

  • Information technology (IT) is any computer-based tool used to process information and support organizational needs.
  • Information systems (IS) collect, process, store, analyze, and disseminate information for a specific purpose.
  • Management information systems (MIS) is a business function like marketing, finance, or operations and deals with information processing and management
  • Business technology management (BTM) and information systems (IS) mean the same thing
  • Digital transformation (DT) utilizes IT to improve employee, customer, and business partner relationships
  • Data are facts or observations representing events (e.g. business transactions).
  • Information is data shaped to be meaningful and useful to humans
  • Knowledge is created by analyzing information, leading to potential action

Why Study Information Systems?

  • IT offers various career opportunities.
  • Understanding IT helps you avoid potential security issues and select appropriate applications.
  • Knowledge of IT improves performance and is beneficial for entrepreneurs
  • Understanding IT is crucial for security in business

Information Systems and Business Processes

  • A business process is a series of related activities that generate value for the organization, partners, and customers.
  • Inputs (materials, services, information) are transformed through process activities via resources (people, equipment), producing outputs (products/services).
  • Information systems are essential enablers of business processes in facilitating communication, data storage, and process monitoring among different functional divisions.
  • Business processes, like procurement and fulfillment, often cut across multiple functional areas, making them cross-functional.
  • Information systems play a key role in executing, recording, and monitoring business processes
  • Data captured by IS can provide immediate feedback

Business Process Reengineering and Improvement

  • Excellence in executing business processes is crucial for organizational efficiency
  • Measures such as customer satisfaction, cost reduction, and cycle time optimization are directly related to efficient business processes.
  • Business process reengineering (BPR) is a strategy for radically redesigning business processes for greater efficiency and profitability
  • Business process improvement (BPI) is an incremental approach to improving processes.
  • BPI focuses on reducing variations in process outputs by addressing root causes

Importance of Information Systems in Society

  • IT impacts quality of life by changing work-life balance.
  • IT has advanced from industrial robots to cognitive computing (IBM Watson).
  • IT's role in healthcare includes faster diagnosis and developing new drugs.

Computer-Based Information Systems

  • Information systems are categorized based on breadth of support.
  • Functional area information systems (FAIS): support activities within a specific functional area (accounting, finance, marketing, etc.)
  • Enterprise resource planning (ERP) systems: support the entire organization, connecting various functional areas.
  • Inter-organizational information systems (IOS): link various organizations (e.g. supply chain management, e-commerce).

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