Information Systems and Knowledge Management

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is data primarily characterized as?

Processed organized data with value

Knowledge that is shared within an organization

A cognitive process that becomes useful

Raw facts and figures (correct)

Which term describes knowledge that the organization is unaware of or unable to use?

Explicit knowledge

Tacit knowledge (correct)

Operational knowledge

Processed information

Which of the following is NOT a type of IT system that creates and shares information and knowledge?

Data analysis programs (correct)

Decision support systems

Enterprise-wide systems

Customer relationship management systems

What is the primary function of a Transaction Processing System (TPS)?

To record and perform routine transactions Signup and view all the answers

Which type of knowledge is an organization fully aware of and able to exploit?

Explicit knowledge Signup and view all the answers

What is a main role of IT within the finance function?

Processing and storing transactions Signup and view all the answers

Which of the following best describes the planning aspect of IT's role in supporting managerial activities?

Determining available resources and likely outcomes Signup and view all the answers

What aspect does the controlling role in IT primarily focus on?

Assessing if activities are in alignment with plans Signup and view all the answers

How does information systems contribute to performance measurement?

By enabling comparisons against budgets or plans Signup and view all the answers

What is the role of knowledge management in information systems?

To facilitate the sharing and organization of knowledge Signup and view all the answers

Which function is associated with Sales Management within Sales/Marketing systems?

Market research Signup and view all the answers

What major application system is responsible for managing employee records?

Employee records Signup and view all the answers

Which system is designed to increase productivity for data and information workers?

Office Automation Systems Signup and view all the answers

What is a primary function of Management Information Systems?

Converting data into information Signup and view all the answers

Which of the following is NOT a major function of the Finance Systems?

Promotion pricing Signup and view all the answers

Which application system is typically used for budgeting in Finance Systems?

General ledger Signup and view all the answers

What role do Knowledge Work Systems (KWS) play in an organization?

Create and integrate new knowledge Signup and view all the answers

Which of the following is an example of Office Automation Systems?

Document management systems Signup and view all the answers

What is a primary benefit of Knowledge Management Systems (KMS)?

Preserves valuable data for the future Signup and view all the answers

Which of the following is a benefit of Customer Relationship Management Systems (CRMs)?

Provide personalized service to customers Signup and view all the answers

How does IT serve as an enabler of transformation?

By developing business opportunities Signup and view all the answers

What aspect of organizational change is influenced by IT?

The way services are provided Signup and view all the answers

What does KMS help avoid in an organization?

Data duplication Signup and view all the answers

What is a key feature of CRM systems?

Equipping customer-facing staff adequately Signup and view all the answers

Which benefit is associated with a well-implemented IT strategy?

Creation of a competitive advantage Signup and view all the answers

What role does IT play in terms of employee mobilization?

Enables home working arrangements Signup and view all the answers

Which of the following is NOT one of the moral dimensions of the information age?

Environmental regulations Signup and view all the answers

What does the term 'phishing' refer to?

A deceptive attempt to obtain sensitive information Signup and view all the answers

Which of the following is an example of cyber security protection?

Malware protection Signup and view all the answers

Which Key Performance Indicator measures the number of IT security breaches?

Number of IT security breaches Signup and view all the answers

Which aspect of the finance function involves the analysis of potential IT failure on business functions?

Analysis of effect Signup and view all the answers

What is the purpose of patch management in data security?

To keep software updated and fix vulnerabilities Signup and view all the answers

Which of the following is an activity associated with business partnering in IT?

Calculation of IT costs as a percentage of revenue Signup and view all the answers

Which Key Performance Indicator relates to the effectiveness of IT maintenance?

IT maintenance ratio Signup and view all the answers

Study Notes

Supporting Operations

Information systems support business operations by:
- Processing and storing transactions
- Generating information that managers need
  - Use knowledge management systems to help organizations collect and share knowledge.

Data, Information, and Knowledge

Data: Raw facts and figures
Information: Processed and organized data with some value
Knowledge: Applied cognitive process that becomes useful (something you know and understand).
- Tacit Knowledge: Knowledge the organization has but is unaware of or unable to use.
- Explicit knowledge: Knowledge the organization has, is aware of, and is able to exploit.

IT Systems

IT systems are categorized as:
- Systems that create information and knowledge:
  - Transaction processing systems
  - Knowledge work systems
  - Office automation systems
- Systems that share information and knowledge between business functions:
  - Management information systems
  - Decision support systems
  - Executive information systems
  - Expert systems
  - Enterprise-wide systems
  - Knowledge management systems
  - Customer relationship management systems

Transaction Processing Systems (TPS)

Perform and record routine transactions.
TPS major functions:
- Sales/Marketing: Sales management, Market research, Promotion pricing, New products
- Operations: Scheduling, Purchasing, Shipping/receiving, Engineering
- Finance: Budgeting, General ledger, Billing
- HR: Personnel records, Benefits, Salaries, Labor relations
Common applications: Sales orders, Market research systems, Pricing system, Materials resource planning, Purchase order control, Quality control, General ledger, Accounts Receivable/Payable, Budgeting, Funds Management, Payroll, Employee Records, Employee Benefits, Career path systems

Knowledge Work Systems (KWS)

Create and integrate new knowledge into an organization.
Knowledge workers perform jobs that create new information and knowledge.
- Examples: Doctors, engineers, lawyers, scientists.
KWS Examples:
- Computer Aided Design (CAD)
- Computer Aided Manufacturing (CAM)
- Specialized financial software that analyzes trading situations

Office Automation Systems (OAS)

Increase the productivity of data and information workers.
OAS support typical office activities like:
- Document management
- Facilitate communication
- Manage data

Management Information Systems (MIS)

Provide information to managers, primarily from internal sources.
Convert data into information, such as:
- Summary reports
- Exception reports
Enable managers to make timely decisions for planning, directing, and controlling activities.

Knowledge Management Systems (KMS)

Record and store all knowledge held within an organization.
Benefits:
- Preserves valuable data
- Enables easy data sharing
- Avoids data duplication
- Helps employees quickly learn and utilize knowledge, reducing training time

Customer Relationship Management Systems (CRMSs)

Software applications specializing in providing information about:
- Organization’s products
- Services
- Customers
CRM Benefits:
- Personalized customer service
- Swift reply to customer queries
- Increased motivation of customer-facing staff
- Customer retention and loyalty
- Better targeted marketing material

IT as an Enabler of Transformation

IT can be a driving force behind organizational change, even when it's not the primary factor.
IT's role in the change management process is significant.
Benefits of an IT strategy:
- Develop business opportunities
- Improve organizational productivity and performance
- Create a competitive advantage
- Enable structural change (e.g., home working)
- Bring congruency to corporate goals

Role of IT in Change

IT can impact:
- Type of products/services made and sold (e.g., downloads)
- Manufacturing processes (e.g., computer-controlled production)
- Employee mobilization (e.g., home working)
- Service delivery (e.g., web-based services)
- Changes in businesses and industries (e.g., price comparison)
- Communication and coordination (e.g., groupware)
- Unity and structure (e.g., the web and extranets)

Five moral dimensions of the information age:
- Information rights and obligations
- Property rights
- Accountability and control
- System quality
- Quality of life

Cyber Attacks

Common Types:
- Phishing
- Pharming
- Hacking
- Webcam manager
- File hijacker/ransomware
- Keylogging
- Screenshot manager
- Ad clicker

Data Security

Types of cyber security:
- Access control
- Boundary firewalls and internet gateways
- Malware protection and virus protection
- Patch management
- Secure configuration

Finance Function and IT Business Partnering

Assembling information: Collection of information regarding IT costs, preparation of KPIs to identify equipment that might need replacing.
Analyzing for insights: Analyzing information regarding equipment breakdown and help desk support provided, cost and benefit analysis of information systems.
Applying for impact: Creation of business cases to support investment in new technology, strategic review of the potential use of technology within the business to improve processes or products sold.

Key Performance Indicators (KPIs)

Focus on measuring IT effectiveness:
- IT cost as a percentage of revenue
- IT project cost variance
- Number of IT security breaches
- System downtime
- Help desk first call resolution
- IT maintenance ratio
- Average age of IT infrastructure

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the role of information systems in supporting business operations and the distinctions between data, information, and knowledge. It highlights various IT systems that aid in creating and sharing knowledge across organizations, providing insights into explicit and tacit knowledge. Test your understanding of these concepts and their relevance in modern business practices.