Information Systems and Network Types Quiz

Kinds of Networks

• Local Area Network (LAN): Connects devices and computers within a small geographic area such as an office, building, or campus to enable data and resource sharing
• Wide Area Network (WAN): Connects LANs over long distances, spanning a large geographic area

Types of Information Systems

• Management Information System (MIS): Provides structured reports and data to middle management to help them make informed decisions
• Decision Support System (DSS): Assists decision-making by analyzing data and providing insights to managers, often for non-routine and complex decisions

General Decision-Making Concepts

• Intuition: Decision-making based on gut feelings, hunches, or tacit knowledge, especially in situations with incomplete information
• Bounded Rationality: The idea that decision-makers have cognitive limitations and may not always make optimal choices, instead opting for satisfactory choices
• Decision Criteria: Standards used to evaluate and compare different alternatives during the decision-making process, such as cost, quality, time, feasibility, and strategic alignment
• Decision Trees: A graphical representation of decision-making scenarios, incorporating probabilities and outcomes to visualize and analyze possible paths
• Risk and Uncertainty. Risk has known probabilities, uncertainty has unknown probabilities. Decisions must account for both elements through strategies such as risk mitigation, scenario analysis, and contingency planning.
• Group Decision-Making: Collaborative decision-making process within a group or team, leveraging diverse perspectives and expertise. Challenges include groupthink, conflict resolution, and ensuring equal participation.
• Cognitive Biases: Systematic patterns of deviation from rationality in judgment, often leading to irrational decisions including confirmation bias, anchoring bias, and overconfidence
• Escalation of Commitment: Continuously investing resources into a failing course of action due to previous investments even if it is not the best option. Challenge is to overcome the sunk cost fallacy and objectively assess ongoing commitment.

Transaction Processing System (TPS)

• Definition: A computerized system that facilitates the collection, processing, storage, and retrieval of transactions within an organization; transactions are business events or activities that generate or modify data stored in an information system
• Key Components:
  • Transaction Capture: Capturing data related to business transactions, such as sales, purchases, payments, and other operational activities
  • Transaction Processing: Processing transactions in real-time to ensure data accuracy and updates, including validation, database updates, and output generation
  • Database: A centralized database that stores transaction data, organized for efficient management and information retrieval
  • Output Generation: Generating outputs such as receipts, reports, and updated records, important for decision-making and record maintenance
  • Feedback: Provides feedback to users regarding the success or failure of a transaction
• Characteristics:
  • Real-Time Processing: Processes transactions immediately, ensuring current data and supporting operational decision-making
  • Reliability: Designed for high reliability and availability, continuing to function even in the face of hardware failures, software errors, and disruptions
  • Data Integrity: Ensures accuracy and consistency of data with transaction validation, including completeness, accuracy, and conformity to business rules
  • Batch Processing: Processes large volumes of transactions during non-peak hours in groups to reduce processing strain on the system
• Applications:
  • Retail: Processes sales transactions, updates inventory, and generates sales reports in real-time
  • Banking: Handles transactions like deposits, withdrawals, fund transfers, and loan payments
  • Airline Reservations: Manages ticket bookings, seat reservations, and flight scheduling
  • Manufacturing: Tracks production activities, inventory levels, and order processing
• Importance:
  • Operational Efficiency: Automates routine tasks, reduces manual errors, and provides timely information to enhance operational efficiency
  • Data Accuracy: Ensures accuracy and consistency of transaction data, providing a reliable foundation for decision-making
  • Customer Satisfaction: Contributes to improved customer service by enabling quick and accurate responses to inquiries and transactions

Test your knowledge on various kinds of networks and information systems. This quiz covers Local Area Networks (LAN), Wide Area Networks (WAN), Management Information Systems (MIS), and Decision Support Systems (DSS). Explore general decision-making concepts like intuition and bounded rationality.