Information Systems Business Roles

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Questions and Answers

What is the primary purpose of an Executive Information System (EIS)?

To monitor real-time operational efficiency.

To analyze daily sales transactions.

To manage employee records and HR-related tasks.

To provide senior executives with insights for strategic decision-making. (correct)

Which type of decisions are best supported by an Executive Information System?

Routine operational decisions.

Long-term strategic decisions. (correct)

Short-term logistical decisions.

Daily transactional decisions.

What might a Decision Support System (DSS) analyze for a retail business considering a new store?

Potential locations, predicted sales, and required investment. (correct)

Employee performance metrics.

Past customer feedback.

Daily stock levels.

Which of the following systems is designed to handle a large volume of routine, transactional data?

Transaction Processing System (TPS) Signup and view all the answers

An example of using a Transaction Processing System (TPS) would be:

Recording every sale in an e-commerce business. Signup and view all the answers

What is the primary benefit of real-time monitoring in an information system?

It aids in swift issue resolution. Signup and view all the answers

How does an information system contribute to competitive advantage?

By streamlining operations and improving customer service. Signup and view all the answers

In which level of management is an Executive Information System primarily utilized?

Top Management Signup and view all the answers

What role does an information system play in customer relationship management (CRM)?

It enhances understanding and management of customer needs. Signup and view all the answers

Which function of information systems aids in easing communication and collaboration within an organization?

Collaboration and Communication Signup and view all the answers

Which of the following is NOT a role of information systems in business?

Streamlining marketing strategies Signup and view all the answers

How do information systems assist in financial management?

By tracking finances accurately for planning and management. Signup and view all the answers

What aspect of decision-making do information systems primarily enhance?

Informed decision-making based on data Signup and view all the answers

What is the primary purpose of consistency in a transaction processing system?

To ensure only eligible employees receive bonuses Signup and view all the answers

How does isolation benefit the approval of leave requests in a transaction processing system?

By allowing multiple HR personnel to process requests concurrently without interference Signup and view all the answers

What does durability guarantee in a transaction processing system?

Attendance records are recoverable after a system failure Signup and view all the answers

Which of the following is an example of batch transaction processing?

Generating monthly billing statements Signup and view all the answers

What characterizes online delayed transaction processing?

Transactions are stored and processed in batches later Signup and view all the answers

What is the primary characteristic of real-time processing in transaction systems?

It processes transactions immediately as they occur. Signup and view all the answers

Which of the following is an example of online delayed transaction processing?

Making a hotel reservation with payment at check-out. Signup and view all the answers

What is a key feature of a Customer Integrated System (CIS)?

It allows customers to conduct transactions independently. Signup and view all the answers

Which type of order processing system primarily focuses on capturing sales data during the transaction?

Point of Sale System Signup and view all the answers

In online delayed transaction processing, what type of transaction is commonly seen?

Credit card authorization holds. Signup and view all the answers

What type of information does an Order Entry Processing System primarily provide?

Sales and management information from various order sources. Signup and view all the answers

Which of the following statements correctly describes a Point of Sale System?

It is linked to a main computer and several checkout terminals. Signup and view all the answers

What is a common application of a Customer Integrated System?

Online shopping and purchasing activities. Signup and view all the answers

What does the Product Subsystem focus on?

Gathering and analyzing sales figures and customer feedback Signup and view all the answers

What type of output does the Pricing Subsystem provide?

Comparative Pricing Charts Signup and view all the answers

Which subsystem continuously collects and evaluates information from external sources?

Marketing Intelligence Signup and view all the answers

What type of reports compare a company's offerings against its competitors?

Competitive Analysis Reports Signup and view all the answers

What do Market Trend Forecasts primarily provide?

Predictive analyses on potential future market trends Signup and view all the answers

Which output details specific metrics such as sales and inventory levels?

Product Performance Reports Signup and view all the answers

What is the purpose of Price Elasticity Models in the Pricing Subsystem?

To predict sales changes with different pricing strategies Signup and view all the answers

What is the main focus of Lifecycle Analysis within the Product Subsystem?

Analyzing the current stage of a product's lifecycle Signup and view all the answers

Study Notes

Information Systems and Their Business Roles

Decision support: Information systems (IS) provide data for informed decisions across all levels of business.
Operational efficiency: IS automates tasks, streamlines workflows, and increases productivity.
Customer relationship management (CRM): IS improves understanding and management of customer needs, leading to better service.
Supply chain management: IS integrates suppliers, manufacturers, and retailers for efficient production and distribution.
Competitive advantage: IS drives innovation, optimizes operations, and enhances customer service, providing a competitive edge.
Real-time monitoring: IS allows for real-time operational monitoring and quick problem-solving.
Financial management: IS ensures accurate financial tracking, supporting planning and management.
Collaboration and communication: IS facilitates internal collaboration and external communication.
Data analytics and insights: IS analyzes large datasets to generate valuable insights.
Security and compliance: IS maintains data security and regulatory compliance.
Innovation: IS enables innovation in products, services, and operations.

Anthony's Hierarchy of Management and Information Systems

Top Management (e.g., CEO): Focuses on long-term strategic planning (e.g., new product development).
Middle or Tactical Management (e.g., Plant Manager): Focuses on the short-term future (e.g., budgeting).
Operational Management (e.g., Production Manager): Focuses on the present (e.g., meeting production schedules).

Hierarchy of Information Systems

Executive Support Systems (ESS): Strategic-level IS for top management, providing high-level overviews and insights for long-term decision-making. Examples include analyzing potential new store locations or market trends.

Four Major Types of Information Systems

Transaction Processing Systems (TPS): Handle high volumes of routine, recurring transactional data efficiently. Examples include recording daily sales in e-commerce or employee leave requests in HR. Key characteristics include Isolation (processing transactions independently), Durability (data persistence even after system failures), and Consistency (ensuring data integrity).
- Methods of Processing: Manual TPS, Computerized TPS.
- Types of TPS: Batch transaction processing (transactions processed in batches), Real-time transaction processing (immediate processing), Online delayed transaction processing (transactions entered but processed later).
- Common TPS in Business: Customer Integrated Systems (CIS) - customer self-service, examples include online shopping and ATMs; and Accounting Information Systems/Financial Information Systems, including Order Entry Processing Systems and Point of Sale (POS) systems.

Management Information Systems (MIS)

Marketing MIS Subsystems and Outputs:
- Product Subsystem: Gathers data on product performance, lifecycle analysis, and provides reports.
- Pricing Subsystem: Collects data on pricing, cost structures, and competitor pricing and generates comparative pricing charts and price elasticity models. Outputs include pricing reports and competitor pricing information.
- Competitive Analysis Reports: Compare company performance against competitors.
- Marketing Intelligence: Tracks market trends and competitor moves through data collection and analysis, providing alerts and forecasts.

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Description

Explore the critical roles that information systems play in business environments. Understand how these systems enhance decision-making, operational efficiency, and customer relationship management, while also driving innovation and providing a competitive edge. This quiz will cover various functions including supply chain management and financial tracking.