Information Systems Chapter 10

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Questions and Answers

What is the primary purpose of middleware in an Enterprise Application Integration (EAI) system?

To provide data storage solutions.

To connect different applications together. (correct)

To automate business processes.

To analyze business performance.

Which of the following is NOT considered a core ERP module?

Financial management

Customer relationship management (CRM) (correct)

Operations management

Human resource management

What is a major benefit of implementing an ERP system?

Reduction in employee training requirements.

Enhanced organizational flexibility and agility. (correct)

Improved data privacy.

Increased departmental silos.

Which of the following is a limitation of ERP system implementations?

Complexity and potential high costs. Signup and view all the answers

What does the 'vanilla approach' refer to in on-premise ERP implementation?

Using the standard system configuration without modifications. Signup and view all the answers

Which of the following extended ERP modules focuses on managing supply chain activities?

Supply chain management (SCM) Signup and view all the answers

What is a potential consequence of following 'best practices' in ERP systems for all companies?

Loss of competitive advantage for some organizations. Signup and view all the answers

What role does ERP systems play in decision support?

They provide real-time data for improved performance evaluation. Signup and view all the answers

What is the primary purpose of a transaction processing system (TPS)?

To generate and store business data Signup and view all the answers

Which characteristic is essential for transaction processing systems?

Real-time data collection Signup and view all the answers

What type of events do transaction processing systems capture?

Any business event that generates data Signup and view all the answers

What type of reports are generated at scheduled intervals?

Routine reports Signup and view all the answers

What is a significant benefit of implementing a transaction processing system in an organization?

Increased data privacy and security Signup and view all the answers

Which of the following describes a drill-down report?

A report that displays a greater level of detail Signup and view all the answers

Which of the following tasks is not typically associated with transaction processing systems?

Customer service automation Signup and view all the answers

How does a transaction processing system ensure accuracy in data recording?

By using strict data validation rules Signup and view all the answers

What is the main goal of an ERP system?

To integrate all functional areas of the organization Signup and view all the answers

Which report type includes only information that meets certain criteria?

Exception reports Signup and view all the answers

In the context of transaction processing systems, what does 'high volumes of data' refer to?

The ability to handle both large amounts and varying volumes of data Signup and view all the answers

What aspect of transaction processing systems is essential for maintaining organizational efficiency?

Avoiding errors and downtime Signup and view all the answers

Which of the following is NOT a feature of ERP II systems?

Focus only on financial management Signup and view all the answers

What characterizes a comparative report?

It compares the performance of different units or time periods. Signup and view all the answers

How do ERP systems differ from traditional FAISs?

They integrate functions of various FAISs. Signup and view all the answers

What is a benefit of using an ERP system?

Provides a common platform for different functions Signup and view all the answers

Which of the following is NOT a function of Information Systems for Accounting and Finance?

Sales forecasting Signup and view all the answers

What aspect is primarily managed by Information Systems for Human Resource Management?

Recruitment Signup and view all the answers

Which of the following does NOT belong to Production/Operations Management Information Systems?

Financial ratio analysis Signup and view all the answers

What is a key feature of Expense Management Automation (EMA)?

Managing multiple currencies Signup and view all the answers

Which functional area does Computer-Integrated Manufacturing (CIM) belong to?

Production/Operations Management Signup and view all the answers

Which function is associated with Information Systems for Marketing?

Customer relationship management Signup and view all the answers

What type of analysis is included in the Control and Auditing function?

Financial ratio analysis Signup and view all the answers

Which of the following best describes the purpose of Functional Area Information Systems (FAIS)?

Support various functional areas in increasing internal efficiency Signup and view all the answers

What is one major advantage of using a cloud-based ERP system?

It can be accessed from any location with Internet access. Signup and view all the answers

Which implementation approach involves utilizing the standard ERP package without modifications?

Vanilla approach Signup and view all the answers

What is a potential disadvantage of using a vanilla approach in ERP systems?

Reduced competitive advantage. Signup and view all the answers

Which of the following is a characteristic of SaaS ERP systems?

They involve leasing software that is cloud-based. Signup and view all the answers

Which of the following scenarios could pose a problem for users of cloud-based ERP systems?

Intermittent internet service outages. Signup and view all the answers

What does scalability in cloud-based ERP systems refer to?

Paying only for the resources utilized. Signup and view all the answers

What is one reason companies may choose a cloud-based ERP system over an on-premise solution?

It eliminates the need for hardware expenses. Signup and view all the answers

What can companies lose when adopting cloud-based ERP systems?

Control over strategic IT resources. Signup and view all the answers

Study Notes

Introduction to Information Systems - Chapter 10

This chapter focuses on information systems within organizations.
Learning objectives include explaining transaction processing systems, various support information systems, advantages/disadvantages of enterprise resource planning (ERP) systems, and describing core business processes supported by ERP systems.
Chapter outline lists transaction processing systems, functional area information systems, enterprise resource planning (ERP) systems, and ERP support for business processes.

10.1 Transaction Processing Systems (TPS)

A transaction is any business event that produces data needed for record-keeping. Examples include product manufacturing, sales, and payroll.
TPS are essential for monitoring, collecting, storing, and processing organizational data. This data is critical for the organization's functionality.
TPS collect data continuously and in real time, immediately after generation, supplying input data for corporate databases.
TPS characteristics include continuous "real-time" data collection, handling high volumes of data, avoiding errors and downtime, recording results accurately and securely, and maintaining privacy and security.

10.2 Functional Area Information Systems (FAIS)

FAISs support separate functional areas in an organization to increase efficiency and effectiveness.
FAISs provide information through various reports.
Specific FAIS examples include Accounting and Finance, Marketing, Production/Operations Management, and Human Resource Management.
Examples within Accounting and Finance include financial planning and budgeting, transaction management, investment management, and auditing/controls.
Production/Operations examples include in-house logistics and materials management (including VMI), quality control, and production planning.

10.3 Enterprise Resource Planning (ERP) Systems

ERP systems are designed for a business process view of the entire organization.
ERP systems integrate numerous, previously separated, resources.
ERP systems use common software and a shared database for integrated workflows.
ERP systems use modules (e.g., financial management, operations management, human resource management) as a core system and provide options for adding additional modules.
Examples of extended ERP modules include customer relationship management (CRM), supply chain management (SCM), business analytics, and e-business.

ERP II Systems

ERP II systems are interorganizational.
ERP II systems integrate internal ERP applications with external applications for supply chain management and customer relationship management.
ERP II systems use web-enabled connections to connect a company with customers, suppliers, distributors, etc.

Implementing ERP Systems

On-premise ERP implementation options include the "vanilla approach," custom approach, and "best-of-breed" approach.
Software-as-a-Service (SaaS) is a cloud-based ERP delivery model which allows application access via the internet (e.g., Salesforce).

Major Benefits of ERP Systems

ERP systems improve organizational flexibility and agility.
ERP systems provide improved business decision support.
ERP systems lead to improved business processes and greater efficiency, resulting in improved quality and efficiency for customer service, production, and distribution.

Major Limitations of ERP implementations

ERP modules are based on "best practices," but may not be ideal for all companies.
ERP system complexity, expense, and time commitments need careful consideration.
Underestimating the implementation complexity and training requirements can be a major problem.

Advantages of Cloud-Based ERP

Accessibility from anywhere with internet access
Eliminating initial hardware and software expenses.
Scalability allows for payment based on usage.

Disadvantages of Cloud-Based ERP

Loss of control over strategic resources
Reduced competitive advantage.
Potential for internet access issues and service provider problems.

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Description

This quiz covers Chapter 10 of 'Introduction to Information Systems,' focusing on transaction processing systems and enterprise resource planning (ERP) systems. You'll learn about the advantages and disadvantages of ERP, as well as the core business processes it supports. Test your knowledge on how these systems function within organizations.