Information Systems in Business Overview

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Questions and Answers

What has changed in the role of computers in organizations over the years?

  • They are only used for administrative tasks.
  • Every employee must utilize them for better information management. (correct)
  • They are mostly handled by tech-support teams only.
  • They are now primarily used in back offices.

Why is information considered a crucial resource for managers?

  • It provides insights for making strategic decisions. (correct)
  • It is easier to track than other resources.
  • It is the only resource that can be digitized.
  • It requires less investment compared to equipment.

What is one potential job category that has emerged due to advancements in the information industry?

  • Telemarketer
  • Cashier
  • Factory worker
  • Webmaster (correct)

What does the emergence of the global economy imply for new job markets?

<p>A multitude of new positions in the information industry has developed. (C)</p> Signup and view all the answers

How has the perception of information technology evolved in organizations?

<p>It has become an integral factor in competitive advantage. (B)</p> Signup and view all the answers

What distinguishes information systems technology from general computer technology?

<p>Information systems technology emphasizes the use of information for decision-making. (B)</p> Signup and view all the answers

What has prompted changes in how employees interact with information technology?

<p>The need for organization-wide information handling skills. (C)</p> Signup and view all the answers

How does the concept of a 'networked enterprise' affect organizational design?

<p>It promotes decentralized decision-making and collaboration. (C)</p> Signup and view all the answers

What is the primary responsibility of humans in the context of information systems?

<p>To make the ultimate decision about changes (A)</p> Signup and view all the answers

As management levels rise within an organization, what aspect widens?

<p>The variety of information presented by systems (C)</p> Signup and view all the answers

How did the introduction of personal computers in the 1980s affect data management?

<p>It created isolated computing islands for individuals (A)</p> Signup and view all the answers

Why is it now possible for users to have authorized access to data across a network?

<p>Technology has advanced to allow central storage with distributed access (A)</p> Signup and view all the answers

What percentage of equipment investment in the last decade was attributed to computing equipment?

<p>40% (B)</p> Signup and view all the answers

What aspect of information systems has changed significantly over the years?

<p>Information systems now support more diverse organizational functions (A)</p> Signup and view all the answers

Which of the following best describes the historical context of information systems?

<p>Mainframe systems dominated before the personal computer revolution (B)</p> Signup and view all the answers

What is a common misconception about decision-making in regards to information systems?

<p>Systems should replace human judgement entirely (B)</p> Signup and view all the answers

What is one of the primary responsibilities of a manager in a team?

<p>To develop the game plan by analyzing strengths and weaknesses (B)</p> Signup and view all the answers

Why might organizations struggle to keep up with the latest technology?

<p>Purchasing and maintaining new technology is expensive (C)</p> Signup and view all the answers

What analogy is used to explain the technical approach to Information Systems?

<p>Computing is viewed as a series of zeroes or ones (D)</p> Signup and view all the answers

How does the behavioral approach differ from the technical approach in Information Systems?

<p>It incorporates the complexities of human behavior (C)</p> Signup and view all the answers

What is a common misconception about organizations and technology?

<p>All organizations can afford to upgrade tech frequently (A)</p> Signup and view all the answers

What is implied about managing a game plan during a game?

<p>Managers must adapt the plan based on the game's progress (B)</p> Signup and view all the answers

Which of the following is NOT mentioned as a cost consideration for organizations when adopting new technology?

<p>Maintaining old equipment (C)</p> Signup and view all the answers

What outcome is expected when applying both technical and behavioral approaches to decision-making?

<p>A comprehensive understanding can be achieved depending on the situation (A)</p> Signup and view all the answers

What is the primary purpose of the Knowledge Work System (KWS) in a company?

<p>To integrate research findings into the company's information systems. (B)</p> Signup and view all the answers

Which department would need to adjust its operations due to a new recipe for the Cybernuts candy bar?

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

What does the new recipe for the Cybernuts candy bar require more of compared to the old recipe?

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

How many fewer workers are needed to produce the new Cybernuts candy bar?

<p>25 (A)</p> Signup and view all the answers

Which department needs to know about the change in workforce due to the new recipe?

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

What is one significant impact of a change in the Cybernuts candy bar recipe on the Production department?

<p>They need to alter the assembly line for production. (D)</p> Signup and view all the answers

Which of the following best describes a Knowledge Work System's role regarding interdepartmental communication?

<p>To ensure all departments receive necessary updates efficiently. (D)</p> Signup and view all the answers

What is the possible outcome for excess workers in the context of a recipe change for the Cybernuts candy bar?

<p>They may be retrained for other positions within the company. (A)</p> Signup and view all the answers

What primary functions do the supporting functions aim to enhance?

<p>Production, Shipping, and Sales and Marketing (C)</p> Signup and view all the answers

What competitive advantage does Cybernuts have over other candy bars?

<p>Better recipe for making chocolate (D)</p> Signup and view all the answers

How has Cybernuts differentiated itself for marketing purposes?

<p>By being bigger than the competitors' candy bars (C)</p> Signup and view all the answers

What is the purpose of using data mining in WorldWide's Product Research Department?

<p>To identify consumer preferences regarding candy bar features (C)</p> Signup and view all the answers

What benefit has WorldWide gained from its relationship with SugarSweet Refiners?

<p>Significant reduction in production costs (A)</p> Signup and view all the answers

What feature of the integrated Information Systems aids in maintaining stock levels?

<p>Automated alerts for restocking based on set levels (A)</p> Signup and view all the answers

Which of the following best represents the identification of a market niche by Cybernuts?

<p>Developing a chocolate that remains solid in heat (A)</p> Signup and view all the answers

What role does the Knowledge Worker System play for Cybernuts?

<p>It enables fast product development and recipe alterations (B)</p> Signup and view all the answers

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Study Notes

Information Systems in Business

  • Information is often overlooked by managers as a key resource, while it actually plays a crucial role in competitive advantage.
  • The shift from computers being in backrooms to being essential tools on every desk has altered the requirement for employees to leverage Information Systems effectively.
  • The emergence of the global economy is driven by technology innovations, creating new job markets in the information sector.

The Competitive Business Environment

  • Many jobs today, such as "Webmaster," are newly created roles that reflect changes brought by technological advancements.
  • Companies face challenges in keeping up with technology due to high costs of acquisition, installation, and training for the latest hardware and software.

Approaches to Information Systems

  • Information Systems can be approached technically, behaviorally, or sociotechnically, each offering unique perspectives.
  • The technical approach focuses on binary processing of data, while the behavioral approach integrates human factors and decision-making uncertainty.
  • Effective Knowledge Work Systems support the integration of information across various departments, ensuring that all areas are informed of changes affecting production and operations.

Product Differentiation and Strategy

  • Utilization of advanced recipes through Knowledge Work Systems can give companies a unique competitive edge.
  • Data mining techniques help identify market demands, leading to product adjustments that cater to customer preferences, such as non-melting chocolate for kids.

Supply Chain and Customer Response

  • Strong relationships with suppliers enable companies to reduce costs significantly and offer competitive pricing.
  • Integrated Information Systems ensure efficient inventory management and timely replenishment of products in retail outlets.

Organizational Analysis Levels

  • Different management levels require tailored Information Systems; executives need high-level strategies while operational managers focus on transaction processing.
  • Information Systems adapt to the evolving needs of organizations, shifting from centralized models to networked environments that facilitate data accessibility across departments.

Evolution of Information Systems

  • From centralized mainframe systems to distributed personal computing, the way organizations use Information Systems has continuously evolved.
  • Access to data has shifted from a limited few to a broader group authorized via global networks, increasing collaboration and efficiency in decision-making.

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