Information Systems in Global Business Today

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Questions and Answers

What does a modem do?

  • Converts digital signals to analog and vice versa (correct)
  • Translates analog signals into different languages
  • Enables direct communication between two computers
  • Increases the speed of an internet connection

Which network architecture gives equal power to all computers within it?

  • Star topology network
  • Peer-to-peer network (correct)
  • Wide area network
  • Client-server model

What is the primary purpose of a digital subscriber line?

  • To connect various networks within local proximity
  • To provide high-capacity transmission over telephone lines (correct)
  • To enhance wireless communication among devices
  • To secures corporate data transmissions

What does the term 'bandwidth' refer to?

<p>The capacity of a channel measured by frequency range (D)</p> Signup and view all the answers

What is the function of a virtual private network?

<p>To create a secure connection for transmitting data (A)</p> Signup and view all the answers

What does the term 'Hertz' measure?

<p>The number of cycles per second (B)</p> Signup and view all the answers

What type of network encompasses a limited distance, usually within one or several buildings?

<p>Local area network (LAN) (C)</p> Signup and view all the answers

Which of the following describes a domain name?

<p>An English-like name linked to a unique IP address (D)</p> Signup and view all the answers

What term describes a loosely coupled network of suppliers that are interdependent?

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

Which of the following best defines 'core competency'?

<p>An activity where a firm is a world-class leader (B)</p> Signup and view all the answers

What is the main purpose of 'benchmarking' in business processes?

<p>To compare efficiency and effectiveness against standards (D)</p> Signup and view all the answers

Which security measure is specifically designed to monitor network activity for intrusions?

<p>Intrusion detection system (B)</p> Signup and view all the answers

What type of malware is designed to extort money from users by taking over their computer?

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

What is 'social engineering' primarily defined as?

<p>Manipulating individuals to disclose confidential information (A)</p> Signup and view all the answers

Which act mandates that companies protect the accuracy and integrity of financial information?

<p>Gramm-Leach-Bliley Act (B)</p> Signup and view all the answers

What does 'identity management' involve in a corporate context?

<p>Tracking users and their system privileges (A)</p> Signup and view all the answers

Which type of attack involves overwhelming a network with numerous false requests?

<p>Denial of service (DoS) (D)</p> Signup and view all the answers

What is the purpose of a 'patch' in software management?

<p>To repair software without major disruptions (B)</p> Signup and view all the answers

Which authentication method uses physical traits to grant access?

<p>Biometric authentication (C)</p> Signup and view all the answers

In the context of databases, what does 'data redundancy' refer to?

<p>Duplicate data stored in multiple files (A)</p> Signup and view all the answers

What does the 'slippery slope rule' in ethics imply?

<p>If an action can't be repeated safely, it should not be taken (D)</p> Signup and view all the answers

What is the primary purpose of a digital dashboard in an organization?

<p>To display key performance indicators for executive decision-making (B)</p> Signup and view all the answers

How do enterprise applications differ from customer relationship management systems?

<p>Enterprise applications coordinate activities across different functions and levels. (A)</p> Signup and view all the answers

What is the primary role of a Chief Information Officer within an organization?

<p>To manage the information systems function (C)</p> Signup and view all the answers

What does supply chain management primarily aim to achieve?

<p>Automating the flow of information between a firm and its suppliers (D)</p> Signup and view all the answers

Which of the following defines disruptive technologies?

<p>Innovations that offer superior performance compared to existing solutions (D)</p> Signup and view all the answers

What is the main focus of customer experience management?

<p>To manage interactions throughout the entire business relationship (C)</p> Signup and view all the answers

Which of the following best describes agency theory?

<p>A framework that sees the firm as a group of self-interested contracts. (A)</p> Signup and view all the answers

What is the primary feature of mass customization?

<p>Using standard production techniques to create personalized products (D)</p> Signup and view all the answers

Which model highlights primary activities that add value to products/services?

<p>Value chain model (C)</p> Signup and view all the answers

In terms of organizational structure, what do routines refer to?

<p>Procedures developed to handle expected situations (B)</p> Signup and view all the answers

What is a key responsibility of a Chief Privacy Officer?

<p>Ensuring compliance with data privacy laws (C)</p> Signup and view all the answers

Which of the following is a characteristic of electronic business?

<p>Using digital technology to conduct business activities (A)</p> Signup and view all the answers

What is the main goal of IT governance?

<p>To develop strategies for using information technology to support organizational objectives (B)</p> Signup and view all the answers

Which term refers to the costs incurred when changing suppliers or systems?

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

What is a digital firm characterized by?

<p>Significant business relationships with customers, suppliers, and employees (D)</p> Signup and view all the answers

What role does output play in an information system?

<p>Transfers processed information to users or activities (D)</p> Signup and view all the answers

Which of the following best describes a business model?

<p>How a company produces, delivers, and sells products or services (D)</p> Signup and view all the answers

What distinguishes management information systems (MIS) from other information systems?

<p>They provide reports on organizational performance for middle management (B)</p> Signup and view all the answers

Which of the following best describes a transaction processing system (TPS)?

<p>A computerized system for recording daily routine transactions (D)</p> Signup and view all the answers

What does feedback in an information system refer to?

<p>Output returned to assess or adjust the input process (A)</p> Signup and view all the answers

Which group is typically responsible for making long-range decisions in an organization?

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

What is the prime function of decision-support systems (DSS)?

<p>To support semi-structured and unstructured decision-making (D)</p> Signup and view all the answers

Which statement about information systems literacy is accurate?

<p>It includes both behavioral and technical knowledge (C)</p> Signup and view all the answers

What does organizational and management capital refer to?

<p>Investments in people and processes that enhance business operations (A)</p> Signup and view all the answers

Which of the following represents a sociotechnical view of systems?

<p>Recognizing the interaction between technical and social elements (B)</p> Signup and view all the answers

What is the primary function of business intelligence applications?

<p>To assist users in making better business decisions (C)</p> Signup and view all the answers

What does 'data management technology' involve?

<p>Software governing the organization of data storage (B)</p> Signup and view all the answers

Which system is specifically designed for strategic-level unstructured decision-making?

<p>Executive Support System (ESS) (C)</p> Signup and view all the answers

What is a key field in a database record?

<p>A field that uniquely identifies instances of that record (D)</p> Signup and view all the answers

Which term refers to the process of organizing large amounts of complex data into a relational database?

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

What is the main function of a Database Management System (DBMS)?

<p>To allow businesses to extract needed data without creating separate files (B)</p> Signup and view all the answers

In the context of databases, what does a foreign key allow users to do?

<p>Find related information in another database table (B)</p> Signup and view all the answers

Which of the following describes a data lake?

<p>A repository for raw data that has not been analyzed (A)</p> Signup and view all the answers

What technology allows for the rapid processing of data by using a computer's main memory?

<p>In-memory computing (B)</p> Signup and view all the answers

Which of the following best describes big data?

<p>Volumes of data so large that they require specialized tools to analyze (D)</p> Signup and view all the answers

What is the primary function of text mining?

<p>To discover patterns in textual data (B)</p> Signup and view all the answers

Which component is responsible for managing data flow within a network?

<p>Network operating system (B)</p> Signup and view all the answers

What does online analytical processing (OLAP) primarily focus on?

<p>Manipulating and analyzing data from multiple perspectives (B)</p> Signup and view all the answers

What purpose does a data quality audit serve within an information system?

<p>To evaluate the completeness and accuracy of the data (A)</p> Signup and view all the answers

Which term describes a database that is physically stored in multiple locations?

<p>Distributed database (D)</p> Signup and view all the answers

What is the function of a router in a network?

<p>To forward packets of data between different networks (B)</p> Signup and view all the answers

Flashcards

Business Process

A set of logically related tasks and behaviors an organization uses to achieve specific business results.

Business Model

How a company produces, delivers, and sells a product or service to create wealth.

Information System

A system that collects, processes, stores, and distributes information to support decision-making and business operations.

Information Technology (IT)

The hardware and software used by a firm to achieve business objectives.

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Data

Raw facts that represent events, before being organized and understood.

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Input (IS)

Capturing raw data from inside or outside the organization.

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Processing (IS)

Converting raw data into usable information.

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Output (IS)

Presenting processed information to users.

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Feedback (IS)

Output returned to evaluate and adjust the input stage.

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Transaction Processing System (TPS)

Computer systems recording daily business transactions.

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Management Information System (MIS)

Reports on organizational performance for middle management.

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Decision Support System (DSS)

Systems used for semi-structured & unstructured decisions. Combining data and analytical tools.

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Executive Support System (ESS)

Systems for unstructured strategic decision-making. Uses advanced graphics and communication.

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Portal

Web interface with integrated personalized content from various sources

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Digital Firm

Businesses with significant interactions with customers, suppliers and employees.

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Packet Switching

Breaking down digital messages into packets, sending them to the right address, and reassembling them at the destination.

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Modem

A device that converts digital signals from computers into analog signals for transmission over traditional phone lines, and vice versa.

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LAN (Local Area Network)

A network connecting devices within a limited area, typically a building or small group of buildings.

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Peer-to-Peer Network

A network where all computers have equal power and share resources directly with each other.

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WAN (Wide Area Network)

A network covering a large geographical area, using various technologies like cables, satellites, and microwaves.

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Hertz

A unit of measurement for frequency, representing one cycle per second.

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Bandwidth

The capacity of a communication channel, measured by the range of frequencies it can transmit.

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Internet Protocol (IP) Address

A unique numerical address assigned to each computer connected to the internet.

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Database

A collection of organized data serving multiple applications, appearing as a single location.

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Database Management System (DBMS)

Software used to create, maintain, and enable applications to extract data from a database without needing separate files.

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Relational DBMS

Treats data in tables with relationships between them using common elements.

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Tuples

Rows or records in a relational database.

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Key Field

Unique identifier for a record, allowing retrieval, update, and sorting.

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Foreign Key

Field linking data in one table to related information in another.

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Data Definition

DBMS capability defining database structure and content.

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Data Dictionary

Tool for storing and organizing information about data in a database.

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Data Manipulation Language (DML)

Language for manipulating data in a database, used by users and programmers.

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Normalization

Process of creating smaller, stable data structures from complex data in relational database design.

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Referential Integrity

Rules ensuring consistency in relationships between database tables.

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Nonrelational Database Management System

Manages large amounts of structured and unstructured data, unsuitable for relational models.

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Distributed Database

Database stored in multiple physical locations.

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Blockchain

Distributed ledger system storing permanent, tamper-proof transaction records.

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Big Data

Huge datasets beyond the capacity of traditional relational DBMS, often unstructured or semi-structured.

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Digital dashboard

A visual display of key performance indicators (KPIs) on a single screen, offering a quick overview for executive decisions.

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Enterprise applications

Systems that coordinate activities, decisions, and knowledge across various departments and business units within a company.

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Customer relationship management (CRM) systems

Information systems that track customer interactions to improve revenue, satisfaction, and retention.

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Supply chain management

Information systems that automate the flow of information between a company and its suppliers to optimize product/service delivery.

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Interorganizational system

A system that connects a company with its customers, distributors, or suppliers.

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Knowledge management system

A system for creating, capturing, storing, and sharing company expertise and knowledge.

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Electronic business (e-business)

Using digital technology for business activities.

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E-commerce

Buying and selling goods/services electronically, using the internet and digital technologies.

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Information systems department

A formal organizational unit responsible for the company's systems.

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Systems analysts

Translate business needs into system requirements, connecting the IT department with other parts of the organization.

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End-users

Representatives outside of the information systems group who use the applications.

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Value chain model

Highlights primary and support activities that add value to a firm's products/services, showing where information systems can create advantages.

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Primary activities

Activities directly involved in producing and distributing a company's products/services.

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Support activities

Activities that enable primary activities to happen.

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Disruptive technologies

New technologies that outperform existing ones, potentially reshaping markets and industries.

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Benchmarking

Comparing business processes against strict standards to measure efficiency and effectiveness.

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Best Practices

Proven methods, techniques, or processes that have consistently led to successful outcomes.

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Value Web

A network of independent firms using information technology to coordinate their value chains for a common product or service.

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Core Competency

An activity a firm is a world-class leader in, giving it a competitive advantage.

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Network Economics

Market dynamics where a product's value increases as more people use it.

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Virtual Company

An organization leveraging networks to connect people, assets, and ideas, breaking free from traditional boundaries and physical locations.

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Business Ecosystem

A network of loosely coupled but interdependent suppliers, working together to create and deliver value.

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Platforms

Businesses providing information systems, technologies, and services for thousands of other firms.

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Security (Information Systems)

Policies, procedures, and technical measures that protect information systems from unauthorized access, alteration, theft, or damage.

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Controls (Information Systems)

Methods, policies, and organizational procedures used to ensure the safety of organizational assets.

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Malware

Malicious software like computer viruses, worms, and Trojan horses designed to harm computer systems.

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SQL Injection Attacks

Exploiting vulnerabilities in poorly coded web applications to introduce malicious code into systems and networks.

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Ransomware

Malware that takes control of a computer and demands payment for its release.

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Phishing

Using fake websites or emails to deceive users into disclosing confidential information.

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Social Engineering

Tricking people into revealing passwords or sensitive information by pretending to be a trustworthy entity.

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Study Notes

Information Systems in Global Business Today

  • Five changes in management information systems: IT innovations, new business models, e-commerce expansion, management changes
  • Digital firm → significant business relationships with customers, suppliers and employees
  • Business processes → set of logically related tasks and behaviours that organizations develop over time to produce specific business results
  • Business model → how a company produces, delivers and sells a product/service to create wealth
  • Information technology (IT) → hardware and software that a firm needs to use in order to achieve business objectives
  • Information system → collects or retrieves, processes, stores, and distributes information to support decision-making, coordination, control, analysis, and visualization in an organization
  • Data → raw facts representing occurring events in organizations or in the physical environment before they have been organized and arranged into a form that people can understand and use
  • Input → captures or collects raw data from within the organization or from its external environment
  • Processing → converts raw input into a meaningful form
  • Output → transfers processed information to the people who will use it or to the activities it is required for
  • Feedback → output that is returned to appropriate members of the organization to evaluate or correct the input stage
  • Information systems literacy → broad-based understanding of information systems, including knowledge about organizations, individuals and using information systems as well as technical knowledge about computers
  • Computer literacy → knowledge about information technology, focusing on understanding how computer-based technologies work
  • Management information systems (MIS) → study of information systems with use in business and management
  • Senior management → people occupying the top-most hierarchy who make long-range decisions
  • Middle management → people in the middle who carry out plans and goals of senior management
  • Operational management → people who monitor daily activities of the organization
  • Knowledge workers → people who design products/services and create knowledge for the organization
  • Data workers → people who organize paperwork
  • Production or service workers → people who produce the products or services

Global E-Business and Collaboration

  • Transaction Processing Systems (TPS) → computerized systems that perform and record daily routine transactions necessary to conduct business; serve organizational operational level
  • Business intelligence → applications & technologies to help users make better business decisions
  • Management information systems → specific category of information system that provides reports on organizational performance to help middle management monitor and control the business
  • Decision-support systems (DSS) → information systems at the management level that combine data and sophisticated analytical models or data analysis tools to support semistructured and unstructured decision-making

Executive Support Systems and Enterprise Applications

  • Executive support systems (ESS) → information systems at the organizational strategic level designed to address unstructured decision-making through advanced graphics and communications
  • Portal → web interface for presenting integrated, personalized content from a variety of sources
  • Digital dashboard → displays firm's key performance indicators as graphs/charts to show critical measurements for executive decisions
  • Enterprise applications → systems that coordinate activities, decisions, and knowledge across many functions, levels and business units in a firm
  • Customer relationship management systems → track all customer interactions to optimize revenue, profitability, and customer satisfaction.
  • Supply chain management → information systems automating flow of information between a firm and its suppliers to optimize planning, sourcing, manufacturing and delivery of products/services
  • Interorganizational systems → link a company to customers, distributors, or suppliers
  • Customer relationship management → business & technology discipline that uses information systems to coordinate interactions with customers in sales, marketing, and service

Ethical and Social Issues in Information Systems

  • Profiling → use of computers to create detailed information dossiers on individuals.
  • Nonobvious relationships awareness → technology that finds connections between data.
  • Due process → features in law-governed societies where laws are known and understood, and processes exist to follow
  • Immanuel Kant's categorical imperative → actions should be universally applicable and consistent, not resulting in harm
  • Slippery slope rule → actions that should not be repeated should not be performed at all.
  • Risk aversion principle → taking actions that produce minimum possible harm.
  • Ethical no-free-lunch rule → no process or object is free from ownership requirements
  • Fair information practices → set of principles for controlling how information about individuals is collected and used.
  • General Data Protection Regulation → updates and unites data privacy laws across the European Union, expanding privacy rights.

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