Information Systems Management Quiz

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Questions and Answers

What is one of the responsibilities of managers in the context of information systems?

To maintain current processes without innovation

To strictly enforce technology usage without considering creativity

To set organizational strategy and act creatively (correct)

To only focus on hardware and software selection

How does an information system create value within an organization?

By solely focusing on hardware upgrades

Through the acquisition and transformation of raw data to enhance decision-making (correct)

By limiting access to information across the organization

By ensuring that all data is stored indefinitely

Which aspect does NOT contribute to the value of an information system?

The level of investment in technology infrastructure alone (correct)

The increase in organizational profits attributed to its use

The degree of efficiency it brings to business processes

The extent to which it leads to better decisions

What distinguishes the organizational dimension of an information system?

The hierarchy of authority and unique business processes Signup and view all the answers

What is a key characteristic of the business perspective on information systems?

It calls attention to the organizational and managerial nature of information systems Signup and view all the answers

What term describes a person, place, thing, or event for which information is maintained?

Entity Signup and view all the answers

Which of the following defines a group of characters that represent a single letter or number?

Byte Signup and view all the answers

What issue arises from the presence of duplicate data in multiple files?

Data redundancy Signup and view all the answers

Which term refers to the requirement that changes in a program necessitate changes in the data accessed by that program?

Program-data dependence Signup and view all the answers

What is a collection of related files known as in a database context?

Database Signup and view all the answers

What does investing in information technology guarantee?

Nothing about returns is guaranteed Signup and view all the answers

What is a key factor that can influence returns from information systems investments?

The choice of business model Signup and view all the answers

Which of the following is considered a complementary asset?

Investments in employee training Signup and view all the answers

Why do some firms achieve superior returns from technology investments?

Because of their investment in complementary assets Signup and view all the answers

Which type of asset is NOT considered complementary for enhancing technology investments?

Financial reserves Signup and view all the answers

What is an example of social assets that can derive value from technology investments?

Internet and telecommunications infrastructure Signup and view all the answers

What could be a negative outcome of technology investment without complementary assets?

Inadequate returns on investment Signup and view all the answers

Which of these assets helps derive value from primary investments the least?

Brand loyalty Signup and view all the answers

What is one of the primary roles of a database management system (DBMS)?

Control redundant data Signup and view all the answers

Which component of a database uniquely identifies each record in a table?

Primary key Signup and view all the answers

What does the data definition capability of a DBMS do?

Specifies the structure of the database Signup and view all the answers

What term describes a field used in a second table that serves as a reference to a primary key in another table?

Foreign key Signup and view all the answers

Which of the following is a common language used for querying databases?

Structured Query Language (SQL) Signup and view all the answers

What does a data dictionary in a DBMS store?

Definition of data elements and their characteristics Signup and view all the answers

What does a relational DBMS use to represent data?

Two-dimensional tables Signup and view all the answers

Which of the following capabilities is NOT typically provided by a DBMS?

Mobile device management Signup and view all the answers

What is the primary purpose of a data warehouse in business intelligence?

To consolidate and standardize information for enterprise use Signup and view all the answers

Which characteristic distinguishes a data mart from a data warehouse?

Data marts focus on a specific subject or area. Signup and view all the answers

What role does Hadoop play in data processing?

It enables parallel processing of large datasets across multiple computers. Signup and view all the answers

How does in-memory computing improve big data analysis?

It allows data to be stored in main memory to speed up access. Signup and view all the answers

What is the function of the Hadoop Distributed File System (HDFS)?

It provides data storage for Hadoop. Signup and view all the answers

Which feature is commonly associated with analytic platforms in the context of big data?

They use a mix of relational and non-relational tools. Signup and view all the answers

Which of the following best describes the MapReduce function in Hadoop?

It categorizes data into manageable clusters for processing. Signup and view all the answers

What is a defining characteristic of data warehouses compared to other data storage solutions?

They are designed to consolidate information from various sources. Signup and view all the answers

What is one major consequence of inefficiencies in a supply chain?

It may lead to waste of up to 25 percent of operating expenses. Signup and view all the answers

What does a just-in-time strategy emphasize in supply chain management?

Components arriving only when needed. Signup and view all the answers

What type of supply chain system focuses on managing the flow of products through distribution centers?

Supply chain execution systems. Signup and view all the answers

What is the bullwhip effect in supply chain management?

Distortion of product demand information as it moves through the supply chain. Signup and view all the answers

Which of the following describes a pull-based model in supply chain management?

Customer orders trigger processes within the supply chain. Signup and view all the answers

How does the internet impact supply chain management?

It allows the shift from sequential to concurrent supply chains. Signup and view all the answers

What role does safety stock play in supply chain management?

It serves as a buffer for variations in supply chain flexibility. Signup and view all the answers

What is a primary characteristic of push-based models in supply chain management?

They operate based on historical data to predict future demand. Signup and view all the answers

Study Notes

ITM 100 Midterm 1 Review

This review covers material from the textbook Management Information Systems: Managing the Digital Firm, 17 Ed. by Kenneth C. Laudon and Jane P. Laudon.
Week 1 focuses on foundations of Management Information Systems.
Week 2 likely covers business process improvement using IT.
Week 3 likely covers IT Infrastructure.
Week 4 likely cover Enterprise Systems.
Week 5 likely covers Databases.
Week 6 likely covers decision support systems.

Globalization Challenges and Opportunities

Globalization has changed how and where businesses operate.
The internet has drastically reduced global business costs.
Increased foreign trade and outsourcing, competition for resources, and interdependence of global economies are factors.
Businesses require new understandings of global markets and opportunities.

The Emerging Digital Firm

In a fully digital firm, significant business relationships are digitally enabled and mediated.
Core business processes are accomplished through digital networks.
Key corporate assets are managed digitally.
Digital firms offer greater flexibility in organization and management (time shifting and space shifting).
Many firms are becoming digital firms. (examples are Cisco and 3M)

Strategic Business Objectives of Information Systems

Firms invest heavily in information systems to achieve operational excellence, new products/services/business models, customer & supplier intimacy, improved decision making, competitive advantage, and survival.

The Interdependence Between Organizations and Information Systems

Information systems and business strategic objectives, business processes, business firms are interdependent.
Key components within Information Systems are: Software, Data Management, Telecomunications and Hardware.

Data and Information

Data are streams of raw facts.
Information is data shaped into meaningful form.
Example of data and information: A list of product detail can be data, but the same list can convey information if processed with a sales region.

Functions of an Information System

Input: Raw data from organization/external environment.
Processing: Raw data converted into meaningful information.
Output: Processed information given to people/other IS.
Feedback: Information returned for evaluating or correcting input/processing.

Dimensions of Information Systems

Organization: Hierarchy, responsibility, business functions, unique culture.
Management: Strategy decisions, creativity to design products & services, and occasional organization re-creation.
Technology: Hardware/software, infrastructure, data management.

IT Isn't Just Technology: A Business Perspective on Information Systems

Information systems are instruments for creating value.
Investments in information technology result in superior returns.
The value of information systems depends on better decisions, efficiency and higher profits, Organizational assets (e.g., efficient business processes), Managerial assets (e.g., incentives for management innovation), and Social assets (e.g., Internet and telecommunications infrastructure).

Complementary Assets

Organizational assets: Supportive organizational culture, appropriate business models, and efficient business processes.
Managerial assets: Senior management support for technology investment and change, incentives for management innovation, teamwork, enhancing management decision-making skills, management culture.
Social assets: Internet and telecommunications infrastructure, enriched educational programs and computer literacy standards, stable market environments, support from technology and service firms in related markets.

Types of Information Systems

Transaction processing systems (TPS): Serve operational managers & staff to manage daily business transactions (e.g. sales order entry, payroll, shipping).
Management information systems (MIS): Serve middle management to monitor firm's current performance based on TPS data.
Decision Support Systems (DSS): Serve middle management to support non-routine decision making (e.g. impact on production if sales are doubled).
Executive Support Systems (ESS): Serve senior management with information from external events (e.g., tax laws, competitors), summarized data from MIS and DSS

Enterprise Applications

Systems that link the entire enterprise, spanning functional areas, including all levels of management.
Four major enterprise applications: ERP (Enterprise Resource Planning), SCM (Supply Chain Management), CRM (Customer Relationship Management), KMS (Knowledge Management Systems)

Collaboration

Working together to achieve shared goals (tasks) within or across organizations.
Can be short-lived or long-term, and formal or informal.

Social networking platforms (internal & external) facilitate employee, customer & supplier interactions, enhancing engagement and information sharing.
Promotes transparency.

The time/space collaboration summarizes time (same time -synchronous, different time-asynchronous) and space (same place -colocated, different place -remote) for different tasks to be done (continuous -e.g. team rooms, project management, and communication + coordination tasks -e.g. e-mail, bulletin boards, blogs) using various tools.

Checklist for Managers

Evaluating and selecting collaboration and social software tools includes six steps: Identify firm's collaboration challenges, determine available solutions, analyze product cost/benefits, evaluate security risks, get user feedback on implementation/training, evaluate product vendors.

IT Infrastructure

Set of physical devices and software required to operate an enterprise.
Firm-wide services include computing platforms, facilities management, IT management and other services.
A "service platform" view is more accurate to assess the value of IT investments.

Evolution of IT Infrastructure

From 1959-present, general-purpose and personal computers were central, then client-server systems and enterprise computing which culminated into cloud and mobile computing.

Technology Drivers of Infrastructure Evolution

Moore's Law, Law of Mass Digital Storage, Metcalfe's Law, and declining costs.
Moore's Law: Computing power doubles every 18 months.
Law of Mass Digital Storage: Amount of stored data doubles every year.
Metcalfe's Law: Value of a network is proportional to the square of the number of connected users.
Declining communication costs and exponential growth of the Internet greatly contribute to infrastructure evolution.

The IT Infrastructure Ecosystem

Data Management & Storage (IBM DB2, Oracle, Microsoft SQL Server, Apache Hadoop), Internet Platforms (Apache, Microsoft IIS, .NET, Unix, Cisco), Computer Hardware (Dell, IBM, Oracle Sun, HP, Apple), Operating Systems (Microsoft Windows, Unix, Linux, Mac OS X, Chrome, Android, iOS), Consultants & System Integrators (IBM, HP, Accenture), Networking/Telecommunications (Microsoft Windows Server, Linux, Cisco, AT&T, Verizon), Enterprise Software Applications (SAP, Oracle, Microsoft, IBM).

Computer Components

Include specifics of Intel Core family, RAM, Hard Drive specs etc.

Software Categories

System software manages computer systems (operating systems).
Application software addresses specific needs. Examples are mentioned in the slides but may need to be noted for practice.

Roles of an Operating System

Manages computer resources (memory and I/O).
Provides an interface for human interaction.
Allows application programs to interact with the system resources.

Enterprise Software Applications

Firms spend over $500 billion on enterprise applications.
Largest providers are SAP, Oracle, and IBM.

Data Management and Storage

Database software providers such as IBM DB2, Oracle, Microsoft (SQL Server), Sybase, Apache Hadoop.
Physical data storage including Dell EMC and Hewlett Packard Enterprise.

Networking/Telecommunications Platforms

Network operating systems (Windows server, Linux, Unix), Network hardware providers (Cisco, Juniper Networks), Telecommunication services (telephone company charges, AT&T, Verizon)

Internet Platforms

Hardware, software, management services and services to support company websites and intranets, including hosting services, routers, cabling/wireless equipment, internet hardware server market (IBM, Dell, Oracle, HP), web development tools & suites (Microsoft Visual Studio and .NET, Oracle-Sun Java, Adobe).

Consulting and System Integration Services

Leading consulting firms (Accenture, IBM, HP, Infosys, Wipro Technologies) are involved in infrastructure projects.
Needed when firms want to ensure new infrastructure works with legacy systems.

Management Issues

Dealing with platform/infrastructure change (scalability and new computing requirements).
Management/governance (who controls infrastructure & how is the IT department organized, allocation of costs).
Making wise infrastructure investments (under-investment/over-investment risks & trade-offs; rent versus buy vs outsourcing, impacting business processes, security requirements).

Total Cost of Ownership (TCO) Model

TCO analyzes direct and indirect costs of owning/using an IT infrastructure over time, not considering just the first purchase.
Hardware & software represent only about 20% of the TCO. Other costs include installation, training, support etc.

Competitive Forces Model for IT Infrastructure

Model that analyzes factors influencing decisions. The factors are further categorized into: Internal Factors, External Market Factors, and Your firm's IT services and Infrastructure.

Enterprise Systems

Integrated software modules with a common central database. Data from different divisions can be easily shared. Information from one process is directly available to other parts of the firm. Enterprise systems streamline business processes.
Enterprise software follows best practices in finance & accounting, human resources, manufacturing & production, and sales & marketing. Firms implementing enterprise systems have to choose applicable functions & map business processes to the software's processes; configuration tables are used for customizing.
Business benefits include improved operational efficiency, better support for decision making, and rapid response to customer requests and analytics.

The Supply Chain

Network of organizations and processes used in procuring materials & creating/distributing products, categorized by upstream & downstream supply chain, and internal supply chain.
Inefficiencies can waste up to 25% of a company's operating expenses.
Just-in-time strategies and safety stock aim to reduce expenses.

Supply Chain Management Software

Supply chain planning systems model existing supply chains & enable demand planning to optimize sourcing/manufacturing plans.
Data inventory levels are tracked in supply chain execution systems; manage the flow of products through the distribution network.

Demand-Driven Supply Chains

Push-based model (build-to-stock) employs earlier SCM systems based on best guesses of demand.
Pull-based model employs web-based technology so that a customer order triggers supply chain events; it allows firms to adjust immediately.

Customer Relationship Management

CRM systems capture/integrate customer data, analyze data, distribute to various points throughout firm and provide a single view of the customers.
Software modules in CRM systems such as sales force automation (SFA), sales prospect & contact information, sales quote facilities, customer service (assigning/managing service requests) and marketing capabilities are used for direct-marketing mailings/emails, and cross-selling activities.
Operational CRM supports sales-facing applications (sales force automation, call centers & customer service support) & marketing automation; analytical CRM analyzes data such as OLAP, data mining.

Operational and Analytical CRM

Operational CRM: Customer-facing application (sales force automation).
Analytical CRM: Analyses customer data using platforms such as OLAP, data mining.

Business Value of Customer Relationship Management Systems

CRM systems increase customer satisfactions, reduce direct marketing costs, lower costs of customer acquisition/retention, and increase sales revenues, improving firm customer base growth.

Enterprise Application Challenges

Enterprise applications are expensive to purchase and implement, projects often fail due to cost overruns and long development times.
Firms must adapt to business process changes and technology changes. Switching costs and dependence on vendors also pose challenges.

Next-Generation Enterprise Applications

Making applications more flexible, enabling connections with other systems, including cloud-based versions and functionality for mobile, & versions available for small & medium-sized businesses.
Incorporating social networks like monitoring social media activity and managing social media campaigns.
Business intelligence (BI) inclusion with flexible reporting, analysis (What-if scenarios), dashboards and data visualization.

A Database

Organized collection of data serving various information system applications.

Basic Concepts

Entity: Person, place, thing, event about which information is stored.
Attribute: Description of the entity.
Key field: Identifies a specific record in the database.

File Organization Terms and Concepts

Database: Collection of related files.
File: Collection of records of the same type.
Record: Group of related fields.
Field: Group of characters (words/numbers).
Byte: Group of bits representing a single character.
Bit: Smallest unit of data; binary digit (0 or 1).

Problems with the Traditional File Environment

Data redundancy: Duplicate data in multiple files.
Data inconsistency: Same data having different values.
Program-data dependence: Changes in programs necessitate changes to data.
Lack of data sharing: Data inaccessible across different departments.
Poor security: Data is vulnerable.

Database Management Systems

Centralized data control; serving many applications.
DBMS interface between applications and physical data files.
Handles problems of traditional file environments, controls redundancy, eliminates inconsistencies and uncouples programs from data.

Relational DBMS

Represents data in two-dimensional tables (rows & columns).
Rows, representing different entities.
Fields/columns are attributes for a given entity.
Key field uniquely identifies a record; Primary key is a key field in a table; Foreign key used in a second table to link to a record in the original table.

Capabilities of Database Management Systems

Data definition capability defines data structure.
Data dictionary stores elements and characteristics.
Queries/reporting (e.g., structured query language (SQL).
DBMS often includes report generation tools (like Microsoft Access).

Designing Databases

Conceptual design: Abstract model of database from a business perspective using Entity-Relationship Diagram.
Normalization: Process of creating small, stable structures from complex data.
Physical design: Detailed layout and storage specifications on physical devices.

Non-Relational Databases and Databases in the Cloud

Non-relational databases (NoSQL): Flexible data model, data stored across distributed machines, scalable.
Appeals to startups/small businesses (e.g., Amazon Relational Database Service, Microsoft SQL Azure).

Blockchain

Distributed database; encrypts transactions, shared across network.
Used in financial transactions, supply chain & medical records.

Business Intelligence Infrastructure

Collection, storage & analysis tools.
Data warehouse stores data; consolidates/standardizes it for enterprise use.
Data warehouses and data marts; Hadoop; in-memory computing; Analytic platforms; Online Analytical Processing (OLAP); Data mining.

Online Analytical Processing (OLAP)

Supports multidimensional analysis (viewing data via multiple dimensions like product, pricing, cost, region, and time).
Enables quick ad hoc query responses.

Data Mining

Discover hidden patterns.
Infer future behavior predictions (e.g., customer behavior).
Includes techniques such as associations (finding correlations), sequences (identifying patterns over time), classification (categorizing data), clustering (grouping data points), and forecasting (predicting future values).

Databases and the Web

Facilitates company database access through web browsers; ease of use & low cost.

Establishing an Information Policy

Firm rules, procedures & roles for data sharing/management/standardization.
Data administration policies/procedures for managing data.
Data governance handles availability, usability, integrity and security of data regarding regulations/policies.
Database administration creates and maintains the databases.

Ensuring Data Quality

Accuracy and completeness audits (data quality audit).
Data cleansing for detecting and correcting inaccuracies.

Types of Decisions

Unstructured: Decision-maker judgment required.
Structured: Repetitive tasks with defined procedures
Semi-structured: Mix of structured/unstructured components.

Information Requirements for Key Decision-Making Groups

Information needs differ based on decision-making group (senior management, middle management, and operational).

The Decision Making Process

Intelligence, Design, Choice, Implementation.

Real-World Decision Making

Information quality, Management filters (biases), Organizational inertia and politics can hamper IT investment.

Support for Structured/Semi-structured Decisions

Support structured decisions using MIS (management information systems), exception reports, and interactive queries via portals.
Support semi-structured decisions through decision support systems (DSS) to allow varied types of analyses like sensitivity/what-if analysis.

High-Velocity Automated Decision Making

Algorithms support precise decision steps; removed human intervention.
Example: high-speed trading programs (30 ms) & Google's search engine.

Business Intelligence

Infrastructure for storing, analyzing business data, including databases, data warehouses, data marts.
Tools and techniques (OLAP, statistics, models, data mining).
Vendors provide business intelligence and analytic products.

Business Intelligence and Analytics for Decision Support

Infrastructure encompasses databases, data warehouses, data marts.
Business analysts use tools and methods to perform analyses supported by platforms like MIS, DSS, and ESS.

Business Intelligence Users

Different user groups (power users, super users, business analysts, and casual users) have distinct BI requirements for different analyses (production reports, parameterized reports, dashboards, ad-hoc queries, forecasts).

Predictive Analytics

Uses various data analysis & mining techniques to predict future trends & behaviors.
Incorporated into BI applications (sales/marketing, finance, health care, fraud detection).

Big Data Analytics

Relates to massive datasets from social media and online sources (used for real-time & personalized experience for major online retailers).
Use cases such as smart cities (public records, sensors, smartphones data) for evaluating change impacts.

Decision Support for Senior Management

Balanced Scorecard: Measures outcomes on four dimensions (financial, business process, customer, learning and growth).
Key Performance Indicators (KPIs) track performance.
Business Performance Management (BPM): Operationalizes firm strategies into operational targets.

Balanced Scorecard – Dimensions

Understand the four perspectives: Financial, Internal Processes, Learning & Growth, and Customer to create business value.

Group Decision-Support Systems (GDSS)

Interactive systems to assist groups solve complex unstructured problems.
Promotes collaboration & anonymity. Examples: Virtual collaboration rooms, software for idea collection/ranking, Cisco's Collaboration Meeting Rooms Hybrid (CMR), Skype for Business.

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Description

Test your knowledge on the responsibilities of managers in the realm of information systems. This quiz covers how information systems create value in organizations, the characteristics of data, and issues related to data management. Perfect for students and professionals looking to solidify their understanding of information systems.