Information Systems Overview

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Questions and Answers

What aspect refers to how much the measure covers the indicator?

  • Frequency/Obsolescence
  • Coverage (correct)
  • Objectivity
  • Cost to collect and process the measure

Which of the following dimensions relates to the categorization of sales over different time intervals?

  • Customer category
  • Activity in process
  • Time window (correct)
  • Geographical nodes

Which factor impacts the requirement to recompute measures based on their regular updates?

  • Objectivity
  • Frequency/Obsolescence (correct)
  • Measure presentation
  • Data storage

What is the focus of management accounting indicators when defining performance measurements?

<p>Costs, revenues, cash flow, and capital (A)</p> Signup and view all the answers

When assessing the objectivity of an indicator, what aspect is being evaluated?

<p>The clarity and lack of ambiguity of the measure (C)</p> Signup and view all the answers

Which aspect is NOT part of a formal information system?

<p>Informal social interactions (C)</p> Signup and view all the answers

What is a major consequence of poorly managed hidden communication lines within an organization?

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

Which type of change is characterized as First-Order Change?

<p>Automation of existing processes (B)</p> Signup and view all the answers

What can be a negative outcome of an information system on people?

<p>Creation of a monotonous working environment (B)</p> Signup and view all the answers

Which components of an information system are interdependent?

<p>Structure, Technology, People, and Processes (B)</p> Signup and view all the answers

What is a defining characteristic of a sociotechnical system?

<p>Interrelates social systems and technical systems (D)</p> Signup and view all the answers

Which of the following is most likely to cause IS failure?

<p>User resistance (C)</p> Signup and view all the answers

What is a significant challenge in replacing legacy systems?

<p>They require substantial investment (A)</p> Signup and view all the answers

What is a key component of a company's strategy according to Porter’s model?

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

Which force in Porter’s 5 forces model refers to the impact of new companies entering the market?

<p>New entrants (C)</p> Signup and view all the answers

How does technological innovation affect company strategy?

<p>It can change the market quickly. (C)</p> Signup and view all the answers

What did Fuji do that contributed to its longevity compared to Kodak?

<p>Shifting from cameras to chemical products (C)</p> Signup and view all the answers

Which of the following describes competitive advantage in Porter’s model?

<p>Products must be unique or low-cost. (D)</p> Signup and view all the answers

What is implied by the term 'bargaining power of suppliers'?

<p>Suppliers who are few hold extensive power over pricing. (C)</p> Signup and view all the answers

According to the diffusion of innovations, how has the time for market changes shrunk?

<p>From 100 years to just a few years. (C)</p> Signup and view all the answers

What does the Knowledge Doubling Curve suggest about available knowledge?

<p>Knowledge availability is increasing exponentially. (D)</p> Signup and view all the answers

What is the primary purpose of the input in the control loop model?

<p>To capture raw data for processing in an information system (A)</p> Signup and view all the answers

Which type of actor is NOT part of the five types of actors influencing organizations?

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

Which level in Anthony's pyramid model primarily consists of employees engaging in repetitive tasks?

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

What characterizes an application portfolio?

<p>A list of applications used by an organization (C)</p> Signup and view all the answers

In the CRASO model, what role does the customer play?

<p>They are involved in both the beginning and end of the loop (B)</p> Signup and view all the answers

What characteristic distinguishes inter-organizational CRASO models?

<p>Involves multiple organizations working together (C)</p> Signup and view all the answers

What does a UML deployment diagram primarily depict?

<p>Applications in their operational context (B)</p> Signup and view all the answers

What does the feedback component in the control loop model primarily achieve?

<p>It allows evaluation and correction of inputs (B)</p> Signup and view all the answers

In a deployment diagram, what is termed as a 'node'?

<p>A physical or software entity capable of processing (B)</p> Signup and view all the answers

Which of the following best describes the inter-functional CRASO model?

<p>It incorporates various functions within a single organization (A)</p> Signup and view all the answers

What is one effect of implementing automations via an information system (IS) in an organization?

<p>Increased efficiency but decreased flexibility (D)</p> Signup and view all the answers

Why do many less successful companies resist change?

<p>They resist evolving due to organizational inertia (D)</p> Signup and view all the answers

Which of these properly identifies a description of the knowledge level in Anthony's model?

<p>Involves developing new strategies and designs for products (A)</p> Signup and view all the answers

How can the size of an organization be estimated?

<p>By the number of employees and turnover (A)</p> Signup and view all the answers

What is a characteristic of SMEs (Small Medium Enterprises)?

<p>They represent more than 90% of all companies (A)</p> Signup and view all the answers

What is a data flow diagram primarily used for?

<p>Describing processes and their data exchanges (C)</p> Signup and view all the answers

What is the primary goal of the governance process in managing IT economics?

<p>Ensuring benefits delivery and resource optimization (D)</p> Signup and view all the answers

How is the cost of a unit calculated?

<p>(Fixed cost / number of units produced) + variable cost (B)</p> Signup and view all the answers

What does economy of scale primarily aim to achieve?

<p>Minimizing costs per unit by increasing production volume (D)</p> Signup and view all the answers

Which of the following best describes the concept of total cost of ownership (TCO)?

<p>It includes all costs associated with a product/service throughout its lifecycle. (A)</p> Signup and view all the answers

What is an example of utilizing economy of scope?

<p>A business that expands its product line using the same infrastructure (A)</p> Signup and view all the answers

What is the network effect in the context of IT services?

<p>The increased value of a service with a growing user base (B)</p> Signup and view all the answers

In the context of TCO, which phase includes the transportation and registration of a purchase?

<p>Deployment phase (C)</p> Signup and view all the answers

Why is it recommended to consider TCO instead of the label cost when comparing solutions?

<p>TCO provides a more comprehensive financial picture over time. (A)</p> Signup and view all the answers

Flashcards

Cost to Collect Data

The expenses involved in gathering and processing a measure.

Coverage of Measure

The extent to which a measure accurately reflects the indicator it assesses.

Frequency/Obsolescence

How often a measure updates and needs recomputation.

Objectivity of Indicator

The degree to which an indicator is clear and not open to interpretation.

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Dimensions of Measures

Different categories for grouping measures, like time frames or product types.

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Control Loop Model

A model with input, process, output, and feedback parts for handling data in organizations.

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Input in Control Loop

The capture of raw data from the organization's internal and external environment for processing.

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Output in Control Loop

The distribution of processed information to users and activities that require it.

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Process in Control Loop

The conversion and analysis of raw input into meaningful information.

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Feedback in Control Loop

The mechanism to evaluate and correct inputs based on output results.

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CRASO Model

A model depicting activities, actors, and assets, with the customer as the central focus.

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Anthony's Pyramid Model

A hierarchical model that organizes business functions at different levels within an organization.

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Operational Level

The level involving daily employees performing repetitive activities within an organization.

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Legacy System

An outdated software difficult or expensive to replace.

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Information System (IS)

A structured system for collecting, processing, storing, and distributing information.

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Sociotechnical System

An approach that involves the interaction between social and technical systems.

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IS Success

When an IS supports organizational goals and meets information needs effectively.

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IS Failure

When an IS is incomplete, unused, or misaligned with goals.

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First-Order Change

Change that automates existing processes via IT innovations.

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IS Outcomes

The effects of an IS on people and organizations, which can be positive or negative.

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Components Interdependence

The concept that changes in one IS component affect others and overall outputs.

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Strategy

A plan to achieve specific goals through defined actions.

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Porter's 5 Forces Model

A framework analyzing five competitive forces affecting industries.

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Competitive Advantage

The unique features that give a product an edge in the market.

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Market Focus

The target audience for a product, either mass or niche.

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Substitute Products

Products that can replace and reduce demand for another product.

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Bargaining Power of Customers

Customers' influence that can affect business pricing and dependence.

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Technological Innovation

Advancements in technology that can rapidly alter market landscapes.

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Knowledge Doubling Curve

The rate at which knowledge is growing exponentially over time.

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Application Portfolio

A list of applications used within an organization.

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UML Deployment Diagram

A diagram that shows applications in the context of their execution environment.

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Node

A physical or software entity capable of processing data in a network.

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Artifact

A software component significant to business processes, such as a source file or database table.

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Data Flow Diagram

Illustrates processes and the data exchanged between them.

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Organizational Design

Defines the variables that characterize an organization.

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Organizational Variables

Factors like size and structure affecting an organization's function.

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SME (Small Medium Enterprise)

Companies that represent over 90% of all businesses employing most of the workforce.

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IT Economics

The analysis of value and cost of IT in an organization.

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Governance in IT

Process to ensure benefits delivery and optimize resources.

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Total Cost of Ownership (TCO)

Financial estimate of all costs of a product/service across its lifecycle.

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Economy of Scale

Minimizing unit cost by maximizing production units.

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Economy of Scope

Using the same infrastructure for multiple products to share costs.

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Network Effect

The value of a service increases as more users join.

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Cost Calculation of Units

Calculated as (fixed cost / number of units produced) + variable cost.

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Lifecycle Phases of TCO

Includes construction, deployment, operation, and dismissal phases.

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Study Notes

Information Systems

  • Definitions

    • Organization: a group of people working together to achieve a set of goals (e.g., a company, army, church). Key aspects include managing resources, implementing business processes, and working towards profit.
    • Business process: a set of activities that result in a specific output.
  • High-level models

    • (No summary of high-level models is provided.)
  • Low-level models

    • Process: A way to represent business processes visually and with specific steps, using text, tables, or models like the CRASO, Anthony's, and T-models.
    • Data: A more structured way to document the business processes, identifying the data that a process uses or produces and the relationship between objects and classes, using a Unified Modelling Language (UML) diagram such as a class diagram. Attributes and values of different classes are defined for each object.
    • Organization: Visual representation like charts that show the relations between different organizational units (OUs) and their roles, showing who is involved in processes (using the Linear Responsibility Chart or LRC for example) and who has control over which units.
  • Organizations

    • Organizations have different characteristics that are linked to organizational variables (which are defined by the organizational design).
    • Factors in change management are critical; organizations need to adapt to changes and innovations to remain successful.
  • Strategy

    • Defines organizational goals and an action plan to achieve those goals at different levels.
    • Factors to consider are profits, interaction with the environment (social and environmental impact), and interaction with the customers.
    • Includes a discussion of the NACE (National Classification of Economic Activities) taxonomy, which lists different types of businesses.
    • Porter's model describes industry competitive strategies.
  • IT Economics

    • Transaction theory: Describes the exchange of products or services between two parties. Internal transactions occur within an organization, while market transactions occur between independent parties. Transaction costs, including time, effort, and information costs, must be considered.
    • Agency theory: A theory that examines the relationships between organizational owners (principals) and their staff or employees (agents). It looks at the costs and risks of outsourcing tasks and the costs of monitoring and managing agents' work.
    • Decision theory: Explains how decisions are made within an organization (in relation to managing or completing tasks). Three main categories of decisions are described: structured, semi-structured, and unstructured.
  • IT Governance

    • Governance is all about decisions relating to IT in an organization, focusing on strategic IT plans and implementation, information architecture, procedures and, in part, investments.
    • Includes evaluation of factors like the cost of building or buying software and which factors influence the decision.
  • Outsourcing

    • Describes a process where tasks or functions are delegated from internal to external parties. The selection of outsourcers needs to consider the cost, quality of service, and strategic implications.
    • Deals with the management and operational issues surrounding the decision on whether to hire specialized external help or to have the tasks done in-house. Includes types of outsourcing and activities involved.
  • Product functions

    • Describe the functionalities provided by a product or service in a structured manner.
    • This aspect is about evaluating the product functionality to make certain products are effective in performing their intended tasks or goals.
  • Change Management

    • Change management is the process of moving from situation A to situation B. This includes evaluating organizational structure, people, technology, and processes. Resistance to change, the David Gleicher formula (DVF>R), and the different types of change (first-order, second-order, third-order) are considered in the context of change management.
    • Included are various models and tools that are used in change management.

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