Management Information Systems Chapter 1

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What is the primary function of software in a computer-based information system?

To organize, process, and analyze data

What is the main purpose of a database in an information system?

To organize data into tables and files

What is the role of procedures in an information system?

To describe how data is processed and analyzed

What is the impact of wireless technology on business?

It has increased the use of Web sites and mobile digital platforms

How has the internet impacted business?

It has drastically reduced globalization barriers

What is the role of information systems in business today?

To transform business through increased collaboration and distributed work

What is the primary goal of processing and organizing data?

To create useful information for decision-making

What is the relationship between data and information?

Data is raw and unorganized, while information is processed and organized

What is an example of data?

The history of temperature readings all over the world for the past 100 years

What is the primary focus of Chapter 1 in the Management Information Systems textbook?

Understanding the effects of information systems on business and globalization

What is the relationship between information systems and globalization?

Information systems have a significant impact on globalization

What is a complementary asset?

An asset that ensures information systems provide genuine value to an organization

What is the definition of an information system?

A system that consists of management, organization, and technology components

What is the purpose of defining information systems perspectives?

To contribute to our understanding of information systems

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

To organize and analyze data

What is the main difference between General Information Systems and Specialized Information Systems?

The purpose they serve within an organization

What is an example of a Specialized Information System?

Geographic Information System (GIS)

What is the primary function of an Enterprise Resource Planning (ERP) system?

To integrate the management of all internal and external information

What is a common component of Information Systems?

Hardware

What is an example of a General Information System?

Database Management System (DBMS)

What is the purpose of an Expert System?

To carry out very specific analysis tasks

What is a common characteristic of Information Systems?

They have a combination of hardware, software, and data

What is the purpose of an information system?

To turn raw data into useful information for planning, control, analysis, and decision making

What is the main difference between data and information?

Data is raw and information is analyzed

What is an example of data?

The number of visitors to a website by country

What is the input stage of an information system?

Capturing raw data from the organization or external environment

What is feedback in an information system?

The output returned to appropriate members of the organization to help evaluate or correct the input stage

What is the primary goal of an information system?

To facilitate planning, control, analysis, and decision making in business organizations

What is the definition of an information system?

A set of interrelated components working together to collect, retrieve, process, store, and distribute information

What is the current trend of the amount of information?

It is increasing continually

Study Notes

Chapter 1: Information Systems in Business Today

Learning Objectives

  • Understand the effects of information systems on business and their relationship to globalization
  • Explain why information systems are essential in business today
  • Define an information system and its management, organization, and technology components
  • Define complementary assets and explain how they ensure that information systems provide genuine value to an organization

Data vs. Information

  • Data: raw, unorganized facts that need to be processed
  • Information: processed, organized, structured, or presented data in a given context to make it useful
  • Examples:
    • Temperature readings → data; finding global temperature is rising → information
    • Website visitor numbers by country → data; finding increasing traffic from the U.S. and decreasing traffic from Australia → information

The Amount of Information

  • The amount of information is continually increasing
  • Importance of information traditionally and until now
  • Managing and using information traditionally and until now

What is an Information System?

  • Defined as software that helps organize and analyze data
  • Purpose: turn raw data into useful information for planning, control, analysis, and decision-making in business organizations
  • Components:
    • Input: captures raw data from the organization or external environment
    • Processing: converts raw data into meaningful form
    • Output: transfers processed information to people or activities that use it
    • Feedback: output returned to evaluate or correct the input stage

Perspectives on Information Systems

  • Three activities of information systems produce information organizations need
  • Computer/Computer program vs. information system
    • Computers and software are technical foundation and tools

Types of Information Systems

  • General Information Systems: support general purposes (e.g., database management system)
  • Specialized Information Systems: designed to support a particular process or analysis task (e.g., ERP, GIS, Expert Systems)

Components of Information Systems

  • Hardware: computer-based information systems use computer hardware (processors, monitors, keyboard, printers)
  • Software: programs used to organize, process, and analyze data
  • Databases: organized data into tables and files
  • Network: connects different elements to each other
  • Procedures: describe how specific data are processed and analyzed

The Role of Information Systems in Business Today

  • Transforming business through:
    • Increased wireless technology use and Web sites
    • Increased business use of Web 2.0 technologies
    • Cloud computing, mobile digital platform allowing more distributed work, decision-making, and collaboration
  • Globalization opportunities:
    • Internet has drastically reduced communication and transaction costs

Test your understanding of Chapter 1 of Management Information Systems, 12th Edition, covering the role of information systems in business today and their relationship to globalization.

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