Management Information Systems Overview

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Questions and Answers

Why should MIS be considered more of a management subject than a technology subject?

  • Because it involves programming languages.
  • Because it is primarily a hardware-focused discipline.
  • Because MIS requires advanced technical skills.
  • Because computers are merely tools for managers. (correct)

What is NOT considered a physical component of an organizational information system?

  • Manual procedures
  • Software applications
  • Hardware equipment
  • Strategic information (correct)

Which of the following is an example of hardware in an information system?

  • Database management systems
  • User manuals
  • Word processing software
  • CPU (correct)

What is the role of application software in an information system?

<p>Direct the operation of underlying hardware. (B)</p> Signup and view all the answers

Which of the following classifications of information involves long-term policy decisions?

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

Which of these statements about the scope of MIS is incorrect?

<p>It only deals with structured information. (A)</p> Signup and view all the answers

What is one of the key characteristics that makes computers valuable for MIS?

<p>Their capacity to handle large amounts of data. (C)</p> Signup and view all the answers

Which of the following roles does NOT belong to operating personnel in an information system?

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

What is the primary purpose of a Transaction Processing System (TPS)?

<p>To record day-to-day business transactions. (B)</p> Signup and view all the answers

Who primarily utilizes the output from a Transaction Processing System?

<p>Operational managers. (D)</p> Signup and view all the answers

Which of the following is NOT an example of a Transaction Processing System?

<p>Market Research System. (B)</p> Signup and view all the answers

In what way does a Management Information System (MIS) utilize data from a TPS?

<p>It analyzes and summarizes the data for management reports. (D)</p> Signup and view all the answers

How do operational managers typically make decisions based on TPS outputs?

<p>Through routine and highly structured processes. (D)</p> Signup and view all the answers

What is a key feature of the reports produced by a Management Information System?

<p>They aggregate, compare, and summarize data. (A)</p> Signup and view all the answers

Which function is typically associated with a Payroll System?

<p>Processing employee salaries and loans. (C)</p> Signup and view all the answers

What can the information produced by a point of sale system help tactical managers do?

<p>Analyze product performance trends. (A)</p> Signup and view all the answers

What is the primary objective of G2C websites?

<p>To reduce the time for fulfilling citizen requests (C)</p> Signup and view all the answers

Which advantage of e-commerce is primarily related to organizations?

<p>Providing better customer service (A)</p> Signup and view all the answers

How does e-commerce support 'pull' type supply management?

<p>By starting processes when there is an order from a customer (B)</p> Signup and view all the answers

What is an advantage of e-commerce for customers regarding product information?

<p>It provides required information swiftly (D)</p> Signup and view all the answers

Which of the following is NOT an advantage of e-commerce to organizations?

<p>Increased costs for information management (A)</p> Signup and view all the answers

What benefit do e-commerce applications provide to customers in terms of product delivery?

<p>Quicker delivery of products (B)</p> Signup and view all the answers

Which feature of e-commerce enhances customers' ability to make informed purchase decisions?

<p>Allowing customers to see reviews from other buyers (C)</p> Signup and view all the answers

What is a key reason for an organization to adopt e-commerce?

<p>To simplify business processes and enhance efficiency (A)</p> Signup and view all the answers

What key aspect does service level monitoring assess?

<p>Information and support provided to users (C)</p> Signup and view all the answers

Which of the following is considered an operational evaluation method?

<p>User Attitude Survey (D)</p> Signup and view all the answers

What is the primary focus of a Post-Installation Review (PIR)?

<p>Estimating system performance against requirements (A)</p> Signup and view all the answers

Which term best describes the measure of resources used to achieve output in a system?

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

Which element is NOT part of the model structure for effectiveness evaluation?

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

Cost-Benefit Analysis primarily focuses on what aspect of the system?

<p>Quantifying organizational performance in monetary terms (B)</p> Signup and view all the answers

What does the effectiveness of information systems primarily relate to?

<p>Quality of the outputs produced (C)</p> Signup and view all the answers

In evaluating the performance of a system, which of the following is a measure of operation efficiency?

<p>Resources utilized to achieve output (B)</p> Signup and view all the answers

What is one advantage of using ERP systems?

<p>They centralise data, providing a more accurate view of information. (C)</p> Signup and view all the answers

What is a common drawback of ERP systems?

<p>They often require businesses to re-engineer processes. (C)</p> Signup and view all the answers

Which of these is NOT a business benefit of ERP systems?

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

How can ERP systems potentially increase the risk of sensitive data loss?

<p>By consolidating data into a single system. (A)</p> Signup and view all the answers

What role do decision support systems (DSS) play in an organization?

<p>DSS help managers make decisions based on data analysis. (A)</p> Signup and view all the answers

Which of the following ERP vendors is known for offering a managed ERP service over the web?

<p>NetERP from NetSuite (D)</p> Signup and view all the answers

What is a common failure point for companies implementing ERP systems?

<p>Ignoring the complexity of business processes. (A)</p> Signup and view all the answers

What is a primary function of decision support systems (DSS)?

<p>To summarize information and identify trends. (D)</p> Signup and view all the answers

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Study Notes

Management Information Systems (MIS)

  • MIS is primarily a management subject, as computers serve as tools for managers.
  • MIS applications are found in all organizational departments at all levels.
  • MIS addresses both structured and unstructured information from internal and external sources.

Physical Components of an Organizational Information System

  • Hardware: Physical data processing equipment (e.g., CPU, monitor, keyboard, printer, drives, tapes, communication devices).
  • Software: Instructions or programs that direct hardware operations (system software and application software).
  • Database: Stores all data used by application software. Data is organized in files.
  • Procedures: Formal operating instructions (e.g., manuals).
  • Operating Personnel: Individuals responsible for operating information systems (e.g., computer operators, programmers, system analysts, managers).
  • Input & Output: Physical inputs and outputs (e.g., printouts, reports).

Information Classification by Characteristic

  • Strategic Information: Addresses long-term policy decisions, defining objectives and performance measurement.
  • Tactical Information: Focuses on mid-range planning and control, involving actions to achieve strategic objectives.
  • Operational Information: Deals with day-to-day operations, executing tasks and procedures.

Transaction Processing Systems (TPS)

  • Record daily business transactions.
  • Used by operational managers.
  • Provide answers to routine questions (e.g., sales figures, inventory levels, outstanding dues).
  • Examples: Point-of-sale systems, payroll systems, stock control systems, airline booking systems.

Management Information Systems (MIS)

  • Used by tactical managers to monitor organizational performance.
  • Uses TPS output as input.
  • Analyzes data with algorithms to generate reports for monitoring, control, and future performance prediction.
  • Example: Analyzing sales trends for inventory management decisions.

Decision Support Systems (DSS)

  • Interactive software-based systems that support managers in decision-making.
  • Access large volumes of information from various systems.
  • Utilize analytical models to provide summarized information, exceptions, patterns, and trends.
  • Assist in decision-making but do not make decisions themselves.

Evaluation of Information Systems

  • Computer Performance Evaluation: Assesses hardware production capabilities, efficiency, and bottlenecks.
  • Service Level Monitoring: Measures information and support provided to users.
  • User Attitude Survey: Gathers feedback from users on system usability.
  • Post-Installation Review: Evaluates whether the system meets requirements.
  • Cost-Benefit Analysis: Quantifies the system's impact on organizational performance in financial terms.

Evaluation Criteria

  • Effectiveness: Measures the quality of system output.
  • Efficiency: Evaluates the resource use needed to achieve output.

Product-Based Evaluation

  • Focuses on the product or output of the system (effectiveness evaluation).
  • Model Structure:
    • Timeliness: Information is available when needed.
    • Relevance: Information is pertinent to the decision.
    • Accuracy: Information is correct and reliable.
    • Completeness: Information is fully comprehensive.
    • Adequacy: Information is sufficient for the decision.
    • Explicitness: Information is clear and understandable.
    • Exception-Based: Focuses on deviations from norms or expectations.

Cost-Benefit-Based Evaluation

  • Examines the economic viability of the system.
  • Compares expected costs (development, implementation, operation) against expected benefits and savings.
  • Determines cost-effectiveness.

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