Understanding Data, Information, and IT Systems

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary characteristic of explicit knowledge within an organization?

It remains unrecognized and unused by the organization.

It is accessible and can be effectively utilized. (correct)

It is knowledge possessed by individual employees only.

It is only theoretical and not applicable in practice.

Which of the following best describes tacit knowledge?

Knowledge explicitly documented and easily shared.

Knowledge that exists but is not recognized or exploited by the organization. (correct)

Knowledge that an organization is fully aware of and utilizes.

Knowledge derived solely from formal training and manuals.

Which type of IT system is specifically designed for recording routine transactions?

Decision support systems

Management information systems

Transaction processing systems (correct)

Expert systems

What is the primary function of management information systems (MIS)?

Process raw data into useful information for management. Signup and view all the answers

Which of the following is NOT a category of IT systems that create and share information and knowledge?

Human resource management systems Signup and view all the answers

What does Porter's Five Forces model help to analyze in relation to Information Systems?

The impact on an organization’s external relationships Signup and view all the answers

What characterizes virtual companies?

They collaborate to tackle larger projects than they could individually. Signup and view all the answers

In the context of Porter's Five Forces, which of the following represents a potential challenge from outside an organization?

Rivalry among existing firms Signup and view all the answers

What is a virtual supply chain?

A supply chain facilitated by e-business links Signup and view all the answers

Which of the following is NOT a component of Porter's Five Forces model?

Technology adoption rate Signup and view all the answers

Which major function is associated with HR systems?

Budgeting Signup and view all the answers

What is a primary purpose of Knowledge Work Systems (KWS)?

To create and integrate new knowledge Signup and view all the answers

Which of the following is an application system used for scheduling?

Materials resource planning Signup and view all the answers

Office Automation Systems (OAS) primarily aim to enhance which aspect of office work?

Data productivity Signup and view all the answers

Which system is responsible for converting data into information for managerial decision-making?

Management Information Systems Signup and view all the answers

What is NOT a major function of Sales/Marketing systems?

General ledger Signup and view all the answers

Which application is associated with Finance Systems?

Purchase order control Signup and view all the answers

Which example best represents a Knowledge Work System?

Computer Aided Design (CAD) Signup and view all the answers

What is the primary focus of a Management Information System (MIS)?

To support structured decisions at operational and management control levels Signup and view all the answers

Which of the following describes the capabilities of Decision Support Systems (DSS)?

Combines data models with analytical models to support decision making Signup and view all the answers

Which feature is characteristic of Executive Information Systems (EIS)?

Pooling data from both internal and external sources Signup and view all the answers

What is a significant advantage of Expert Systems?

They can free up experts to tackle more complex problems Signup and view all the answers

What type of decisions are Decision Support Systems primarily designed to assist with?

Unstructured and semi-structured decisions Signup and view all the answers

Which of the following is NOT a typical feature of Executive Information Systems (EIS)?

Limited access to external competitors' data Signup and view all the answers

An organization should consider using Expert Systems when:

The problem is reasonably well defined and needs expert knowledge Signup and view all the answers

What is a key characteristic of Management Information Systems (MIS)?

They are designed to provide little analytical capability Signup and view all the answers

Which of the following is NOT one of the five moral dimensions of the information age?

Privacy and security Signup and view all the answers

Which type of cyber attack is specifically focused on stealing sensitive information via deceptive communication?

Phishing Signup and view all the answers

What type of cyber security measure involves controlling who has access to information systems?

Access control Signup and view all the answers

Which of the following KPIs is directly related to the reliability of IT services?

System downtime Signup and view all the answers

Which task is part of the analysis function in business partnering?

Cost and benefit analysis of information systems Signup and view all the answers

What does malware protection help to secure against?

Corrupting of data through malicious software Signup and view all the answers

Which of the following is an example of a task that involves advising to influence using information?

Creation of business cases Signup and view all the answers

Which of these options would best represent a preventative measure in cyber security?

Secure configuration Signup and view all the answers

Study Notes

Data, Information and Knowledge

Data: Raw facts and figures.
Information: Processed and organised data that has value.
Knowledge: Application of cognitive processes that makes information useful.
Tacit Knowledge: Knowledge that an organisation has but is unaware of or unable to use.
Explicit knowledge: Knowledge that an organisation possesses, is aware of, and can exploit.

IT Systems and Categories

IT systems create information and knowledge.
IT systems share information and knowledge across business functions.
IT systems fall into two categories:
- Systems that create information and knowledge.
- Systems that share information and knowledge.

Transaction Processing Systems (TPS)

Perform and record routine transactions.
Major functions include:
- Sales and Marketing: sales orders, market research, pricing systems.
- Operations systems: scheduling, purchasing, shipping/receiving, engineering.
- Finance Systems: budgeting, general ledger, accounts receivable/payable, billing.
- HR Systems: personnel records, benefits, salaries, labour relations, training.

Knowledge Work Systems (KWS)

KWSs create and integrate new knowledge into an organisation.
Knowledge workers perform jobs creating new information and knowledge.
Examples: doctors, engineers, lawyers, and scientists.
KWSs include:
- Computer Aided Design (CAD)
- Computer Aided Manufacturing (CAM)
- Specialised financial software that analyses trading situations.

Office Automation Systems (OAS)

OASs increase the productivity of data and information workers.
OASs support office activities such as:
- Document management.
- Facilitating communication.
- Managing data.

Management Information Systems (MIS)

Convert data into information primarily from internal sources.
Provides summary reports and exception reports.
Support structured decisions at operational and management control levels.
Report on existing operations.
Have little analytical capability.
Relatively inflexible.
Possess an internal focus.

Decision Support Systems (DSS)

Combine data models, analytical models, and data analysis tools for semi-structured and unstructured decision-making.
Assist managers with decisions involving high uncertainty.
Provide alternative information gathering and analytical tools, emphasising flexibility and user-friendliness.
Offer more analytical power than other systems, enabling managers to analyse and condense large data volumes.
Objective: Allow managers to evaluate alternative solutions under various potential conditions.

Executive Information Systems (EIS)

Pool data from internal and external sources, making information readily accessible to senior management.
Aid senior management in making strategic, unstructured decisions.
Summarize and track critical information, possibly from internal MISs and DSSs, but also incorporating data from external sources (competitors, legislation, and databases like Reuters).
EISs, also known as Executive Support Systems (ESS), share the following features:
- Flexibility.
- Quick response time.
- Sophisticated data analysis and modelling tools.

Expert Systems

A form of DSS enabling users to benefit from expert knowledge and information.
Contain a database holding specialist data and rules on handling and interpreting the data under specific circumstances.
An organization can use an expert system when:
- The problem is well-defined.
- The problem cannot be solved through conventional transaction processing or data handling.
- The expert can be freed for more complex problems.
- The investment in an expert system is cost-justified.

Enterprise-wide Systems

Coordinate all business functions, resources, and information irrespective of geographical location.
Use intranets to facilitate communication and knowledge sharing.

IT and External Relationships

Porter’s Five Forces model analyses the impact of Information Systems (IS) on an organisation’s external relationships.
The model includes:
- Potential entrants.
- Bargaining power of suppliers.
- Industry competitors.
- Bargaining power of customers.
- Threat of substitutes.

Virtual Companies and Virtual Supply Chains

Virtual companies: A collection of separate companies collaborating to compete for larger contracts or projects.
Virtual supply chains: Supply chains facilitated through e-business links (e.g., the web and Extranets).

Five moral dimensions of the information age:
- Information rights and obligations.
- Property rights.
- Accountability and control.
- System quality.
- Quality of life.

Types of Cyber Attacks

Phishing.
Pharming.
Hacking.
Webcam manager.
File hijacker/ransomware.
Keylogging.
Screenshot manager.
Ad clicker

Types of Cyber Security

Access control.
Boundary firewalls and internet gateways.
Malware protection and virus protection.
Patch management.
Secure configuration.

Business Partnering and KPIs

Finance Function Responsibilities:
- Assembling information: Collection of IT cost data, preparation of KPIs.
- Analysing for insights: Analysing IT breakdown and help desk support provided, cost-benefit analysis of information systems.
- Advising to influence: Reporting on the age of information systems and potential breakdowns, analysing the impact of IT failures on business functions.
- Applying for impact: Creating business cases to support new technology investments, strategically reviewing the potential use of technology for process improvement or product development.

Key Performance Indicators (KPIs)

IT cost as a percentage of revenue.
IT project cost variance.
Number of IT security breaches.
System downtime.
Help desk first call resolution.
IT maintenance ratio.
Average age of IT infrastructure.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the distinctions between data, information, and knowledge, as well as the categories of IT systems. It also delves into Transaction Processing Systems (TPS) and their major functions in business operations. Test your understanding of these fundamental concepts and their applications in the IT domain.