Understanding Systems and Information Value

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Questions and Answers

What characterizes reliable information?

It can be depended on. (correct)
It is always complex and detailed.
It is always timely.
It is inexpensive to produce.

Which type of information is necessary to avoid information overload?

Flexible information
Complete information
Timely information
Simple information (correct)

Why is it important for information to be timely?

To ensure it can be shared widely.
To ensure it is always accurate.
To ensure it contains all potential facts.
To ensure it is delivered when needed. (correct)

What does it mean for information to be verifiable?

It can be independently checked for accuracy. (B) Signup and view all the answers

Which characteristic of valuable information refers to its ability to be used for various purposes?

Flexible (D) Signup and view all the answers

What is the definition of complete information?

Information with all necessary facts and no excess. (A) Signup and view all the answers

What must decision makers balance when producing information?

The value of information and its production costs. (D) Signup and view all the answers

Which characteristic of information ensures it cannot be accessed by unauthorized users?

Secure (C) Signup and view all the answers

What best defines a computer-based information system (CBIS)?

A collection of hardware and software components that perform data processing. (C) Signup and view all the answers

Which of the following is NOT considered an input device?

Printer (B) Signup and view all the answers

What purpose does system software serve in a computer?

To manage and control the hardware operations. (B) Signup and view all the answers

In what category does a word processing program fall?

Application software (A) Signup and view all the answers

Which component is part of the hardware of a computer system?

Computer chip (B) Signup and view all the answers

What is an Enterprise Resource Planning System primarily used for?

Accomplishing routine and special tasks within organizations (D) Signup and view all the answers

Which type of e-commerce involves transactions between consumers?

C2C (D) Signup and view all the answers

What segment of e-commerce is noted as the fastest growing?

Business-to-business (B2B) (C) Signup and view all the answers

What can happen in organizations that use separate systems instead of an Enterprise Resource Planning System?

Reduced ability to manage all tasks effectively (C) Signup and view all the answers

Which of the following options best describes e-commerce?

Any business transaction executed electronically (A) Signup and view all the answers

What is the primary reason for studying information systems?

To help decision makers achieve organizational goals (B) Signup and view all the answers

Which of the following is NOT a type of business information system highlighted in the overview?

Cloud Computing Systems (C) Signup and view all the answers

What is a critical challenge faced by information systems in global firms?

Integration of local laws and regulations (B) Signup and view all the answers

Which component is essential for evaluating the quality of data within information systems?

Data accuracy and completeness (A) Signup and view all the answers

Which phrase best describes the relationship between system users and information systems professionals?

They must collaborate to build successful information systems (C) Signup and view all the answers

What should be considered when applying information systems?

A balance between society, business, and industry benefits (A) Signup and view all the answers

Which step is essential in the system development process?

Defining user requirements accurately (B) Signup and view all the answers

How can knowledge of information systems impact one's career?

It can lead to personal success and organizational achievement (A) Signup and view all the answers

What is the primary purpose of a transaction processing system (TPS)?

To automate routine business transactions (D) Signup and view all the answers

Which of the following is a primary output of the payroll transaction processing system?

Paycheques (C) Signup and view all the answers

How does a management information system (MIS) primarily function in relation to a transaction processing system (TPS)?

It uses TPS output as its input. (C) Signup and view all the answers

What are the standard reports produced by a management information system (MIS) based on?

Data and information from TPS (D) Signup and view all the answers

In the context of business systems, what does 'input' refer to?

Data fed into a system for processing (A) Signup and view all the answers

Which of the following is NOT a routine application typically associated with a Transaction Processing System (TPS)?

Market trend analysis (A) Signup and view all the answers

What element is considered most important in an information system?

The information processed (A) Signup and view all the answers

Which of the following best defines a management information system (MIS)?

An organized collection providing routine information to decision makers (A) Signup and view all the answers

Study Notes

What is a System?

A system is a set of components that work together to achieve a common goal
Parts of a system include: input, processing, output, feedback
Input is data that is entered into the system
Processing is manipulating the input to create information
Output is the result of processing, which is information
Feedback is information from a system that is used to make changes to the input
A goal is a specific objective of a system

Characteristics of Valuable Information

Information is valuable if it is: relevant, reliable, complete, secure, simple, timely, and verifiable
Relevant information is important to the decision maker
Reliable information is trustworthy and can be depended on
Complete information contains all the crucial facts, but not more than necessary
Secure information is protected from unauthorized access
Simple information is straightforward and clear, not overly complex
Timely information is delivered when it is needed
Verifiable information can be checked for accuracy, by checking many sources

Manual and Computerized Information Systems

An information system can be manual, such as a paper-based system, or computerized
A computer-based information system (CBIS) consists of: hardware, software, databases, telecommunications, people, and procedures working together
A CBIS is designed to collect, manipulate, store, and process data into information

Hardware

Hardware is the physical equipment used to perform input, processing, and output activities
Input devices include: keyboards, mice, scanners, and equipment that reads magnetic ink characters
Processing devices include: computer chips, the central processing unit (CPU), and main memory
Output devices include: computer screens and printers

Software

Software consists of computer programs that control the operation of the computer
There are two types of software: system software and application software
System software controls basic computer operations, such as start-up, input, and output
Application software allows users to accomplish various tasks, including word processing and creating charts
An Enterprise Resource Planning System (ERP) is a software system that helps employees in organizations accomplish routine and specialized tasks

Electronic and Mobile Commerce

E-commerce is any business transaction conducted electronically.
Kinds of e-commerce include: B2B (business-to-business), B2C (business-to-consumer), and C2C (consumer-to-consumer).

Transaction Processing Systems (TPS)

TPSs are designed to automate routine, labor-intensive business transactions.
A transaction is any business-related exchange like employee payments, sales to customer, or payments to suppliers
A TPS is a collection of components that records completed business transactions, including people, procedures, software, databases, and devices
Examples of early computerized TPSs include payroll systems.
Other routine applications include sales ordering, customer billing, and inventory control.

Management Information Systems (MIS)

An MIS provides routine information to managers and decision makers.
MISs focus on operational efficiency.
The output of a TPS is the input to a MIS.
MISs typically generate standard reports using data and information from the TPS.

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Description

This quiz explores the concept of systems and the essential characteristics that make information valuable. It covers the components of a system including input, processing, output, and feedback, as well as the traits of valuable information like relevance, reliability, and security. Test your knowledge on these foundational topics.