MIS CHAPTER SUMMARY QUESTIONS AND ANSWERS. MANAGEMENT INFORMATION SYSTEMS. SUMMARY ( LECTURE NOTES 1 – Information Systems in Global Business Today) 1. Explain why Information Systems are so essential in business today. Information Systems are fundamental for conducting Business today.
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SUMMARY( LECTURE NOTES 1 – Information Systems in Global Business Today)
1. Explain why Information Systems are so essential in business today.
1. Operational excellence 4. Improved Decision making
2. New product, Services & Business models 5. Competitive advantage
3. Customer / Supplier intimacy 6. Day-to-day survival
2. Define an Information System from both Technical and Business perspective
From a Technical perspective:
From a Business perspective
3. Identify and describe the three dimensions of Information Systems
An Information System represents a combination of Management,
Organization, and Technology elements.
4. Asses the Complementary Assets required for I.T to provide value to a Business
These Complementary Assets include:
5. Identify and describe contemporary approaches to the Study of Information Systems
and distinguish between Computer Literacy and Information Systems Literacy.
SUMMARY ( LECTURE NOTES 2 – How Business Use Information Systems?)
1. Define and describe Business Processes and their relationship to Information Systems.
2. Describe the Information Systems supporting the major business functions
At each level of Organization, Information Systems support the major
Functional areas of the Business
3. Evaluate the Role Played by System Serving the Various Levels of Management
in Business and their relationship to each other.
1. Transaction Processing Systems (TPS)
Serve Operational Management . Such as Payroll or Order Processing Systems
that track the flow of daily routine transactions necessary to conduct business.
2. Management Information Systems (MIS)
Provide Middle management with reports and access to the organization’s
current performance and historical records.
Most MIS reports condense information from TPS and are not highly analytical.
3. Decision Support Systems (DSS)
DSS supports Management decisions when these decisions are unique, rapidly changing, and not specified easily in advanced.
DSS have more advanced Analytical models and Data analysis capabilities than MIS and often draw on information from external as well as internal sources.
4. Executive Support Systems (ESS)
Support Executive Management by providing data of greatest importance to senior Management Decision makers, often in the form of graphs and charts delivered via portals.
ESS have limited Analytical capabilities but can draw on sophisticated graphics Software and many sources of internal and external information.
4.Explain how Enterprise Applications and Intranets promotes Business
Process Integration and improve organizational performance
These Systems are designed to support organizational wide process
coordination and integration so that the organization can operate efficiently;
Such Enterprise Systemsare:
Span multiple functions and business processes and may be tied to the Business Processes
of other organizations
Enterprise Systems integrate the key internal Business Processes of a firm into a single
Software System so that information can flow throughout the organization,
improving Coordination, efficiency, and Decision making.
Supply Chain Management Systems
Help the firm manage its relationship with supplier to optimize the Planning, Sourcing,
Manufacturing, and Delivering of Products and Services.
Customer Relationship Management
Uses Information Systems to coordinate all the Business Processes surrounding the
firm’s interactions with its Customers to optimize firm’s Revenue and Customer
Knowledge Management Systems
Enable firms to optimize the creation, sharing, and distribution of knowledge to
improve Business Processes and Management decisions
Intranets and Extranets both use Internet technology and standards to assemble
information from various Systems and present it to the User in a Web page format.
Extranets make portions of private corporate Intranets available to outside.
5. Asses the role of Information Systems Function in a Business
The Information Systems Department is the formal Organizational unit responsible for IT Services.
The IS Department is responsible for maintaining the Computer Hardware, Software, Data
Storage, and Network that comprise the firm’s IT Infrastructure.
The Department is consisted of Specialists, such as Software Engineers, Systems Analysts, Programmers, Project Web Designers, Project Managers, Systems Managers and is often headed by a Chief Executive Officer (CIO).
Alternative ways of Organizing the IT Function
SUMMARY(LECTURE NOTES 3 - Information Systems, Organizations and Strategies)
1. Identify and describe features of organizations that managers need to know about in order to build and use Information Systems successfully.
Managers need to understand certain essential features to build and use Information
All modern Organizations are hierarchical, specialized, and, impartial, using explicit
routines to maximize efficiency. All Organizations have their culture and Politics
arising from differences in interest groups, and they are affected by their surrounding
Organizations differs in goals, groups served, social roles, leadership styles, incentives,
types of tasks performed, and type structure. These features help explain differences in
organization's use of Information Systems.
2. Evaluate the impact of Information Systems on Organizations
Information Systems and the Organizations in which they are used interact with and
influence each other.
The introduction of a new Information System will affect Organizational Structure,
goals, Work design, values, Competition between interest groups, Decision making, and
At the same time, Information Systems must be designed to serve the needs of important
organizational groups and will be shaped by the organization’s structure, tasks, goals,
culture, Politics, and Management. IT can reduce transaction and agency costs, and such
changes have been accentuated in Organizations sing the Internet.
Information Systems are closely intertwined with an organization’s structure, Culture,
and Business Processes. New Systems disrupts established patterns of work and power
relationships. So there is often considerable résistance to them when they are introduced.
The complex relationship between Information Systems, Organizational performance,
and Decision making must be carefully managed.
3. Demonstrate how Porter’s Competitive Forces Model and the Value Chain
Model help Businesses use Information Systems for Competitive Advantage.
The Strategic position of the firm, and its strategies, are determined by competition with
its traditional direct competitors but also they are greatly affected by:
Information Systems help companies compete by maintaining low cost, differentiating
products or services, focusing on market niche, strengthening ties with Customer and
Suppliers, and increasing barriers to market entry with high levels of Operational
The Value Chain Model highlights specific activities in the business where Competitive
strategies and Information Systems will have the greatest impact.
The Porter’s Competitive Forces Model views the firm as a series of primary and
support activities that add value to a firm’s products or services.
Primary activities are directly related to production and distribution, whereas support
activities make the delivery of primary activities possible.
A Firm’s Value Chain can be linked to that value chains of its Suppliers, Distributors,
A Value Web consist of Information Systems that enhance competitiveness at the
Industry level by promoting the use of standards and industry-wide consortia, and by
enabling businesses to work more efficiently with their value partners.
4. Demonstrate how Information Systems help Business use Synergies, Core Competences,
and Network-based Strategies to achieve Competitive Advantages.
Because firms consists multiple business units, Information Systems achieve additional
efficiencies or enhanced services by trying together the operations of disparate business
Information Systems help businesses leverage their core competences by promoting the
sharing of knowledge across business units.
Information Systems facilitate Business Models based on large Networks of Networks to
link to other firms so that a company can use the capabilities of other companies to
together to deliver value to the customer.
Information Systems support a dense Network of interactioms among the participating
5. Asses the challenges posed by Strategic Information Systems and Management
Implementing Strategic Systems often requires extensive organizational change and a
transition from one Sociotechnical level to another.
Many Strategic Information Systems are easily copied by other firms so that strategic
advantage is not always sustainable. A strategic Systems Analysis is helpful.
SUMMARY (LECTURE NOTES 4 – Foundations of Business Intelligence)
1. Evaluate Tools and Technologies for providing Information from Databases to improve
Business Performance and Decision making.
Powerful tools are available to analyze and access the Information in Databases.
A Data warehouse consolidates current and historical data from many different Operational Systems
in a central Database designed for reporting and Analysis.
Data Warehouse support multidimensional data analysis, also known as Online Analytical
OLAP represents relationships among data as a multidimensional structure, which can be
visualized as cubes of data and cubes within cubes of data, enabling more sophisticated Data
Data Mining analyzes large pools of data, including the contents of Data Warehouses, to find
patterns and rules that can be used to predict future behaviour and Decision making. Conventional
Databases can be linked via Middleware to the Web or a Web interface to facilitate user access to an
organization’s internal data,
2. Asses the role of Information Policy, Data Administration, and Data quality assurance in
the Management of Organizational Data resources.
Developing a Database environment requires Policies and Procedures for managing Organizational
data as well as a good Data Model and Database Technology.
A formal Information Policy govern the Maintenance, Distribution, and use of Information in the
In a large corporations, a formal Data Administration function is responsible for Information
Policy, as well as for data Planning, Data Dictionary development, and monitoring data usage in
Data that are inaccurate, incomplete, or inconsistent create serious Operational and Financial
problems for business because they may create inaccuracies in Product pricing, Customer accounts,
and Inventory data, and leads to inaccurate decisions about the actions that should be taken by the
Firms must take special steps to make sure they have a high level of Data quality.
These include using Enterprise-wide Data Standards, Databases designed to minimize inconsistent
and redundant data, Data Quality Audits, and Data Cleansing Software.
SUMMARY(LECTURE NOTES 5 – IT Infrastructure and Emerging Technologies)