Business Information Systems Exam 1
Questions and Answers
What are the two forms of data - ANSWER-aggregated (subtotals for categories of
info) and disaggregated (itemized lists)
Database - ANSWER-collection of all relevant data organized in a series of
integrated files
Database Management System - ANSWER-used to create, organize, and manage
databases (reduces personnel time)
Process - ANSWER-generates the most useful type of info for decision making
(includes transaction reports and models for decision analysis)
Information - ANSWER-facts that have been analyzed by the process component
(output of the information system)
How can information be considered useful? - ANSWER-timeliness, integration (with
other data and information), consistency and accuracy, relevance
POS system - ANSWER-used for fast customer service and improved inventory
management
Wireless Network - ANSWER-used for efficient in-store communication
RFID tags - ANSWER-used to better manage inventory and improve the efficiency of
its supply chain network
How is Porter's Five Forces Model used? - ANSWER-used for analyzing an
organization, its position in the marketplace, and how information systems could be
used to make the organization more competitive
What are the five forces? - ANSWER-buyer power, supplier power, threat of
substitute products or services, threat of new entrants, rivalry among existing
competitors
When is buyer power high? - ANSWER-when customers have many choices
When is buyer power low? - ANSWER-when customers have few choices
How can you limit buyer's choices? - ANSWER-by offering services that make it
difficult to switch
When is supplier power high? - ANSWER-when customers have fewer options
, When is supplier power low? - ANSWER-when customers have more options
When is threat of substitute products or services high? - ANSWER-when many
alternatives for an organizations products or services are available
How can you limit the threat of substitute products or services? - ANSWER-add
services to make the organization more distinct and add fees to discourage
customers from switching
When is the threat of new entrants low? - ANSWER-when duplicating a company's
product or service is difficult
When is rivalry among competitors high? - ANSWER-when many competitors
occupy the same marketplace position
Computer - ANSWER-machine that accepts data as input, processes data without
human intervention by using stored instructions, and outputs information
What are the components of a computer system? - ANSWER-Central Processing
Unit (CPU), Memory, Hardware, Software
Hardware - ANSWER-physical devices (input and output)
Software - ANSWER-programs written in computer languages
Input Devices - ANSWER-devices that send data and information to your computer
(keyboard, mouse)
Optical Character Reader - ANSWER-reads text like a barcode reader
Magnetic Ink Character Recognition System - ANSWER-reads characters printed
with magnetic ink (used primarily by banks for reading the information on the bottom
of checks)
Optical Mark Recognition System - ANSWER-reads marks on paper (often used to
grade scantrons)
Output devices - ANSWER-devices capable of representing information from a
computer (form might be audio, digital, or visual)
Soft-copy - ANSWER-output displayed on a screen (CRT, plasma, LCD)
Hard-copy - ANSWER-output commonly from a printer (or voice)
What are the two broad classes of software? - ANSWER-system and application
Operating System - ANSWER-set of programs for controlling and managing
computer hardware and software
Questions and Answers
What are the two forms of data - ANSWER-aggregated (subtotals for categories of
info) and disaggregated (itemized lists)
Database - ANSWER-collection of all relevant data organized in a series of
integrated files
Database Management System - ANSWER-used to create, organize, and manage
databases (reduces personnel time)
Process - ANSWER-generates the most useful type of info for decision making
(includes transaction reports and models for decision analysis)
Information - ANSWER-facts that have been analyzed by the process component
(output of the information system)
How can information be considered useful? - ANSWER-timeliness, integration (with
other data and information), consistency and accuracy, relevance
POS system - ANSWER-used for fast customer service and improved inventory
management
Wireless Network - ANSWER-used for efficient in-store communication
RFID tags - ANSWER-used to better manage inventory and improve the efficiency of
its supply chain network
How is Porter's Five Forces Model used? - ANSWER-used for analyzing an
organization, its position in the marketplace, and how information systems could be
used to make the organization more competitive
What are the five forces? - ANSWER-buyer power, supplier power, threat of
substitute products or services, threat of new entrants, rivalry among existing
competitors
When is buyer power high? - ANSWER-when customers have many choices
When is buyer power low? - ANSWER-when customers have few choices
How can you limit buyer's choices? - ANSWER-by offering services that make it
difficult to switch
When is supplier power high? - ANSWER-when customers have fewer options
, When is supplier power low? - ANSWER-when customers have more options
When is threat of substitute products or services high? - ANSWER-when many
alternatives for an organizations products or services are available
How can you limit the threat of substitute products or services? - ANSWER-add
services to make the organization more distinct and add fees to discourage
customers from switching
When is the threat of new entrants low? - ANSWER-when duplicating a company's
product or service is difficult
When is rivalry among competitors high? - ANSWER-when many competitors
occupy the same marketplace position
Computer - ANSWER-machine that accepts data as input, processes data without
human intervention by using stored instructions, and outputs information
What are the components of a computer system? - ANSWER-Central Processing
Unit (CPU), Memory, Hardware, Software
Hardware - ANSWER-physical devices (input and output)
Software - ANSWER-programs written in computer languages
Input Devices - ANSWER-devices that send data and information to your computer
(keyboard, mouse)
Optical Character Reader - ANSWER-reads text like a barcode reader
Magnetic Ink Character Recognition System - ANSWER-reads characters printed
with magnetic ink (used primarily by banks for reading the information on the bottom
of checks)
Optical Mark Recognition System - ANSWER-reads marks on paper (often used to
grade scantrons)
Output devices - ANSWER-devices capable of representing information from a
computer (form might be audio, digital, or visual)
Soft-copy - ANSWER-output displayed on a screen (CRT, plasma, LCD)
Hard-copy - ANSWER-output commonly from a printer (or voice)
What are the two broad classes of software? - ANSWER-system and application
Operating System - ANSWER-set of programs for controlling and managing
computer hardware and software
