ISM 3011 QUESTIONS AND ANSWERS
Five forces and Michael Porter as related to the business environment - Answers -
Harvard Business School's Michael Porter created a comprehensive framework called
the Five Forces Model for analyzing an organization, its position in the marketplace, and
how information systems could be used to make the organization more competitive.
Five Forces - Answers - Buyer power
Supplier power
Threat of substitute products or services
Threat of new entrants
Rivalry among existing competitors
What do I need to know if I am going to design an information system? - Answers - •
Internal and external sources of data
• How data is collected
• Why data is collected
• What type of data should be collected
• How data is converted to information and eventually to business intelligence
• How data should be indexed and updated
• How data and information should be used to gain a competitive advantage
In designing an MIS, the first task is to clearly define the system's objectives. Second,
data must be collected and analyzed. Finally, information must be provided in a useful
format for decision-making purposes.
Know applications of how information systems can be used in business. - Answers -
Computers and information systems are commonly used in grocery and retail stores as
well. For example, a Point of Sale (POS) system speeds up service by reading the
universal product codes (UPCs) on items in your shopping cart (see Exhibit 1.1). This
same system also manages store inventory, and some information systems
can even reorder stock automatically. Banks, too, use computers and information
systems for generating your monthly statement, running automatic teller machines
(ATMs), and for many other banking activities.
Know the difference between data and information. - Answers - The data component of
an information system is considered the input to the system. Information consists of
facts that have been analyzed by the process
component and is an output of an information system. The information that users need
affects the type of data that is collected and used. Generally, there are two
sources of data: external and internal.
An information system should collect data from both sources, although
, organizational objectives and the type of application also determine what sources
to use. Internal data includes sales records, personnel records, and so forth. The
following list shows some examples of external data sources: Customers,
competitors, and suppliers, Government agencies and financial institutions, Labor
and population statistics, Economic conditions
Typically, data has a time orientation, too. For example, past data is collected for
performance reports, and current data is collected for operational reports. In
addition, future data is predicted for budgets or cash flow reports. Data can also be
collected in different forms, such as aggregated (e.g., subtotals for categories of
information) or disaggregated (e.g., itemized lists). An organization might want
disaggregated data to analyze sales by product, territory, or salesperson. Aggregated
data can be useful for reporting overall performance during a particular sales quarter,
for example, but it limits the ability of decision makers to focus on specific factors.
What are the components of information systems. - Answers - In addition to hardware,
software, and human elements, an information system includes four major components,
which are discussed in the following sections: data, a
database, a process, and information
What's a computer, what is it made out of (components), and what do each of the parts
do? - Answers - A computer is a machine that accepts data as input, processes data
without human intervention by using stored instructions, and outputs information.
A computer system consists of hardware and software. Hardware components are
physical devices, such as keyboards, monitors, and processing units. The software
component consists of programs written in computer languages.
Input devices, such as keyboards, are used to send data and information to the
computer. Output devices, such as monitors and printers, display the output a computer
generates.
Main (primary) memory is where computers store data and instructions, similar to a
human brain. The central processing unit (CPU) is the heart of a computer. It is divided
into two components: the arithmetic logic unit (ALU) and the control unit . The ALU
performs arithmetic operations (+, −, *, /) as well as comparison or relational operations
(<, >, =); the latter are used to compare numbers. The control unit tells the computer
what to do, such as instructing the computer which device to read or send output to.
Another component that affects computer performance is a bus , which is the link
between devices connected to the computer. A bus can be parallel or serial, internal
(local) or external. An internal bus enables communication between internal
components, such as a video card and memory; an external bus is capable of
communicating with external components, such as a USB device.
Five forces and Michael Porter as related to the business environment - Answers -
Harvard Business School's Michael Porter created a comprehensive framework called
the Five Forces Model for analyzing an organization, its position in the marketplace, and
how information systems could be used to make the organization more competitive.
Five Forces - Answers - Buyer power
Supplier power
Threat of substitute products or services
Threat of new entrants
Rivalry among existing competitors
What do I need to know if I am going to design an information system? - Answers - •
Internal and external sources of data
• How data is collected
• Why data is collected
• What type of data should be collected
• How data is converted to information and eventually to business intelligence
• How data should be indexed and updated
• How data and information should be used to gain a competitive advantage
In designing an MIS, the first task is to clearly define the system's objectives. Second,
data must be collected and analyzed. Finally, information must be provided in a useful
format for decision-making purposes.
Know applications of how information systems can be used in business. - Answers -
Computers and information systems are commonly used in grocery and retail stores as
well. For example, a Point of Sale (POS) system speeds up service by reading the
universal product codes (UPCs) on items in your shopping cart (see Exhibit 1.1). This
same system also manages store inventory, and some information systems
can even reorder stock automatically. Banks, too, use computers and information
systems for generating your monthly statement, running automatic teller machines
(ATMs), and for many other banking activities.
Know the difference between data and information. - Answers - The data component of
an information system is considered the input to the system. Information consists of
facts that have been analyzed by the process
component and is an output of an information system. The information that users need
affects the type of data that is collected and used. Generally, there are two
sources of data: external and internal.
An information system should collect data from both sources, although
, organizational objectives and the type of application also determine what sources
to use. Internal data includes sales records, personnel records, and so forth. The
following list shows some examples of external data sources: Customers,
competitors, and suppliers, Government agencies and financial institutions, Labor
and population statistics, Economic conditions
Typically, data has a time orientation, too. For example, past data is collected for
performance reports, and current data is collected for operational reports. In
addition, future data is predicted for budgets or cash flow reports. Data can also be
collected in different forms, such as aggregated (e.g., subtotals for categories of
information) or disaggregated (e.g., itemized lists). An organization might want
disaggregated data to analyze sales by product, territory, or salesperson. Aggregated
data can be useful for reporting overall performance during a particular sales quarter,
for example, but it limits the ability of decision makers to focus on specific factors.
What are the components of information systems. - Answers - In addition to hardware,
software, and human elements, an information system includes four major components,
which are discussed in the following sections: data, a
database, a process, and information
What's a computer, what is it made out of (components), and what do each of the parts
do? - Answers - A computer is a machine that accepts data as input, processes data
without human intervention by using stored instructions, and outputs information.
A computer system consists of hardware and software. Hardware components are
physical devices, such as keyboards, monitors, and processing units. The software
component consists of programs written in computer languages.
Input devices, such as keyboards, are used to send data and information to the
computer. Output devices, such as monitors and printers, display the output a computer
generates.
Main (primary) memory is where computers store data and instructions, similar to a
human brain. The central processing unit (CPU) is the heart of a computer. It is divided
into two components: the arithmetic logic unit (ALU) and the control unit . The ALU
performs arithmetic operations (+, −, *, /) as well as comparison or relational operations
(<, >, =); the latter are used to compare numbers. The control unit tells the computer
what to do, such as instructing the computer which device to read or send output to.
Another component that affects computer performance is a bus , which is the link
between devices connected to the computer. A bus can be parallel or serial, internal
(local) or external. An internal bus enables communication between internal
components, such as a video card and memory; an external bus is capable of
communicating with external components, such as a USB device.
