ISTM 210 Exam 1 Practice Test Questions
and Answers (2026/2027) | Detailed
Study Guide | A+
Why do Information Systems matter? -✓✓THEY ARE EVERYWHERE
- Production
- Inventory
- Distribution
- banking
- Retail
- Human Resources
- Medicine
• What determines how modern business is done? -✓✓Information Systems
• How is information different from data? -✓✓- Data are raw facts that have been
collected but have not yet been processed
- Information makes data meaning and useful to make decisions, we can take
action with information
• What is information systems? -✓✓The process of components that work together
to turn data into meaningful information
• What are systems? -✓✓A system is a set of components that work together to
accomplish a common goal (EX: The Body System, An Assembly Line)
• What are the three components of an information system? -✓✓1. Technology
2.People
3. Processes
• What are the two classifications of technology? -✓✓- Hardware
- Software
• What groups are included in the people classification of technology? -
✓✓designers, users,managers
, • What are some examples of processes under the classification of information
systems? -✓✓EX: Inventory, HR, Payables
• Which component of Information Systems is the most important? -✓✓ALL 3
(Technology, people, and processes) are equally as important!
• What was the first general purpose device? -✓✓The computer
• What is a general purpose device? -✓✓a device that serves multiple functions
• What are the two categories of information systems? -✓✓- Operational Systems
- Analytical Systems
• What are Operational Systems -✓✓-Systems that handle the individual, day-to-
day, transactions of an organization in real time (Ex: Self-checkout)
• What is a MUST of operational systems? -✓✓- They need to be fast, accurate,
and reliable
- Delays in transaction processing can cost an organization money and customers
• What are analytical systems? -✓✓-Systems used by an organization's
management to analyze data for the purpose of making decisions
• What are analytical systems used for? -✓✓- Forecasting and planning
- benchmarking and performance management
- customer acquisition/retention
- marketing
- data mining
• HOWWW do organizations use information systems? -✓✓- Increase
productivity (OPERATIONAL SYSTEMS)
- Lower Costs (OPERATIONAL SYSTEMS)
- Improve decision quality (ANALYTICAL SYSTEMS)
• how can information systems be used as a competitive advantage? -✓✓- cost
leadership (low cost) ex: Walmart
- Differentiation (high quality) ex: Keurig?
-Focus (niche) ex: Niche
and Answers (2026/2027) | Detailed
Study Guide | A+
Why do Information Systems matter? -✓✓THEY ARE EVERYWHERE
- Production
- Inventory
- Distribution
- banking
- Retail
- Human Resources
- Medicine
• What determines how modern business is done? -✓✓Information Systems
• How is information different from data? -✓✓- Data are raw facts that have been
collected but have not yet been processed
- Information makes data meaning and useful to make decisions, we can take
action with information
• What is information systems? -✓✓The process of components that work together
to turn data into meaningful information
• What are systems? -✓✓A system is a set of components that work together to
accomplish a common goal (EX: The Body System, An Assembly Line)
• What are the three components of an information system? -✓✓1. Technology
2.People
3. Processes
• What are the two classifications of technology? -✓✓- Hardware
- Software
• What groups are included in the people classification of technology? -
✓✓designers, users,managers
, • What are some examples of processes under the classification of information
systems? -✓✓EX: Inventory, HR, Payables
• Which component of Information Systems is the most important? -✓✓ALL 3
(Technology, people, and processes) are equally as important!
• What was the first general purpose device? -✓✓The computer
• What is a general purpose device? -✓✓a device that serves multiple functions
• What are the two categories of information systems? -✓✓- Operational Systems
- Analytical Systems
• What are Operational Systems -✓✓-Systems that handle the individual, day-to-
day, transactions of an organization in real time (Ex: Self-checkout)
• What is a MUST of operational systems? -✓✓- They need to be fast, accurate,
and reliable
- Delays in transaction processing can cost an organization money and customers
• What are analytical systems? -✓✓-Systems used by an organization's
management to analyze data for the purpose of making decisions
• What are analytical systems used for? -✓✓- Forecasting and planning
- benchmarking and performance management
- customer acquisition/retention
- marketing
- data mining
• HOWWW do organizations use information systems? -✓✓- Increase
productivity (OPERATIONAL SYSTEMS)
- Lower Costs (OPERATIONAL SYSTEMS)
- Improve decision quality (ANALYTICAL SYSTEMS)
• how can information systems be used as a competitive advantage? -✓✓- cost
leadership (low cost) ex: Walmart
- Differentiation (high quality) ex: Keurig?
-Focus (niche) ex: Niche
