Review Questions
1. What is information technology, and why is it important to a business?
2. Define business profiles, processes, and modeling.
A business profile is an overview of a company’s mission, functions, organization,
products, services, customers, suppliers, competitors, constraints, and future direction. A business
process is a specific set of transactions, events, and results that can be
described and documented. Analysts apply computer-based modeling tools that
use a standard language called business process modeling
notation (BPMN). BPMN includes various shapes and
symbols to represent events, processes, and workflows.
3. Identify the main components of an information system, and describe the system’s
stakeholders.
An information system has five key components: hardware, software, data, processes, and people.
Hardware consists of everything in the physical layer of the information system. Software refers to the
programs that control the hardware and produce the desired information or results. Data is the raw
material that an information system transforms into useful information. Processes describe the tasks and
business functions that users, managers, and IT staff members perform to achieve specific results.
People who have an interest in an information system are called stakeholders. Stakeholders include the
management group responsible for the system, the users, end users, inside and outside the company
who will interact with the system, and IT staff members, such as systems analysts, programmers, and
network administrators who develop and support the system.
4. Explain the difference between vertical and horizontal systems packages.
A horizontal system is a system, such as an inventory or payroll application, that can be adapted for use
in many different types of companies. A vertical system is designed to meet the unique requirements of
a specific business or industry, such as a Web-based retailer, a medical practice, or a video chain.
5. How do companies use EDI? What are some advantages of using XML?
Electronic commerce between two companies used a data sharing arrangement
called electronic data interchange. EDI enabled computer-to-computer data
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 01:55:30 GMT -05:00
https://www.coursehero.com/file/31905984/Review-Questions-week-1docx/
, transfer, usually over private telecommunications lines. Firms used EDI to plan production,
adjust inventory levels, or stock up on raw materials using data from another company’s
information system. As B2B volume soared, the development of extensible markup
language (XML) enabled company-to-company traffic to migrate to the Internet, which
offered standard protocols, universal availability, and low communication costs. XML
is a flexible data description language that allows Web-based communication between
different hardware and software environments.
6. Describe five types of information systems, and give an example of each.
Enterprise computing systems, transaction processing systems, business support systems, knowledge
management systems, and user productivity systems. Enterprise computing refers to information
systems that support company-wide operations and data management requirements. Wal-Mart’s
inventory control system, Boeing’s production control system, and Hilton Hotels’ reservation system are
examples of enterprise computing systems. The main objective of enterprise computing is to integrate a
company’s primary functions to improve efficiency, reduce costs, and help managers make key decisions.
Transaction processing (TP) systems process data generated by day-to-day business operations. Examples
of TP systems include customer order processing, accounts receivable, and warranty claim processing.
Business support systems provide job-related information support to users at all levels of a company.
These systems can analyze transactional data, generate information needed to manage and control
business processes, and provide information that leads to better decision-making. For example, Wal-
Mart, which requires its suppliers to add radio frequency identification, RFID, tags to all items. A retailer
might use to determine the price it must charge to increase profits by a specific amount while volume
and costs remain unchanged. Knowledge management systems simulate human reasoning by combining
a knowledge base and inference rules that determine how the knowledge is applied which consists of a
large database that allows users to find information by entering keywords or questions in normal English
phrases. A knowledge management system uses inference rules, which are logical rules that identify data
patterns and relationships for example, Toshiba maintains for its customers and users. Companies
provide employees at all levels with technology that improves productivity. Examples of user productivity
systems include e-mail, voice mail, fax, video and Web conferencing, word processing, automated
calendars, database management, spreadsheets, desktop publishing, presentation graphics, company
intranets, and high-speed Internet access.
7. Describe four organizational levels of a typical business and their information
requirements.
Top managers develop long-range plans, which define the company’s overall mission and goals. Strategic
planning affects the company’s future survival and growth, including long-term IT plans. Top managers
focus on the overall business enterprise and use IT to set the company’s course and direction.
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 01:55:30 GMT -05:00
https://www.coursehero.com/file/31905984/Review-Questions-week-1docx/
1. What is information technology, and why is it important to a business?
2. Define business profiles, processes, and modeling.
A business profile is an overview of a company’s mission, functions, organization,
products, services, customers, suppliers, competitors, constraints, and future direction. A business
process is a specific set of transactions, events, and results that can be
described and documented. Analysts apply computer-based modeling tools that
use a standard language called business process modeling
notation (BPMN). BPMN includes various shapes and
symbols to represent events, processes, and workflows.
3. Identify the main components of an information system, and describe the system’s
stakeholders.
An information system has five key components: hardware, software, data, processes, and people.
Hardware consists of everything in the physical layer of the information system. Software refers to the
programs that control the hardware and produce the desired information or results. Data is the raw
material that an information system transforms into useful information. Processes describe the tasks and
business functions that users, managers, and IT staff members perform to achieve specific results.
People who have an interest in an information system are called stakeholders. Stakeholders include the
management group responsible for the system, the users, end users, inside and outside the company
who will interact with the system, and IT staff members, such as systems analysts, programmers, and
network administrators who develop and support the system.
4. Explain the difference between vertical and horizontal systems packages.
A horizontal system is a system, such as an inventory or payroll application, that can be adapted for use
in many different types of companies. A vertical system is designed to meet the unique requirements of
a specific business or industry, such as a Web-based retailer, a medical practice, or a video chain.
5. How do companies use EDI? What are some advantages of using XML?
Electronic commerce between two companies used a data sharing arrangement
called electronic data interchange. EDI enabled computer-to-computer data
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 01:55:30 GMT -05:00
https://www.coursehero.com/file/31905984/Review-Questions-week-1docx/
, transfer, usually over private telecommunications lines. Firms used EDI to plan production,
adjust inventory levels, or stock up on raw materials using data from another company’s
information system. As B2B volume soared, the development of extensible markup
language (XML) enabled company-to-company traffic to migrate to the Internet, which
offered standard protocols, universal availability, and low communication costs. XML
is a flexible data description language that allows Web-based communication between
different hardware and software environments.
6. Describe five types of information systems, and give an example of each.
Enterprise computing systems, transaction processing systems, business support systems, knowledge
management systems, and user productivity systems. Enterprise computing refers to information
systems that support company-wide operations and data management requirements. Wal-Mart’s
inventory control system, Boeing’s production control system, and Hilton Hotels’ reservation system are
examples of enterprise computing systems. The main objective of enterprise computing is to integrate a
company’s primary functions to improve efficiency, reduce costs, and help managers make key decisions.
Transaction processing (TP) systems process data generated by day-to-day business operations. Examples
of TP systems include customer order processing, accounts receivable, and warranty claim processing.
Business support systems provide job-related information support to users at all levels of a company.
These systems can analyze transactional data, generate information needed to manage and control
business processes, and provide information that leads to better decision-making. For example, Wal-
Mart, which requires its suppliers to add radio frequency identification, RFID, tags to all items. A retailer
might use to determine the price it must charge to increase profits by a specific amount while volume
and costs remain unchanged. Knowledge management systems simulate human reasoning by combining
a knowledge base and inference rules that determine how the knowledge is applied which consists of a
large database that allows users to find information by entering keywords or questions in normal English
phrases. A knowledge management system uses inference rules, which are logical rules that identify data
patterns and relationships for example, Toshiba maintains for its customers and users. Companies
provide employees at all levels with technology that improves productivity. Examples of user productivity
systems include e-mail, voice mail, fax, video and Web conferencing, word processing, automated
calendars, database management, spreadsheets, desktop publishing, presentation graphics, company
intranets, and high-speed Internet access.
7. Describe four organizational levels of a typical business and their information
requirements.
Top managers develop long-range plans, which define the company’s overall mission and goals. Strategic
planning affects the company’s future survival and growth, including long-term IT plans. Top managers
focus on the overall business enterprise and use IT to set the company’s course and direction.
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 01:55:30 GMT -05:00
https://www.coursehero.com/file/31905984/Review-Questions-week-1docx/
