ANSWERS
What is the purpose of an information system? - ANS To automate/execute a process that
spans across multiple functional units in a seamless and integrated fashion.
Information systems are used to make the functions within a business more efficient.
What is an enterprise system? - ANS Large-scale applications that support complex business
processes, informational flows, data analytics, and reports in a simplified manner
Benefits of an enterprise system: - ANS - Integrated
- Data is always up to date
- Data is easy to access and easy to share
- Informational needs can be more effectively met
Downsides of an enterprise system: - ANS - If the whole system crashes then everyone is
offline
- Initial implementation of the system would be difficult to introduce because it would require
people to change the way they work
Benefits of a functional system approach: - ANS - Allows a functional department to
specialize in a system that best suits their own needs
Examples of organizational data: - ANS Plant layout, organizational chart
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, Examples of master data: - ANS Customer list, list of products
Transaction data: - ANS Day-to-day transactions that occur as a result of the business'
operations; generates the most amount of data
Purpose of Porter's Five Forces: - ANS You're trying to predict the intensity of competitive
rivalry in an industry
Highly competitive industry: - ANS Has low profits
Low competitive industry: - ANS Has high profits
What are the four forces that shape the intensity of the competitive rivalry (rivalry is the fifth
force)? - ANS - Breadth of new entrance
- Bargaining power of buyers
- Breadth of substitutes
- Bargaining power of suppliers
Three core business processes: - ANS - Procurement
- Fullfillment
- Production
Threat of new entry: - ANS - Time and cost of entry
- Specialist knowledge
- Economies of scale
- Cost advantages
- Technology
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