ISTM 210 Exam 1 [2026/2027] | UPDATED
ACTUAL Exam Question and Answer | 100%
Verified Answers
• 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
• What is cost leadership? -✓✓ the positioning strategy of producing a product or
service of acceptable quality at consistently lower production costs than competitors
can, so that the firm can offer the product or service at the lowest price in the industry
• What is differentiation in products? -✓✓ Differentiation means making a product or
service stand out from competitors by offering something unique that customers value—
such as higher quality,
• What is the focus (niche)? -✓✓ only company that does XX, targets small markets, not
many do the same thing
ACTUAL Exam Question and Answer | 100%
Verified Answers
• 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
• What is cost leadership? -✓✓ the positioning strategy of producing a product or
service of acceptable quality at consistently lower production costs than competitors
can, so that the firm can offer the product or service at the lowest price in the industry
• What is differentiation in products? -✓✓ Differentiation means making a product or
service stand out from competitors by offering something unique that customers value—
such as higher quality,
• What is the focus (niche)? -✓✓ only company that does XX, targets small markets, not
many do the same thing
