WGU C724 Study Guide Exam Questions
with Verified Answers Updated 2026
Three major new information system trends
The expanding mobile digital platform, the growing use of big data, and the
growth of cloud computing.
Characteristics of a digital firm
Significant business relationships are digitally enabled, core business
processes are accomplished through digital networks, and key corporate
assets are managed digitally.
Challenges and opportunities of globalization
Opportunities include access to larger markets and a wider pool of global
talent. Challenges include increased competition and managing operations
across different cultures and time zones.
Six reasons information systems are important for business today
Operational excellence, new products/services/business models,
customer/supplier intimacy, improved decision making, competitive
advantage, and survival.
Information System: Definition and Activities
An information system is a set of interrelated components that collect,
process, store, and distribute information. Its main activities are input,
processing, and output.
Three dimensions of information systems
The organizational dimension (structure, processes, culture), the management
dimension (strategy, resource allocation), and the technology dimension
(hardware, software, networks).
WGU C724
,WGU C724
Distinguish: Data vs. Information & IS Literacy vs. Computer Literacy
Data are raw facts; information is data shaped into a meaningful form.
Computer literacy is knowledge of IT; IS literacy includes understanding the
technical, management, and organizational dimensions of systems.
How are the Internet and WWW related to other IS technology components?
They are part of the networking and telecommunications technology
component, providing a universal platform to connect other components like
hardware, software, and data management.
Complementary Assets and their relation to IT
Assets required to derive value from a primary investment. IT investments
require supporting assets like new business processes and organizational
culture to provide genuine value.
Complementary social, managerial, and organizational assets for IT
Organizational (supportive culture, efficient processes), Managerial (strong
senior management support), and Social (internet infrastructure, technology
standards).
Disciplines for a technical approach to IS
Computer science, management science, and operations research.
Disciplines for a behavioral approach to IS
Sociology, psychology, and economics.
The Sociotechnical Perspective
This perspective holds that optimal organizational performance is achieved
by jointly optimizing both the social and technical systems used in
production.
Business Processes: Definition and Role
WGU C724
, WGU C724
A business process is a collection of related tasks and behaviors for
accomplishing work. They are the way organizations coordinate work,
information, and knowledge.
Relationship between IS and Business Processes
Information systems automate many steps in business processes and can help
organizations redesign and streamline them for greater efficiency.
Transaction Processing Systems (TPS)
TPS perform and record the daily routine transactions necessary to conduct
business, such as sales order entry or payroll.
Management Information Systems (MIS)
MIS provide middle managers with reports on the organization's current
performance, using summarized data from TPS. They have limited analytical
capabilities.
Decision-Support Systems (DSS)
DSS support nonroutine decision making for middle managers and benefit
businesses by providing interactive, analytical models for 'what-if' analysis.
Executive Support Systems (ESS)
ESS help senior management with strategic, nonroutine decisions by
providing a generalized computing capacity and focusing on summarized
information from internal and external sources.
How do enterprise applications improve performance?
They integrate business processes from different functional areas into a single
system, allowing for seamless information flow and coordination.
Four main types of enterprise applications
Enterprise Systems (ERP), Supply Chain Management (SCM) Systems,
Customer Relationship Management (CRM) Systems, and Knowledge
Management Systems (KMS).
WGU C724