Guide 2025/2026 || Verified Solutions and Correct
Explanations
Description:
Updated IOS2601 Assignment 1 answers for 2025/2026. Includes verified solutions covering
information systems content.
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Category 1: Introduction to Information Systems
1. What is an Information System (IS)?
A: An Information System is a coordinated set of components for collecting, storing, processing,
and disseminating information. It includes hardware, software, data, procedures, and people to
support decision-making, coordination, control, analysis, and visualization in an organization.
,2. What is the difference between data, information, and knowledge?
A: Data are raw, unorganized facts and figures. Information is data that has been processed and
organized to be meaningful and useful. Knowledge is the synthesis of information, experience,
and insight that facilitates decision-making and action.
3. What are the five fundamental components of an information system?
A: 1. Hardware, 2. Software, 3. Data, 4. Procedures, 5. People.
4. What is the purpose of an Information System in an organization?
A: Its primary purpose is to support decision-making, operational control, and strategic
advantage by turning raw data into meaningful information for end-users.
5. What is the difference between an Information System (IS) and Information Technology
(IT)?
A: Information Technology (IT) refers to the hardware, software, and networking components
that form the technological foundation of a system. Information System (IS) is a broader term
that encompasses IT, plus the people, processes, and data that use the technology to achieve
organizational goals.
Category 2: Types of Information Systems
6. What are the four major types of information systems based on organizational level?
A: Transaction Processing Systems (TPS), Management Information Systems (MIS), Decision
Support Systems (DSS), and Executive Support Systems (ESS).
, 7. What is a Transaction Processing System (TPS)?
A: A TPS is an operational-level system that records and processes the daily, routine transactions
necessary to conduct business, such as sales order entry, payroll, and shipping.
8. What is the primary purpose of a Management Information System (MIS)?
A: MIS uses the data collected by TPS to generate summary and exception reports for middle
managers, helping them with tactical planning, monitoring, and control.
9. How does a Decision Support System (DSS) differ from an MIS?
A: While MIS primarily produces standardized reports, a DSS is interactive and designed to help
managers make semi-structured or unstructured decisions by using data analysis, models, and
simulation tools.
10. What is an Executive Support System (ESS)?
A: An ESS, or Executive Information System (EIS), is a strategic-level IS designed to help
senior executives analyze the internal and external environment, track competitive performance,
and spot strategic opportunities.
11. What is an Enterprise Resource Planning (ERP) system?
A: An ERP is a suite of integrated software applications that a company can use to collect, store,
manage, and interpret data from many business activities, including product planning,
manufacturing, sales, and marketing.
12. What is a Customer Relationship Management (CRM) system?
A: A CRM system helps companies manage interactions with current and potential customers. It
uses data analysis to improve business relationships, focusing on customer retention and driving
sales growth.