Business Information Systems Exam 1
How are computers and information systems used? - correct answer-to help
organizations be more competitive and to improve their overall efficiency and
effectiveness
Transaction Processing System - correct answer-system that focuses on data collection
and processing (major reason for using them is cost reduction)
How would you describe the operations of a TPS? - correct answer-operations are
repetitive (such as printing numerous checks) or involve enormous volumes of data
(such as inventory control in a multinational textile company)
What does TPS do to human involvement? - correct answer-when these systems are
automated, human involvement is minimal (ex: automated payroll)
Management Information Systems - correct answer-organized integration of hardware
and software technologies, data, processes, and human elements designed to produce
timely, integrated, relevant, accurate, and useful information for decision making
purposes
What are the hardware components of MIS? - correct answer-input, output, memory
devices (vary depending on the application and the organization)
What are the major components of an information system? - correct answer-data,
database, process, and information
Data - correct answer-raw facts (considered the input of the system)
What are the two sources of data? - correct answer-internal and external
Describe time orientation of data - correct answer-past data is used for performance
reports, current data is used for operational reports, future data is used to make budgets
What are the two forms of data - correct answer-aggregated (subtotals for categories of
info) and disaggregated (itemized lists)
Database - correct answer-collection of all relevant data organized in a series of
integrated files
Database Management System - correct answer-used to create, organize, and manage
databases (reduces personnel time)
, Process - correct answer-generates the most useful type of info for decision making
(includes transaction reports and models for decision analysis)
Information - correct answer-facts that have been analyzed by the process component
(output of the information system)
How can information be considered useful? - correct answer-timeliness, integration
(with other data and information), consistency and accuracy, relevance
POS system - correct answer-used for fast customer service and improved inventory
management
Wireless Network - correct answer-used for efficient in-store communication
RFID tags - correct answer-used to better manage inventory and improve the efficiency
of its supply chain network
How is Porter's Five Forces Model used? - correct answer-used for analyzing an
organization, its position in the marketplace, and how information systems could be
used to make the organization more competitive
What are the five forces? - correct answer-buyer power, supplier power, threat of
substitute products or services, threat of new entrants, rivalry among existing
competitors
When is buyer power high? - correct answer-when customers have many choices
When is buyer power low? - correct answer-when customers have few choices
How can you limit buyer's choices? - correct answer-by offering services that make it
difficult to switch
When is supplier power high? - correct answer-when customers have fewer options
When is supplier power low? - correct answer-when customers have more options
When is threat of substitute products or services high? - correct answer-when many
alternatives for an organizations products or services are available
How can you limit the threat of substitute products or services? - correct answer-add
services to make the organization more distinct and add fees to discourage customers
from switching
When is the threat of new entrants low? - correct answer-when duplicating a company's
product or service is difficult
How are computers and information systems used? - correct answer-to help
organizations be more competitive and to improve their overall efficiency and
effectiveness
Transaction Processing System - correct answer-system that focuses on data collection
and processing (major reason for using them is cost reduction)
How would you describe the operations of a TPS? - correct answer-operations are
repetitive (such as printing numerous checks) or involve enormous volumes of data
(such as inventory control in a multinational textile company)
What does TPS do to human involvement? - correct answer-when these systems are
automated, human involvement is minimal (ex: automated payroll)
Management Information Systems - correct answer-organized integration of hardware
and software technologies, data, processes, and human elements designed to produce
timely, integrated, relevant, accurate, and useful information for decision making
purposes
What are the hardware components of MIS? - correct answer-input, output, memory
devices (vary depending on the application and the organization)
What are the major components of an information system? - correct answer-data,
database, process, and information
Data - correct answer-raw facts (considered the input of the system)
What are the two sources of data? - correct answer-internal and external
Describe time orientation of data - correct answer-past data is used for performance
reports, current data is used for operational reports, future data is used to make budgets
What are the two forms of data - correct answer-aggregated (subtotals for categories of
info) and disaggregated (itemized lists)
Database - correct answer-collection of all relevant data organized in a series of
integrated files
Database Management System - correct answer-used to create, organize, and manage
databases (reduces personnel time)
, Process - correct answer-generates the most useful type of info for decision making
(includes transaction reports and models for decision analysis)
Information - correct answer-facts that have been analyzed by the process component
(output of the information system)
How can information be considered useful? - correct answer-timeliness, integration
(with other data and information), consistency and accuracy, relevance
POS system - correct answer-used for fast customer service and improved inventory
management
Wireless Network - correct answer-used for efficient in-store communication
RFID tags - correct answer-used to better manage inventory and improve the efficiency
of its supply chain network
How is Porter's Five Forces Model used? - correct answer-used for analyzing an
organization, its position in the marketplace, and how information systems could be
used to make the organization more competitive
What are the five forces? - correct answer-buyer power, supplier power, threat of
substitute products or services, threat of new entrants, rivalry among existing
competitors
When is buyer power high? - correct answer-when customers have many choices
When is buyer power low? - correct answer-when customers have few choices
How can you limit buyer's choices? - correct answer-by offering services that make it
difficult to switch
When is supplier power high? - correct answer-when customers have fewer options
When is supplier power low? - correct answer-when customers have more options
When is threat of substitute products or services high? - correct answer-when many
alternatives for an organizations products or services are available
How can you limit the threat of substitute products or services? - correct answer-add
services to make the organization more distinct and add fees to discourage customers
from switching
When is the threat of new entrants low? - correct answer-when duplicating a company's
product or service is difficult
