Chapter 3 - Information systems and data analytics

Question 1

What are the 3 levels of control for performance management?

Answer 1

• Strategic planning
• Tactical planning
• Operation control and planning

Question 2

What are the key characteristics of strategic planning?

Answer 2

• takes place at the top of the organization
• concerned with future course and action

Question 3

What is an e.g. of accounting info requirements for strategic planning?

Answer 3

Long-term forecasts

Question 4

What are the key characteristics of tactical planning?

Answer 4

• concerned with effective use of resources to achieve targets set at strategic planning.

Question 5

What is an e.g. of accounting info requirements for tactical planning?

Answer 5

• Budgetary measures
• Productivity measures
• labour stats
• capacity utilisation

Question 6

What are the key characteristics of operational planning and control?

Answer 6

• concerned with day-to-day implementation of the plans of the organisation

Question 7

What is an e.g. of accounting info requirements for operational planning and control?

Answer 7

Inventory levels

Question 8

What kind of information does the strategic level of management require?

Answer 8

• from internal and external sources
• Strategic info would relate to the longer-term strategy on the company’s market share

Question 9

What kind of information does the tactical level of management require?

Answer 9

• requires info and instructions from the strategic level of management, together with routine and regular quantitative info
• info must be detailed and precise.

Question 10

What kind of information does the operational level of management require?

Answer 10

• requires info and instructions from the tactical level of management
• primarily concerned with day-to-day performance tasks
• internal sources

Question 11

What are the 3 information systems?

Answer 11

Executive information system (EIS)
Management information systems (MIS)
Transaction Processing System (TPS)

Question 12

What is EIS?

Answer 12

• for senior executives
• at strategic level
• user friendly
• internal and external info

Question 13

What is MIS

Answer 13

• collates info from individual transactions to support structural decision-making
• for all levels of management but regularly used in tactical level
• Provides summary information on the performance of the organisation
• internal focus

Question 14

What is TPS?

Answer 14

• routine business transactions
• at the operational level
• captures, processes, stores, and outputs low-level data
• records historic info

Question 15

What is a Enterprise Resource Planning system (ERPS)?

Answer 15

they integrate the data from all operations within the organization e.g., operations, sales, marketing and HR into one single system

Question 16

What is a customer relationship management system (CRM)?

Answer 16

aim to form and sustain long-term business with customers

Question 17

What is Big Data?

Answer 17

commonly used to refer to large volumes of data beyond the normal processing, storage and analysis capacity of typical database application tools.

Question 18

What are the five V’s involved with big data

Answer 18

• Veracity
• Velocity
• Volume
• Variety
• Value

Question 19

What are the benefits of big data?

Answer 19

• drives innovation
• gains competitive advantage
• improving productivity

Question 20

What are the risks of big data?

Answer 20

• availability of skills
• security of data
• data protection

Question 21

What is big data management?

Answer 21

The storage, admin, and control of vast quantities of structured and unstructured data.
Can store and process large sets of data from a variety of relatively new sources, such as social media

Question 22

What is big data analytics?

Answer 22

• The process of scrutinising big data to identify patterns, correlations and relationships.
• Gaining insights
• better forecasting
• more detailed and up to date performance management

Question 23

What is the big data pyramid?

Answer 23

Describes a series of steps. A model representing the relationship between data, info, knowledge, and wisdom.

Question 24

What is the focus on knowledge management?

Answer 24

Create
organise
apply
transfer

Question 25

What is the focus on information management?

Answer 25

Collect
Process
Disseminate
Store
Display
Protect

Question 26

What is data mining?

Answer 26

the process of identifying relationships, trends and patterns in large set of data, effectively turning raw data into useful info.

Question 27

What does data mining involve?

Answer 27

various methods such as statistics, machine learning and database systems.

Question 28

What are the 3 types of analytics?

Answer 28

• Descriptive analytics (What has happened)
• Predictive analytics (what will happen)
• Prescriptive analytics (what should we do)