Essentials of MIS

Question 1

How do information systems help manage a business?

Answer 1

They improve efficiency, support decision-making, enhance communication, and enable innovation.
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Businesses rely on IT to streamline operations, connect with customers, and remain competitive in the digital age.

Question 2

How have information systems transformed business?

Answer 2

IT has improved supply chain management, digital marketing, data storage, and customer engagement.
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Companies now depend on the internet and mobile platforms for daily operations, making technology a core business driver.

Question 3

What are the key challenges in Management Information Systems (MIS)?

Answer 3

New technologies, Mangement of people, and organizations.
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Businesses must constantly adapt to new trends like AI and cloud computing while managing risks like security breaches.

Question 4

What are the globalization challenges and opportunities of IT?

Answer 4

IT has reduced economic barriers, increased competition, and made business transactions more efficient worldwide.
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A “flattened world” means companies must rethink their strategies to stay relevant in global markets.

Question 5

What are the six business drivers of IT investments?

Answer 5

Operational excellence, new products/services, customer and supplier intimacy, improved decision-making, competitive advantage, survival, and ESG leadership.
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These objectives push companies to adopt new technologies to increase efficiency and maintain industry leadership.

Question 6

How does IT support operational excellence?

Answer 6

By improving efficiency, reducing costs, and enhancing productivity.
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Walmart, for example, integrates IT with supply chain management to maintain its industry-leading efficiency.

Question 7

How do IT systems enable new products, services, and business models?

Answer 7

Facilitating Digitalisation, Innovation, and new revenue streams.
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Apple revolutionized music distribution with iTunes, shifting away from traditional sales models.

Question 8

How does IT improve customer and supplier intimacy?

Answer 8

By enabling businesses to track customer preferences and streamline supplier relationships.
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Ritz-Carlton uses IT to personalize guest experiences, while suppliers like TAL Apparel leverage IT to reduce costs.

Question 9

Why is real-time data important for decision-making?

Answer 9

It reduces reliance on guesses and improves accuracy in resource allocation.
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Coca-Cola uses digital dashboards to consolidate real-time data from different sources to make better business decisions.

Question 10

How does IT create competitive advantage?

Answer 10

By enabling superior products, better customer service, and operational efficiency.
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Apple, Walmart, and UPS dominate their industries by leveraging IT strategically.

Question 11

Why is IT a necessity for business survival?

Answer 11

Businesses must adopt IT to keep up with competition and comply with regulations.
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Citibank introduced ATMs to stay ahead, while regulations like Sarbanes-Oxley require data tracking.

Question 12

What is ESG leadership, and how does IT support it?

Answer 12

IT helps businesses meet environmental, social, and governance (ESG) goals through digital tracking, reporting, and efficiency improvements.
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Companies use cloud-based ERP systems to monitor sustainability and compliance efforts.

Question 13

What is an information system?

Answer 13

A system of interrelated components that collect, process, store, and distribute information to support decision-making and business operations.
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It goes beyond just computers—it includes people, processes, and technology.

Question 14

What are the four main activities of an information system?

Answer 14

Input, processing, output, and feedback.
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These steps ensure that raw data is transformed into meaningful information that supports business decisions.

Question 15

What are the three dimensions of information systems?

Answer 15

People, organizations, and technology.
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An effective IT system requires skilled users, a structured business environment, and reliable hardware/software.

Question 16

What is information systems literacy?

Answer 16

An understanding of both the technical and behavioral aspects of information systems.
It’s broader than computer literacy, as it includes knowledge of how systems affect business.

Question 17

What are business processes?

Answer 17

Structured sets of tasks and activities that accomplish specific business goals.
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Examples include order fulfillment and employee hiring, both of which can be enhanced by IT.

Question 18

How does company culture impact IT adoption?

Answer 18

It influences how employees and management use technology.
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For example, UPS values customer service, so its IT systems are designed to prioritize fast, accurate deliveries.

Question 19

What is IT infrastructure?

Answer 19

The foundation of an organization’s IT environment, including hardware, software, networks, and databases.
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A strong IT infrastructure ensures smooth operations and future scalability.

Question 20

What are the three major emerging IT trends?

Answer 20

Cloud computing, Big Data, and the Internet of Things (IoT).
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These technologies enable businesses to store massive data sets, analyze patterns, and connect devices in real time.

Question 21

What are the four steps of problem-solving in IT?

Answer 21

Problem identification, solution design, choice, and implementation.
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IT-related issues should be approached systematically to ensure effective resolutions.

Question 22

What are common organizational problems affecting IT systems?

Answer 22

Outdated processes, resistance to change, lack of resources, and company politics.
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A company that fails to adapt its IT systems risks inefficiency and competitive disadvantages.

Question 23

What are common technology-related IT problems?

Answer 23

Outdated hardware, software incompatibility, lack of storage, and rapid technological change.
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Keeping systems updated is crucial for maintaining efficiency and security.

Question 24

What are common people-related IT problems?

Answer 24

Lack of training, resistance to new systems, and poor management.
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A well-implemented IT system requires user adoption and proper training.

Question 25

What is critical thinking in IT problem-solving?

Answer 25

The ability to assess problems from multiple perspectives, test solutions, and remain open to adjustments. *** Jumping to conclusions can lead to wasted resources and ineffective solutions.

Question 26

How does IT impact career opportunities?

Answer 26

Proficiency in IT is increasingly valuable across all business fields. *** Employers look for candidates who can analyze data, improve processes, and integrate technology.

Question 27

How does IT affect accounting careers?

Answer 27

Accountants use IT for transaction processing, reporting, and compliance. *** Understanding databases and financial systems is crucial for modern accounting.

Question 28

How does IT impact finance careers?

Answer 28

IT enables real-time financial analysis, investment management, and risk assessment. *** Finance professionals often co-major in IT to stay competitive.

Question 29

How has IT transformed marketing?

Answer 29

It allows companies to track customer behavior, run digital campaigns, and personalize advertising. *** Marketing professionals must understand analytics and CRM systems.

Question 30

How does IT support operations management?

Answer 30

It optimizes production processes and resource allocation. *** Operations managers use IT to improve supply chains and logistics.

Question 31

Why is IT crucial for management roles?

Answer 31

Managers rely on IT for decision-making, collaboration, and strategic planning. *** An effective leader must understand how IT drives business success.

Question 32

What is outsourcing and offshoring in IT?

Answer 32

Outsourcing involves hiring external firms for IT services, while offshoring relocates tasks to low-cost countries. *** It reduces costs but requires careful management of global teams.

Question 33

What skills are essential for working with IT?

Answer 33

Data analysis, problem-solving, technical proficiency, and communication. *** Employers value candidates who can bridge the gap between technology and business strategy.

Question 34

How can IT help your career?

Answer 34

By enhancing problem-solving abilities, increasing job prospects, and improving business decision-making skills. *** Understanding IT systems makes you a valuable asset in any organization.

Question 35

What are the four basic business functions?

Answer 35

Manufacturing and production, sales and marketing, finance and accounting, human resources. *** These functions are essential for any business to operate. Sales bring in revenue, finance manages money, and HR ensures the right people are in place.

Question 36

What are the five basic business entities?

Answer 36

Suppliers, customers, employees, invoices/payments, products/services. *** These entities represent the key stakeholders in business operations. A successful business maintains strong relationships with all of them.

Question 37

What is a business process?

Answer 37

A logically related set of activities that define how specific business tasks are performed. *** Think of a business process as a step-by-step guide for completing a task, like processing a customer order or hiring a new employee.

Question 38

How does IT enhance business processes?

Answer 38

By automating manual processes, improving information flow, enabling simultaneous activities, transforming business operations, and creating new business models. *** IT helps businesses become more efficient, reduce costs, and improve customer experiences. Amazon’s one-click checkout is a great example.

Question 39

What are the three levels of management?

Answer 39

Senior management, middle management, operational management. *** Each level plays a different role: Senior management sets strategy, middle management ensures execution, and operational management focuses on daily tasks.

Question 40

What are the two types of workers within a business hierarchy?

Answer 40

Production/service workers and data workers. *** Production workers create goods/services, while data workers process information. Both are critical for business success.

Question 41

Why do firms invest in information systems?

Answer 41

To achieve operational excellence, develop new products/services, improve decision-making, gain competitive advantage, ensure survival, and promote ESG goals. *** Information systems help businesses stay competitive and efficient. Companies like Tesla use them to optimize production.

Question 42

What is a Transaction Processing System (TPS)?

Answer 42

A system that records daily routine transactions and provides information for other systems. *** TPS is essential for business operations, handling tasks like payroll, order processing, and inventory tracking.

Question 43

What are Management Information Systems (MIS) used for?

Answer 43

Providing reports on a firm’s performance to help middle managers monitor operations. *** MIS offers managers a high-level view of the business, helping them make data-driven decisions.

Question 44

What is a Decision Support System (DSS)?

Answer 44

A system that supports non-routine decision-making by using internal and external data. *** DSS helps answer "what-if" scenarios, like predicting the impact of a marketing campaign on sales.

Question 45

What is an Executive Support System (ESS)?

Answer 45

A system that helps senior management with strategic decision-making. *** ESS provides big-picture insights, helping executives plan for the future, such as entering new markets.

Question 46

What are the four major types of enterprise applications?

Answer 46

Enterprise systems (ERP), supply chain management systems (SCM), customer relationship management systems (CRM), knowledge management systems (KMS). *** These applications help businesses integrate processes, improve efficiency, and make better decisions.

Question 47

What is an Enterprise Resource Planning (ERP) system?

Answer 47

A system that integrates key business processes into a single system for better coordination. *** ERP improves efficiency by centralizing data, allowing different departments to work seamlessly.

Question 48

What does a Supply Chain Management (SCM) system do?

Answer 48

Manages relationships with suppliers and optimizes product flow. *** SCM ensures products are delivered efficiently and cost-effectively, like how Walmart optimizes inventory.

Question 49

What is the goal of a Customer Relationship Management (CRM) system?

Answer 49

To optimize revenue, improve customer satisfaction, increase retention, and enhance sales. *** CRM helps businesses personalize customer interactions, increasing loyalty and sales.

Question 50

What do Knowledge Management Systems (KMS) do?

Answer 50

Capture, store, and distribute knowledge to improve business processes. *** KMS prevents knowledge loss when employees leave and helps businesses retain expertise.

Question 51

What is collaboration in business?

Answer 51

Working with others to achieve shared goals, either informally or through structured teams. *** Good collaboration improves productivity and innovation, and tools like Slack and Zoom make it easier.

Question 52

What are the benefits of collaboration?

Answer 52

Improved productivity, quality, innovation, customer service, and financial performance. *** Companies that emphasize collaboration, like Google, foster creativity and efficiency.

Question 53

What is social business?

Answer 53

The use of social networking platforms to engage employees, customers, and suppliers. *** Social business strengthens relationships and improves communication. Nike uses social media to engage with customers effectively.

Question 54

What are some common collaboration tools?

Answer 54

Email, instant messaging, wikis, virtual meeting systems (Zoom, Teams), cloud collaboration services (Google Drive, Dropbox), enterprise social networking (Slack, Yammer). *** These tools enable remote work and efficient teamwork, which is crucial in today’s digital world.

Question 55

What are the different types of knowledge in an organization?

Answer 55

Structured (formal documents), tacit (informal, not written), semistructured (emails), unstructured (videos, graphics). *** Managing different types of knowledge helps businesses retain valuable insights and improve decision-making.

Question 56

What is an Enterprise Content Management (ECM) system?

Answer 56

A system that stores and organizes structured and unstructured knowledge. *** ECM makes it easier to access and manage company knowledge, improving efficiency.

Question 57

What is the role of the information systems (IS) department?

Answer 57

To provide IT services, including computing, data management, software, and security. *** A strong IS department ensures that business technology runs smoothly and securely.

Question 58

Who leads the IS department?

Answer 58

The Chief Information Officer (CIO). *** The CIO is responsible for aligning IT strategy with business goals.

Question 59

What are other key roles in IS management?

Answer 59

Chief Security Officer (CSO), Chief Privacy Officer (CPO), Chief Knowledge Officer (CKO), Chief Data Officer (CDO). *** These roles protect company data, manage risks, and ensure regulatory compliance.