Management information systems and data analytics

Question 1

What is the role of information systems in organizations?

Answer 1

Information systems support decision-making, streamline operations, improve communication, and enhance efficiency.
Example: A supermarket using an inventory system to automatically reorder stock ensures shelves are always filled, reducing lost sales.

Question 2

What are the costs and benefits of information systems?

Answer 2

Costs include hardware, software, training, and maintenance. Benefits include faster decision-making, better accuracy, and reduced labor costs.
Example: A company investing $100k in an ERP system may save $150k/year in manual work.

Question 3

What are the uses of the internet in organizations?

Answer 3

Internet is used for marketing, customer service, e-commerce, communication, and research.
Example: A retailer uses a website and online ads to reach global customers, increasing sales.

Question 4

What is the intranet and how is it used in organizations?

Answer 4

An intranet is a private network used to share internal information and applications securely.
Example: Employees access HR policies or training resources via the company’s intranet.

Question 5

What is the use of wireless technology and networks in organizations?

Answer 5

Wireless networks provide flexibility, mobility, and real-time access to data.
Example: A warehouse employee uses a tablet to update stock levels instantly over Wi-Fi.

Question 6

What are the accounting information requirements for strategic planning?

Answer 6

They include trend analysis, financial forecasting, and resource allocation.
Example: A company uses 5-year revenue trends to decide on expanding to a new region.

Question 7

What type of system is used for operational control?

Answer 7

Transaction Processing Systems (TPS) handle daily business transactions.
Example: A point-of-sale (POS) system in a retail store tracks sales and updates inventory in real time.

Question 8

What are the characteristics of a Transaction Processing System (TPS)?

Answer 8

TPS captures, processes, and stores routine transactions. It’s fast, reliable, and handles large volumes.
Example: ATM systems processing deposits and withdrawals.

Question 9

What are the characteristics of a Management Information System (MIS)?

Answer 9

MIS processes data from TPS to produce regular reports for middle managers.
Example: Weekly sales report from all store branches for regional managers.

Question 10

What are the characteristics of an Executive Information System (EIS)?

Answer 10

EIS provides high-level data dashboards and KPIs for senior management.
Example: A CEO sees real-time revenue, cost, and profit graphs.

Question 11

What is an Enterprise Resource Planning (ERP) system?

Answer 11

ERP integrates all core business processes into one system.
Example: SAP or Oracle handles accounting, HR, sales, and supply chain in one place.

Question 12

What is a Customer Relationship Management (CRM) system?

Answer 12

CRM manages interactions with customers to boost satisfaction and sales.
Example: Salesforce tracks leads, follows up with clients, and measures sales performance.

Question 13

How are principal sources of management information used for control?

Answer 13

They help monitor performance, set benchmarks, and ensure compliance.
Example: Budget reports help managers control departmental spending.

Question 14

What are the principal controls in generating and distributing internal information?

Answer 14

Segregation of duties, approval hierarchies, and access control.
Example: Only finance managers can approve budgets, reducing fraud.

Question 15

What controls are needed for highly confidential information?

Answer 15

Encryption, secure login, access restriction, and physical security.
Example: Payroll data protected by passwords and access logs.

Question 16

Why is data visualization important in management information?

Answer 16

It simplifies complex data, highlights trends, and aids quick decisions.
Example: A sales dashboard with charts shows underperforming regions instantly.

Question 17

What are the 5 Vs of Big Data?

Answer 17

Volume, Velocity, Variety, Veracity, and Value.
Example: Social media data (high volume, varied types, fast-moving, uncertain truth, but valuable insights).

Question 18

What is the Big Data Pyramid?

Answer 18

It’s the hierarchy: Data → Information → Knowledge → Wisdom.
Example: Sales data becomes reports (information), which become insights (knowledge), then strategic choices (wisdom).

Question 19

What is predictive analytics used for?

Answer 19

Forecasting trends, behaviors, and performance outcomes.
Example: Amazon uses past purchases to recommend future products.

Question 20

What are benefits of big data and analytics?

Answer 20

Better decisions, efficiency, and personalization.
Example: Netflix uses viewing data to suggest shows and plan content.

Question 21

What are risks of implementing big data systems?

Answer 21

High cost, data privacy, security breaches, and data overload.
Example: A health app faces legal issues for leaking user medical data.

Question 22

Practice Question 22: What is a key benefit of using an ERP system?

Answer 22

ERP improves cross-department coordination.
Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 23

Practice Question 23: What is a key benefit of using an ERP system?

Answer 23

ERP improves cross-department coordination.
Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 24

Practice Question 24: What is a key benefit of using an ERP system?

Answer 24

ERP improves cross-department coordination.
Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 25

Practice Question 25: What is a key benefit of using an ERP system?

Answer 25

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 26

Practice Question 26: What is a key benefit of using an ERP system?

Answer 26

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 27

Practice Question 27: What is a key benefit of using an ERP system?

Answer 27

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 28

Practice Question 28: What is a key benefit of using an ERP system?

Answer 28

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 29

Practice Question 29: What is a key benefit of using an ERP system?

Answer 29

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 30

Practice Question 30: What is a key benefit of using an ERP system?

Answer 30

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 31

Practice Question 31: What is a key benefit of using an ERP system?

Answer 31

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 32

Practice Question 32: What is a key benefit of using an ERP system?

Answer 32

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 33

Practice Question 33: What is a key benefit of using an ERP system?

Answer 33

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 34

Practice Question 34: What is a key benefit of using an ERP system?

Answer 34

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 35

Practice Question 35: What is a key benefit of using an ERP system?

Answer 35

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 36

Practice Question 36: What is a key benefit of using an ERP system?

Answer 36

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 37

Practice Question 37: What is a key benefit of using an ERP system?

Answer 37

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 38

Practice Question 38: What is a key benefit of using an ERP system?

Answer 38

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 39

Practice Question 39: What is a key benefit of using an ERP system?

Answer 39

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 40

Practice Question 40: What is a key benefit of using an ERP system?

Answer 40

ERP improves cross-department coordination. Example: Sales and inventory systems are linked, preventing stockouts during promotions.

Question 41

What is structured data?

Answer 41

Structured data is organized and stored in fixed fields such as rows and columns. Example: A spreadsheet of customer names, purchase amounts, and dates.

Question 42

What is unstructured data?

Answer 42

Unstructured data has no predefined format and is often text-heavy. Example: Emails, social media posts, and video files.

Question 43

What is semi-structured data?

Answer 43

Semi-structured data does not reside in a relational database but still has tags or markers to separate data elements. Example: XML and JSON files.

Question 44

What are the differences between structured and unstructured data?

Answer 44

Structured data is easy to search and analyze but limited in scope; unstructured data is vast and diverse but harder to process. Example: Sales records (structured) vs customer feedback emails (unstructured).

Question 45

What is data mining?

Answer 45

Data mining is analyzing large datasets to find patterns and trends. Example: A retailer uses data mining to identify that customers who buy diapers often buy baby wipes too.

Question 46

How is data analytics used in performance management?

Answer 46

It measures KPIs, tracks trends, and predicts outcomes to optimize performance. Example: A call center uses analytics to reduce call wait times and improve customer satisfaction.

Question 47

Why is data veracity important in big data?

Answer 47

It ensures the accuracy and trustworthiness of data. Example: Misinformation in social media analytics can lead to poor marketing decisions.

Question 48

What are the risks of poor data quality in decision-making?

Answer 48

Inaccurate data leads to bad decisions, wasted resources, and reputational damage. Example: A company overproduces a product due to faulty demand forecasting.

Question 49

What is the role of dashboards in management information systems?

Answer 49

Dashboards display real-time data in visual formats for quick decision-making. Example: A logistics manager monitors delivery status and fuel use via a dashboard.

Question 50

How do intranets support employee productivity?

Answer 50

They provide centralized access to documents, tools, and communication channels. Example: Employees retrieve templates and submit leave requests via the intranet.