Week 1

Question 1

What is Data

Answer 1

• Raw Facts
• Represent values of qualitative or quantitative variables
• Often observed and recorded

Question 2

How is Data collected?

Answer 2

Through observations (subjective)

Through recordings (objective, measured)

Question 3

Does Data on its own have meaning?

Answer 3

No, unprocessed Data has no meaning

Data must be processed into a useable form that can be understood by the information consumers

Question 4

How does Data serve in an information system?

Answer 4

It serves as inputs to information

Question 5

Five Characteristics of Data Quality

Answer 5

1. Relevance
2. Frequency
3. Timeliness
4. Accuracy
5. Privacy

Question 6

Data Quality Characteristics: Relevance of Data

Answer 6

What data to collect

Unrelated data are NOT needed, wastage of investment and causes information overload

Question 7

Data Quality Characteristics: Frequency of Data

Answer 7

How often to collect data?

i.e. weather models

Question 8

Data Quality Characteristics: Timeliness

Answer 8

When to collect data?

i.e. share price, especially when data is needed in real time

Question 9

Data Quality Characteristics: Accuracy

Answer 9

Precision of Data?

i.e. speed camera malfunction triggers issuing fines, law suits from citizens

Question 10

Data Quality Characteristics : Privacy

Answer 10

Protection from unauthorised access/use

Outsourced company employees cannot access financial health related data

Question 11

Cost of Data

Answer 11

DATA IS NOT FREE

Costs involved in collecting and ensuring data quality through five characteristics

Value generated from data justifies its costs of collection?

Question 12

Information

Answer 12

Information is the Output of processed data that carries meaning for the information consumers

Allows individuals to make decisions (AI too nowadays)

Question 13

How is information created?

Answer 13

Through analysing or processing data

Question 14

How is data processed?

Answer 14

Manually (human intelligence)

IT enabled Information Systems

Question 15

Relationship between Data, Information & Knowledge

Answer 15

Data -> Information -> Knowledge

Data is processed within a context to give information (understandable meaning)

Knowledge is sought to question meanings of information received from processing data

Question 16

Knowledge

Answer 16

• Produces insights

- Helps improve understanding relationship between pieces of information

Question 17

Information Overload (Infobesity)

Answer 17

Too much information will reduce the quality of decision making (too much noise)

Why?

1. Overgeneralization
2. Selective of information that confirms previous point of view/ experience

Question 18

3 Issues with Data & Information

Answer 18

1. Information Overload
2. Information not produced for management decision making
3. Decisions driven by power and politics instead of information

Question 19

6 Interesting Characteristics of Information (Economics)

Answer 19

1. High production costs (collect and process)
2. Negligible replication costs (copy to USB)
3. Little distribution costs (networks infrastructure)
4. Sunk Costs (cost for researching, rent, payroll, advertising)
5. Information & carrier of information are different (CD vs information)
6. Not consumed by use

Question 20

Sunk cost

Answer 20

Cost that has already been spent but not recoverable in any case and future business decisions should not be affected by past spent

Question 21

Positive Impacts of BIS on Business

Answer 21

1. Information is customisable (can modify information products)
2. Information is often time valued (value of information tied to users ability to access and use it when NEEDED) i.e. share price
3. Information products can achieve significant profits (low replication and distribution costs i.e. Microsoft Office)

Question 22

Business Information Systems

Answer 22

Systems intergrating

IT
PEOPLE
BUSINESS

Brings business functions and information modules => effective communication> = timely and accurate decision = productivity and competitiveness

Question 23

4 Components of BIS

Answer 23

Structure
Technology
People
Process

Question 24

Technical sub system (BIS)

Answer 24

NO human elements

Technology
Process

Question 25

Social sub system

Answer 25

People | Structure

Question 26

What must a business manager understand about the components of BIS

Answer 26

Understand the interaction between Structure Technology People Process All four must work together

Question 27

Components of BIS: IT

Answer 27

Technical component - Hardware (computer) - Software (Microsoft office) - Telecommunication equipment (router) Can be designed to - enable action OR - disable action (limited geography -> ERP systems USA cannot be used in China)

Question 28

Components of BIS: Process

Answer 28

A series of steps necessary to complete a business activity i.e. hotel check in Process can be formal or informal Gaps between formal and information process - > users seek short-cuts for convenience

Question 29

Potential discrepancy

Answer 29

Discrepancy between business processes as designed by organizations and the manner of which they are actually enacted may facilitate BIS failure from user perspective

Question 30

Components of BIS : People

Answer 30

People component (individuals and groups) Stakeholders, end users, managers or IT professionals Have own set of skills, attitudes and personal agendas Must understand peoples skills, interest and motiviations when designing/implementing IT based IS

Question 31

What happens to a BIS when some groups (people) are not happy with the system?

Answer 31

The BIS may be under utilised or sabotaged

Question 32

Components of BIS: Structure

Answer 32

``` Organisational design Reporting mechanisms (functional, matrix) ```

Question 33

Why understanding of structure component of a BIS is crucial

Answer 33

- Introduction of IT systems may bring changes in organisational structures - Some people may lose authority - User resistance is likely to occur - Adequate and appropriate trainings are needed to minimise resistance

Question 34

Systemic Effects of the BIS

Answer 34

Interdependence of the components of the BIS changes in one component affect other components of an IS

Question 35

Components of BIS (Schematics)

Answer 35

social technical Structure Technology | X | People Process

Question 36

Organisational Impact of BIS

Answer 36

Business Process People Organisational hierarchy / structure Business Performance

Question 37

BIS Impact - Business Process Improvement

Answer 37

1. Attempts to make small changes in processes 2. Changes made over time 3. Automate (manual to auto) and informate (to dispense information) 4. Less risky

Question 38

BIS Impact - Business Process Reengineering

Answer 38

1. Radical changes 2. Changes are generally made in one attempt 3. Transformational changes 4. Risky and can fail

Question 39

BIS Impact - People

Answer 39

Efficiency - Reduce time and resources in task completion- -Prompt decision making - Remove repetitive tasks Effectiveness - Improve quality of decision making - Access to more diverse, accurate and timely information - Improved relationship between managers of various departments

Question 40

BIS Impact - Structure

Answer 40

Empowers employees with BIS enabled decision making | Reduces layers of management hierarchy

Question 41

BIS Impact - Business Performance

Answer 41

Strategic impact Measures contribution of BIS towards meeting an organisations strategic objectives However, flaws in BIS can negatively affect share price

Question 42

Unintended Impact of BIS

Answer 42

- Deskillling (waitress replaced by robots - Loss of Authority (structure) - Monotonous working environment

Question 43

Organisational Changes from BIS

Answer 43

First order change (automate) Second order change (informate) Third order change (transform)

Question 44

Automate (First Order)

Answer 44

Simple changes (technical sub-system) Changes to HOW process is performed Scope is narrow Limited senior management involvement

Question 45

Informate | Second Order

Answer 45

Affects social and technical sub systems (Technology + People + Process) The manner in which people interact with technology and process are modified (mainly on people)

Question 46

Transform (Third Order)

Answer 46

Occur in all components of BIS | Disrupt organizational structure