1.

Describe how information systems have changed the way businesses operate and
their products and services.
Wireless communications, including computers and mobile hand-held computing
devices, are keeping managers, employees, customers, suppliers, and business partners
connected in every way possible. Email, online conferencing, the Web, and the Internet,
are providing new and diverse lines of communication for all businesses, large and small.
Through increased communication channels and decreased costs of the communications,
customers are demanding more of businesses in terms of service and product, at lower
costs. E-commerce is changing the way businesses must attract and respond to
customers.
2. Describe the characteristics of transaction processing systems (TPS) and the roles
they play in a business.
Transaction processing systems (TPS) are computerized systems that perform and record
daily routine transactions necessary in conducting business; they serve the organizations
operational level. The principal purpose of systems at this level is to answer routine
questions and to track the flow of transactions through the organization.
1) At the operational level, tasks, resources, and goals are predefined and highly
structured.
2) Managers need TPS to monitor the status of internal operations and the firms
relationship with its external environment.
3) TPS are major producers of information for other types of systems.
4) Transaction processing systems are often so central to a business that TPS failure for
a few hours can lead to a firms demise and perhaps that of other firms linked to it.
3. List and describe six reasons why information systems are so important for business
today. Six reasons why information systems are so important for business today
include:
(1) Operational excellence
(2) New products, services, and business models
(3) Customer and supplier intimacy
(4) Improved decision making
(5) Competitive advantage
(6) Survival Information systems are the foundation for conducting business today. In
many industries, survival and even existence without extensive use of IT is
inconceivable, and IT plays a critical role in increasing productivity. Although
information technology has become more of a commodity, when coupled with
complementary changes in organization and management, it can provide the
foundation for new products, services, and ways of conducting business that provide
firms with a strategic advantage.

4. Differentiated between Extranet and Intranet Network

An intranet is a network where employees can create content, communicate,
collaborate, get stuff done, and develop the company culture.
The benefits of Intranet are that low development and maintenance cost arises on this
setup. It is also a means of friendly environment and speedily sharing of secret
information on time. It is also the type of internet that is restricted to the internal
environment of an organisation only.
An extranet is like an intranet, but also provides controlled access to authorized
customers, vendors, partners, or others outside the company
An extranet is basically a private network designed specifically to allow these
individuals (clients, vendors, suppliers, partners, etc.) to communicate with you and
your employees in a closed virtual space. Extranets serve an extremely important role,
as they allow for private communication, collaboration, knowledge sharing, document
sharing, and data transfer between organizations.

5. What is Supply Chain Management System? How do they benefit business?

Supply chain management systems (SCM) help businesses better manage
relationships with their suppliers.
Objective of SCM: Get the right amount of products from the companies source to
their point of consumption with the least amount of time and with the lowest cost.
SCM provides information to help suppliers, purchasing firms, distributors, and
logistics companies share information about orders, production, inventory levels, and
delivery of products and services so that they can source, produce, and deliver goods
and services efficiently.
SCM helps organizations achieve great efficiencies by automating parts of these
processes or by helping organizations rethink and streamline these processes.
SCM is important to a business because through its efficiency it can coordinate,
schedule, and control the delivery of products and services to customers.
Business benefits include:
Decide when and what to produce, store, and move
Rapidly communicate orders
Track the status of orders
Check inventory availability and monitor inventory levels
Reduce inventory, transportation, and warehousing costs
Track shipments
Plan production based on actual customer demand
Rapidly communicate changes in product design

6. Define business process. Suggest a business process which might be use at hospital
Business process refer to sets of logically related activities for accomplishing a specific
business result, and also refer to the unique ways in which organization and management
coordinate these activities.
1) Hiring a new employee
2) Customer intake
3) Filing medical records are examples of business processes at a hospital.

SECTION B
List and describe the Information systems serving each of the major functional areas of
a business:
Sales and marketing information systems
System

Description

Organizational
Level

Order processing

Enter, process, and track orders

Operational

Pricing analysis

Determine prices for products and

services

Management

Sale and forecasting

Prepare 5 years sales forecasts

Strategic

Manufacturing and production information systems

System

Description

Organizational
Level

Machine control

Control the actions of machines

and equipment

Operational

Production planning

Decide when and how many

products should be produced

Management

Facilities location

Decide where to locate new

production facilities.

Strategic

Finance and accounting information systems

System

Description

Organizational
Level

Account Receivable

Tracks money owed the firm

Operational

Budgeting

Prepares short-term budgets

Management

Profit planning

Plans long-term profits

Strategic

Human resources information systems

System

Description

Organizational
Level

Training and
Development

Tracks employee training, skills,

and performance appraisals

Operational

Compensation analysis

Monitors the rang and distribution

of employee wages, salaries, and
benefits

Management

Human Resource
planning

Plans the long-term labor force

needs of the organization

Strategic