Chapter 1 Tiffany Watt Assignment: A1 February 12, 2012 OA 430 E01

Review Questions 1) What are the components of any information system? Information systems consist of four basic components: 1. Input involves the collection of data 2. Processing involves converting or transforming inputs to useful outputs 3. Output involves producing useful information 4. Feedback output that aids in deciding what should be changed about the input or process 2) Describe the different types of data. There are four different types of data: 1. Alphanumeric numbers, letters, and other characters 2. Image graphic images and pictures 3. Audio sound, noise or tones 4. Video moving images or pictures 3) Identify at least six characteristics of valuable information. In order to be valuable, information must possess eleven different characteristics. Six of them are: complete, relevant, secure, timely, verifiable, and economical. 4) What is a computer-based information system? What are its components? A computer-based information system (CBIS) is a special system that is designed to collect, manipulate, store, and process data into information. CBIS systems consist of hardware, software, databases, procedures, telecommunications, and people. 5) What are the most common types of computer-based information systems used in business organizations today? Give an example of each. The most common types of computer-based information systems (CBIS) used today are: 1. Software Microsofts Windows Vista 2. Databases The New York Stock Exchange (NYSE)

Chapter 1 Tiffany Watt Assignment: A1 February 12, 2012 OA 430 E01

3. The Internet Web 2.0 6) What is the difference between e-commerce and m-commerce? M-commerce stands for mobile commerce. Mobile commerce involves the use of mobile devices, such as cell phones and computers, to conduct business. M-commerce involves transactions that are conducted anywhere and at any time. E-commerce, on the other hand, stands for electronic commerce. E-commerce refers to any business transaction that is conducted electronically. These transactions can be conducted between two or more businesses (B2B), between a company and its customers (B2C), between customers (C2C), between a business and the public sector, and between consumers and the public sector. 7) Describe three applications of multimedia? Three applications of multimedia are: 1. Photos and images 2. The Manipulation of sound 3. Special 3D effects 8) What is a knowledge management system? Give an example. A knowledge management system, or KMS, is an organized collection of people, procedures, software, databases, and devices, to create, store, share, and use the organizations knowledge and experience. Examples of a KMS system include search tools, portal applications, and other information or knowledge filtering tools. 9) What is the technology acceptance model (TAM)? The technology acceptance model (TAM) is a model that explains the factors that can help lead to improved users attitudes about an information system, as well as higher acceptance and usage of the system in an organization. TAM factors include the perceived usefulness of the technology, the ease of its use, the quality of the information system, and the degree to which the organization supports its use. 10) What is user satisfaction?

User satisfaction refers to how well a user is satisfied with a piece of technology, or how well the user accepts the technology. User satisfaction

Chapter 1 Tiffany Watt Assignment: A1 February 12, 2012 OA 430 E01

with a computer system and the information it generates often depend on the quality of the system and the value of the information it delivers to users. 11) What are some general strategies employed by organizations to achieve competitive advantage? Some general strategies employed by organizations to achieve competitive advantage include: 1. Cost leadership deliver the lowest possible cost for products and services. 2. Differentiation deliver different products and services. 3. Altering the industry structure change the industry to become more favorable to the company or organization. 4. Creating to products and services introduce new products and services periodically or frequently. 5. Improving existing product lines and services make real or perceived improvements to existing product lines and services. 12) Define the term productivity. Why is it difficult to measure the impact that investments in information systems have on productivity? Productivity is defined as the level of output achieved divided by the input required. 13) What is customer relationship management?

Customer relationship management (CRM) refers to programs that are designed to assist companies with interactions with their customers. These interactions may include advertising and marketing, sales, customer service after the sale, and programs to retain loyal customers. 14) What is the total cost of ownership?

The total cost of ownership, which was developed by the Gartner Group, measures the value of an information system by combining all the costs of the system over its lifetime. These costs may include the costs to

Chapter 1 Tiffany Watt Assignment: A1 February 12, 2012 OA 430 E01

acquire the systems components, such as the technology, technical support, administrative costs, and end-user operations. 15) What is the role of the systems analyst? What is the role of the programmer? System analysts and programmers are in charge of maintaining IS effectiveness. Specifically, the role of system analysts involves many things. First, a system analyst is the individual that helps a user choose what particular outputs he/she needs from the system. Next, the system analyst constructs a plan for developing the necessary programs that produce these outputs. Then, they must work together with a computer programmer to make sure that the appropriate programs are purchases, modified from existing programs, or developed. The role of the computer programmer involves developing or adapting one or more computer programs that produce the desired outputs based on the plans created by the system analyst. 16) What is the operations component of a typical IS department? The operations component of a typical IS department consists of system operators who are in charge of running and maintaining IS equipment, operating mainframe systems, networks, tape drives, disk devices, printers, and other equipment. Other operations include scheduling, hardware maintenance, and preparing input and output. The operations component also consists of data-entry operators who convert data into a form the computer system can use. 17) What is the role of the chief information officer?

The chief information officer (CIO) is in charge of employing an IS departments equipment and personnel to help the organization attain its goals. The CIO is usually a vice president who is concerned with the overall needs of the organization, sets corporate-wide policies, and plans, manages, and acquires information systems. Fill In the Blank 1) Information Systems (IS) 2) Data

Chapter 1 Tiffany Watt Assignment: A1 February 12, 2012 OA 430 E01

3) Information 4) Knowledge 5) Feedback 6) Mobile Commerce (m-commerce) 7) Electronic Business (e-business) 8) Transaction Processing System (TPS) 9) Decision Support System (DSS) 10) 11) 12) 13) 14) 15) 16) 17) 18) Case #2 1) Describe the global economic forces that pushed Creativity to move up the value chain. The global economic forces that pushed Creativity to move up the value chain include the rate of inflation, monetary policies, and fiscal policies. The forces affect the outcome of Creativity Inc.s marketing activities, by determining the demand for its products. 2) What information did Creativity use to boost its profits and remain solvent? In order to boost its profits and remain solvent, Creativity used IBMs Cognos 8 Business Intelligence suite to determine which customer Knowledge Management System (KMS) Outsourcing Systems Design Value Chain Supply-Chain Management (SCM) Productivity Return On Investment (ROI) Information Center Certification

Chapter 1 Tiffany Watt Assignment: A1 February 12, 2012 OA 430 E01

segments were the most profitable. Also, by using Cognos, Creativity was able to identify high-value products that could not be manufactured by its low-cost overseas competitors. The company also acquired data about purchase transactions from retailers in craft-related markets and added that data to its data warehouse.