5.9 MANAGEMENT INFORMATION SYSTEMS

Question 1

Data Base

Answer 1

A collection of data that is organized to be easily accessed, managed, explored and updated.

Question 2

Data Mining

Answer 2

It is the process of finding trends, patterns, and correlations within large datasets. Companies can then use those findings to predict future situations, and thus increase revenue, improve customer relations, cut costs, and reduce risks.

Question 3

Data Analytics

Answer 3

Similar to data mining. It is the process of inspecting and modelling data in order to discover useful information. It doesn’t look for patters, but simply reach conclusions based on the analysis of the raw data collected.

Question 4

Data Analytics can be used in three ways:

Answer 4

• Descriptive Analytics: About Past Performance
• Predictive Analytics: About forecasting the future. Data as a decision making tool that can help for instance with workforce planning.
• Prescriptive Analytics: Third phase of business analytics. Uses both historical and external data. Explores what may happen in the future.

Question 5

Data analytics and data mining can be used for:

Answer 5

They help make informed decisions such as:
- Market Research (To collect data from potential customers)
- Promotional purposes (Targeting certain groups using a selection of criteria)
- For credit risk management
- For customer loyalty programmes (By supermarkets). With loyalty cards the business can track who buys what, when, where and at what price. Can help idenitfy buying habits of customers to send vouchers, coupons etc.
- Help determine when to put items on sale.

Question 6

The use of data to manage and monitor employees

Answer 6

Can help make decisions about marketing, operations and human resources.
- The manager of a team working from home can see when staff log into the company’s computer system, track what they do and when.
- Help spot workers that underperforms or needs training.
- Can also keep track of all workplace communications.

Question 7

Digital Taylorism

Answer 7

Definition: Digital Taylorism applies the principles of Taylorism to the digital era, utilizing technology to further optimize worker productivity and process efficiency.

Practices: It involves automating decision-making processes, standardizing complex tasks through software, and using algorithms to manage human workers efficiently.

Impact: This approach can enhance precision and consistency in operations and often incorporates real-time data analytics to improve decision-making. However, it might lead to surveillance concerns and reduce job satisfaction by minimizing creative and individualistic aspects of work.

Question 8

E-commerce

Answer 8

The buying and selling of good and services through electronic networks, commonly via the internet.

Question 9

Advantages + Disadvantage of e-commerce for businesses selling online

Answer 9

• Can reach a wide target market, resulting in an increased customer base
• No need for expensive physical spaqces such as shops in city centers. Instead just warehouses.
• Possible to advertise foods and services in many ways.
• More competitors

Question 10

Advantages + Disadvantage of e-commerce for customers purchasing online

Answer 10

• Can shop from home 24/ without having to visit a physical shop. Beneficial for people who are very busy or live in rural areas.
• Can compare the various products on offer before deciding to make a purchase, and they have more choice.
• Cannot try or feel products

Question 11

Cybercrime and Cybersecurity

Answer 11

• Consumers may fear that internet security related to the payment process is not string eoguh, reducing the number of sales.
• Companies invest i. cybersecurity to avoid fraud and ID theft

Question 12

Cybercrime

Answer 12

An international, malicious attack on an organization of an individual by targeting their computer systems and accessing their data, including confidential data such as banking details.

Question 13

Cybersecurity

Answer 13

The practice of defending computers and IT systems against amlicious attacks.

Question 14

Critical Infrastructures

Answer 14

The systems, networks and assets that are essential for operations - in this case information systems. They are:
- Artificial Neural Networks
- Data Centres
- Cloud Computing

Question 15

Artificial Neural Networks

Answer 15

Elements of computing systems designed to simulate how the human brain operates, by processing and analyzing information. They help solve problems that are too complicated for humans. ANN can learn from the data they recieve and the operations they do.

ANN are everywhere in a business context:
- E- commerce platforms use it to personalize recommendations based on previous browsing., crossferencing millions of other transactions by other people.
- Email service uses it to detect spam
- Chatbots that simulate how a human would naturally behave in a conversation.

Question 16

Data Centres

Answer 16

Buildings where computer systems and associated components are housed. They provide a wide range of services: data storage, management and recovery. They have become essential for everyone in society: indivduals businesses and governments.

Question 17

Cloud Computing

Answer 17

The delivery of services through the internet, especially data storage, databases, networking and software.

Question 18

Advantages of cloud computing

Answer 18

• Flexibility of work practices: Employees can work remotely, from virtual offices in their home.
• IT costs may be reduced (no need to buy storage equipment and systems. Also operation costs may be reduced as well (for example energy consumption costs)
• Business continuity: All data is stored and protected from any accidents in a secure and safe location and can easily be retrieved.

Question 19

Disadvantages of cloud computing

Answer 19

• Concerns for security, data protection, privacy and confidentiality: cybercriminals.
• The location of servers, they may be in other countries where security and privacy laws are different.
• Cloud provides may lock businesses into contracts that they may later regret, with less flexibility than anticipated and high service fees.

Question 20

Big Data

Answer 20

Extremely large databases that can be analysed to show trends and patterns.
3 Main Characteristics: Volume, Variety and Velocity.
These are sometimes added as well: Value, Veracity and Comprehensiveness.
It comes from many sources: The devices that connect every second, retail and e-commerce data bases, social media etc.
These build the necessary data sets for data analytics and mining.

Question 21

Ways in which businesses use big data

Answer 21

• Track the performance of equipment or employees, and make decisions.
• Market research, generating market intelligence about needs and wants.
• Set prices automatically according to fluctuations in demand and level of interest. For ‘dynamic pricing’.

Question 22

Concerns with Big Data

Answer 22

• More countries are adopting measures to protect citizen’s personal data

Question 23

Virtual Reality

Answer 23

The creation of a simulated three dimensional enviorment that can be explored by a person who has entered that computer generated world. The person is immeres in the world and has interactions with other people, objects or characters.

Often used in entretainment or leisure, increasing its use for educational purposes (such as doctors practicing a surgery).

Question 24

The Internet of Things

Answer 24

The network of connected devices that transmit data to one another without human involvement.

Application in a business context:
- Retail, shopping, and supply chain management: Stock control can be automated, managers don’t need to check.
- Health: wearable devices that monitor health, communicating with medication dispensers and healthcare providers.
- Agriculture: Smart farming. Sensors to monitor natural conditions such as humidity, air temp or soil quality, connected to fertilization or irrigation systems.

Question 25

Artificial Intelligence

Answer 25

The ability of computers to mimic humans, especially how humans think and process information.