5.9 Management Information Systems (HL)

Question 1

Data analytics

Answer 1

is the management process of examining and scrutinising raw data to find meaningful trends and patterns to support business decision making.

Question 2

Data overload

Answer 2

means there is too much data available for managers to know what to do. This causes ineffiencies and therefore delays management decision making.

Question 3

Descriptive data analytics

Answer 3

is a type of data analytics that examines what has happened.

Question 4

Diagnostic data analytics

Answer 4

is a type of data analytics that examines why something has happened.

Question 5

Predictive data analytics

Answer 5

is a type of data analytics that examines what is likely to happen.

Question 6

Prescriptive data analytics

Answer 6

is a type of data analytics that examines what should be done.

Question 7

Data breach

Answer 7

refers to the loss or theft of important data, usually due to an inefficient database system.

Question 8

Data security

Answer 8

Is the protection of data against disclosure, damage, theft, or unauthorized access.

Question 9

Database

Answer 9

is an organized collection of data stored and retrieved electronically using a local computer or networked computer server.

Question 10

Information

Answer 10

Refers to the organization and interpretation of facts or statistics from the given data.

Question 11

Cybercrime

Answer 11

refers to any form of illegal activity carried out using electronic methods to deliberately and maliciously attack computer hardware or software, including computer networks, devices, and critical infrastructures.

Question 12

Investing in cybersecurity advantages

Answer 12

1) Data protection - Safeguards sensitive data from unauthorized access and breaches.
2) Customer trust - Enhances trust and confidence amongst customers, clients, and other stakeholders.
3) Business continuity - Protects against disruptions and ensures continuous business operations.

Question 13

Cybersecurity

Answer 13

-Refers to a firm’s policies, processes, and procedures used to safeguard its computer systems and networks from unwarranted attacks, such as information disclosure, data theft, or physical damage.

Question 14

Critical Infrastructures

Answer 14

are the crucial computer systems, structures, networks, and facilities required for the effective functioning of an organization in the modern and digital corporate world.

Question 15

Artificial neural networks (ANN)

Answer 15

are a feature of critical infrastructure and refer to the use of learning algorithms that can learn things, solve problems, and make decisions independently by processing new data as these are received.

Question 16

Cloud computing

Answer 16

is a virtual, computer generated online space that enables businesses to store, organize, manage, process, and retrieve data in safe and efficient ways.

Question 17

Virtual reality

Answer 17

Is an artificial, computer-generated environment or world accessible to businesses and consumers in a seemingly real world way.

Question 18

Data centre

Answer 18

This is a physical facility or that support organisations systems.

Question 19

Advantages of virtual reality

Answer 19

-Helps to reduce wastage and accidents in the workplace. It creates a safer working environment for employees to train and develop their skills to perform better at their jobs.
-Is highly flexible and can be used for a very broad range of training purposes.
-Training in VR enables employees to be 100% focused on the task at hand.

Question 20

Disadvantages of virtual reality

Answer 20

The accelerating pace of VR means that it can be challenging for a business to keep up with technological advances. Equipment can also become obsolete quite quickly.

Investing in the latest VR hardware and software means the cost can be expensive.

No guarantee that the investment will be successful or whether customers have a desire and willingness to adopt VR technologies.

Research has shown that some employees suffer from motion sickness when putting on VR headsets. This limits the effectiveness and potentially wide-reaching applications of VR for the organization.

Question 21

The Internet of Things

Answer 21

Refers to any Internet-enabled device that enables people to store, share, and transfer data with other electronic devices that uses embedded sensors.

Question 22

Artificial Intelligence

Answer 22

is an area of computer science that develops the ability of smart machines to perform tasks rather than natural or human intelligence, such as motion or voice activated commands on smart devices.

Question 23

Big data

Answer 23

-Refers to large sets of structured and unstructured data used by AI for analysis and decision-making.

Question 24

Chatbots

Answer 24

-Are AI-powered virtual assistants that simulate human conversations, often used for customer service and online interactions.

Question 25

Machine learning

Answer 25

is the use of computer systems, algorithms, and statistical models to enable electronic devices to memorize and adapt on their own, thereby imitating intelligent human behaviour and decision making.

Question 26

Value

Answer 26

-Refers to the extent to which big data are useful for problem solving and decision making.

Question 27

Customer loyalty

Answer 27

-Measures the extent to which customers consistently repurchase products from the same business. Loyal customers also choose the goods and services of the business over its competitors.

Question 28

Customer loyalty programmes

Answer 28

-These are marketing strategies designed to retain customers by using a rewards programme that give loyal customers direct benefits, such as reward points that can be redeemed for purchases at discounted prices

Question 29

Digital Taylorism

Answer 29

-Refers to the use of management information systems (MIS) to monitor the behaviour and performance of employees. -It describes the management approach that relies on digital technologies to improve productivity by managing and monitoring employees and the tasks they perform in the most systematic and methodical ways

Question 30

Work from Home

Answer 30

-It has become the new normal for many people and businesses in the post-COVID era, a growing number of employers have started to make use of data to manage and monitor their employees as it may not be possible to accurately measure how much work is being done otherwise.

Question 31

Advantages of Digital Taylorism

Answer 31

Efficiency - Digital Taylorism can significantly improve efficiency in the production of goods and improved service processes. Cost savings - It can lead to cost savings in the long term by automating repetitive tasks, reducing the need for extensive manual labour, and minimizing errors in production processes. Precision and accuracy - Automation through digital technologies ensures precision and accuracy in tasks, minimizing human errors and inconsistencies in production or service delivery.

Question 32

Disadvantages of Digital Taylorism

Answer 32

Monotony - The division and automation of tasks can cause monotony so reduce job satisfaction, resulting in lower productivity and higher labour turnover. Skills erosion - The focus and reliance on automating tasks can lead to less emphasis on developing diverse skills among workers, potentially eroding the overall expertise and skills set of the workforce. Resistance to change - Workers may resist the implementation of digital Taylorism due to concerns about job security, loss of control over tasks, being micromanaged, and fear of being replaced by machines

Question 33

Data mining

Answer 33

Is the management process of using data for predictive analysis and forecasting purposes. Use of management information systems to find trends, patterns, and correlations from large data sets, and using the findings to make predictions about future situations.

Question 34

Advantages of data mining

Answer 34

They help manager and decision makers to predict future situations. Effective use of data allows businesses to understand their customers better, which helps to improve customer relations. Being able to make more informed decisions enable businesses to increase sales revenue. Improved risk management as data mining can be used to detect fraudulent activities and unusual financial transactions.

Question 35

Disadvantages of data mining

Answer 35

Privacy issues are a growing concern due to the increasing amount of data about private individuals on platforms, such as social networks and e-commerce. Security issues surrounding hackers gaining access to big data of customers, including data on personal and financial information, credit card fraud, and identity theft. Personal data can be collected and misused, including the unethical sale of private information to third parties. The information can be used unethically to take advantage of vulnerable people or to discriminate against a group of people.

Question 36

Technological innovation

Answer 36

-Refers to the partial or full replacement of an existing technology by one that improves a firm's productivity, its product quality, and competitiveness in the market.

Question 37

Benefits of Management Information Systems on Business decision-making and stakeholders

Answer 37

Improved decision making - Using advanced computer technologies such as artificial intelligence enables a business to automate and improve decision-making. Better operational efficiency - MIS and technological innovations can be used to streamline processes and reduce costs due to the improved operational efficiency. Improved customer services - MIS and technological innovations can be used to track customer data, such as purchasing habits and preferences, thereby providing vast amounts of data.

Question 38

Risks of MIS

Answer 38

1) Cybercrime 2) Set-up and maintenance costs 3) Regulatory compliances 4) Providing ongoing cybersecurity training for managers and employees on the use of the data security systems and cybersecurity measures.