CHAPTER 1

Question 1

Identify the reasons why being an informed user of information systems is important in today’s world

Answer 1

You will benefit more from your organization’s IT applications because you will understand what is “behind” those applications.
You will be able to provide input into your organization’s IT applications, thus improving the quality of those applications.
You will quickly be in a position to recommend, or to participate in, the selection of IT applications that your organization will use.
You will be able to keep up with rapid developments in existing information technologies, as well as the introduction of new technologies.
You will understand the potential impacts that “new and improved” technologies will have on your organization. Consequently, you will be qualified to make recommendations concerning their adoption and use.
You will play a key role in managing the information systems in your organization.
You will be in a position to use IT if you decide to start your own business

Question 2

Describe the various types of computer-based information systems in an organization

Answer 2

Transaction processing systems (TPS) support the monitoring, collection, storage, and processing of data from the organization’s basic business transactions, each of which generates data.

Functional area information systems (FAISs) support a particular functional area within the organization.

Interorganizational information systems (IOSs) support many interorganizational operations, of which supply chain management is the best known.

Enterprise resource planning (ERP) systems correct a lack of communication among the FAISs by tightly integrating the functional area ISs via a common database.

Electronic commerce (e-commerce) systems enable organizations to conduct transactions with other organizations (called business-to-business (B2B) electronic commerce), and with customers (called business-to-consumer (B2C) electronic commerce).

Business intelligence (BI) systems provide computer-based support for complex, nonroutine decisions, primarily for middle managers and knowledge workers.

Expert systems (ESs) attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain.

Question 3

Discuss ways in which information technology can affect managers and nonmanagerial workers

Answer 3

Potential IT impacts on managers:
-IT may reduce the number of middle managers
-IT will provide managers with real-time or near real-time information, meaning that managers will have less time to make decisions
-IT will increase the likelihood that managers will have to supervise geographically dispersed employees and teams

Potential IT impacts on nonmanagerial workers:
-IT may eliminate jobs;
-IT may cause employees to experience a loss of identity
-IT can cause job stress and physical problems, such as repetitive stress injury

Question 4

Identify positive and negative societal effects of the increased use of information technology

Answer 4

Positive societal effects:
-IT can provide opportunities for people with disabilities
-IT can provide people with flexibility in their work (e.g., work from anywhere, anytime)
-robots will take over mundane chores; and
-IT will enable improvements in health care

Negative societal effects:
-IT can cause health problems for individuals
-IT can place employees on constant call
-IT can potentially misinform patients about their health problems