Chapter 1: Overview of info systems Flashcards
Why do companies use computers and information systems?
Reduce cost
Competitive advantage in the marketplace
How does a computer and information system help organisations?
Assist employees to complete tasks more efficiently
Increases the productivity of employees
Computer literacy
Using computers to increase productivity
Information literacy
Understanding information to generate business intelligence
how is Transaction processing systems applied to structured tasks
Record keeping
Simple clerical operations
Inventory control
Best scenario’s to use Transaction processing systems
When operations are repetitive
Minimal human involvement
Automated systems are in place
Benefit of transaction processing systems
Reduces costs
4 Major Components of Information Systems
- Data
- Database
- Processing
- Information
sources of data
- Internal data and external data
internal data
info obtained from within the organization
e.g Sales records, personnel (staff) records
external data
info obtained from outside the organization
e.g customers , suppliers , gov , economic conditions
definition of a database
Collection of all relevant data organised in a series of files.
What is a database management system used for?
Create + organise + management of a database
Processing definition
preforming operations on the data and generating the most useful type of information
Information which can be generated
from processing
- Transaction processing reports
- Models for decision analysis
information
- Output of an information system.
- Consists of facts that have been processed/analysed and are useful to the MIS user.
What determines the quality of information
1.Quality is determined by the usefulness of the information.
2. usefulness = success
3. information is useful if it helps to make correct decisions in a timely manner.
Qualities of useful information
-Timely
-Integrated with other data and information
-Consistent and accurate
-Relevant
Information which does not comply with quality standards leads to:
1.Wrong decisions
2.Misallocation of resources
3.Missed opportunities
Why is an information system important?
Timely, relevant and accurate information is a critical tool to improve a company’s competitive position in the marketplace.
4 M’s of resources
1.Manpower
2.Machinery
3.Materials
4.Money
Types of information systems (4)
- Human resources information system
- Logistics information system
- Manufacturing information system
- Financial information system
- Marketing information system
Type of information system: Human resources information system
Provides information to decision makers which helps employees to perform their tasks more effectively
Type of information system: Logistics information system
Reduces the cost of transporting materials, while safe and reliable delivery is achieved.
Type of information system: Manufacturing information system
Manage manufacturing resources so that companies can reduce the cost of manufacturing, increase product quality and make better decisions regarding inventory
Type of information system: Financial information system
Provides timely information to executive financial managers
Type of information system: Marketing information system
Improves marketing decisions
Strategies for gaining a competitive advantage
- Differentiation strategy
- Overall cost leadership strategy
- Focus strategy
Differentiation strategy
Differentiate the product in some way
Successful if target market is not price sensitive
E.g. Apple computer
Overall cost leadership strategy
Winning market share by appealing to cost-sensitive buyers
E.g. Clicks club cards, PnP smart shopper cards
Focus strategy
Focus on a specific market share
E.g. Mercedes Benz focuses on luxury vehicles
Porters 5 forces
- Potential entrants to the market
- Power of buyers
- Power of suppliers
- Suppliers
- Existing competitors
- Complementary products
