class 3 - data, info, and decision making

Question 1

Data

Answer 1

Recorded facts or figures. Not meaningful on its own (requires context to be meaningful)

Question 2

Information

Answer 2

Data with a meaning. It is the central focus of information systems.
It is used and created by activities. Business processes create, process, and store information.

Question 3

Information vs Data

Answer 3

Data presented in a meaningful context.
Processed data
Data processed by summing, ordering, averaging, grouping, comparing, or other similar operations
A difference that makes a difference

Question 4

Good information

Answer 4

Accurate: correct and complete
Crucial for management
cross-check information to ensure accuracy
Timely: Produced in time for intended use
Relevant: Context, Subject
Barely Sufficient: Does not have extraneous information
Worth its cost: Relationship between cost and value. Information systems cost money to develop, maintain and use. Must be worth the cost.

Question 5

Role of information in business processes

Answer 5

Business processes use, generate, and store information. Business processes bring together important items of data in context. Eg: Quantity received = 6, shipping invoice = 8. (it should be equal, there is a problem)
Business Processes bring together information so it can be understood at various levels. Information from business processes is useful for managerial and strategic decisions.

Question 6

Information Systems to support Business processes

Answer 6

Business process activities rely on using, generating, and updating information. Activities use Information systems to automate the generation of information, manipulate and store data and information, and uncover new and novel methods (activities) to make the entire business process more efficient.

Question 7

Automating a process activity

Answer 7

hardware and people can take actions.
software and procedure components are sets of instructions. Software is considered instructions for hardware, and procedures are instructions for people.
Dara is the bridge between the computer side and human side.

Question 8

Perspectives on Information Systems

Answer 8

Organizations:
Usually has a hierarchy.
Has different business functions.
Business process: formal and informal rules
Culture: a set of fundamental values and assumptions
Management:
To make sense of many situations and solve problems.
Creative work! Design new products and maybe recreate the organization.
Technology

Question 9

How do the 3 dimensions of IS relate to business?

Answer 9

Management (M)
Determine business strategies
Select new products and services
Organization (O)
Implement these strategies
Work with outside parties, etc.
Technology (T)
Provide the means to implement strategies
Electronic platform or network.

Question 10

Information systems and making decisions

Answer 10

Data plays an important part in any information system.
Data can be transformed into information by providing context.
Information can be an important starting point for decision-making in many organizations.
IS supports decision-making by providing the information for many decisions.

Question 11

Decisions Vary by level

Answer 11

Operational decisions concern day-to-day activities (tcp - transaction processing system)
Managerial decisions concern allocation and utilization of resources (MIS)
Strategic decisions concern broader-scope, organizational issues (EIS - executive IS)

Question 12

Transaction Processing Systems (TCP)

Answer 12

operational level. Includes order processing, material movement control, payroll, accounts payable, and employee record keeping.
Information systems use this because they record routine transactions that take place every day.
Records data from everyday operations in every division or department in the organization.

Question 13

Management Information System (MIS)

Answer 13

Require information on a periodic base instead of a daily.
Managers require information.
managers use this info to help them in directing, planning, coordinating, communicating, and decision-making.

Question 14

Decision support system (DSS)

Answer 14

Uses internal data and combines it with external data to help analyze decisions. Complex decisions usually get help from a DSS.
Used for ‘what if’ questions that require internal and external data.

Question 15

Executive support system (ESS)

Answer 15

Used at the top of management. Decisions are usually unstructured. Require summarized, historical information.

Question 16

Structure vs unstructured decision

Answer 16

Structured: there is an understood and accepted method for making the decision (how much tax do I need to pay?)
Unstructured: there is no agreed decision-making method. (who should i marry?)