Essentials of MIS Flashcards
How do information systems help manage a business?
They improve efficiency, support decision-making, enhance communication, and enable innovation.
***
Businesses rely on IT to streamline operations, connect with customers, and remain competitive in the digital age.
How have information systems transformed business?
IT has improved supply chain management, digital marketing, data storage, and customer engagement.
***
Companies now depend on the internet and mobile platforms for daily operations, making technology a core business driver.
What are the key challenges in Management Information Systems (MIS)?
New technologies, Mangement of people, and organizations.
***
Businesses must constantly adapt to new trends like AI and cloud computing while managing risks like security breaches.
What are the globalization challenges and opportunities of IT?
IT has reduced economic barriers, increased competition, and made business transactions more efficient worldwide.
***
A “flattened world” means companies must rethink their strategies to stay relevant in global markets.
What are the six business drivers of IT investments?
Operational excellence, new products/services, customer and supplier intimacy, improved decision-making, competitive advantage, survival, and ESG leadership.
***
These objectives push companies to adopt new technologies to increase efficiency and maintain industry leadership.
How does IT support operational excellence?
By improving efficiency, reducing costs, and enhancing productivity.
***
Walmart, for example, integrates IT with supply chain management to maintain its industry-leading efficiency.
How do IT systems enable new products, services, and business models?
Facilitating Digitalisation, Innovation, and new revenue streams.
***
Apple revolutionized music distribution with iTunes, shifting away from traditional sales models.
How does IT improve customer and supplier intimacy?
By enabling businesses to track customer preferences and streamline supplier relationships.
***
Ritz-Carlton uses IT to personalize guest experiences, while suppliers like TAL Apparel leverage IT to reduce costs.
Why is real-time data important for decision-making?
It reduces reliance on guesses and improves accuracy in resource allocation.
***
Coca-Cola uses digital dashboards to consolidate real-time data from different sources to make better business decisions.
How does IT create competitive advantage?
By enabling superior products, better customer service, and operational efficiency.
***
Apple, Walmart, and UPS dominate their industries by leveraging IT strategically.
Why is IT a necessity for business survival?
Businesses must adopt IT to keep up with competition and comply with regulations.
***
Citibank introduced ATMs to stay ahead, while regulations like Sarbanes-Oxley require data tracking.
What is ESG leadership, and how does IT support it?
IT helps businesses meet environmental, social, and governance (ESG) goals through digital tracking, reporting, and efficiency improvements.
***
Companies use cloud-based ERP systems to monitor sustainability and compliance efforts.
What is an information system?
A system of interrelated components that collect, process, store, and distribute information to support decision-making and business operations.
***
It goes beyond just computers—it includes people, processes, and technology.
What are the four main activities of an information system?
Input, processing, output, and feedback.
***
These steps ensure that raw data is transformed into meaningful information that supports business decisions.
What are the three dimensions of information systems?
People, organizations, and technology.
***
An effective IT system requires skilled users, a structured business environment, and reliable hardware/software.
What is information systems literacy?
An understanding of both the technical and behavioral aspects of information systems.
It’s broader than computer literacy, as it includes knowledge of how systems affect business.
What are business processes?
Structured sets of tasks and activities that accomplish specific business goals.
***
Examples include order fulfillment and employee hiring, both of which can be enhanced by IT.
How does company culture impact IT adoption?
It influences how employees and management use technology.
***
For example, UPS values customer service, so its IT systems are designed to prioritize fast, accurate deliveries.
What is IT infrastructure?
The foundation of an organization’s IT environment, including hardware, software, networks, and databases.
***
A strong IT infrastructure ensures smooth operations and future scalability.
What are the three major emerging IT trends?
Cloud computing, Big Data, and the Internet of Things (IoT).
***
These technologies enable businesses to store massive data sets, analyze patterns, and connect devices in real time.
What are the four steps of problem-solving in IT?
Problem identification, solution design, choice, and implementation.
***
IT-related issues should be approached systematically to ensure effective resolutions.
What are common organizational problems affecting IT systems?
Outdated processes, resistance to change, lack of resources, and company politics.
***
A company that fails to adapt its IT systems risks inefficiency and competitive disadvantages.
What are common technology-related IT problems?
Outdated hardware, software incompatibility, lack of storage, and rapid technological change.
***
Keeping systems updated is crucial for maintaining efficiency and security.
What are common people-related IT problems?
Lack of training, resistance to new systems, and poor management.
***
A well-implemented IT system requires user adoption and proper training.
What is critical thinking in IT problem-solving?
The ability to assess problems from multiple perspectives, test solutions, and remain open to adjustments.
***
Jumping to conclusions can lead to wasted resources and ineffective solutions.
How does IT impact career opportunities?
Proficiency in IT is increasingly valuable across all business fields.
***
Employers look for candidates who can analyze data, improve processes, and integrate technology.
How does IT affect accounting careers?
Accountants use IT for transaction processing, reporting, and compliance.
***
Understanding databases and financial systems is crucial for modern accounting.
How does IT impact finance careers?
IT enables real-time financial analysis, investment management, and risk assessment.
***
Finance professionals often co-major in IT to stay competitive.
How has IT transformed marketing?
It allows companies to track customer behavior, run digital campaigns, and personalize advertising.
***
Marketing professionals must understand analytics and CRM systems.
How does IT support operations management?
It optimizes production processes and resource allocation.
***
Operations managers use IT to improve supply chains and logistics.
Why is IT crucial for management roles?
Managers rely on IT for decision-making, collaboration, and strategic planning.
***
An effective leader must understand how IT drives business success.
What is outsourcing and offshoring in IT?
Outsourcing involves hiring external firms for IT services, while offshoring relocates tasks to low-cost countries.
***
It reduces costs but requires careful management of global teams.
What skills are essential for working with IT?
Data analysis, problem-solving, technical proficiency, and communication.
***
Employers value candidates who can bridge the gap between technology and business strategy.
How can IT help your career?
By enhancing problem-solving abilities, increasing job prospects, and improving business decision-making skills.
***
Understanding IT systems makes you a valuable asset in any organization.
What are the four basic business functions?
Manufacturing and production, sales and marketing, finance and accounting, human resources.
***
These functions are essential for any business to operate. Sales bring in revenue, finance manages money, and HR ensures the right people are in place.
What are the five basic business entities?
Suppliers, customers, employees, invoices/payments, products/services.
***
These entities represent the key stakeholders in business operations. A successful business maintains strong relationships with all of them.
What is a business process?
A logically related set of activities that define how specific business tasks are performed.
***
Think of a business process as a step-by-step guide for completing a task, like processing a customer order or hiring a new employee.
How does IT enhance business processes?
By automating manual processes, improving information flow, enabling simultaneous activities, transforming business operations, and creating new business models.
***
IT helps businesses become more efficient, reduce costs, and improve customer experiences. Amazon’s one-click checkout is a great example.
What are the three levels of management?
Senior management, middle management, operational management.
***
Each level plays a different role: Senior management sets strategy, middle management ensures execution, and operational management focuses on daily tasks.
What are the two types of workers within a business hierarchy?
Production/service workers and data workers.
***
Production workers create goods/services, while data workers process information. Both are critical for business success.
Why do firms invest in information systems?
To achieve operational excellence, develop new products/services, improve decision-making, gain competitive advantage, ensure survival, and promote ESG goals.
***
Information systems help businesses stay competitive and efficient. Companies like Tesla use them to optimize production.
What is a Transaction Processing System (TPS)?
A system that records daily routine transactions and provides information for other systems.
***
TPS is essential for business operations, handling tasks like payroll, order processing, and inventory tracking.
What are Management Information Systems (MIS) used for?
Providing reports on a firm’s performance to help middle managers monitor operations.
***
MIS offers managers a high-level view of the business, helping them make data-driven decisions.
What is a Decision Support System (DSS)?
A system that supports non-routine decision-making by using internal and external data.
***
DSS helps answer “what-if” scenarios, like predicting the impact of a marketing campaign on sales.
What is an Executive Support System (ESS)?
A system that helps senior management with strategic decision-making.
***
ESS provides big-picture insights, helping executives plan for the future, such as entering new markets.
What are the four major types of enterprise applications?
Enterprise systems (ERP), supply chain management systems (SCM), customer relationship management systems (CRM), knowledge management systems (KMS).
***
These applications help businesses integrate processes, improve efficiency, and make better decisions.
What is an Enterprise Resource Planning (ERP) system?
A system that integrates key business processes into a single system for better coordination.
***
ERP improves efficiency by centralizing data, allowing different departments to work seamlessly.
What does a Supply Chain Management (SCM) system do?
Manages relationships with suppliers and optimizes product flow.
***
SCM ensures products are delivered efficiently and cost-effectively, like how Walmart optimizes inventory.
What is the goal of a Customer Relationship Management (CRM) system?
To optimize revenue, improve customer satisfaction, increase retention, and enhance sales.
***
CRM helps businesses personalize customer interactions, increasing loyalty and sales.
What do Knowledge Management Systems (KMS) do?
Capture, store, and distribute knowledge to improve business processes.
***
KMS prevents knowledge loss when employees leave and helps businesses retain expertise.
What is collaboration in business?
Working with others to achieve shared goals, either informally or through structured teams.
***
Good collaboration improves productivity and innovation, and tools like Slack and Zoom make it easier.
What are the benefits of collaboration?
Improved productivity, quality, innovation, customer service, and financial performance.
***
Companies that emphasize collaboration, like Google, foster creativity and efficiency.
What is social business?
The use of social networking platforms to engage employees, customers, and suppliers.
***
Social business strengthens relationships and improves communication. Nike uses social media to engage with customers effectively.
What are some common collaboration tools?
Email, instant messaging, wikis, virtual meeting systems (Zoom, Teams), cloud collaboration services (Google Drive, Dropbox), enterprise social networking (Slack, Yammer).
***
These tools enable remote work and efficient teamwork, which is crucial in today’s digital world.
What are the different types of knowledge in an organization?
Structured (formal documents), tacit (informal, not written), semistructured (emails), unstructured (videos, graphics).
***
Managing different types of knowledge helps businesses retain valuable insights and improve decision-making.
What is an Enterprise Content Management (ECM) system?
A system that stores and organizes structured and unstructured knowledge.
***
ECM makes it easier to access and manage company knowledge, improving efficiency.
What is the role of the information systems (IS) department?
To provide IT services, including computing, data management, software, and security.
***
A strong IS department ensures that business technology runs smoothly and securely.
Who leads the IS department?
The Chief Information Officer (CIO).
***
The CIO is responsible for aligning IT strategy with business goals.
What are other key roles in IS management?
Chief Security Officer (CSO), Chief Privacy Officer (CPO), Chief Knowledge Officer (CKO), Chief Data Officer (CDO).
***
These roles protect company data, manage risks, and ensure regulatory compliance.
