IS in Business Flashcards

1
Q

Whats the need for information systems?

A

Organisations depend heavily on information systems to keep business processes functioning, manage data, and allow for new ways of working.

Information systems are built on information technology, and business and government organisations use information systems every day. It’s hard to imagine organisations functioning without websites, databases, apps and so on. Global IT spending is estimated by Gartner Group at about $3.7 trillion annually (2018). That illustrates the high level of importance that organisations attach to their information technology.

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2
Q

What are mission-critical systems?

A

A mission critical system is a system that is essential to the survival of a business or organization. When a mission critical system fails or is interrupted, business operations are significantly impacted. A mission-critical system is also known as mission essential equipment and mission critical application.

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3
Q

What is digital transformation?

A

Information systems enable new ways of working; you can do things differently if you have appropriate systems. It’s this ability to innovate which is behind the phenomenon of digital transformation. It’s a goal that many organisations have had for several decades now; to radically alter the way things are done in order to avail of great performance benefits - in other words, to use digital technology very effectively to do things in a different way that will yield business advantage.

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4
Q

Whats the difference between digital transformation and digitisation?

A

Digital transformation is not the same as digitisation as digitisation is just moving from the analogue to the digital world by replicating the same process and not improving it. Improving it is digital transformation.

A good example of digital transformation is blockbuster to netflix.

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5
Q

What is the role and impact of information systems in business processes?

A

A large proportion of business processes rely on information systems. There are many examples of business processes; they are what goes on in organisations. (NB although they are called business processes, the word “business” needs to be taken loosely. For instance, healthcare is considered business in this context).

In each case, these business processes use information, but they also produce information. They need information systems to manage that data.

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6
Q

How do information systems facilitate actions?

A

An information system is a system which accepts data, produces information and exists to manipulate data and information for some reason.

The reason is all-important. It is the thing we want to achieve. Information isn’t an end in itself; it allows us todosomething useful. That’s theactionthat the information system facilitates.

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7
Q

Whats the need for information systems?

A

The need for information systems can arise from many sources. Ideally, the organisation’s strategic plan tells us what information systems we need. But, of course, most plans are out-of-date as soon as they are produced; the situation can change. And not all organisations produce strategic IT plans. So, we find ourselves deriving information system needs from different sources.

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8
Q

What are some examples of reasons for information systems?

A

One source is the opportunities and problems that arise in the business. End users may identify particular needs. Data may become available that can be used. The organisation may grow, or take over other organisations. External factors play a part as well, such as new laws, the actions of competitors, and so on.

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9
Q

What can be used to analyse an organisations process bottlenecks?

A

Causal loop diagrams, SWOT diagrams, and PESTLE analysis can all be to analyse the orgnaisation to find the bottleneck in our processes so that we can look into it and improve the information systems. job descriptions can also be good to look into to find out what information requirements a role has. Also CSF and KPIs

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10
Q

What are critical success factors?

A

Another way of working out high-level information requirements is by looking at critical success factors. A critical success factor is something that we have to do well if we’re going to succeed. It’s “critical” because it’s something wemustsucceed in doing, as opposed to all of the myriad (non-critical) factors that we also ought to get right.

Critical success factor analysis can be performed for individuals, teams or whole organisations.

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11
Q

What is an example of a critical success factor?

A

An example of a critical factor might be, “we must deliver a quality product”. If we are working in an industry where quality is very important, that could be key to success. If we deliver a poor-quality product, we will be unable to compete and the business will quickly fail.

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12
Q

What is a KPI?

A

Key Performance Indicator

You can ‘game’ the system with KPIs for example a KPI is waiting time in A&E to game the system they keep the patients waiting outside in the ambulance instead

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13
Q

What is a business case for investment in systems?

A

When we plan to introduce information technology or information systems, it’s usually necessary to make a case to justify the investment. It sets out why the company should spend the money or put in the effort required, and it also represents a “bridge” between the high-level strategic IS/IT plan (if one exists) and the IT projects actually undertaken by the organisation.

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14
Q

How are business case documents laid out?

A

A typical business case document starts off with background, vision, goals, and so on. It presents a summary of what we have now, the problem we’re trying to solve and the different options available to us (perhaps different systems we could use, or different approaches to solving the business problem). Then it talks about the best choice, how we would implement it, and how we would manage the process. Appendices could include a detailed analysis of benefits and risks, detailed costings, etc.

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15
Q

What are the 6 Cs of information systems benefits?

A
Cost reduction
Capability
Communications
Customer service
Control
Competitive advantage
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16
Q

How do you calculate the value of information?

A

Value of information = net benefit with - net benefit without

17
Q

What are the costs of information systems?

A
Hardware and software purchase and installation
Services
People - staff, retraining, redundancy
Data migration
Maintenance
18
Q

What are some costing issues of information systems?

A

Hard to cost IT investments
Total cost of ownership (TCO)
Allocating fixed costs among different IT projects
Multiple tangible and intangible values

19
Q

What are the types of feasibility studies?

A

Organisational feasibility
Economic feasibility
Technical feasibility
Operational feasibility

20
Q

What is a feasibility study?

A

A feasibility study is an analysis that takes all of a project’s relevant factors into account—including economic, technical, legal, and scheduling considerations—to ascertain the likelihood of completing the project successfully.

21
Q

What are the goals of risk management?

A

Anticipate the risks of an information systems project
Counter or eliminate the risks
Consider impact and likelihood

22
Q

What are some characteristics of SMEs?

A
  • Limited resources, often lack of IT competence, limited in-house IT infrastructure.
  • No need to make ‘heavy’ investments in IT.
  • Challenges with defining requirements correctly (due to the lack of internal competence and unwillingness to hire consultants).
  • Tenders are not common, because no one prepares IS requirements.
  • Decisions which IS to get are often made in a very strange way (asking advice from colleagues, relatives, copying the competitors)
  • Usually there is no a separate IT strategy or it is at least not formally defined. As a result, most of IT decisions are situational rather than strategic. For example, IT equipment is changed when the old one is broken.
  • A new IS or technology in general are procured when the management sees very clear business benefits that can be realised today or tomorrow.
  • Preferred acquisition method: COTS with online access and the subscription model (paying per month). Benefits: no need for heavy investments from the beginning, no need to buy infrastructure, no need to care about security of data, system maintenance, installation, etc.
  • Customisation of SW is replaced with adjustments of the related business processes.
23
Q

What are some characteristics of large enterprises?

A
  • More strategic decision making regarding IT investments. IT strategy is often developed.
  • There are competent staff and IT infrastructure in-house.
  • Technology is playing an important role. Even if the company is from the traditional business field, extensive business processes (embracing many employees, clients, equipment) can be significantly improved with the relevant and up-to-date technology.
  • Decisions to procure a new IS are based on strategic considerations, elicitation and definition of requirements (Business Analysis) and analysing the technological market trends.
  • There is no one typical acquisition method. The most important factors when making this decision are:
    • Uniqueness of the application (To develop the IS or to buy a ready-made one)
    • How extensive are the business processes covered by the IS
    • Expected lifetime of the IS in the organisation
    • Expected technological changes, future perspective
    • IT infrastructure requirements
    • Availability of internal competence to manage and support the IS
  • When the decision to develop SW (or to buy COTS) is made, the organisation typically considers potential providers. The main criteria: reputation, time on the market, already established relationships, quality of support and the size of the provider company