Lecture 1

Question 1

What is Enterprise Information Systems?

Answer 1

Every day data is entered, processed and stored for both operational and informational purposes.

“Used for analysis and decision making”

Examples: Finance, research support, human resources. Student administrator, course management

Question 2

What is the Informational goal?

Answer 2

Effectiveness

• Measures the ability of the firm to meet strategic objectives
• Increase business value

Question 3

What is the Operational goals?

Answer 3

Efficiency

• Make it easier for people to complete their work on time and accurate manner
• Increase throughput
• Reduce cost
• Decrease response time

Question 4

What does Efficiency focus on?

Answer 4

Input + Acutal Output

Question 5

What does Effectiveness focus on?

Answer 5

Actual Output + Expected Output

Question 6

Draw the Organisational Pyramid and explain

Answer 6

Question 7

What is your undrstanding the Organisational Pyramid?

Answer 7

The idea behind the structure is that each upper level is able to function because of support from the lower portions of the pyramid.

Question 8

What is Horizontal and vertical Integration?

Answer 8

Horizontal and vertical integration are business strategies to grow the business strategy in a different approach

Question 9

What is Horizontal Integration?

Answer 9

Means a strategy used to increase market share by taking over a similar company

• It is a strategy where a company creates/acquires production units of outputs which are alike or similar for complementary/competitive
• Achievement of additional business activity at the same level of the value chain
• Increase speed and quality in data processing
• Avoid inconsistency

Example: A company acquires competitors in the same industry doing the same stage of production - YouTube takes over Google because of a loyal user base

Question 10

Draw the Horizontal Integration diagram and Impacts on Efficiency

Answer 10

• IT Facilitates cross-functional, process-wide information management
• Increased speed and quality in data processing
• Have process information digitally
• Available across business processes
• Avoid data inconsistency in the process (e.g. on orders, customers, products)

Question 11

How does IT benefit Horizontal Integration?

Answer 11

• IT improves horizontal integration + business processes

(Information is more available and easier to find + information is in higher quality)

• Leads to better performance, efficiency!
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Question 12

What is Vertical Integration?

Answer 12

Requires a process which several steps in production of a product or service is controlled by a company or **entity **

• Increases the entity’s power in the marketplace

Question 13

Vertical Integration diagram + How does it impact on effectiveness

Answer 13

• Facilitates cross-level information management
• Merges together two businesses that are at different stages of production
• Requires: Monitoring – Decision making – Control

Question 14

What is Executive Information System?

Answer 14

Any kind of information systems that improves functions of an enterprise in a business process by integration. Meaning, offering high quality service, dealing with large volumes of data and large complex enterprises.

Type of management information system that supports executive information and decision-making needs.
It provides easy access to internal and external information relevant to organisational goals

Operational system used in data warehousing to refer to a system used to process a day-to-day transaction of an organisation