Lecture 9 Information Systems

Question 1

What is an Information System (IS)?

Answer 1

An Information System (IS) is a group of interrelated components that work together to carry out processes like input, processing, output, storage, and control to convert data into useful information. IS supports communication and information flow within an organization.

Question 2

Difference Between IS and IT

Answer 2

Information Technology (IT) refers to the technology used in Information Systems, such as hardware, software, databases, and telecommunications.

Information Systems (IS) are broader, involving not only the technology but also the people, processes, and organizational structures that use the technology to achieve business goals.

IT is about the tools, while IS is about the whole system and how it supports business processes.

Question 3

Types of Information Systems (IS)

Answer 3

Operational Systems

Monitoring Systems

Decision Support Systems

Communication Systems

Question 4

Types of Information Systems (IS):
Operational Systems

Answer 4

Essential for daily tasks (e.g., payroll, order processing)

Question 5

Types of Information Systems (IS):
Monitoring systems

Answer 5

Track and gather data (e.g., customer purchase tracking).

Question 6

Types of Information Systems (IS):
Decision Support Systems (DSS)

Answer 6

Help organizations make informed decisions based on data analysis.

Question 7

Types of Information Systems (IS):
Communication Systems

Answer 7

Tools like email and messaging apps that support communication.

Question 8

ERP (Enterprise Resource Planning) Systems

Answer 8

manages core business processes across an organization (e.g., finance, HR, supply chain).
Key Features: Integration, real-time data, automation.

Question 9

ERP (Enterprise Resource Planning) Systems Benefits

Answer 9

Improved efficiency, better collaboration, and enhanced decision-making.

Question 10

Key Components of ERP Systems

Answer 10

Central Database: Stores and shares data across applications.

Modules: Common modules include Finance, HR, Supply Chain, and CRM.

Extranet: Allows external partners
(e.g., suppliers) to connect to the ERP system via the internet.

Question 11

Disadvantages of ERP Systems

Answer 11

High Total Cost of Ownership (TCO), including license fees, consultancy, and maintenance.

High failure rates (70% of companies don’t achieve the expected benefits).

Organizational challenges (e.g., resistance to change, loss of cultural values).

Question 12

ERP and Organizational Fit

Answer 12

ERP systems require alignment with the structure and culture of an organization.

They typically focus on control (e.g., centralization of information), which can impact coordination and standardization of processes.

Question 13

CRM (Customer Relationship Management) Systems

Answer 13

CRM systems manage customer interactions to improve customer service and increase sales.

Question 14

Types of CRM

Answer 14

Operational CRM

Analytical CRM

Question 15

Operational CRM

Answer 15

Automates sales, marketing, and customer service processes.

Question 16

Analytical CRM

Answer 16

Analyzes customer data for better decision-making and strategy (e.g., customer behavior analysis).

Question 17

Examples of CRM Systems

Answer 17

Salesforce: Cloud-based CRM for sales, marketing, and customer service.

HubSpot CRM: A free tool for sales and marketing automation.

Zoho CRM: Cloud-based CRM focusing on sales automation.

Microsoft Dynamics CRM: CRM integrated with other Microsoft tools for managing customer data.

Question 18

Impact of Culture on IS

Answer 18

Organizational culture influences which IS work best. For example:

Process-driven cultures benefit from integrated systems like ERP.

Human relations cultures favor systems like CRM or social media.

Technologies also shape organizational culture, such as social media making communication more informal or ERP leading to centralization.

Question 19

Organizational Change and IS

Answer 19

Implementing new IS requires managing cultural and organizational change.
Resistance to change can occur, and employees need time to adapt to new processes, like learning new ways of ordering parts in an ERP system.

Question 20

Business Process Redesign with ERP

Answer 20

Changing business processes often requires redesigning workflows.
ERP systems demand adjustments in areas such as data storage, business procedures, and employee roles to align with the system.

Question 21

Culture and Technologies in an Organization

Answer 21

Different cultural orientations within organizations lead to preferences for different technologies and systems.
Internal process cultures prefer ERP and data warehouses.

Rational goal cultures favor CRM systems for customer-focused processes.

Human relations cultures thrive with groupware or social media.

Conversely, technologies can shape culture (e.g., ERP can lead to more formal and centralized structures).

Question 22

ERP’s Role in Business Process Integration

Answer 22

ERP helps integrate business functions such as finance, HR, and supply chain into a single system.
The system supports real-time decision-making and streamlines operations by reducing redundant tasks

Question 23

Decision Support Systems (DSS)

Answer 23

DSS are tools designed to help organizations analyze data and make informed decisions.
They typically involve data analysis techniques like data mining, predictive analytics, and trend analysis.

Question 24

Information Systems and Organizational Power

Answer 24

IS and IT systems can influence organizational power dynamics.
For example, controlling access to data can shift power, and technologies like RFID can transform supply chains, making them more efficient and transparent.