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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1)


Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information.


1)


_______

2)


Deciding whether to introduce a new product line is the responsibility of an operational manager.


2)


_______

3)


Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant.


3)


_______

4)


Transaction processing systems are most commonly used by the senior management level of an organization.


4)


_______

5)


A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business.


5)


_______

6)


A hotel reservation system is a typical example of a management information system.


6)


_______

7)


Management information systems typically support non routine decision making.


7)


_______

8)


The decision to grant credit to a customer is normally made by the middle manager.


8)


_______

9)


Transaction processing systems are the basic business systems that serve the operational level of the organization.


9)


_______

10)


Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment.


10)


______

11)


Most MISs use sophisticated mathematical models or statistical techniques.


11)


______

12)


Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance.


12)


______

13)


Decision-support systems use internal information as well as information from external sources.


13)


______

14)


ESSs are designed to serve the middle management of the organization.


14)


______

15)


ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.


15)


______

16)


ESSs are designed primarily to solve specific problems.


16)


______

17)


Information supplied by an enterprise system is structured around cross-functional business processes.


17)


______

18)


Enterprise systems often include transactions with customers and vendors.


18)


______

19)


Supply chain management systems are more externally oriented than enterprise systems.


19)


______

20)


Maintaining online directories of employees with special areas of expertise is one application of knowledge management systems.


20)


______

21)


Programmers are highly trained technical specialists who write the software instructions for computers.


21)


______

22)


The Chief Executive Officer is a senior manager who oversees the use of information technology in the firm.


22)


______

23)


End users are representatives of departments outside of the information systems group for whom applications are developed.


23)


______

24)


One of the roles of the information systems department is to suggest new business strategies and new information-based products and services.


24)


______

25)


There are many different ways in which the IT function may be organized in different business firms.


25)


______

26)


Information systems are all about improving business processes, which lie at the very heart of a business.


26)


______

27)


Business functions are specialized tasks performed in a business organization.


27)


______

28)


Producing a bill of materials is a business process of the finance and accounting functional area.


28)


______

29)


Making customers aware of a product is a business process of the manufacturing and production functional area.


29)


______

30)


New technology can actually change the flow of information and enable an entirely new business process.


30)


______

31)


Information systems automate many steps in business processes that were formerly performed manually.


31)


______

32)


iTunes and Amazon are examples of new business processes based on new business models.


32)


______

33)


Sales trend forecasting and pricing analysis systems are examples of IS used in marketing.


33)


______

34)


Machine control and facilities location systems are examples of IS used in manufacturing.


34)


______

35)


Budget and profit planning systems are examples of IS used in accounting and finance.


35)


______

36)


In MIS, we study systems from a functional and from a constituency perspective.


36)


______

37)


Transaction Processing Systems are used for keeping track of all activities at the top level of the organization.


37)


______

38)


Decision Support Systems and Management Information Systems serve the operational level of the organization.


38)


______

39)


Enterprise systems integrate the key business processes of the entire firm into a single software system.


39)


______

40)


Supply chain management system is one type of inter-organizational system.


40)


______

41)


Knowledge management systems enable organizations to better manage processes for capturing and applying knowledge and expertise.


41)


______

42)


Intranets expedite the flow of information between the firm and its suppliers and customers.


42)


______

43)


Electronic business refers to the use of digital technology and the Internet to execute the major business processes in the enterprise.


43)


______

44)


Electronic government refers to the application of the Internet and networking technologies to digitally enable government and public sector agencies' relationships with citizens.


44)


______

45)


Customer relationship management systems help firms manage their relationships with their customers.


45)


______

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

46)


Kia's difficulties in getting a complete picture of defects in their cars illustrates:


46)


______ A)


the challenges posed by having multiple information systems that are not linked. B)


the difficulties in creating accurate tracking systems. C)


the compromises made in drawing accurate reports from poorly planned information systems. D)


the difficulties in complying with government regulations.

47)


How would you best categorize the types of systems Kia implemented in their defect early warning system?


47)


______ A)


An MIS to create reports from existing TPSs and a DSS for high-level analysis and forecasts B)


A TPS to store basic data about vehicles, parts, sales, and warranties, and a DSS for high-level analysis and forecasts

C)


A production and manufacturing system to record basic data about faulty parts and a DSS for high-level analysis and forecasts

D)


A TPS to store basic data about vehicles, parts, sales, and warranties, and an MIS to create reports on the data

48)


Which of the following is a cross-functional business process?


48)


______ A)


Identifying a customer


B)


Hiring an employee C)


Fulfilling a customer order


D)


Creating an invoice

49)


Promoting the organization's products or services is a responsibility of the:


49)


______ A)


human resources function. B)


finance and accounting function. C)


sales and marketing function. D)


manufacturing and production function.

50)


Market research is an activity associated with the:


50)


______ A)


sales and marketing function. B)


manufacturing and production function. C)


finance and accounting function. D)


human resources function.

51)


Pricing analysis is an example of:


51)


______ A)


a sales and marketing information system serving middle management. B)


a finance and accounting information system serving middle management. C)


a sales and marketing information system serving senior management. D)


a finance and accounting information system serving senior management.

52)


A sales and marketing information system aids operational management in:


52)


______ A)


tracking sales. B)


analyzing sales performance. C)


planning new products and services. D)


preparing sales forecasts.

53)


A sales and marketing information system aids middle management employees in:


53)


______ A)


preparing sales forecasts. B)


planning new products and services. C)


tracking sales. D)


analyzing sales performance.

54)


Equipment scheduling and facilities maintenance are functions of:


54)


______ A)


human resources systems. B)


sales and marketing systems. C)


manufacturing and production systems. D)


finance and accounting systems.

55)


Senior management uses finance and accounting information systems to:


55)


______ A)


plan long-term profits. B)


control the firms' financial resources. C)


forecast sales trends. D)


decide where to locate new facilities.

56)


Budgeting is typically a feature of an information system serving:


56)


______ A)


middle management.


B)


operational management. C)


sales and marketing.


D)


senior management.

57)


A finance and accounting information system aids operational management with:


57)


______ A)


establishing long term investment goals. B)


budgeting. C)


profit planning. D)


accounts receivable.

58)


Compensation analysis is an example of:


58)


______ A)


human resources information systems. B)


sales and marketing information systems. C)


enterprise application information systems. D)


finance and accounting information systems.

59)


The total elapsed time, from the beginning of a business process to the end of the process, is called:


59)


______ A)


cycle time.


B)


completion time. C)


fulfillment.


D)


requisition-to-pay.

60)


A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of:


60)


______ A)


knowledge management systems. B)


executive-support systems. C)


transaction processing systems. D)


management information systems.

61)


The term "management information systems" designates a specific category of information systems serving:


61)


______ A)


transaction process reporting. B)


middle management functions. C)


employees with online access to historical records. D)


integrated data processing throughout the firm.

62)


To monitor the status of internal operations and the firm's relations with the external environment, managers need ________________ systems.


62)


______ A)


transaction processing


B)


management information C)


decision-support


D)


knowledge

63)


As discussed in the chapter case on Tupperware, what major change precipitated Tupperware's need to implement a new information systems strategy?


63)


______ A)


Merger B)


Move into overseas operations C)


Change in suppliers D)


Business model change

64)


These systems are typically a major source of data for other systems:


64)


______ A)


management information systems. B)


transaction processing systems. C)


executive support systems. D)


decision-support systems.

65)


Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to this type of system:


65)


______ A)


decision-support.


B)


management. C)


executive support.


D)


transaction processing.

66)


These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance:


66)


______ A)


decision-support systems. B)


transaction processing systems. C)


knowledge management systems. D)


management information systems.

67)


Executive support systems are information systems that support the:


67)


______ A)


decision-making and administrative activities of middle managers. B)


day-to-day processes of production. C)


knowledge and data workers in an organization. D)


long-range planning activities of senior management.

68)


Concur Expense Service System, used by MarketStar, would be best classified as a(n):


68)


______ A)


decision-support system. B)


executive-support system. C)


management information system. D)


transaction processing system.

69)


e-MDS, a software used to assess Ontario patients in long-term care at home or in nursing homes, would be best classified as a(n):


69)


______ A)


executive-support system. B)


decision-support system. C)


Management information system. D)


Transaction processing system.

70)


Concur Expense Service software, described in the Interactive Session: Management as software that automates the travel and entertainment expense-reporting process, would be classified as a(n):


70)


______ A)


ESS. B)


finance and accounting system. C)


DSS. D)


human resources system.

71)


Decision-support systems are often referred to as:


71)


______ A)


business modeling systems. B)


business information systems. C)


business analysis systems. D)


business intelligence systems.

72)


ESS are specifically designed to serve this level of the organization:


72)


______ A)


middle management.


B)


operational. C)


senior management.


D)


end-user.

73)


These systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content:


73)


______ A)


executive support systems. B)


decision-support systems. C)


management information systems. D)


transaction processing systems.

74)


These systems are designed to support organization-wide process coordination and integration.


74)


______ A)


Decision-support systems B)


Management information systems C)


Enterprise applications D)


CRM

75)


A(n) ________________ collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business.


75)


______ A)


enterprise system B)


management information system C)


transaction system D)


automatic reporting system

76)


________________ is the process that integrates supplier, manufacturer, distributor, and customer logistics processes.


76)


______ A)


Collaborative distribution


B)


Enterprise planning C)


Reverse logistics


D)


Supply-chain management

77)


________________ uses a set of integrated applications to address all aspects of the customer relationship.


77)


______ A)


CRM


B)


CLU


C)


CLE


D)


MIS

78)


Which type of system would you use to determine what trends in your supplier's industry will affect your firm the most in five years?


78)


______ A)


MIS


B)


ESS


C)


TPS


D)


DSS

79)


Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?


79)


______ A)


TPS


B)


ESS


C)


MIS


D)


DSS

80)


Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?


80)


______ A)


MIS


B)


TPS


C)


DSS


D)


ESS

81)


Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?


81)


______ A)


MIS


B)


TPS


C)


ESS


D)


DSS

82)


Which types of systems consolidate the relevant knowledge and experience in the firm to make it available to improve business processes and management decision making?


82)


______ A)


KMS


B)


Extranets


C)


CRM


D)


TPS

83)


What type of information system is an Intranet most easily adapted to:


83)


______ A)


TPS.


B)


CRM.


C)


MIS.


D)


KMS.

84)


Buying or selling goods over the Internet is called:


84)


______ A)


an extranet.


B)


e-business. C)


an intranet.


D)


e-commerce.

85)


The use of digital technology and the Internet to execute the major business processes in the enterprise is called:


85)


______ A)


e-commerce.


B)


MIS. C)


enterprise applications.


D)


e-business.

86)


The principal liaison between the information systems groups and the rest of the organization is a(n):


86)


______ A)


CTO. B)


systems analyst. C)


information systems manager. D)


programmer.

87)


A ________________ is a senior manager who oversees the use of IT in the firm.


87)


______ A)


CTO


B)


CEO


C)


CIO


D)


CFO

88)


The advantage of a having a centralized information services department, which operates as a separate department similar to other departments is:


88)


______ A)


that systems are built that directly address that function's business needs. B)


that this is more likely to produce more compatible systems and more coherent long-term systems development plans.

C)


that this lowers costs of technology purchases. D)


that systems are built that can function independently and more efficiently.

89)


What is the most important benefit of an enterprise application?


89)


______ A)


Enabling a company to work collaboratively with customers and suppliers B)


Enabling cost-effective, e-business processes C)


Enabling speed of communicating D)


Enabling business functions and departments to share information

90)


You manage the Information Systems department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. Which type of system will most efficiently provide a solution?


90)


______ A)


CRM


B)


Extranet C)


Intranet


D)


Enterprise system

91)


You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance will be finding a way to store and disseminate their client's constantly updating branding and style guides, which include multiple image files and text documents, to all of their branches. What system will best serve these needs?


91)


______ A)


A sales and marketing information system B)


A TPS with KMS capabilities C)


An extranet with KMS capabilities D)


An intranet with KMS capabilities

92)


You have been hired by a non-profit agency to implement a system to handle their donations. Event fundraisers need to be able to quickly access a donor's information and history. The marketing department needs to be able to create customized mailing lists, in order to send different messages to different types of donors. What system(s) will best meet these needs?


92)


______ A)


TPS with DSS capabilities


B)


TPS with MIS capabilities C)


TPS


D)


TPS with ESS capabilities

93)


You have been hired by Inspiration Inc, to help improve their profit margin. Inspiration Inc. is a business communications consultancy that services many clients in different industries throughout the United States. The end products of the company are customized recommendations for the best use of a client's existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 100 consultants, all of whom are located in their central headquarters in Chicago. What system do you recommend to improve the company's business processes and increase their profit margin?


93)


______ A)


CRM, to maintain easily accessible customer records to minimize the time spent looking for client data B)


Marketing system, for improving sales levels C)


KMS, for minimizing redundant work on similar clients D)


Extranet, to enable quick collaboration over the Internet , minimize the time spent communicating with the client, and minimize the amount of paperwork needed

94)


Which of the following types of organizing the information systems function would you be most likely to find in a very large, multinational corporation?


94)


______ A)


Represented within each major division of the company B)


As departments within each functional area C)


As a separate, centralized department D)


None of the above

95)


Which of the following types of organizing the information systems function would you be most likely to find in a small company with 50 employees?


95)


______ A)


As departments within each functional area B)


Represented within each major division of the company C)


As a separate, centralized department D)


None of the above

96)


Considering business processes and functional areas, which of the statements below is incorrect?


96)


______ A)


Producing bills of materials is a business process performed by finance and accounting B)


Making customers aware of a product is a business process performed by sales and marketing. C)


Evaluating employees' job performance is a business process performed by human resources. D)


Assembly of a product is a business process performed by manufacturing and production.

97)


Which of the following systems serve operational management?


97)


______ A)


Profit planning


B)


Pricing analysis C)


Order processing


D)


Production planning

98)


Which of the following systems serve middle management?


98)


______ A)


Budgeting


B)


Facilities location C)


Sales trend forecasting


D)


Training and development

99)


Which of the following systems serve senior management?


99)


______ A)


Compensation analysis


B)


Accounts receivable C)


Pricing analysis


D)


Facilities location

100)


Which of the following statements is (are) accurate?


100)


_____ A)


TPS provide answers to routine questions and track the flow of transactions through the organization. B)


DSS use a variety of models to analyze data, or condense large amounts of data into a form in which managers can analyze them.

C)


MIS generally provide answers to routine questions that have been specified in advance and have a predefined procedure for answering them.

D)


All of the above

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

101)


A(n) ________________ is a set of logically related activities for accomplishing a specific business result.


101)


____________

102)


A Web interface used to present integrated personalized business content to users is called a ________________.


102)


____________

103)


________________ span the entire firm, integrating information from multiple functions and business processes to enhance the performance of the organization as a whole.


103)


____________

104)


________________ are used by middle management to combine data and sophisticated analytical models or data analysis tools to support non routine decision making.


104)


____________

105)


The ________________ formula calculates the least expensive quantity to reorder for restocking inventory.


105)


____________

106)


________________ support activities such as identifying potential employees, maintaining complete records on existing employees, and creating programs to develop employees' talents and skills.


106)


____________

107)


A state Web site that allows citizens to pay parking fines online is a form of ________________.


107)


____________

108)


Supply chain management systems are one type of ________________ because they automate the flow of information across organizational boundaries.


108)


____________

109)


________________ are highly trained technical specialists who write the software instructions for computers.


109)


____________

110)


________________ are representatives of departments outside of the information systems group for whom applications are developed.


110)


____________

111)


________________ are specialized tasks performed in a business organization. Sales and marketing is an example of such.


111)


____________

112)


________________ automate many steps in business processes that were formerly performed manually.


112)


____________

113)


In order to understand how to change the business to make it more efficient and effective, you need to perform a ________________ analysis.


113)


____________

114)


When looking at systems from a ________________ perspective, we are able to identify systems by the major business function they serve.


114)


____________

115)


When looking at systems from a ________________ perspective, we are able to identify systems in terms of the major organizational groups that they serve.


115)


____________

116)


________________ systems help the organization in monitoring trends that affect new products or sales opportunities, support planning for new products and services, marketing research, and pricing decisions.


116)


____________

117)


________________ systems deal with the planning, development, and maintenance of production facilities, the establishment of production goals, and the scheduling of equipment, facilities, labour, and materials required.


117)


____________

118)


A ________________ is a system that performs and records daily routine transactions necessary to conduct business, such as sales order entry, hotel reservations, payroll, employee record-keeping, and shipping.


118)


____________

119)


A ________________ summarize and report on the company's basic operations using data supplied by transaction processing systems.


119)


____________

120)


________________ are designed to address non routine decisions requiring judgement, evaluation, and insight because there is no agreed procedure for arriving at a solution and are also designed to incorporate data about external events.


120)


____________

121)


________________ are systems that span functional areas and focus on executing business processes across the business firm.


121)


____________

122)


The four major enterprise applications are: enterprise systems, customer relationship management systems, knowledge management systems, and ________________.


122)


____________

123)


________________ collect data from various key business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources and store this data in a single central repository.


123)


____________

124)


________________ systems provide information about orders, production, inventory levels, and delivery of products and services so as to support efficient sourcing, production, and delivery of goods and services.


124)


____________

125)


An ________________ system automate the flow of information across organizational boundaries.


125)


____________

126)


________________ systems help firms manage their relationships with customers.


126)


____________

127)


A ________________ is the link by which data or voice are transmitted between sending and receiving devices in a network.


127)


____________

128)


A good ________________ system can enable a company to have a 360-degree view of each customer.


128)


____________

129)


The value of a firm's products and services is based not only on its physical resources but also on intangible ________________ assets.


129)


____________

130)


________________ systems enable organizations to better manage processes for capturing and applying knowledge and expertise.


130)


____________

131)


________________ support processes for acquiring, storing, distributing, and applying knowledge, as well as processes for creating knowledge and integrating it into the organization.


131)


____________

132)


________________ are internal networks built with Internet technology that are used for internal distribution of information to employees and as repositories of corporate policies, programs, and data.


132)


____________

133)


________________ are Intranets extended to authorized users outside of the company.


133)


____________

134)


________________ expedite the flow of information between the firm and its suppliers and customers.


134)


____________

135)


________________ expedite the flow of information between departments and employees in the organization.


135)


____________

136)


________________ refers to the use of digital technology and the Internet to execute the major business processes in the enterprise.


136)


____________

137)


________________ deals with the buying and selling of goods and services over the Internet.


137)


____________

138)


________________ refers to the application of the Internet and networking technologies to digitally enable public sector agencies' relationships with citizens.


138)


____________

139)


The ________________ department is the formal organizational unit responsible for information technology services.


139)


____________

140)


________________ are leaders of teams of programmers and analysts, project managers, physical facility managers, telecommunication managers, or database specialists.


140)


____________

141)


________________ are the principal liaisons between the information systems groups and the rest of the organization.


141)


____________

142)


The ________________ is a senior manager who oversees the use of information technology in the firm.


142)


____________

143)


A knowledge worker in the ________________ department will use information systems to solve problems related to the planning, development, and delivery of products and services.


143)


____________

144)


A knowledge worker in the ________________ department will use information systems to develop staffing requirements, maintain employee records, and track employee training, skills, and job performance.


144)


____________

145)


A knowledge worker in the ________________ department will be responsible for supplying and overseeing the hardware, software, and other technologies used by the various types of systems in the organization.


145)


____________

ESSAY. Write your answer in the space provided or on a separate sheet of paper. 146)


Identify and discuss the major types of systems in a business from a constituency perspective. What is the relationship between these systems?

147)


In your opinion, what are at least three factors that contribute to the difficulty of integrating systems for different organizational levels and functions within an organization? Support your answer.

148)


Discuss the difference between the finance function and the accounting function.

149)


Describe the information systems supporting the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources.

150)


Apex Vacuum, a family-owned manufacturer of budget vacuums, has grown exponentially over the last few years. However, the company is having difficulty preparing for future growth. The only information system used at Apex is an antiquated accounting system. The company has one manufacturing plant located in Arkansas; and three warehouses, in Arkansas, Delaware, and California. The Apex sales force is national, and Apex purchases about a third of its vacuum parts and materials from a single overseas supplier. You have been hired to recommend the information systems Apex should implement in order to maintain their competitive edge. However, there is not enough money for a full-blown, cross-functional enterprise application, and you will need to limit the first step to a single functional area or constituency. What will you choose, and why?

151)


Describe at least two benefits of using enterprise systems.

152)


How can a good CRM system increase profits for a company?

153)


What is the connection between organizations, information systems, and business processes?

154)


Define and discuss the use of cross-functional business processes within a firm.

155)


The retail home improvement chain you work for, DIY Discount, has noticed that one of its brands of faucets is not selling nearly as well as anticipated. What information systems of the business will you use to determine the reason for the poor sales? Discuss what information you will retrieve from which system. Which of the information systems will be most important for your analysis? Which of the systems will be least important?

156)


Organizations are able to achieve some level of integration through Internet technology. Your book discusses two ways in which this is possible. Please explain the technology tools used and how these allow the business to achieve integration.

157)


Explain the difference between an MIS, a DSS, and an ESS.

158)


Explain how information technology can enhance business processes?


1)


TRUE 2)


FALSE 3)


FALSE 4)


FALSE 5)


TRUE 6)


FALSE 7)


FALSE 8)


FALSE 9)


TRUE 10)


TRUE 11)


FALSE 12)


TRUE 13)


TRUE 14)


FALSE 15)


TRUE 16)


FALSE 17)


TRUE 18)


TRUE 19)


TRUE 20)


TRUE 21)


TRUE 22)


TRUE 23)


TRUE 24)


TRUE 25)


TRUE 26)


TRUE 27)


TRUE 28)


FALSE 29)


FALSE 30)


TRUE 31)


TRUE 32)


TRUE 33)


TRUE 34)


TRUE 35)


TRUE 36)


TRUE 37)


FALSE 38)


FALSE 39)


TRUE 40)


TRUE 41)


TRUE 42)


FALSE 43)


TRUE 44)


TRUE 45)


TRUE 46)


A 47)


A 48)


C 49)


C 50)


A 51)


A 52)


A 53)


D 54)


C 55)


A 56)


A 57)


D 58)


A 59)


A 60)


D 61)


B 62)


A 63)


D 64)


B 65)


A 66)


A 67)


D 68)


C 69)


B 70)


D 71)


D 72)


C 73)


A 74)


C 75)


A 76)


D 77)


A 78)


B 79)


D 80)


B 81)


A 82)


A 83)


D 84)


D 85)


D 86)


B 87)


C 88)


B 89)


D 90)


B 91)


C 92)


B 93)


D 94)


A 95)


D 96)


A 97)


C 98)


A 99)


D 100)


D 101)


business process 102)


portal 103)


Enterprise applications 104)


Decision-support systems 105)


economic order quantity 106)


Human resources information systems 107)


e-government 108)


interorganizational system 109)


Programmers 110)


End users 111)


Business functions 112)


Information systems 113)


business process 114)


functional 115)


constituency 116)


Sales and Marketing 117)


Manufacturing and Production 118)


transaction processing system (TPS) 119)


management information system (MIS) 120)


Executive-support system (ESS) 121)


Enterprise applications 122)


supply chain management systems 123)


Enterprise systems (ERP - Enterprise resource planning) 124)


Supply chain management 125)


interorganizational 126)


Customer relationship management (CRM) 127)


channel 128)


customer relationship management (CRM) 129)


knowledge 130)


Knowledge management (KMS) 131)


Knowledge management systems (KMS) 132)


Intranets 133)


Extranets 134)


Extranets 135)


Intranets 136)


e-Business (Electronic business) 137)


e-Commerce (Electronic commerce) 138)


e-Government (Electronic government) 139)


information systems 140)


Information systems managers 141)


Systems analysts 142)


Chief Information Officer (CIO) 143)


manufacturing and production 144)


human resources 145)


information systems 146)


The four major categories of information systems from a constituency perspective are:

1. Transaction processing systems, such as payroll or order processing, track the flow of the daily routine transactions that are necessary to conduct business.2. Management-information systems (MIS) provide the management control level with reports and access to the organization's current performance and historical records. Most MIS reports condense information from TPS and are not highly analytical.3. Decision-support systems (DSS) support management decisions when these decisions are unique, rapidly changing, and not specified easily in advance. They have more advanced analytical models and data analysis capabilities than MIS and often draw on information from external as well as internal sources.4. Executive-support systems (ESS) support senior management by providing data of greatest importance to senior management decision makers, often in the form of graphs and charts delivered via portals. They have limited analytical capabilities but can draw on sophisticated graphics software and many sources of internal and external information.

The various types of systems in the organization exchange data with one another. TPS are a major source of data for other systems, especially MIS and DSS. ESSs primarily receive data from lower-level systems.

147)


One answer might be similar to this: A business firm is not a simple mechanism, and firms that have been in business any length of time will have highly individualized ways of conducting common business procedures. Even though software programs can be customized, it will be necessary for the business to change because new procedures are always required by new software, and these changes are expensive partly because of the time involved. On the other hand, if the company decides to write software to fit the specialized methods it has developed to conduct its business, it will most certainly find this process to be much more expensive and technologically difficult than anyone imagined! Though many companies do not realize it, it will be necessary for them to map and to understand their systems before they will be able to integrate them. This is another time-consuming and expensive process, and is not easy to achieve.

148)


The finance function is responsible for managing the firm's financial assets, such as cash, stocks, bonds, and other investments, to maximize the return on these financial assets. The finance function is also in charge of managing the capitalization of the firm. To determine whether the firm is getting the best return on its investments, the finance function must obtain a considerable amount of information from sources external to the firm.

The accounting function is responsible for maintaining and managing the firm's financial recordsreceipts, disbursements, depreciation, and payrollto account for the flow of funds in a firm. The accounting function obtains information from sources internal to the firm.

149)


• Sales and marketing help the firm identify customers for the firm's products or services, develop products and services to meet customers' needs, promote the products and services, sell the products and services, and provide ongoing customer support.• Manufacturing and production systems deal with the planning, development, and production of products and services, and controlling the flow of production.• Finance and accounting systems keep track of the firm's financial assets and fund flows.• Human resources systems maintain employee records; track employee skills, job performance, and training; and support planning for employee compensation and career development.

150)


A TPS focusing on production and manufacturing to keep production costs low while maintaining quality, and for communicating with other possible vendors. The TPS would later be used to feed MIS and other higher level systems.

151)


Enterprise systems integrate the firm's key business processes in sales, production, finance, logistics, and human resources into a single software system so that information can flow throughout the organization, improving coordination, efficiency, and decision making. These systems help create a more uniform organization in which everyone uses similar processes and information, and measures their work in terms of organization-wide performance standards. The coordination of the firm's key business processes allows the firm to respond more rapidly to customer demands.

152)


Customer relationship management uses information systems to coordinate all of the business processes surrounding the firm's interactions with its customers. The systems consolidate customer information from multiple sourcestelephone, e-mail, wireless devices, traditional sales and marketing systems, and the Webso that the firm can obtain a unified view of a customer. This allows the firm to identify its most profitable customers and make special efforts to please them.

153)


Business processes refer to the manner in which work activities are organized, coordinated, and focused to produce a specific business result. They also represent unique ways in which organizations coordinate work, information, and knowledge and the ways in which management chooses to coordinate work. Managers need to pay attention to business processes because they determine how well the organization can execute, and thus are a potential source for strategic success or failures. Although each of the major business functions has its own set of business processes, many other business processes are cross-functional. Information systems can help organizations achieve great efficiencies by automating parts of these processes or by helping organizations rethink and streamline them. Firms can become more flexible and efficient by coordinating and integrating their business processes to improve management of resources and customer service.

154)


Cross-functional processes are those that require input, cooperation, or coordination between the major business functions in an organization. For instance, when a salesman takes an order, the major business functions of planning, production, inventory control, shipping, accounting, and customer relations will all be involved before the order is completed.

155)


• You might query operational level manufacturing and production TPS to make sure that the product is actually getting to the stores and being restocked.• You could query MIS to see average sales levels according to geography, location, and other factors to see if there are any specific factors affecting the sales.• You might query marketing systems to see what was seen as the appeal of these faucets and what, if any, promotions were used, and executive-level sales and marketing systems to see what trends are predicted for faucets.• You might query human resource systems to make sure that there aren't any incentive programs that are diminishing the importance of the faucet sales.• You might query ESS to see if the same faucets are being sold by competitors and what these prices are.• You might use DSS to see what factors could increase sales.

Assuming that the faucets are being properly stocked at the stores, the most important systems to query are the managerial-level systems: MIS for summaries of sales records to help pinpoint any other factors, sales and marketing to assure that promotion and pricing is accurate, ESS to check competition, and DSS for higher-level analysis to forecast possible solutions. The least important to query would be finance and accounting systems as these record data that shouldn't be affecting the sales of a faucet.

156)


The two technology tools are Intranets and Extranets. Intranets and Extranets use Internet technology to create networks in which employees and partners of the organization can use to communicate. Intranets are internal networks built with the same tools and communication standards as the Internet and are used for the internal distribution of information to employees and repositories of corporate policies, programs, or data. Extranets are Intranets extended to authorized users outside of the company. Extranets expedite the flow of information between the firm and its suppliers, distributors, and customers. It also allows different firms to collaborate in areas such as product design, marketing, and production.

157)


Although all these systems are designed to support decision making and control, they differ by the level of management supported, the data sources, and the analytical capabilities. An MIS uses internal data provided by the TPS and is geared towards generating pre-programmed reports according to a set schedule, as well as ad-hoc reports. It provides middle-managers with daily information on performance used to monitor and control the business. A DSS uses internal data provided by the TPS and MIS, and is also capable of using external data. It is geared towards helping managers and decision makers in making non-routine decisions by using advanced analytical, modelling, and reporting tools. An ESS uses internal data provided by the MIS and the DSS and also external data. This system also has advanced analytical, modelling, and reporting tools, but is designed to help top level managers in making non-routine decisions requiring judgement, evaluation, and insight. The decision it supports are long-term, strategic decisions.

158)


Information technology can enhance business processes by increasing the efficiency of such processes and by enabling the development of entirely new processes capable of transforming the business. Information systems can automate steps in business process, can create electronic workflows, support integration of business processes and data sharing, increase and better support communication, decision making, and control of the organization, to name a few capabilities.

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