Question 1: Strategic Business Objectives of Information Systems.

Although many managers are familiar with the

reasons why managing their typical resources such as equipment and people are important, it is important to examine the
growing interdependence between a firms ability to use information technology and its ability to implement corporate
strategies and achieve corporate goals. Specifically, business firms invest heavily in information to achieve six strategic
business objectives: 1. Operational Excellence-Businesses continuously seek to improve the efficiency of their
operations in order to achieve higher profitability. Information systems and technologies are some of the most important
tools available to managers for achieving higher levels of efficiency and productivity in business operations, especially
when coupled with changes in business practices and management behavior. 2. New Products, Services, and Business
Models- Information systems and technologies are a major enabling tool for firms to create new products and services, as
well as entirely new business models. A business model describes how a company produces, delivers, and sells a product
or service to create wealth. As successful as Apple Inc., BestBuy, and Wal-Mart were in their traditional brick-and-mortar
existence, they have all introduced new products, services, and business models that have made them even more
competitive and profitable. 3. Customer and Supplier Intimacy- When a business really knows its customers, and serves
them well, the way they want to be served, customers generally respond by returning and purchasing more. The result is
increased revenues and profits. Likewise with suppliers: The more a business engages its suppliers, the better the suppliers
can provide vital inputs. The result is a lower cost of doing business. JC Penney is an excellent example of how the use of
information systems and technologies are extensively used to better serve suppliers and retail customers. Its information
system digitally links the supplier to each of its stores worldwide. Suppliers are able to ensure the continuous flow of
products to the stores in order to satisfy customer demands. 4. Improved Decision Making- Information systems and
technologies have made it possible for managers to use real-time data from the marketplace when making decisions.
Previously, managers did not have access to accurate and current data and as such relied on forecasts, best guesses, and
luck. The inability to make informed decisions resulted in increased costs and lost customers. 5. Competitive Advantage-
Doing things better than your competitors, charging less for superior products, and responding to customers and suppliers
in real time all add up to higher sales and higher profits that your competitors cannot match. Toyota and Wal-Mart are
prime examples of how companies use information systems and technologies to separate themselves from their
competition. Toyota worked its way to top of its industry with the help of its legendary information system. Wal-Mart is
the most efficient retail store in the industry based in large part on how well it uses its information resources. 6. Survival-
Firms also invest in information systems and technologies because they are necessities for doing business. Information
systems are not a luxury. In most businesses, information systems and technology is the core to survival. Citibank was the
first banking firm to introduce ATMs. In doing so, they had a major competitive advantage over their competitors. In order
to remain and survive in the retail banking industry, other banks had no choice but to provide ATM services to banking
customers. New federal and state statutes and regulations have resulted in giving firms no choice but to turn to
information systems and technologies in order to comply with the new requirements and regulations. Question 2: Briefly
narrate the 5 types of Information System. An information system is software that helps us organize and analyze data.
This makes it possible to answer questions and solve problems relevant to the mission of an organization. In other hand,
we can explain information system as a combination of hardware, software and trained personnel organized to facilitate
planning, control, coordination and decision making in an organization. The Five types of information systems are: - 1.
Decision Support System - A decision support system helps make decisions by working and analyzing data that can
generate statistical projections and data models. This system gives support rather than replacing a managers judgment
while improving the quality of a managers decision. A DSS helps solve problems while using external data. 2.
Transaction Processing System - A transaction processing system provides a way to collect, process, store, display
modify or cancel transaction. Most of these systems allow multiple transactions to take place simultaneously. The data
that this system collects is usually stored in database which can be used to produce reports such as billing, wages,
inventories, summaries, manufacturing schedules or check registers. 3. Information Systems in Organizations - This
information system collects stores and processes data to give organization real time useful and accurate information. This
information system encompasses data gathering information from the people and machines that collect, process, output
and store data. Also in the networks that transmit and receive data and the procedures that govern the way data is handled.
4. Management Information System - A management information system is an information system that uses the data
collected by the transaction processing system and uses this data to create reports in a way that managers can use it to
make routine business decisions in response to problems. Some of the reports that this information system creates are
summary, exception and ad hoc reports. All this is done to increase the efficiency of managerial activity. 5. Expert
Systems and Neutral Network - An expert system also known as knowledge based system, is a computer system that is
designed to analyze data and produce recommendations, diagnosis and decisions that are controlled. A neutral system uses
computers to foster the way a human brain may process information, learn and remember that information.
Question 3: What are enterprise applications? Describe 4 types of enterprise system. Enterprise applications
Definition - An enterprise application is the phrase used to describe applications (or software) that a business would use to
assist the organization in solving enterprise problems. When the word "enterprise" is combined with "application," it
usually refers to a software platform that is too large and too complex for individual or small business use. The four major
enterprise applications are discussed below: 1. Enterprise System - The enterprise resource planning integrates software
applications for managing purchasing activities, financial activities, human resource activities and inventory management
systems. Inside the Enterprise Resource Planning System the various activities are divided into modules. One of the
advantages of Enterprise Resource Planning is the ease of customization according to different types of industries. 2.
Supply Chain Management Systems - Supply Chain Management Systems utilizes people tasks and resources for
moving products from company to customer. Supply Chain Management should be carried out in an efficient and effective
way and for this enterprise systems are being utilized. The common supply chain activities involve development of
product, sourcing of materials from suppliers, production of goods and logistics management activities. The flow inside
the enterprise management systems helps in managing day to day activities concerning the movement of resources in the
form of raw materials and end products. 3. Customer Relationship Management Systems - The purpose of Customer
Relations Management was to increase the productivity in sales department by managing the consumers effectively
and increasing the sales. Through Customer Relations management what the customer actually wants and how the
behavior concerned with buying is addressed in a systematic way. This also helps increasing the quality of the products
from the company and forecasting sales for future. There are several additional features being associated with Customer
relation Management like mobile integration which gives further insight into customer preference. 4. Knowledge
Management Systems - Enterprise knowledge management (EKM) is a fairly broad term in IT that refers to any solutions
or systems that deal with organizing data into structures that build knowledge within a business. Another way to say this is
that knowledge management solutions create business knowledge out of existing assets. Question 4: What is
collaboration? Describe the 6 reasons showing importance of collaboration. Collaboration is a joint effort of multiple
individuals or work groups to accomplish a task or project. Within an organization, collaboration typically involves the
ability of two or more people to view and contribute to documents or other content over a network. The 6 reasons
showing importance of collaboration are given below- 1. Changing Nature of work. 2. Growth of professional work
interaction jobs3. Changing Organization of the firm.4. Changing Scope of the firm.5. Emphasis on innovation.6.
Changing Culture of Work. Question 5: Define Information System? What is the relationship between data and
information? Describe the three activities of information system. Information System - Information system is
an integrated set of components for collecting, storing, and processing data and for providing information, knowledge, and
digital products. Information system is the collection of technical and human resources that provide the storage,
computing, distribution, and communication for the information required by all or some part of an enterprise. A special
form of Information System is a management information system (MIS), which provides information for managing an
enterprise. The relationship between data and information - Most people believe that the terms "data" and
"information" are interchangeable and mean the same thing. However, there is a distinct difference between the
two words. Data can be any character, text, words, number, pictures, sound, or video and, if not put into context, means
little or nothing to a human. However, information is useful and usually formatted in a manner that allows it to be
understood by a human. Computers typically read data, but it is not necessarily something that a computer actually
understands. Through the use of formulas, programming scripts, or software applications, a computer can turn data into
information that a human can understand. The three activities of information system - An Information system is a set of
interrelated components that collect, store, process and distribute information. The three activities that information
systems do are; input, output and processing. Input: - When an information system collects raw data from an organization
it is called input. Processing: - When an information system converts raw data into a meaningful form for users it is called
processing. Output: - When an information system transfers the processed data into a form that people in an organization
can understand and utilize it is called output.