Chapter 02-IT Concepts And Management

An intranet is a network designed to serve the internal informational needs of a single organization. It is a private network that allows employees to access and share information, collaborate on projects, and communicate within the organization. Unlike the internet, which is a global network accessible to the public, an intranet is restricted to authorized users within the organization. It provides a secure and controlled environment for sharing sensitive information and conducting internal business operations.

When your purchases are swiped over the barcode reader at the point-of-sale terminals at Wal-Mart or Carrefour, a transaction processing system records the data. This system is responsible for capturing and processing transactional data in real-time, ensuring accurate and efficient recording of sales and inventory information. It is specifically designed to handle high volumes of transactions and is essential for the smooth operation of retail businesses like Wal-Mart and Carrefour.

Senior managers are responsible for making decisions that deal with situations that may significantly change the manner in which business is done. They have the authority and expertise to analyze complex situations, assess risks, and develop strategies to adapt to changes in the business environment. They are also responsible for setting goals, allocating resources, and guiding the overall direction of the organization. Their decisions have a broad impact on the organization and can shape its long-term success.

The major capabilities of information systems include performing high-speed, high-volume numerical computations, providing fast and accurate communications among organizations, and increasing the effectiveness and efficiency of people working in groups. However, storing very small amounts of information in a very large space is not considered a major capability of information systems.

An extranet is a network that connects parts of the intranets of different organizations and allows secure communications among business partners. Unlike the internet, which is a public network, an extranet is a private network that is accessible only to authorized users. It provides a secure and controlled environment for organizations to share information, collaborate, and conduct business transactions with their trusted partners.

The degree of outsourcing refers to the extent to which a company relies on external vendors or partners to perform certain tasks or functions. This is not a determining factor in how well a company transforms itself from traditional modes of operation to e-business. The other options, such as adapting structure and processes, IT architecture, and IT infrastructure, are all important factors that contribute to a successful transformation.

Management Information Systems (MIS) support functional managers by providing them with periodic reports such as weekly sales volume and comparisons of actual expenses to budgeted expenses. MIS collect, process, store, and distribute information to support managerial decision-making. They provide managers with the necessary data and reports to monitor and evaluate the performance of their departments or functional areas. MIS help managers make informed decisions by providing them with accurate and timely information about the organization's operations, performance, and financial status.

An application program is a computer program that is specifically designed to support a particular task or business process. It is different from an operating system, which manages computer hardware and software resources, and a file system, which organizes and stores data. An application program, such as one used for processing payroll, is created to perform a specific function and is often user-friendly and interactive. It allows users to input data, perform calculations, and generate reports or outputs related to the task or process it supports.

Transaction Processing Systems (TPS) are considered critical to the success of any organization since they support core operations such as purchasing materials, billing customers, preparing a payroll, and shipping goods to customers. TPS are responsible for processing and recording transactions in real-time, ensuring the accuracy and efficiency of these essential business processes. They provide the necessary data and information for other systems within the organization, such as Management Information Systems and Enterprise Systems, to function effectively. Without TPS, organizations would struggle to carry out their day-to-day operations smoothly and efficiently.

A student's grade point average represents the cumulative average of their grades over a period of time, providing information about their academic performance. It is a numerical representation that helps in evaluating their progress and comparing it with other students. Therefore, it can be considered as a form of information rather than just raw data or knowledge.

Knowledge workers are classified as such because they create and integrate information and knowledge into the business as part of their work. This term is used to describe professionals who rely on their expertise, skills, and abilities to analyze, interpret, and apply information to solve complex problems and make informed decisions. These individuals often work in fields such as research, consulting, education, and professional services, where their primary contribution is the generation and application of knowledge.

An employee's performance rating in comparison with the performance ratings of other employees can be stored and organized in a database. A database is a structured collection of data that allows for efficient storage, retrieval, and analysis of information. In this case, the performance ratings of employees are being collected and stored in a database, which can be used to generate reports, identify trends, and make informed decisions about employee performance.

IT will increase the number of managerial levels in an organization. This statement is not correct because IT actually has the potential to flatten organizational hierarchies and reduce the number of managerial levels. With the implementation of IT systems, managers can have access to real-time information and make decisions more efficiently, which can eliminate the need for multiple levels of management. Additionally, IT can automate certain tasks, reducing the need for as many managers to oversee them. Therefore, IT is more likely to reduce the number of managerial levels rather than increase them.

This statement is not correct because information systems are not only concentrated in the IS Department. Information systems are used by various departments and individuals throughout an organization to support their operations, decision-making, and communication. Information systems are integrated into different functions and processes across the organization, and they are not limited to a single department.

Interorganizational information systems refer to electronic commerce systems that facilitate the exchange of information and transactions between different organizations. These systems enable businesses to collaborate, share data, and conduct transactions with their partners, suppliers, and customers. They play a crucial role in streamlining supply chain management, improving communication, and enhancing overall efficiency in the business ecosystem.