Essentials Of Management Information System Sfsu: Isys 363 - Chapter 2

CRM stands for Customer Relationship Management. It is a strategy that uses a set of integrated applications to address all aspects of the customer relationship. This includes managing customer interactions, analyzing customer data, and improving customer satisfaction. CRM helps businesses build strong relationships with their customers by providing a centralized platform for managing customer information, tracking sales and marketing activities, and delivering personalized experiences. It enables businesses to understand their customers better, anticipate their needs, and provide them with the right products and services. Therefore, CRM is the correct answer to the question.

The activity of checking for product quality is closely related to the manufacturing and production function. This function is responsible for ensuring that the products being produced meet the required standards and specifications. By conducting quality checks, the manufacturing and production department can identify any defects or issues with the products before they are released to the market. This helps in maintaining customer satisfaction and ensuring that only high-quality products are delivered to the customers.

The correct answer is senior management, middle management, and operational management. This answer accurately identifies the three principal levels of hierarchies within a business organization. Senior management refers to the top-level executives who make strategic decisions and set goals for the organization. Middle management is responsible for implementing the strategies and overseeing the work of lower-level employees. Operational management focuses on day-to-day operations and supervises the frontline workers who directly deliver products or services. This hierarchy structure allows for efficient decision-making, coordination, and execution at different levels of the organization.

The correct answer is e-commerce. E-commerce refers to the buying and selling of goods over the Internet. It involves online transactions, electronic funds transfer, and online shopping platforms. E-commerce has revolutionized the way businesses operate, allowing them to reach a global audience and conduct transactions electronically. It has become an essential part of the modern economy, providing convenience and accessibility to both businesses and consumers.

The responsibility of promoting the organization's products or services lies with the sales and marketing function. This function is specifically focused on creating awareness, generating leads, and convincing potential customers to purchase the organization's offerings. Finance and accounting function primarily deals with financial management, human resources function focuses on employee recruitment and management, and manufacturing and production function is responsible for producing goods or services. However, none of these functions are directly involved in promoting the organization's products or services like the sales and marketing function.

Market research is an activity associated with the sales and marketing function because it involves gathering and analyzing data about customers, competitors, and market trends. This information is used to identify target markets, develop marketing strategies, and make informed decisions about product development and pricing. Market research helps businesses understand consumer preferences and needs, evaluate the effectiveness of marketing campaigns, and identify opportunities for growth and expansion. Therefore, it is closely related to the sales and marketing function.

A computerized system that performs and records the daily dealings necessary to conduct business is classified as a transaction-processing system. This system is responsible for processing and recording routine transactions such as sales, purchases, and payments. It is designed to handle large volumes of transactions efficiently and accurately. Unlike other systems mentioned, such as decision support system or executive support system, a transaction-processing system focuses on the operational aspects of a business rather than providing managerial or strategic support. Therefore, the correct answer is transaction-processing system.

ESS, or Executive Support Systems, are specifically designed to serve the senior management level of the organization. These systems provide high-level information and analysis to support strategic decision-making and planning by senior executives. They typically focus on providing summarized and consolidated data from various sources, allowing executives to monitor performance, identify trends, and make informed decisions. ESS are not designed for end-users or operational staff, but rather for the top-level management who require access to strategic information. Middle management may use other types of systems, such as management information systems, to support their decision-making needs.

A wiki is a type of web site designed for collaborative writing and editing. It allows multiple users to contribute and modify content, making it a valuable tool for collaborative projects and knowledge sharing. Unlike video conferencing, social networking sites, or blogging platforms, a wiki specifically focuses on enabling users to create and edit content together in a collaborative manner.

TPSs, or Transaction Processing Systems, are the basic business systems that serve the operational level of the organization. Operational level refers to the day-to-day activities and transactions that are necessary to run the business efficiently. TPSs are designed to process and record these transactions in real-time, ensuring accurate and timely data entry. They are typically used by front-line employees and supervisors who are directly involved in the operational processes of the organization, such as sales, inventory management, and customer service. TPSs provide the necessary data and support for operational decision-making and help streamline the overall operations of the organization.

Supply-chain management refers to the coordination and integration of various activities involved in the flow of goods, services, and information from suppliers to customers. It involves managing the entire supply chain, including suppliers, manufacturers, distributors, and customers. By integrating and sharing information from all these stakeholders, supply-chain management systems ensure smooth and efficient logistics processes. These systems enable better coordination, visibility, and decision-making, leading to improved customer satisfaction, reduced costs, and enhanced overall performance.

Equipment scheduling and facilities maintenance are functions that are directly related to the manufacturing and production processes of a company. These activities involve managing the usage and maintenance of equipment and facilities to ensure smooth operations and minimize downtime. Finance and accounting systems primarily deal with financial transactions and record-keeping, while human resources systems focus on managing personnel and employee-related processes. Sales and marketing systems are responsible for activities related to generating sales and promoting products or services. Therefore, the correct answer is manufacturing and production systems.

Decision-support systems are designed to assist in making decisions that are unique, rapidly changing, and not easily specified in advance. These systems provide analytical tools and models that help users analyze complex data, evaluate different scenarios, and generate insights to support decision-making processes. Unlike other systems like management information systems, executive support systems, and transaction processing systems, decision-support systems are specifically tailored to handle complex and unstructured decision-making tasks. They provide the necessary tools and information to facilitate informed and effective decision-making in dynamic and unpredictable situations.

Executive support systems are specifically designed to provide information and support for the long-range planning activities of senior management. These systems help senior managers analyze data, identify trends, and make strategic decisions for the future of the organization. They provide access to relevant and timely information, such as market research, financial data, and industry trends, which is crucial for effective long-term planning. By focusing on long-range planning, executive support systems enable senior management to set goals, allocate resources, and make informed decisions that align with the organization's overall strategy and vision.

Engineers and architects are considered knowledge workers because they primarily rely on their expertise, skills, and knowledge to perform their job tasks. They are involved in designing, planning, and problem-solving, which require a high level of specialized knowledge and critical thinking. Unlike production workers who focus on manual labor and middle/senior management who oversee operations and make strategic decisions, engineers and architects use their intellectual abilities to create and innovate. They contribute to the development and application of knowledge in their respective fields, making them prime examples of knowledge workers.

Second Life is a virtual world where users can create avatars and interact with each other in a simulated environment. It allows people to explore, socialize, and engage in various activities, such as building and selling virtual goods, attending events, and participating in virtual communities. Unlike a wiki, which is a collaborative platform for creating and editing content, or a social networking site focused on connecting individuals, Second Life primarily focuses on providing a virtual experience and a platform for user-generated content and interactions. Therefore, the correct answer is virtual world.

Management-level systems are designed to support the decision-making and administrative activities of middle managers. These systems provide the necessary information and tools for middle managers to make informed decisions and effectively manage their teams and resources. They help in monitoring and controlling operations, analyzing data, and generating reports for the purpose of planning and coordinating activities within an organization. These systems are typically more detailed and focused on specific operational areas compared to higher-level strategic planning systems used by senior management.

Decision-support systems are designed to handle decisions that are unique, rapidly changing, and not easily specified in advance. These systems provide analytical tools and information to support decision-making processes. They are especially useful when dealing with complex and unstructured problems that require analysis and evaluation of various alternatives. Decision-support systems help managers and executives make informed decisions by providing them with relevant data, models, and tools for analysis.

CRM stands for Customer Relationship Management. It is a system that provides information to coordinate all of the business processes that deal with customers in sales, marketing, and service. The purpose of CRM is to optimize revenue, customer satisfaction, and customer retention. It helps businesses manage and analyze customer interactions and data throughout the customer lifecycle, enabling them to build stronger relationships with their customers and improve overall business performance.

Transaction processing systems are typically a major source of data for other systems because they capture and store detailed information about the day-to-day transactions and operations of an organization. This data can then be used by other systems, such as management information systems, executive support systems, and decision-support systems, to generate reports, provide insights, and support decision-making processes. Transaction processing systems ensure the accuracy and reliability of data, making them essential for feeding information into other systems within an organization.

A CIO, or Chief Information Officer, is a senior manager who is responsible for overseeing the use of information technology (IT) within a firm. They are in charge of developing and implementing IT strategies that align with the company's goals and objectives. The CIO ensures that the firm's IT systems and infrastructure are efficient, secure, and meet the needs of the organization. They also play a crucial role in decision-making processes related to technology investments and innovations.

The term "management information systems" refers to a category of information systems that specifically serve middle management functions. These systems provide middle managers with the necessary information and tools to make informed decisions and carry out their day-to-day responsibilities. They help in areas such as planning, organizing, and controlling operations within the organization. Integrated data processing throughout the firm, transaction process reporting, and senior management are not the main focus of management information systems, making them incorrect options.

An extranet is a type of system that allows different firms to work collaboratively on a product. Unlike an intranet, which is limited to internal use within a single organization, an extranet extends access to external parties such as suppliers, partners, or customers. This enables secure communication, data sharing, and collaboration between multiple organizations, making it an ideal solution for collaborative work on a product. KMS (Knowledge Management System) and CRM (Customer Relationship Management) systems, on the other hand, are not specifically designed for collaborative work between different firms.

Electronic meeting software would be appropriate for participants in separate locations who need to collaborate synchronously because it allows them to connect and communicate in real-time. This type of software often includes features such as video conferencing, screen sharing, and document sharing, which facilitate collaboration and decision-making among remote team members. It enables participants to have interactive discussions, share ideas, and work together on tasks, regardless of their physical location.

Management information systems support the administrative activities of middle managers. These systems provide middle managers with the necessary information to make decisions and carry out their day-to-day tasks effectively. They help in tasks such as monitoring and controlling operations, allocating resources, coordinating activities, and communicating with both higher-level management and lower-level employees. By providing timely and accurate information, management information systems enable middle managers to streamline administrative processes, improve efficiency, and achieve organizational goals.

Executive support systems are specifically designed to provide information and support to senior executives. These systems often deliver information through a portal, which serves as a centralized platform for executives to access relevant data and make informed decisions. Unlike transaction processing systems, which focus on processing day-to-day transactions, executive support systems are geared towards strategic decision-making. They provide high-level insights and analysis, enabling executives to monitor performance, identify trends, and make critical business decisions. Therefore, executive support is the most suitable option for systems that deliver information to senior executives through a portal.

E-business refers to the use of digital technology and the Internet to carry out various business processes within an enterprise. It encompasses a wide range of activities including online marketing, online sales, online customer service, and online collaboration with business partners. Unlike e-commerce, which specifically focuses on online buying and selling of goods and services, e-business encompasses a broader scope of digital operations in the business environment. Enterprise applications and MIS (Management Information Systems) are related terms but do not specifically refer to the use of digital technology and the Internet for business processes like e-business does.

Enterprise applications are designed to support organization-wide process coordination and integration. These applications provide a comprehensive solution for managing various aspects of an organization, including customer relationship management (CRM), decision support systems, and management information systems. By integrating different processes and functions within an organization, enterprise applications help streamline operations and improve overall efficiency. These systems often include modules for finance, human resources, supply chain management, and other key business functions, allowing for seamless coordination and communication across departments.

The correct answer is data workers. Data workers are employees who assist with paperwork at all levels of the firm. They are responsible for handling and processing large amounts of data and information, ensuring its accuracy and organization. They play a crucial role in maintaining and managing the company's data, which is essential for decision-making and efficient operations.

Operational-level systems are designed to answer routine questions and track the flow of transactions through the organization. These systems are typically used by lower-level employees to carry out day-to-day tasks and operations. They provide real-time information and support operational decision-making processes. Senior management-level systems, on the other hand, are used by top-level executives for strategic decision-making, while management-level systems focus on middle management tasks. Knowledge management systems, on the other hand, are designed to capture, store, and distribute organizational knowledge. Therefore, operational-level systems best fit the given description.

Implementing an extranet system would enable quick collaboration over the internet, allowing consultants to communicate with clients efficiently. This would reduce the time spent on communication and minimize the amount of paperwork needed, ultimately improving the company's business processes. Additionally, the extranet would facilitate easy access to client data, helping consultants to quickly retrieve necessary information and thus saving time. Overall, the use of an extranet system would streamline operations, increase productivity, and contribute to improving the company's profit margin.

Decision-support systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance. These systems provide analytical tools and techniques to help managers and decision-makers make informed decisions based on available data and information. They can handle complex and unstructured problems, allowing users to explore different scenarios, analyze data, and generate insights to support decision-making processes. Unlike other systems, decision-support systems are designed to assist in decision-making rather than automate predefined processes.

A cross-functional business process involves multiple departments or functions working together to achieve a common goal. Hiring an employee, identifying a customer, and creating an invoice are all tasks that can be completed by a single department or function within a business. However, fulfilling a customer order typically requires coordination and collaboration between various departments such as sales, operations, and logistics, making it a cross-functional business process.

A Transaction Processing System (TPS) is required to handle the donations efficiently and accurately. It will allow event fund-raisers to quickly access donor information and history. However, a Management Information System (MIS) is also needed to meet the marketing department's requirement of creating customized mailing lists. MIS will provide the necessary tools and functionality to analyze donor data and create targeted mailing lists. Therefore, combining TPS with MIS will best meet the needs of the non-profit agency.

Decision-support systems are a type of information system that provide users with tools and data to support decision-making processes. They are designed to gather, analyze, and present data in a way that helps users make informed decisions. Business intelligence systems, on the other hand, are specifically focused on collecting and analyzing business data to provide insights and support decision-making. Therefore, the term "business intelligence systems" is the most appropriate term to describe decision-support systems.

Compensation analysis is a process that involves evaluating and determining the appropriate compensation for employees within an organization. This includes analyzing factors such as salary, bonuses, benefits, and incentives. Since compensation analysis is directly related to managing and administering employee compensation, it falls under the purview of human resources. Therefore, the correct answer is human resources.

An extranet with KMS capabilities would be the best system to serve the needs of the highly successful advertiser. An extranet is a private network that allows secure communication and collaboration between different branches or external partners. It would provide a centralized platform for storing and disseminating the client's frequently updated branding and style guides. The KMS capabilities would allow for efficient management and organization of the multiple image files and text documents.

An Executive Support System (ESS) would be the most appropriate type of system to determine what trends in your supplier's industry will affect your firm the most in five years. ESS is designed to provide high-level executives with the necessary information and tools to make strategic decisions. It collects and analyzes data from various sources, including internal and external data, to provide a comprehensive view of the business environment. Therefore, an ESS would enable executives to identify and understand the trends in the supplier's industry and assess their potential impact on the firm's future.

ESS stands for Executive Support System, which is a type of system that provides top-level executives with information and analysis to support strategic decision-making. In this case, using an ESS would be the most appropriate choice because it is designed to help executives identify and analyze trends and make long-term strategic decisions. MIS (Management Information System) focuses on providing operational information to middle-level managers, TPS (Transaction Processing System) focuses on processing and recording day-to-day transactions, and DSS (Decision Support System) focuses on providing analytical tools and models to support decision-making at all levels of the organization.

Video streaming is not one of the most important 15 types of collaboration software tools because it primarily focuses on delivering video content over the internet, rather than facilitating real-time communication and collaboration among users. While video streaming can be useful for sharing pre-recorded videos or broadcasting events, it does not provide the interactive features and functionality required for effective collaboration, such as document sharing, real-time editing, and group communication. Therefore, video streaming is not considered a core collaboration tool in the context of this question.

A POS system, or Point of Sale system, is used to process transactions and record sales data in real-time. This system is typically used by businesses to manage their daily operations, such as processing payments, tracking inventory, and generating sales reports. TPS, or Transaction Processing System, is the category of information system that best describes a POS system. TPS is designed to handle the routine transactions of an organization, providing accurate and timely data for operational decision-making.

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 management information systems. This is because it provides information to managers that helps them make decisions and manage the relocation process efficiently. The system collects and analyzes data on costs, allowing managers to monitor and control expenses related to employee relocations. It provides valuable information for planning, budgeting, and evaluating the effectiveness of the relocation program, making it a management information system.

The most important benefit of an enterprise application is enabling business functions and departments to share information. This allows for better collaboration and coordination within the organization, leading to improved efficiency and decision-making. By facilitating the exchange of data and knowledge across different teams and departments, an enterprise application promotes a more integrated and streamlined workflow, ultimately driving productivity and success.

An extranet would be the most efficient system to provide a solution for the small startup Internet advertiser. An extranet is a private network that allows authorized external users, such as customers, to access certain parts of the company's internal network. By setting up an extranet, the company can provide customers with real-time statistics about their current banner ads without granting them full access to the internal network. This allows for secure and controlled access to the information, while also being cost-effective for the startup.

A finance and accounting information system aids operational management by providing tools and processes to effectively manage and track accounts receivable. This includes monitoring and analyzing customer payments, managing outstanding invoices, and generating reports on cash flow and credit management. By having a reliable system in place, operational management can improve cash flow, reduce bad debt, and make informed decisions regarding credit policies and collections.

In a business environment, collaboration is aimed at accomplishing the task at hand. This means that the primary goal of collaboration is to work together effectively and efficiently to achieve the objectives and goals of the business. While fostering better communication, providing a sense of community, and preventing miscommunication are important aspects of collaboration, they are ultimately means to the end of successfully completing the tasks and projects required for the business's success.

An enterprise system collects data from various key business processes and stores the data in a single comprehensive data repository, usable by other parts of the business. It is designed to integrate and streamline different functions within an organization, providing a centralized platform for data management and access. This allows for efficient data sharing and collaboration across departments, improving overall business operations and decision-making processes.

The time/space matrix is an analytical framework discussed in the chapter that helps understand and evaluate the benefits and uses of collaboration tools. This matrix considers the trade-off between time and space in collaboration, where time refers to the speed of communication and decision-making, and space refers to the physical distance between collaborators. By analyzing this matrix, one can assess how collaboration tools can reduce time delays and overcome geographical barriers, leading to improved efficiency and effectiveness in collaborative work.

A systems analyst is the principal liaison between the information systems groups and the rest of the organization. They act as a bridge between the technical teams and the business users, understanding the needs and requirements of the organization and translating them into technical solutions. They analyze and evaluate existing systems, identify areas for improvement, and recommend new systems or modifications. They also communicate and coordinate with stakeholders to ensure that the systems meet the organization's objectives. A programmer focuses on coding and developing software, an information systems manager oversees the overall management of the information systems function, and a CIO is the highest-ranking executive responsible for the organization's information technology and systems.

Management information systems are designed to summarize and report on the company's basic operations. These systems provide managers with the necessary information to make informed decisions and monitor the performance of the organization. They gather data from various sources within the company and present it in a format that is easy to understand and analyze. By providing timely and accurate information, management information systems help improve operational efficiency and support the decision-making process.