Business of IT - Applications
Business Information System - correct answer-is a group of interrelated components that
work together to manipulate and process data into meaningful information.
Hardware - correct answer-is the physical equipment used by an information system. These
devices are controlled by computer programs, or software.
Software - correct answer-are the programs an information system uses to instruct the
hardware what to do.
System Software - correct answer-controls the system resources, such as the operating
system and utility programs, as well as how things are done
Application Software - correct answer-is used to help business people do their jobs.
Examples include MS Office, Quick Books, and Adobe Reader.
Data - correct answer-are the characters (alpha, numeric, and symbolic) fed into the
computer system. They are stored in tables in a single format.
The Data - correct answer-can be manipulated and processed by the hardware, following the
instructions of the software, to convert them into meaningful information. This information is
the basis for important managerial decisions.
Procedures - correct answer-are the instructions for users operating computer information
systems
The Procedures - correct answer-are to people what software is to hardware. These
instructions include how to use the system, how to back up the data, how to log on and log
off the system, and all of the other interactions that take place between the user and the
system.
Business Information System Components - correct answer-Every information system has
five basic components that are integral to its success. These components are hardware,
software, data, procedures, and people.
People - correct answer-the component consists of the system users and administrators.
The People - correct answer-follow the procedures necessary to complete different tasks
and, ultimately, to obtain information needed to make business decisions, and are
considered the most important component of any business information system.
Data and Information - correct answer-are used interchangeably at all levels in an
organization.
, Data Example is - correct answer-raw facts without further meaning. For example, suppose
you are a sales marketing rep and travel to meet potential clients on a trip. You stop for gas
and spend $40.50, obtain a receipt, and continue traveling. That single transaction of $40.50
is a piece of data. Its only meaning is that it is a business trip expense.
Similarities of Information and Data - correct answer-To supply information, data are
necessary, and is important for conducting everyday business.
Information Example is - correct answer-You then return to your company and submit all
your travel-related expenses. You combine that gas receipt with all of the other travel-related
expenses (single pieces of data), and the BIS transforms that data into meaningful
information. In this case, the total cost of the trip has meaning because it is now part of a
functional area expense and budget.
Accurate - correct answer-information is free from errors and based on correct data.
Example a marketing firm is collecting names and addresses of potential clients. Its business
information system requires both the name and full address of each potential client to be
entered for the record to be saved. However, the address field requirement was set to "No,"
meaning an entry did not have to be made for the record to be saved. This error was
overlooked when the BIS was installed and, as a result, once the system was implemented
many of the records did not contain addresses. Since the records for several potential clients
did not include contact information, many sales opportunities were lost.
Timely - correct answer-Managers are constantly making business decisions. What happens
when the necessary information is not available when a decision needs to be made?
Information availability, regardless of quality, is useless after a decision has already been
made. Example what would happen if a pilot flying a plane does not receive timely weather
information that would inform him or her of a severe weather pattern ahead?
Relevant - correct answer-Information needs to be appropriate for the type of decision being
made, and useful for those making the decision.
For example, a chief executive officer probably needs highly summarized information,
whereas an operational-level manager needs information that is more detailed.
Sufficient - correct answer-Decision makers need a sufficient amount of information to make
informed decisions. There must be enough information for its intended use, and the
information must be free of extraneous data, or "fluff."
What if a manager is deciding how much money to budget for a marketing campaign to
increase sales of a certain product? He or she obtains a report that indicates the prior year
and current year sales comparison of a product line. However, this report supplies data for
only one of the six products. In this case, the manager would have information, but not
sufficient information.
Reliable - correct answer-It is important that managers receive information from trusted
sources, systems, or knowledgeable people in the field. Managers seek information from
sources they have used in the past when those sources have consistently been correct.