Midterm Note (Question) - Management Information System | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố HCM

CONTENT TO PREPARE FOR MIDTERM EXAM MANAGEMENT INFORMATION SYSTEM
(all questions and cases can be found in eBook MIS 16th edition that was sent to you, some also available in the 15th edition) CHAPTERS 01 - 04 DURATION: 60 MINUTES
HANDWRITING NOTES ARE REQUIRED (UNLIMITED NUMBER OF NOTES)
YOU HAVE TO SUBMIT ALL HANDWRITING NOTES TOGETHER WITH YOUR ANSWERS.
(Sau khi làm bài, các bạn phải gởi đính kèm tất cả handwriting notes đã soạn, nộp chung với bài làm)
(Không cần soạn notes cho cases)
THEORY: 03 QUESTIONS / 30 POINTS CASE: 01 CASE / 70 POINTS
1) List and describe six reasons why information systems are so important for business today.
2) Define an information system and describe the activities it performs.
3) List and describe the organizational, management, and technology dimensions of information systems.
4) Define complementary assets and describe their relationship to information technology.
5) Describe the complementary social, managerial, and organizational assets required to optimize
returns from information technology investments.
6) CASE: Can You Run the Company with Your iPhone? $
7) CASE: UPS Competes Globally with Information Technology $
8) What are business processes? How are they related to information systems?
9) Describe the characteristics of transaction processing systems (TPS) and the roles they play in a business.
10) Describe the characteristics of decision support systems (DSS) and how they benefit businesses.
11) Describe the characteristics of executive support systems (ESS) and explain how these systems differ from DSS.
12) Explain how enterprise applications improve organizational performance.
13) List and describe the business benefits of collaboration and social business
14) List and describe the various types of collaboration and social business tools.
15) Describe how the information systems function supports a business
16) CASE: Video conferencing: Something for Everyone
17) Which features of organizations do managers need to know about to build and use information systems successfully?
18) What is the impact of information systems on organizations?
19) How do Porter’s competitive forces model, the value chain model, synergies, core competencies,
and network economics help companies develop competitive strategies using information systems?
20) What are the challenges posed by strategic information systems, and how should they be addressed?
21) Case: Smart Products—Coming Your Way (102) $
22) Case: Digital Technology Helps Crayola Brighten Its Brand (98) $
23) What ethical, social, and political issues are raised by information systems?
24) What specific principles for conduct can be used to guide ethical decisions?
25) Why do contemporary information systems technology and the Internet pose challenges to the
protection of individual privacy and intellectual property?
26) How have information systems affected laws for establishing accountability and liability and the quality of everyday life?
27) CASE: How Harmful Are Smartphones? $
28) CASE: Will Automation Kill Jobs? $
Question 1: List and describe six reasons why information systems are so important for business today
1) Operational Excellence – businesses can constantly improve their efficiency of their
operations in order to achieve higher profitability. They can do this by constantly having the correct
amount of stock in store so consumers can always get want they want.
2) New product services and business models – I.S systems play a major role for businesses
in creating new products and services. New business models can be created and these can describe how
a company produce, create and sell their products.
3) Customer and Supplier intimacy – the better services a company provides its consumers
with more likely they are too come back to them and as result the more they will buy off the supplier
therefore creating a good relationship with both parties.
4) Improved decision making – I.S systems make it possibly for managers to use real time data
when making a decision to therefore make better decisions and not have to waste time looking for information.
5) Competitive advantage – if companies achieve any of these 6 reasons to use I.S they will
generally create a competitive advantage over their rivals.
6) Day to Day survival – business invest in these systems to make their jobs as easy as
possible. an example is Citibank introduced the first ATM machine to make it easier for customers to
access their money and to cut down queues in their banks.
Question 2: Define an information system and describe the activities it performs.
Information systems contains different components such as processing, storing, and distributing
information connected to important people and places of an organization. The three activities that
information system controls in an organization are input, processing, and output. Each activity has its own
function that it serves in an organization. For example, input takes in all the information from internal and
external environments while processing converts that information into something more meaningful. In the
end output takes care of distributing the information to the right people for whom the information was intended for.
Question 3: List and describe the organizational, management, and technology dimensions of information systems.
The organization dimension of information systems involves issues such as the organization's
hierarchy, functional specialties, business processes, culture, and political interest groups.
The management dimension of information systems involves issues such as leadership,
strategy, and management behavior.
The technology dimension consists of computer hardware, software, data management
technology, and networking/ telecommunications technology (including the Internet). Question 4: Define and describe complementary assets
their relationship to information technology.
Complementary assets are assets infrastructure or capabilities needed to support the
successful commercialization and marketing of a technological innovation other than those assets
fundamentally associated with innovation. Also complementary assets are those assets required to
derive value from a primary investment. The relationship between complementary assets and
information technology is the firms using information technology to know the increasing or decreasing
the investment in markets. Companies must supportive values and structures to get higher value from the
investments. And value must be added through complementary assets such as new business processes,
training and organizational culture.
Question 5: Describe the complementary social, managerial, and organizational assets required to
optimize returns from information technology investments.
Organizational assets : 
Supportive organizational culture that values efficiency and effectiveness  Appropriate business model  Efficient business processes  Decentralized authority 
Distributed decision-making rights  Strong IS development team Managerial assets: 
Strong senior management support for technology investment and change 
Incentives for management innovation 
Teamwork and collaborative work environments 
Training programs to enhance management decision skills 
Management culture that values flexibility and knowledge-based decision making. Social assets: 
The Internet and telecommunications infrastructure 
IT-enriched educational programs raising labor force computer literacy 
Standards (both government and private sector) 
Laws and regulations creating fair, stable market environments 
Technology and service firms in adjacent markets to assist implementation
Question 8: What are business processes? How are they related to information systems?
A business process is a logically related set of activities that defines how specific business tasks
are performed, and it represents a unique way in which an organization coordinates work, information,
and knowledge. Managers need to pay attention to business processes because they determine how well
the organization can execute its business, and they may be a source of strategic advantage. There are
business processes specific to each of the major business functions, but many business processes are
cross-functional. Information systems automate parts of business processes, and they can help
organizations redesign and streamline these processes.
Question 9: Describe the characteristics of transaction processing systems (TPS) and the roles they play in a business.
Transaction processing systems (TPS) are computerized systems that perform and record daily routine
transactions necessary in conducting business; they serve the organization’s operational level.
The principal purpose of systems at this level is to answer routine questions and to track the flow of
transactions through the organization. 
At the operational level, tasks, resources, and goals are predefined and highly structured. 
Managers need TPS to monitor the status of internal operations and the firm’s relationship with its external environment. 
TPS are major producers of information for other types of systems. 
Transaction processing systems are often so central to a business that TPS failure for a few
hours can lead to a firm’s demise and perhaps that of other firms linked to it.
Question 10: Describe the characteristics of decision support systems (DSS) and how they benefit businesses.
Decision-support systems (DSS) support nonroutine decision-making for middle managers. 
DSS provide sophisticated analytical models and data analysis tools to support semistructured
and unstructured decision-making activities. 
DSS use data from TPS, MIS, and external sources, in condensed form, allowing decision
makers to perform “what-if” analysis. 
DSS focus on problems that are unique and rapidly changing; procedures for arriving at a solution may not be fully predefined. 
DSS are designed so that users can work with them directly; these systems include interactive, user-friendly software.
Question 11: Describe the characteristics of executive support systems (ESS) and explain how these
systems differ from DSS.
Executive support systems help senior managers address strategic issues and long-term trends,
both in the firm and in the external environment. 
ESS address nonroutine decisions requiring judgment, evaluation, and insight because there is
no agreed-on procedure for arriving at a solution. 
ESS provide a generalized computing and communications capacity that can be applied to a changing array of problems. 
ESS are designed to incorporate data about external events, such as new tax laws or
competitors, but they also draw summarized information from internal MIS and DSS. 
ESS are designed for ease-of-use and rely heavily on graphical presentations of data.
Question 12: Explain how enterprise applications improve organizational performance.
An organization operates in an ever-increasing competitive and global environment. The
successful organization focuses on the efficient execution of its processes, customer service, and speed
to market. Enterprise applications provide an organization with a consolidated view of its operations
across different functions, levels, and business units. Enterprise applications allow an organization to
efficiently exchange information among its functional areas, business units, suppliers, and customers.
Question 13: List and describe the business benefits of collaboration and social business
The general belief is that the more a business firm is collaborative in nature, the more successful
it will be and that collaboration within and among firms is more essential than in the past. The overall
economic benefit of collaboration is significant.
The business benefits of collaboration and social business: 
Productivity: people working together accomplish tasks faster, with fewer errors, than those working alone. 
Quality: people can communicate errors and correct them faster when working together versus working alone. 
Innovation: people working in groups can generate more innovative ideas than if they were working alone. 
Customer service: people working in teams can solve customer complaints and issues faster
and more effectively versus working in isolation. 
Financial performance: collaborative firms have superior sales, sales growth, and financial performance.
Question 14: List and describe the of various types
collaboration and social business tools.
Some of the more common enterprise-wide information systems that businesses can use to
support interaction jobs include:
1) Internet-based collaboration environments like Lotus Notes, Groove, and WebEx provide online
storage space for documents, team communications (separated from email), calendars, and
audio-visual tools members can use to meet face-to-face.
2) Email and Instant Messaging (IM) are reliable methods for communicating whenever and wherever around the globe.
3) Cell phones and wireless handhelds give professionals and other employees an easy way to talk
with one another, with customers and vendors, and with managers. These devices have grown
exponentially in sheer numbers and in applications available.
4) Social networking is no longer just “social.” Businesses are realizing the value of providing easy
ways for interaction workers to share ideas and collaborate with each other.
5) Wikis are ideal tools for storing and sharing company knowledge and insights. They are often
easier to use and cheaper than more proprietary knowledge management systems. They also
provide a more dynamic and current repository of knowledge than other systems.
6) Virtual worlds house online meetings, training sessions, and “lounges” where real-world people
meet, interact, and exchange ideas.
7) Google Apps/Google sites allow users to quickly create online group-editable Web sites that
include calendars, text, spreadsheets, and videos for private, group, or public viewing and editing.
8) Microsoft SharePoint software makes it possible for employees to share their Office documents
and collaborate on projects using Office documents as the foundation.
Question 15: Describe how the information systems function supports a business
Three major use of information system function to support a business:
1. Information storage and analysis
2. Assist with making decisions
3. Assist with business processes
Through the application of information system, companies can make use of sophisticated and
comprehensive databases that can contain all imaginable pieces of data. Information systems store,
update and even analyze the information that use to pinpoint solutions to current or future problems.
Moreover, these systems can integrate data from various sources, inside and outside the company,
keeping the company up to date. For instance, an organization’s management team uses information
systems to formulate strategic plans and make decisions for the organization's longevity and prosperity.
The business uses information systems to evaluate information from all sources. Furthermore,
Information systems aid businesses in developing a larger number of value added-systems in the
company. Adoption of information systems simplifies business processes and removes unnecessary
activities. Information systems add controls to employee processes, ensuring that only users with the
applicable rights can perform certain tasks. Moreover, information systems eliminate repetitive tasks and increase accuracy.
 Programmers are highly trained technical specialists who write the software instructions for computers.
 Systems analysts constitute the principal liaisons between the information systems groups and the
rest of the organization. The systems analyst’s job is to translate business problems and requirements
into information requirements and systems.
 Information systems managers lead teams of programmers and analysts, project managers, physical
facility managers, telecommunications mangers, or database specialists.
 Chief information officer (CIO) is a senior manager who oversees the use of information technology in the firm.
 Chief security officer (CSO) is responsible for information systems security in the firm and has the
principle responsibility for enforcing the firm’s information security policy. The CSO is responsible for
educating and training users and I.S specialists about security, keeping management aware of security
threats and breakdowns, and maintaining the tools and policies chosen to implement security.
 Chief knowledge officer (CKO) helps design programs and systems to find new sources of
knowledge or to make better use of existing knowledge in organizational and management processes.
Question 17: Which features of organizations do managers need to know about to build and use
information systems successfully?
All modern organizations are hierarchical, specialized, and impartial, using explicit routines to
maximize efficiency. All organizations have their own cultures and politics arising from differences in
interest groups, and they are affected by their surrounding environment. Organizations differ in goals
groups served, social roles, leadership styles, incentives, types of tasks performed, and type of structure.
These features help explain differences in organizations' use of information systems.
Question 18: What is the impact of information systems on organizations?
The introduction of a new information system will affect organizational structure, goals, work
design, values, competition between interest groups, decision making, and day-to-day behavior. At the
same time, information systems must be designed to serve the needs of important organizational groups
and will be shaped by the organization's structure, business processes, goals, culture, politics, and
management. Information technology can reduce transaction and agency costs, and such changes have
been accentuated in organizations using the Internet. New systems disrupt established patterns of work
and power relationships, so there is often considerable resistance to them when they are introduced.
Question 19: How do Porter’s competitive forces model, the value chain model, synergies, core
competencies, and network economics help companies develop competitive strategies using information systems?
In Porter's competitive forces model, the strategic position of the firm and its strategies are
determined by competition with its traditional direct competitors, but they are also greatly affected by new
market entrants, substitute products and services, suppliers, and customers. Information systems help
companies compete by maintaining low costs, differentiating products or services, focusing on market
niche, strengthening ties with customers and suppliers, and increasing barriers to market entry with high
levels of operational excellence.
The value chain model highlights specific activities in the business where competitive strategies
and information systems will have the greatest impact. The model views the firm as a series of primary
and support activities that add value to a firm's products or services. Primary activities are directly related
to production and distribution, whereas support activities make the delivery of primary activities possible.
A firm's value chain can be linked to the value chains of its suppliers, distributors, and customers. A value
web consists of information systems that enhance competitiveness at the industry level by promoting the
use of standards and industrywide consortia and by enabling businesses to work more efficiently with their value partners.
Because firms consist of multiple business units, information systems achieve additional
efficiencies or enhance services by tying together the operations of disparate business units. Information
systems help businesses leverage their core competencies by promoting the sharing of knowledge across
business units. Information systems facilitate business models based on large networks of users or
subscribers that take advantage of network economics. A virtual company strategy uses networks to link
to other firms so that a company can use the capabilities of other companies to build, market, and
distribute products and services. In business ecosystems, multiple industries work together to deliver
value to the customer. Information systems support a dense network of interactions among the participating firms.
Question 20: What are the challenges posed by strategic information systems, and how should they be addressed?
Implementing strategic systems often requires extensive organizational change and a transition
from one sociotechnical level to another. Such changes are called strategic transitions and are often
difficult and painful to achieve. Moreover, not all strategic systems are profitable, and they can be
expensive to build. Many strategic information systems are easily copied by other firms so that strategic
advantage is not always sustainable.
Question 23: What ethical, social, and political issues are raised by information systems?
Information technology is introducing changes for which laws and rules of acceptable conduct
have not yet been developed. Increasing computing power, storage, and networking capabilities-including
the Internet-expand the reach of individual and organizational actions and magnify their impacts. The
ease and anonymity with which information is now communicated, copied, and manipulated in online
environments pose new challenges to the protection of privacy and intellectual property. The main ethical,
social, and political issues information systems raise center on information rights and obligations, property
rights and obligations, accountability and control, system quality, and quality of life.
Question 24: What specific principles for conduct can be used to guide ethical decisions?
Six ethical principles for judging conduct include the Golden Rule, Immanuel Kant's categorical
imperative, the slippery slope rule, the utilitarian principle, the risk aversion principle, and the ethical no-
free-lunch rule. These principles should be used in conjunction with an ethical analysis.
Question 25: Why do contemporary information systems technology and the Internet pose
challenges to the protection of individual privacy and intellectual property?
Contemporary data storage and data analysis technology enable companies to gather personal
data from many sources easily about individuals and analyze these data to create detailed digital profiles
about individuals and their behaviors. Data flowing over the Internet can be monitored at many points.
Cookies and other web monitoring tools closely track the activities of website visitors. Not all websites
have strong privacy protection policies, and they do not always allow for informed consent regarding the
use of personal information. Traditional copyright laws are insufficient to protect against software piracy
because digital material can be copied so easily and transmitted to many locations simultaneously over the Internet.
Question 26: How have information systems affected laws for establishing accountability and
liability and the quality of everyday life?
New information technologies are challenging existing liability laws and social practices for
holding individuals and institutions accountable for harm done to others. Although computer systems have
been sources of efficiency and wealth, they have some negative impacts. Computer errors can cause
serious harm to individuals and organizations. Poor data quality is also responsible for disruptions and
losses for businesses. Jobs can be lost when computers replace workers or tasks become unnecessary
in reengineered business processes. The ability to own and use a computer may be exacerbating
socioeconomic disparities among different racial groups and social classes. Widespread use of
computers increases opportunities for computer crime and computer abuse. Computers can also create
health and cognitive problems such as repetitive stress injury, computer vision syndrome, and the inability
to think clearly and perform complex tasks.