LIGB

ASSIGNMENT A
Q.1 Information systems can add great value to businesses What are
the benefits
of information systems in business? Why are information systems
important?
Ans

Electronic business, or e-business, is the application of information and communication technologies

(ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services
between businesses, groups and individuals and can be seen as one of the essential activities of any business.
Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business
with individuals, groups and other businesses.[1] The term "e-business" was coined by IBM's marketing and
Internet teams in 1996.[2][3]
Electronic business methods enable companies to link their internal and external data processing systems more
efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and
expectations of their customers. The internet is a public through way. Firms use more private and hence more
secure networks for more effective and efficient management of their internal functions. In practice, e-business is
more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions
that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce
seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with
clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the
application of knowledge management systems.
E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain
management, processing orders electronically, handling customer service, and cooperating with business
partners. Special technical standards for e-business facilitate the exchange of data between companies. Ebusiness software solutions allow the integration of intra and inter firm business processes. E-business can be
conducted using the Web, the Internet, intranets, extranets, or some combination of these.
Basically, electronic commerce (EC) is the process of buying, transferring, or exchanging products, services,
and/or information via computer networks, including the internet. EC can also be beneficial from many
perspectives including business process, service, learning, collaborative, community. EC is often confused with
e-business.

The benefits and challenges of using information systems

Benefits of using information systems in business
Reducing the level of redundancy equates to cost-savings. When redundancy is reduced and/or
eliminated, this saves on man hours worked and frees up employees to take on other tasks. In addition,
processes can be streamlined through information systems which further reduce redundancy.
Efficiency is another tangible benefit of assimilating information systems. When computers can take over
some of the tedious, detailed and mundane tasks, this makes processes move more quickly with a

higher degree of accuracy. While its true employees still play an importance role in ensuring data is
entered correctly, once entered in the program, the management information system can effectively
increase efficiency and data integrity.
With proper planning a company can maximize profit while decreasing overhead costs. Implementing a
new system typically comes with a large price tag, but if business requirements and processes are
properly and accurately identified, the payoffs can be big.
Investing in information systems keeps a business competitive and helps an organization carry the
ability to maintain visible status in the global economy. Without IS, a business will more than likely fall
rapidly behind.
The benefits of integrating technology within an organization can truly be limitless depending on the
level of creativity, strategic planning and innovation in the decision making processes.

Q.2 ABB Corporation is a company, which has implemented an

information system
to improve its operational performance. What according to you would be
the
activities the information system would perform?
Ans ABBs refining customers are environmentally responsible companies
in a very challenging industry. As they seek to develop and bring to
market their product offerings they must avoid degrading the environment
and creating pollution through their actions. The implementation of the
Kyoto Protocol and the start of carbon trading in the European Union in
2005 are setting new parameters as well: carbon emissions now have a
financial value.
ABBs products, systems and solutions are designed to have the lowest
possibleenvironmental impact. ABBs service offerings can help customers
use these and third party offerings to be more environmentally
responsible and also improve their financial performance through lower
emissions. As one of the worlds leading engineering companies, ABB
helps its customers to use electrical power effectively and to increase
industrial productivity in a sustainable way. ABB has an unparalleled range
of technology, expertise and solutions within a portfolio that has been
deployed within the process industries, supporting energy efficiency
within electrical systems.
Health, safety and securityContinuous pressures to reduce costs and
improve profitability are balanced by a companys social responsibility to
protect their people, property, environment and the surrounding
community from harm.ABB offers safety services that can identify
hazardous conditions and provide a risk reduction strategy and a
complete plan for improved safety. ABB safety services include project
management, consultancy and implementation, spanning the complete
asset and safety lifecycles. ABBs safety and process applications can be
executed within the same system environment and even the same
controller. This offers safe instant interaction between applications,
preserving the integrity of the safety applications. This architecture
eliminates the duality of system operations

and their associated lifecycle costs and leads to optimized project

engineering, training, operations, maintenance and spare parts.
ABB has more than 30 years of experience in designing, implementing
and maintaining fault tolerant, certified programmable safety systems for
the refining industry. ABB provides safety solutions that are easily scalable
from a few loops to complete safety systems.Security is enhanced when
safety and process applications are executed within the same controller.
Combined systems can freely exchange signals and data without the need
for external complexity such as interface hardware, software and mirroring
of data. Reduced complexity provides fewer seams and points of
penetration. ABB provides additional security integrity through use of
embedded firewalls and extensive diagnostics that eliminate commoncause failures of control and safety systems.
Q.3 What are the types of Business Information Systems. Explain only the
functional
perspective.
Ans

A function model or functional model in systems engineering and software engineering is a

structured representation of the functions (activities, actions, processes, operations) within the
modeled system or subject area.[1]A function model, similar with the activity model or process model, is a
graphical representation of an enterprise's function within a defined scope. The purposes of the function model
are to describe the functions and processes, assist with discovery of information needs, help identify
opportunities, and establish a basis for determining product and service costs

Functional perspective[edit]
In systems engineering and software engineering a function model is created with a functional modeling
perspective. The functional perspective is one of the perspectives possible in business process modelling, other
perspecifives are for example behavioural, organisational or informational.[10]
A functional modeling perspective concentrates on describing the dynamic process. The main concept in this
modeling perspective is the process, this could be a function, transformation, activity, action, task etc. A wellknown example of a modeling language employing this perspective is data flow diagrams.
The perspective uses four symbols to describe a process, these being:

Process: Illustrates transformation from input to output.

Store: Data-collection or some sort of material.

Flow: Movement of data or material in the process.

External Entity: External to the modeled system, but interacts with it.

Now, with these symbols, a process can be represented as a network of these symbols. This decomposed
process is a DFD, data flow diagram.

Example of functional decomposition in a systems analysis.

In Dynamic Enterprise Modeling a division is made in the Control model, Function Model, Process
model and Organizational model.

Functional decomposition[edit]
Functional decomposition refers broadly to the process of resolving a functional relationship into its constituent
parts in such a way that the original function can be reconstructed from those parts by function composition. In
general, this process of decomposition is undertaken either for the purpose of gaining insight into the identity of
the constituent components, or for the purpose of obtaining a compressed representation of the global function, a
task which is feasible only when the constituent processes possess a certain level of modularity.
Functional decomposition has a prominent role in computer programming, where a major goal is
to modularize processes to the greatest extent possible. For example, a library management system may be
broken up into an inventory module, a patron information module, and a fee assessment module. In the early
decades of computer programming, this was manifested as the "art of subroutining," as it was called by some
prominent practitioners.
Functional decomposition of engineering systems is a method for analyzing engineered systems. The basic idea
is to try to divide a system in such a way that each block of the block diagram can be described without an "and"
or "or" in the description.
This exercise forces each part of the system to have a pure function. When a system is composed of pure
functions, they can be reused, or replaced. A usual side effect is that the interfaces between blocks become
simple and generic. Since the interfaces usually become simple, it is easier to replace a pure function with a
related, similar function.

Q.4 Explain Porters competitive models

Ans

Porter five forces analysis is a framework for industry analysis and business strategy development. It

draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity
and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability.
An "unattractive" industry is one in which the combination of these five forces acts to drive down overall
profitability. A very unattractive industry would be one approaching "pure competition", in which available profits
for all firms are driven to normal profit.

Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the more general term macro
environment. They consist of those forces close to a company that affect its ability to serve its customers and
make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given
the overall change in industry information. The overall industry attractiveness does not imply that every firm in the
industry will return the same profitability. Firms are able to apply their core competencies, business model or
network to achieve a profit above the industry average. A clear example of this is the airline industry. As an
industry, profitability is low and yet individual companies, by applying unique business models, have been able to
make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or
services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical'
competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis, is just one part of the complete Porter strategic models. The other elements are
the value chain and the generic strategies.[citation needed]
Porter developed his Five Forces analysis in reaction to the then-popular SWOT analysis, which he found
unrigorous and ad hoc.[1] Porter's five forces is based on the Structure-Conduct-Performance paradigm in
industrial organizational economics. It has been applied to a diverse range of problems, from helping businesses
become more profitable to helping governments stabilize industries Functional perspective[edit]
In systems engineering and software engineering a function model is created with a functional modeling
perspective. The functional perspective is one of the perspectives possible in business process modelling, other
perspecifives are for example behavioural, organisational or informational.[10]
A functional modeling perspective concentrates on describing the dynamic process. The main concept in this
modeling perspective is the process, this could be a function, transformation, activity, action, task etc. A wellknown example of a modeling language employing this perspective is data flow diagrams.
The perspective uses four symbols to describe a process, these being:

Process: Illustrates transformation from input to output.

Store: Data-collection or some sort of material.

Flow: Movement of data or material in the process.

External Entity: External to the modeled system, but interacts with it.

Now, with these symbols, a process can be represented as a network of these symbols. This decomposed
process is a DFD, data flow diagram.

Example of functional decomposition in a systems analysis.

In Dynamic Enterprise Modeling a division is made in the Control model, Function Model, Process
model and Organizational model.

Functional decomposition[edit]
Functional decomposition refers broadly to the process of resolving a functional relationship into its constituent
parts in such a way that the original function can be reconstructed from those parts by function composition. In
general, this process of decomposition is undertaken either for the purpose of gaining insight into the identity of
the constituent components, or for the purpose of obtaining a compressed representation of the global function, a
task which is feasible only when the constituent processes possess a certain level of modularity.
Functional decomposition has a prominent role in computer programming, where a major goal is
to modularize processes to the greatest extent possible. For example, a library management system may be
broken up into an inventory module, a patron information module, and a fee assessment module. In the early
decades of computer programming, this was manifested as the "art of subroutining," as it was called by some
prominent practitioners.
Functional decomposition of engineering systems is a method for analyzing engineered systems. The basic idea
is to try to divide a system in such a way that each block of the block diagram can be described without an "and"
or "or" in the description.
This exercise forces each part of the system to have a pure function. When a system is composed of pure
functions, they can be reused, or replaced. A usual side effect is that the interfaces between blocks become
simple and generic. Since the interfaces usually become simple, it is easier to replace a pure function with a
related, similar function.

Functional modeling methods[edit]

The functional approach is extended in multiple diagrammic techniques and modeling notations. This section
gives an overview of the important techniques in chronological order.A functional block diagram is a block
diagram, that describes the functions and interrelationships of a system. The functional block diagram can
picture:[11]

Functions of a system pictured by blocks

Input and output elements of a block pictured with lines , and

Relationships between the functions

Functional sequences and paths for matter and or signals[12]

The block diagram can use additional schematic symbols to show particular properties.
Specific function block diagram are the classic Functional Flow Block Diagram, and the Function Block
Diagram (FBD) used in the design of programmable logic controllers.

Functional Flow Block Diagram

The Functional flow block diagram (FFBD) is a multi-tier, time-sequenced, step-by-step flow diagram of
the systems functional flow.[14] The diagram is developed in the 1950s and widely used in classical systems
engineering. The Functional Flow Block Diagram is also referred to as Functional Flow Diagram, functional block
diagram, and functional flow.[15]
Functional Flow Block Diagrams (FFBD) usually define the detailed, step-by-step operational and support
sequences for systems, but they are also used effectively to define processes in developing and producing
systems. The software development processes also use FFBDs extensively. In the system context, the functional
flow steps may include combinations of hardware, software, personnel, facilities, and/or procedures.
In the FFBD method, the functions are organized and depicted by their logical order of execution. Each function
is shown with respect to its logical relationship to the execution and completion of other functions. A node labeled
with the function name depicts each function. Arrows from left to right show the order of execution of the
functions. Logic symbols represent sequential or parallel execution of function

Q.5 Briefly explain the database approach to database management

Ans A database is an organized collection of data. The data are typically organized to model relevant aspects of
reality in a way that supports processes requiring this information. For example, modeling the availability of
rooms in hotels in a way that supports finding a hotel with vacancies.
Database management systems (DBMSs) are specially designed applications that interact with the user, other
applications, and the database itself to capture and analyze data. A general-purpose database management
system (DBMS) is a software system designed to allow the definition, creation, querying, update, and
administration of databases. Well-known DBMSs includeMySQL, PostgreSQL, SQLite, Microsoft SQL
Server,Oracle, SAP, dBASE, FoxPro, IBM DB2, LibreOffice Base and FileMaker Pro. A database is not

generally portable across different DBMS, but different DBMSs can by using standards such
as SQL and ODBC or JDBC to allow a single application to work with more than one database. A "database
management system" (DBMS) is a suite of computer software providing the interface between users and a
database or databases. Because they are so closely related, the term "database" when used casually often
refers to both a DBMS and the data it manipulates.
Outside the world of professional information technology, the term database is sometimes used casually to refer
to any collection of data (perhaps a spreadsheet, maybe even a card index). This article is concerned only with
databases where the size and usage requirements necessitate use of a database management system.[1]
The interactions catered for by most existing DBMS fall into four main groups:

Data definition. Defining new data structures for a database, removing data structures from the
database, modifying the structure of existing data.

Update. Inserting, modifying, and deleting data.

Retrieval. Obtaining information either for end-user queries and reports or for processing by
applications.

Administration. Registering and monitoring users, enforcing data security, monitoring performance,
maintaining data integrity, dealing with concurrency control, and recovering information if the system fails.

A DBMS is responsible for maintaining the integrity and security of stored data, and for recovering information if
the system fails.
Both a database and its DBMS conform to the principles of a particular database model.[2] "Database system"
refers collectively to the database model, database management system, and database.[3]
Physically, database servers are dedicated computers that hold the actual databases and run only the DBMS and
related software. Database servers are usually multiprocessor computers, with generous memory and RAID disk
arrays used for stable storage. RAID is used for recovery of data if any of the disks fails. Hardware database
accelerators, connected to one or more servers via a high-speed channel, are also used in large volume
transaction processing environments. DBMSs are found at the heart of most database applications. DBMSs may
be built around a custommultitasking kernel with built-in networking support, but modern DBMSs typically rely on
a standard operating system to provide these functions.[citation needed] Since DBMSs comprise a
significant economical market, computer and storage vendors often take into account DBMS requirements in
their own development plans.[citation needed]
Databases and DBMSs can be categorized according to the database model(s) that they support (such as
relational or XML), the type(s) of computer they run on (from a server cluster to a mobile phone), the query
language(s) used to access the database (such as SQL or XQuery), and their internal engineering, which affects
performance, scalability, resilience, and security.

ASSIGNMENT B
Q.1 What is Artificial Intelligence? What is the need for AI in todays world?
Ans

Artificial intelligence (AI) is technology and a branch of computer science that studies and develops

intelligent machines and software. Major AI researchers and textbooks define the field as "the study and design
of intelligent agents",[1] where an intelligent agent is a system that perceives its environment and takes actions

that maximize its chances of success.[2] John McCarthy, who coined the term in 1955,[3] defines it as "the science
and engineering of making intelligent machines".[4]
AI research is highly technical and specialised, and is deeply divided into subfields that often fail to communicate
with each other.[5] Some of the division is due to social and cultural factors: subfields have grown up around
particular institutions and the work of individual researchers. AI research is also divided by several technical
issues. Some subfields focus on the solution of specific problems. Others focus on one of several
possible approaches or on the use of a particular tool or towards the accomplishment of particular applications.
The central problems (or goals) of AI research include reasoning, knowledge, planning, learning,
communication, perception and the ability to move and manipulate objects.[6] General intelligence (or "strong AI")
is still among the field's long term goals.[7] Currently popular approaches include statistical
methods, computational intelligence and traditional symbolic AI. There are an enormous number of tools used in
AI, including versions of search and mathematical optimization, logic, methods based on probability and
economics, and many others.
The field was founded on the claim that a central ability of humans, intelligencethe sapience of Homo sapiens
can be so precisely described that it can be simulated by a machine.[8] This raises philosophical issues about
the nature of the mind and the ethics of creating artificial beings, issues which have been addressed
by myth, fiction and philosophy since antiquity.[9] Artificial intelligence has been the subject of tremendous
optimism[10] but has also suffered stunning setbacks.[11] Today it has become an essential part of the technology
industry and many of the most difficult problems in computer science

Case Study
MR Ltd. Manufactures industrial glues and solvents in a ingle large factory.
Approximately
400 different inputs are used to produce 35vspecialist outputs, which range from
ultrastrong
glue used in aircraft manufacture to high impact adhesives that are required on
construction sites.
Two years ago, with the company only just breaking even, the directors
recognized the need
for more information to control the business. To assist them with their strategic
control of
the business, they decided to establish an MIS. This is now operational but
provides only the
following limited range of information to the directors via their networked
computer
system.

1. A summary business plan for this and the next two years. The plan includes
details
of expected future incomes and expenditures on existing product lines. It was
produced by a new member of the accounting department without reference to
past production data.

2. Stock balances on individual items of raw materials, finished goods etc. This
report
is at a very detailed level and comprises 80% of the output from the MIS itself
3. A summary of changes in total demand for glues and solvents in the market
place
for the last five years. This information is presented as a numerical summary in
six
different sections. Each selection takes up one computer screen so only one
section can be viewed at a time.
Read the above case and answer the following questions:
1. (i) Comment on the weaknesses in the information currently being provided
to the
directors of the company
(ii) Suggest how the information may be improved, with particular
reference to other
outputs, which the MIS might usefully provide to the directors.

Ans 1) Communications Commission of Kenya (CCK) is a state owned corporation that is responsible for
ensuring fair play in the airwaves. It is the independent regulatory authority for the communications industry in
Kenya. Its role is to license and regulate telecommunications, radiocommunication and postal/courier services in
Kenya. It also issues licenses to ISP's Internet Service Providers as well as other communication devices that go
beyond unlicensed frequencies. It is responsible for developing and co-ordinating the policies and strategies with
respect to development and operation of telecommunications services in Kenya.
It was established in February 1999, when the Kenya Post & Telecommunication Corporation (KP&TC), was split
into CCK, the Postal Corporation of Kenya (CCK) and Telkom Kenya.[1]
The Kenya Communications Act No. 2 of 1998 unbundled the Kenya Postal and Telecommunications Corporation
(KPTC) into five separate entities: the Communications Commission of Kenya (CCK), which is the regulator; the
National Communications Secretariat (NCS), which serves as the policy advisory arm of the government on all
matters pertaining to the information and communications sector; the fixed-line operator, Telkom; the Postal
Corporation of Kenya (POSTA); and a Communications Appeals Tribunal.[2]
In recognition of the rapid changes and developments in technology which have blurred the traditional
distinctions between telecommunications, Information Technology (IT) and broadcasting, the Government in
January 2009 enacted the Kenya Communications (Amendment) Act 2009. This statute enhanced the regulatory
scope and jurisdiction of CCK, and effectively transformed it to a converged regulator.

2) A management information system is an organized information and

documentation
service that systematically collects, stores, processes, analyzes, reports and
disseminates
information and data.
Figure 1 below shows how an MIS works. In Step 1, data are collected. In Step 2,
they are
stored and processed, either in paper records or through a computer. In Step 3,
analysis is
carried out to show salient results, which are then used to improve activities
before they
are diffused to the relevant information users in Step 4.

2.

Ans

Explain what strategic information any MIS is unlikely to be able to provide.

he concept of strategic information systems (SIS) was first introduced into the field of information

systems in 1982-83 by Dr. Charles Wiseman, President of a newly formed consultancy called "Competitive
Applications," (cf. NY State records for consultancies formed in 1982) who gave a series of public lectures on SIS
in NYC sponsored by the Datamation Institute, a subsidiary ofDatamation Magazine.
In 1985 Wiseman published an article on this subject (co-authored by Prof. Ian MacMillan) in the Journal of
Business Strategy (Journal of Business Strategy, fall, 1984)
In 1985 he published the first book on SIS called "Strategy and Computers: Information Systems as Competitive
Weapons" (Dow-Jones Irwin, 1985; translated into French by Bertrand Kaulek and into Italian by Professor Fabio
Corno of Bocconi University). In 1988 an expanded version of this book called "Strategic Information Systems"
was published by Richard D. Irwin. This book was translated into Japanese by Professor Shinroki Tsuji and
published by Diamond Publishing. Over 50,000 copies have been sold.
The following quotations from the preface of the first book ("Strategy and Computers: Information Systems as
Competitive Weapons") establishes the basic idea behind the notion of SIS:
"I began collecting instances of information systems used for strategic purposes five years ago, dubbing them
"strategic information systems" (Internal Memo, American Can Company(Headquarters), Greenwich, CT, 1980).
But from the start I was puzzled by their occurrence. At least theoretically I was unprepared to admit the
existence of a new variety of computer application. The conventional view at the time recognized
only management information systems, and management support systems, the former used to satisfy the
information needs and the latter to automate basic business processes of decision makers. (Cf. articles by
Richard Nolan, Jack Rockart, Michael Scott Morton, et al. at that time)...But as my file of cases grew, I realized
that the conventional perspective on information systems was incomplete, unable to account for SIS. The
examples belied the theory,and the theory in general blinded believers from seeing SIS. Indeed, some
conventional information systems planning methodologies, which act like theories in guiding the systematic
search for computer application opportunities, exclude certain SIS possibilities from what might be found. (ibid.)"
"This growing awareness of the inadequacy of the dominant dogma of the day led me to investigate the
conceptual foundations, so to speak, of information systems. At first, I believed that the conventional gospel could
be enlarged to accommodate SIS. But as my research progressed, I abandoned this position and concluded that
to explain SIS and facilitate their discovery, one needed to view uses of computer (information) technology from a
radically different perspective."
"I call this the strategic perspective on information systems (technology). The chapters to follow present my
conception of it. Written for top executives and line managers, they show how computers (information
technology) can be used to support or shape competitive strategy."
Most of the second book, Strategic Information Systems, was exposed from 1985 to 1988 to MBA students at
the Columbia University Graduate School of Business and to a large number of practitioners seeking to apply SIS
concepts to disparate industry settings. Since that time the concept has stimulated journals on the
subject, dissertations, and extensive critical research. (References: search Google Scholar, Clusty, et al. using
the terms: Strategic Information Systems, SIS, Charles Wiseman, et al.)

Assignment c
Q.1 The flow of information through MIS is
(a) structure dependent
(b) need dependent
(c) organization dependent
(d) market dependent
Q.2 The back bone of any organization is
(a) services
(b) employee
(c) information
(d) infrastructure
Q.3 MIS helps the organization in
(a) process of placement
(b) process of decision making
(c) process of production
(d) process of distribution

Q.4 Information requirement within organization are

(a) always similar
(b) different
(c) easily available
(d) vast
Q.5 MIS always refers to
(a) computer system
(b) computer system and manual system
(c) always manual information
(d) none of the above
Q.6 MIS as a combination of human and computer based resources result into
(a) collection and storage
(b) retrieval and communication
(c) both of the above
(d) none of above
Q.7 The information of MIS comes from the
(a) internal resource of the organization
(b) external resource
(c) both internal and external resource
(d) none of above
Q.8 Internal information for MIS may come from

(a) materials dept.

(b) HR and marketing dept.

(c) finance dept
(d) all of the above
Q.9 __________ systems record day-to-day transaction such as customer orders, bills,
production output
(a) Transaction processing
(b) Management Information
(c) Decision support
(d) None
Q.10 Information Systems are considered
(a) Short-term capital investment project
(b) As a measure of cash flow
(c) Long-term capital investment project
(d) Means for lowering enterprise cost
Q.11 Historically, IS design put technical issues above
(a) Organizational concerns
(b) Operations
(c) Costs
(d) Goals
Q.12 In data mining, events that are linked over time are known as
(a) Associations
(b) Sequences
(c) Classification
(d) Clusters
Q. 13 Data Mining can allow a firm to develop
(a) Specific marketing campaigns for different customers section
(b) Intuitive user interfaces
(c) DDS based on web
(d) Multiple distributed system
Q,14 When, where and how to apply knowledge is called:
(a) Wisdom
(b) Information
(c) Data
(d) Knowledge
Q.15 Knowledge that resides in the mind of the employees is known as
(a) Organizational knowledge
(b) Tacit knowledge
(c) Standard operating procedure
(d) none
Q.16 Which of the following is based on a suite of integrated software modules and a common
central database?
(a) Enterprise system
(b) Network operating system
(c) Transaction processing system
(d) Management Information System
Q.17 The Internet poses specific security problems because:
(a) it was designed to be easily accessible.
(b) everyone uses it.
(c) viruses cannot be controlled.
(d) it changes so fast.

Q. 18 A computer virus is:

(a) software written with malicious intent to cause annoyance or damage.
(b) a process of scrambling a message so that it cannot be read until it is unscrambled
again.
(c) a small device that scans the number from credit cards.
(d) an ID-checking tool to monitor who is logged onto a network.
Q.19 Software that sits on the Internet analyzing Web traffic is referred to as a:
(a) worm.
(b) cracker.
(c) cookie.
(d) sniffer.
Q.20 Tricking people into revealing their password by pretending to be legitimate users or
members of a company in need of information is called:

(a) snooping.
(b) social engineering.
(c) spoofing.
(d) spamming.
Q.21 Every record in a file should contain:
(a) more than one field.
(b) an entry in the key field.
(c) at least one numeric field.
(d) a denominating stabilizer.

Q. 22

The confusion created by data redundancy makes it difficult for companies to:
(a) create online processing capabilities.
(b) work in batch processing load.
(c) use a distributed database.
(d) integrate data from different sources.
Q.23 Data redundancy occurs when:
(a) multiple reports are accessed simultaneously.
(b) the programs that access the data are changed.
(c) different users enter information.
(d) fields in many different files contain the same information.
Q.24 A field is also called a(n):
(a) attribute.
(b) data element.
(c) Characteristic.
(d) entity-relationship.
Q.25 This database model uses a series of logically related two-dimensional tables or files to
store information:
(a) relational database
(b) hierarchical database
(c) network database
(d) object-oriented database

Q.26 The capacity for manipulating and analyzing large volumes of data from multiple
perspectives is called:
(a) OLAP.
(b) OODBMS.
(c) normalization.
(d) data cubing
Q. 27

A data warehouse may include:

(a) legacy systems.

(b) only internal data sources.
(c) privacy restrictions.
(d) small data marts.
Q. 28

Digital firms require:

(a) massive computer capacities.

(b) new organizational designs and management processes.
(c) exceptional flexibility transaction processing systems.
(d) networks that bypass traditional channels.
29.

In the past, information about products and services was usually:

(a) controlled by the sales department.

(b) part of the physical value chain for those products and services.
(c) available only by mail.
(d) kept within the boundaries of the company.
30.

The Internet shrinks:

(a) survival potential in banks.

(b) symmetrical relationships between businesses.
(c) information asymmetry.
(d) time and money factors in financing.
31. Which of the following Internet business models provides a digital environment where
buyers and sellers can meet, search for products, display products, and establish prices for those
products?
(a) Portal
(b) Virtual community
(c) Online marketplace
(d) Transaction broker
32.

Information technology plays a critical role in helping organizations:

(a) maintain the existing bureaucratic structure.

(b) work with nonroutine tasks.
(c) develop better-educated employee groupings.
(d) perceive environmental change.
33.

In the early years, the information systems group was composed mostly of:

(a) systems analysts.

(b) mid-level managers.

(c) end users.
(d) programmers.
34.

According to the Mintzberg model of management, decisional roles are:

(a) where managers initiate activities, handle disturbances, allocate resources, and negotiate
conflict.
(b) where managers act as figureheads and leaders for the organization.
(c) where managers act as a liaison, disseminating and allocating resources.
(d) the expectations of the activities that managers should perform in an organization.
35 This individual is credited with the development of the five forces competitive model.

(a) Henry Fayol

(b) Max Weber
(c) Michael Porter
(d) Michael Dell
These systems typically provide periodic reports rather than instant information on
operations:
36.

(a) strategic-level systems.

(b) operational-level systems.
(c) management-level systems.
(d) knowledge-management systems.
37.
ESSs are:
(a) strategic-level systems.

(b) management-level systems.

(c) operational-level systems.
(d) transaction-level systems.
38. The major source of data for other systems are:
(a) ESS.
(b) TPS.
(c) DSS.
(d) MIS.
39. Unlike other types of information systems, these systems are NOT designated primarily to
solve specific problems:
(a) executive support systems.
(b) management information systems.
(c) decision-support systems.
(d) transaction processing systems.
40. Data shaped into meaningful form are called:
(a) a databank.
(b) feedback.
(c) knowledge.
(d) information.