Chapter 1 Review Questions
- What is information technology, and why is it important to a business?
Information technology refers to the hardware, software, and telecommunication technologies that are used to capture, transmit, store, retrieve, manipulate, or display information. IT is important to a business because it supports business operations, improves productivity, and helps managers make decisions.
- Define business profiles, business models, and business processes.
A business profile defines a company's overall functions, processes, organization, products, services, customers, suppliers, competitors, constraints, and future direction.
A business model graphically represents business functions that consist of business processes, such as sales, accounting, and purchasing, which perform specific tasks.
A business process describes specific events, tasks, and desired results.
- Identify the main components of an information system.
- Explain the difference between vertical and horizontal systems packages.
A horizontal system is a basic software package system that can be adapted to common business processes like inventory and payroll.
A vertical system is customized to meet the unique needs of a particular business, industry, or organization.
- How do dot-com companies differ from brick-and-mortar companies?
Dot-com companies operate mainly from a commercial Web site while brick-and-mortar ones operate primarily from a physical location.
- Describe five types of information systems, and give an example of each.
- Enterprise computing systems support company-wide data management. e.g. airline reservations systems
- Transaction processing systems process data generated by day-to-day business operations. e.g. customer billing systems
- Business support systems provide job-related information support to users at all levels of a company. e.g. inventory reordering systems
- Knowledge management systems simulate human reasoning by combining a knowledge base and inference rules that determine how the knowledge is applied. e.g. technical support knowledge base
- User productivity systems provide employees at all organizational levels with a wide array of tools that can improve quality and job performance. e.g. database management systems
- Describe four organizational levels of a typical business and their information requirements.
- Top management - needs information for strategic planning, those that affect the company's future survival and growth.
- Middle management - needs information for tactical planning.
- Lower management - needs information for day-to-day operational plans.
- Operational employees - need information to handle tasks and make decisions that were assigned previously to supervisors.
- Describe the phases of the systems development life cycle.
- Systems planning - begins with a systems request describing problems or desired changes in an information system or business process and ends with a report that describes business considerations, reviews anticipated benefits and costs, and recommends a course of action based on economic, technical, and operational costs.
- Systems analysis - begins with requirements modeling where business processes are described and defined, goes on to data modeling, process modeling, and object modeling to develop a logical model of business processes the system must support, and ends with a system requirements document that describes management and user requirements, alternative plans and costs, and recommendations.
- Systems design - involves identifying all necessary outputs, inputs, interfaces, and processes; designing internal and external controls, including computer-based and manual features to guarantee that the system will be reliable, accurate, maintanable, and secure. Ends with a systems design specification that is presented to management and users for their review and approval.
- Systems implementation - programs are written, tested, and documented and the system is installed and ready for use. This phase also involves a systems evaluation to determine whether the system operates properly and if costs and benefits are within expectations.
- Systems operation and support - involves maintenance to correct errors and adapt to changes in the environment, such as new loan rates. Also involves enhancements to provide new features and benefits.
- Explain the use of models, prototypes, and CASE tools in the systems development process.
Models, prototypes, and CASE tools enable systems analysts to plan, design, and implement information systems. These are tools that can help systems analysts synthesize input from several sources into designs that will meet everyone's needs.
- What is object-oriented analysis and how does it differ from structured analysis?
Object-oriented analysis models real-world data, processes, and operations to produce a set of software objects that represent actual people, things, transactions, and events. It differs from structured analysis in that it combines data and the processes that act on the data into objects while the latter regards processes and data as separate components.