ITM Exam Review
Chapter One Information Systems in Global Business Today
Digital Firm- A digital firm is one in which nearly all of the organizations significant business
relationships with customers, suppliers, and employees are digitally enabled and mediated.
Business Processes- Are accomplished through digital networks spanning the entire organization or linking
multiple organizations. Also the unique ways in which organizations coordinate and organize work
activities, information, and knowledge to produce a product or service.
Key Corporate Assets- intellectual property, core competencies, and financial and human assets.
Time Shifting- refers to business being conducted continuously 24/7, rather than in narrow work day
Space Shifting- means that work takes place in a global workshop, as well as witching national boundaries.
Business Model- describes how a company produces, delivers, and sells a product or service to create
Information Technology- consists of all the hardware and software that a firm needs to use in order to
achieve its business objectives.
Information System- can be defined technically as a set of interrelated components that collect, process,
store, and distribute information to support decision making and control in an organization.
Information- Data that has been shaped into a form that is meaningful and useful to humans.
Input- captures or collects raw data rom within the organization or from its external environment.
Processing- converts this raw input into a meaningful form
Output- transfers the processed information to the people who will use it or to the activities that it will be
Feedback- output that is returned to appropriate members of the organization to help them evaluate or
correct the input and processing stages.
Information Systems Literacy- broad-based understanding of information systems that includes
behavioral knowledge about organizations and individuals using information systems as well as technical
knowledge about computers.
Computer Literacy- focuses primarily on knowledge of information technology.
Senior Management- makes long-range strategic decisions about products and services and ensures the
financial performance of the firm.
Middle Management- carries out the programs and plans of senior management.
Operational Management- is responsible for monitoring the daily activities of the business.
Knowledge Workers- engineers, scientists, or architects, design products or series and create new
knowledge for the firm
Data Workers- Secretaries or clerks, assist with paperwork at all levels of the firm Production or Service Workers- actually produce the product and deliver the service
Major Business Functions- or specialized tasks performed by business organizations consist of 1) sales
and marketing 2) manufacturing the product 3) finance and accounting 4) human resources.
Culture- the set of fundamental assumptions about what products the organization should produce, how
and where it should be produce them, and for whom they should be produced.
Computer Hardware- is the physical equipment used for input, processing and output activities in an
information system. Consists of computer of various sizes and shapes, various input, output and storage
devices, and telecommunications devices that link computers together.
Computer Software- consists of the detailed, preprogrammed instructions that control and coordinate the
computer hardware components in an information system.
Data Management Technology- consists of the software governing the organization of data on physical
Networking and Telecommunications Technology- consists of both physical devices and software, link
the various pieces of hardware and transfers data form one physical location to another.
Network- links two or more computers to share data or resources, such as a printer.
Internet- is a global network of networks that uses universal standards to connect millions of different
networks with more than 1.4 billion users in more than 230 countries across the world.
Intranet- An internal network based on Internet and World Wide Web standards.
Extranet- A private intranet that is accessible only to authorized users.
World Wide Web- is a service provided by the Internet that uses universally accepted standards for
storing, retrieving, formatting, and displaying information in a page format on the Internet.
Information Technology Infrastructure- computer hardware, software, data, storage technology, and
networks providing a portfolio of shared IT resources for the organization.
Complementary Assets- are those assets required to derive value from a primary investment.
Organization and Management Capital- investments in organization and management such as new
business processes, management behvaiour, organizational culture, or training.
Assets- Organization assets, managerial assets, and social assets.
Sociotechnical View- seeing systems as composed of both technical and social elements. Helps avoid a
purely technological approach to information systems.
Chapter Two: How Businesses Use Information Systems
Functional Business Process- manufacturing and production (assembling the product, checking for
quality, and producing bills of materials), sales and marketing (identifying customers, making customers
aware of the product, selling the product), finance and accounting (paying creditors, creating financial
statements, managing cash accounts), human resources (hiring employees, evaluating employees, enrolling
in benefit plans) Transaction Processing Systems (TPS)- computerized systems that perform and record the daily routine
transactions necessary to conduct the business such as sales order entry, hotel reservations, payroll,
employee record keeping, and shipping; they serve the organizations operational level.
Management Information Systems (MIS)- 1) the study of information systems focusing on their use in
business and management. 2) a specific category of it systems serving middle management, provides
middle managers with reports on the organizations current performance to monitor and control the business
and predict future performance.
Decision Support System (DSS)- support non routine decision making for middle management, they focus
on problems that are unique and rapidly changing for which the procedure for arriving at a solution may not
be fully predefined in advance.
Executive Support System (ESS)- help senior management make these decisions, address non routine
(unstructured) decisions requiring judgment, evaluation, and insight because there is no agreed-on
procedure for arriving at a solution, presented through graphics and communication capabilities.
Portal- web interface for presenting integrated personalized content from a variety of sources, also refers to
a web site service that provides an initial point of entry to the web.
Digital Dashboards- displays all of a firms key performance indicators as graphs and charts on a single
screen to provide one-page overview of all the critical measurements necessary to make key executive
Enterprise Applications- systems that span functional areas, focus on executing business processes across
the business firm, and include all levels of management, help business become more flexible and
productive by coordinating their business process more closely and integrating groups of processes so they
focus on efficient management of resources and customer service.
Knowledge Management Systems- enable organizations to better manage processes for capturing and
applying knowledge and expertise, collect all relevant knowledge and experience in the firm and make it
available wherever and whenever it is needed to improve business processes and management decisions;
support processes for acquiring, storing, distributing, and applying knowledge, as well as processes for
creating new knowledge and integrating it into the organization.
Electronic Business- the use of the Internet and digital technology to execute all the business processes in
the enterprise, includes e-commerce as well as the processes for the internal management of the firm and
for coordination with suppliers and other business partners.
Electronic Commerce- the process of buying and selling goods and services electronically involving
transactions using the internet, networks, and other digital technologies.
Electronic Government- use of the Internet and related technologies to digitally enable government and
public sector agencies relationships with citizens, businesses, and other arms of government.
Information Systems Department- is the formal organizational unit responsible for information
technology services; responsible for maintaining the hardware, software, data storage, and networks that
compete in the firms IT infrastructure.
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; it is their job to translate business problems and requirements into information
requirements and systems Information Systems Managers- are leaders of teams of programmers and analysts, project managers,
physical facility mangers, telecommunications managers, or database specialists; also managers of
computer operations and data entry staff.
Chief Information Officer (CIO)- is a senior manager who oversees the use if information technology in
Chief Security Officer- is in charge of information systems security for the firm and is responsible for
enforcing the firms information security policy; responsible for educating and training users and
information systems specialists about security, keeping management aware of security threats and
breakdowns, and maintaining the tools and policies