Why is Introduction to MIS the most important class in the business school?

Define Moore's Law and

explain why ít consequences are important professionals today. Explain the trend in IT being driven by
Moore's Law. Give the text definition of job security, and use Reich's enumeration of four key skills to
explain how this course will help you attain that security. Summarize IS-related job opportunities
Importance of Introduction to MIS: This course is crucial because it teaches how technology integrates with
business operations, enabling efficient decision-making and strategic planning in a tech-driven world.
Moore's Law and Its Importance: Moore's Law predicts that computing power doubles every two years, reducing
technology costs and allowing businesses to innovate rapidly. For professionals, this means they must keep
updating their skills to stay relevant.
IT Trends from Moore's Law: As computing power grows, trends like big data, AI, and cloud computing advance.
Businesses can now process large data sets and create personalized services, boosting competitiveness.
Job Security & Reich’s Four Skills:
- Abstract Reasoning: MIS enhances skills in model manipulation.
- Systems Thinking: MIS helps understand integrated business systems.
- Collaboration: Learning collaborative digital tools prepares students for team-based work.
- Experimentation*: MIS encourages innovation and adaptability with new tech, building job resilience.
IS-Related Job Opportunities: Roles include Systems Analyst, Database Administrator, Cybersecurity Analyst, IT
Consultant, and Business Intelligence Analyst. Demand for these roles is strong, as businesses rely on tech for
growth and efficiency.
Q2. What is MIS? Define MIS. Describe, in the intuitive manner used in this chapter, the meaning of
processes, information systems, and information. Define the term management (of MIS), and summarize
the reasons why this text claims it is important to all businesspeople, not just MIS professionals. Explain the
confusion in the statement “organizations achieve their strategies.” Summarize why it can be difficult for
organizations to focus their MIS on organizational strategy.
MIS Definition: Management Information Systems (MIS) is the integration of technology, people, and processes
to support business operations and decision-making.
- Processes: Steps to complete tasks, often optimized by technology.
- Information Systems: Systems combining hardware, software, data, and people to create usable information.
- Information: Processed data providing meaningful insights for decisions.
Management of MIS: Involves overseeing systems to align them with business goals, ensuring technology supports
operations and strategic objectives.
Why MIS Matters for Everyone: All business roles rely on technology, so understanding MIS helps professionals
in any field make better, data-driven decisions.
Confusion in “Organizations Achieve Their Strategies”: Organizations don’t achieve strategies on their own—
people within them execute the strategy.
Challenges in Aligning MIS with Strategy:
- Complex, evolving goals
 - Rapid tech advancements
- Limited resources
- Conflicting departmental priorities

Q3. How does MIS relate to organizational strategy? Summarize the reasons that the Porter models are
relevant to MIS. Diagram and explain the relationship among industry structure, competitive strategy,
value chains, business processes, information systems, and information.
MIS directly supports an organization’s competitive strategy by aligning technology with strategic goals,
optimizing processes, and enhancing information flow. Porter’s models, especially the **Five Forces** and
**Value Chain** models, are relevant to MIS because they help organizations understand competitive forces and
configure information systems to gain a competitive advantage.
Relationship Diagram:
- Industry Structure (Five Forces) influences the **Competitive Strategy** (e.g., cost leadership, differentiation).
- Competitive Strategy shapes the Value Chain (activities adding value).
- Value Chain is implemented through Business Processes (specific tasks and workflows).
- Business Processes are supported by Information Systems that handle Information to aid decision-making.
Q4. What five forces determine industry structure? Name and briefly describe the five forces. Give your
own examples of both strong and weak forces of each type, similar to Figure 1-9. Define substitute, barrier
to entry , and switching cost. Explain how they are used by the five forces.
1. **Threat of New Entrants**: High when it's easy for new firms to enter (e.g., online retail, where barriers are
low), and low in industries with strong entry barriers (e.g., aerospace manufacturing).

2. **Bargaining Power of Suppliers**: Strong when few suppliers exist (e.g., specialized chip manufacturers) and
weak when many suppliers are available (e.g., basic commodities).

3. **Bargaining Power of Buyers**: Strong when customers have many choices (e.g., fast fashion) and weak when
few alternatives exist (e.g., utility companies).

4. **Threat of Substitutes**: High when alternative products/services are readily available (e.g., taxis vs. ride-
sharing) and low when few substitutes exist (e.g., pharmaceuticals).
5. **Competitive Rivalry**: Strong in industries with many competitors (e.g., restaurants) and weak in markets
with few players (e.g., commercial aircraft).
**Key Definitions**:
- **Substitute**: An alternative that can replace a product (e.g., streaming services as a substitute for DVDs).
- **Barrier to Entry**: Obstacles for new entrants (e.g., high capital investment).
- **Switching Cost**: Costs for customers to switch providers (e.g., contract cancellation fees).
Q5. What is competitive strategy? Describe four different competitive strategies, as defined by Porter. Give
an example of four different companies that have implemented each ofthe strategies.
Competitive Strategy involves positioning a company to gain a sustainable advantage over competitors. Porter’s
four strategies are:
1. Cost Leadership (Broad Market: Competing by offering the lowest prices (e.g., Walmart).
2. Differentiation (Broad Market): Offering unique products or services (e.g., Apple).
3. Cost Focus (Narrow Market): Low-cost products for a specific market (e.g., Dollar Tree).
4. Differentiation Focus (Narrow Market): Unique products for a niche market (e.g., Tesla).
Q6. How does competitive strategy etermine value chain structure?
Define the terms value, margin, and value chain. Explain why organizations that choose a differentiation
strategy can use value to determine a limit on the amount of extra cost to pay for differentiation. Name the
primary and support activities in the value chain and explain the purpose of each. Explain the concept
oflinkages.
Competitive strategy determines the value chain structur by guiding which activities add value and drive cost
efficiencies.
- Value: The perceived benefit of a product/service.
- Margin: The difference between value and cost.
- Value Chain: A series of activities that add value, from inbound logistics to customer service.
For a differentiation strategy, organizations aim to create unique value that justifies higher costs, setting limits on
extra spending to maintain margin.
Primary Activities:
1. Inbound Logistics**: Managing incoming resources.
2. **Operations**: Converting inputs into products.
3. **Outbound Logistics**: Distributing products to customers.
4. **Marketing and Sales**: Promoting products to increase sales.
5. **Service**: Supporting products post-sale.
**Support Activities**:
1. **Firm Infrastructure**: Overall organizational management.
2. **Human Resource Management**: Recruiting and developing employees.
3. **Technology Development**: Research and tech improvements.
4. **Procurement**: Sourcing raw materials.
**Linkages** refer to interactions between activities in the value chain, enhancing overall efficiency.
Q7. How does competitive strategy determine business processes and information systems? Describe the
relationship between a value chain and a business process. Explain how business processes relate to
competitive strategy. Explain how information systems relate to competitive strategy. Justify the comments
in the two rows labeled “Supporting business process” in Figure 1-14.
Competitive strategy shapes business processes by prioritizing activities that align with strategic goals (e.g., cost-
efficiency or high-quality service) and guides information systems to support these processes.
- Value Chain vs. Business Process: The value chain represents activities creating value, while business processes
are the specific tasks within these activities.
- Business Processes and Competitive Strategy: Processes are designed to support strategic priorities (e.g.,
streamlined processes for cost leadership).
- Information Systems and Competitive Strategy: Information systems are tailored to optimize processes, deliver
data insights, and enable strategy execution.
In Figure 1-14, "Supporting business process" highlights how processes and information systems reinforce the
strategic direction, enabling efficiency and alignment with goals
1. Abstract reasoning. a. Define abstract reasoning, and explain why it is an important skill for business
professionals.
b. Explain how a list of items in inventory and their quantity on hand is an abstraction of a physical inventory.
c. Give three other examples of abstractions commonly used in business.
d. Explain how Jennifer failed to demonstrate effective abstract reasoning skills.
e. Can people increase their abstract reasoning skills? If so, how? If not, why not?
1. Abstract Reasoning:
- Definition & Importance: The skill to understand complex ideas and see connections. Essential for business as
it aids in strategic thinking and decision-making.
- Inventory List as Abstraction: A list of items and their quantities represents actual inventory, simplifying the
need to view each item physically.
- Other Business Abstractions:
1. Organizational charts.
2. Financial statements.
3. Sales forecasts.
- Jennifer’s Issue: She may have focused on details instead of identifying overall patterns, limiting strategic
insight.
- Improving Skills: Abstract reasoning can be improved through exercises in problem-solving and pattern
recognition.
2. Systems thinking.
a. Define systems thinking, and explain why it is an important skill for business professionals.
b. Explain how you would use systems thinking to explain why Moore’s Law caused a farmer to dig up a field of
pulpwood trees. Name each of the elements in the system, and explain their relationships to each other.
c. Give three other examples of the use of systems thinking with regard to consequences of Moore’s Law.
d. Explain how Jennifer failed to demonstrate effective systems-thinking skills.
e. . Can people improve their systems-thinking skills? If so, how? If not, why not?
a. Definition and Importance:
Systems thinking** is the ability to see and understand the interconnected parts of a whole and how they influence
one another. For business professionals, it’s essential because it helps in evaluating how various business
components interact, making it easier to predict outcomes and solve complex problems.
b. Systems Thinking and Moore’s Law:
To explain why Moore’s Law might cause a farmer to dig up a field of pulpwood trees, we can identify elements
in a system affected by rapid technological advancements:
- Moore’s Law: Predicts the doubling of computing power every two years, making technology more powerful
and affordable.
- Paper Demand: As technology advances, digital devices replace paper products.
- Pulpwood Marke: Declines as digital media grows, reducing demand for pulpwood.
- *Farmer’s Field: The farmer now finds pulpwood trees less profitable due to declining paper demand and
chooses to repurpose the field for other uses.
These elements interact through cause-and-effect relationships driven by technological advancement (Moore’s
Law) impacting markets and individual decisions.
c. Other Examples of Systems Thinking and Moore’s Law**:
1. **Retail and E-commerce**: Increased computing power enables growth in online shopping, leading to reduced
demand for physical stores.
2. **Job Automation**: Moore’s Law leads to smarter automation tools, affecting employment in manual labor
sectors.
3. **Healthcare**: Advances in computing enable telemedicine, affecting demand for traditional clinic visits.
**d. Jennifer’s Failure in Systems Thinking**:
If Jennifer didn’t demonstrate systems thinking, she may have missed how changes in one part of a system (e.g.,
a new technology) could impact other areas (like resource demand or business processes). This could result in a
narrow view of business changes and poor adaptability.
**e. Improving Systems Thinking:
Yes, people can improve systems thinking by practicing holistic problem-solving, mapping out cause-and-effect
relationships, and studying real-world systems to see how interconnected elements affect outcomes.
3. Can people improve their systems-thinking skills? If so, how? If not, why not?
Collaboration.
a. Define collaboration, and explain why it is an important skill for business professionals.
b. Explain how you are using collaboration to answer these questions. Describe what is working with regard to
your group’s process and what is not working.
c. Is the work product of your team better than the product any one of you could have produced separately? If not,
your collaboration is ineffective. If that is the case, explain why.
d. Does the fact that you cannot meet face to face hamper your ability to collaborate? If so, how?
e. Explain how Jennifer failed to demonstrate effective collaboration skills.
f. Can people increase their collaboration skills? If so, how? If not, why not?
Yes, people can improve their **systems-thinking skills** by:
- **Practice**: Analyzing complex problems in a structured way, identifying elements, and observing
interactions.
- **Learning Tools**: Using flowcharts, feedback loops, and causal diagrams to understand relationships.
- **Real-world Application**: Applying systems thinking to business case studies or real-life scenarios
### Collaboration
**a. Definition and Importance**:
**Collaboration** is working jointly toward a shared goal. It is vital in business as it fosters diverse perspectives,
enhances problem-solving, and often leads to innovative solutions.
**b. Using Collaboration to Answer Questions**:
Collaboration on questions can involve dividing tasks, sharing insights, and cross-verifying answers. For instance,
team discussions can clarify complex points, while collective brainstorming brings fresh ideas.
- **What’s Working**: Diverse input enriches answers.
- **What’s Not Working**: Coordination issues or differing interpretations can hinder progress.
**c. Quality of Work Product**:
If the group’s work product surpasses individual efforts, collaboration is effective. If not, it may suggest
communication gaps or poor coordination.
**d. Challenges with Remote Collaboration**:
The inability to meet face-to-face can limit collaboration by reducing nonverbal cues and spontaneous idea-
sharing. Video calls and shared documents help but don’t fully replace in-person interaction.
**e. Jennifer’s Collaboration Skills**:
Jennifer may have failed to collaborate if she didn’t actively participate, ignored team input, or failed to
communicate ideas, reducing overall team effectiveness.
**f. Improving Collaboration Skills**:
Yes, collaboration skills can be developed through active listening, sharing feedback constructively, and using
collaboration tools.
4. Experimentation.
a. Define experimentation, and explain why it is an important skill for business professionals.
b. Explain several creative ways you could use experimentation to answer this question.
c. How does the fear of failure influence your willingness to engage in any of the ideas you identified in part b?
d. Explain how Jennifer failed to demonstrate effective experimentation skills.
e. Can people increase their willingness to take risks? If so, how? If not, why not?
f. Do you think IS make experimentation easier or harder?
a. Definition and Importance**:
Experimentation** involves trying new approaches, essential for business professionals to explore ideas, innovate,
and adapt to changes.
b. Experimenting with Creative Solutions**:
Answering questions creatively could involve brainstorming multiple solutions, piloting new collaboration tools,
or testing alternative perspectives on each answer.
c. Impact of Fear of Failure**:
Fear of failure can limit willingness to try new approaches, leading to less creative or cautious responses.
d. Jennifer’s Experimentation Skills**:
Jennifer may have failed at experimentation if she stuck to conventional methods, avoiding innovative approaches
that could enhance learning.
**e. Increasing Risk-Taking**:
Yes, risk-taking can be increased by developing a growth mindset, accepting mistakes as learning opportunities,
and starting with small, low-stakes experiments.
**f. Experimentation and IS**:
Information Systems (IS) make experimentation easier by providing data analytics, simulation tools, and feedback
systems for testing new ideas effectively.
5. Job security.
a. State the text’s definition of job security.
b. Evaluate the text’s definition of job security. Is it effective? If you think not, offer a better definition of job
security.
c. As a team, do you agree that improving your skills on the four dimensions in Collaboration Exercise 1 will
increase your job security?
d. Do you think technical skills (accounting proficiency, financial analysis proficiency, and so on) provide job
security? Why or why not? Do you think you would have answered this question differently in 1980? Why or why
not?
Job security** as possessing marketable skills and the ability to adapt
**b. Evaluation**:
This definition is effective as it focuses on adaptability rather than permanence. A stronger definition might
emphasize continual learning and the flexibility to transition between roles.
**c. Skills and Job Security**:
Improving skills like collaboration, systems thinking, and experimentation does indeed increase job security by
making professionals more adaptable to changing environments.
**d. Technical Skills and Job Security**:
Technical skills alone may not ensure job security due to rapid changes in technology, which require adaptability.
In 1980, technical skills may have been more stable indicators of security, given the slower pace of technological
change.
6. Suppose you are going to start an e-retailing Web site. Referring to Figure 1-11, choose a differentiation
strategy for your business. How would this strategy determine value chain structure? Draw a diagram of processes
for your business, and describe the IS that will support these processes?
For a **differentiation strategy**, focusing on unique product offerings and customer service would define the
value chain structure.
**Value Chain Diagram and IS Support**:
 - **Inbound Logistics**: Vendor management system for quality control.
- **Operations**: Custom order processing and packaging.
- **Outbound Logistics**: Track-and-trace system.
- **Marketing & Sales**: CRM for personalized marketing.
- **Customer Service**: Chatbots and support ticketing system.
This structure enables a distinctive customer experience and operational efficiency that aligns with a differentiation
strategy.
CHAP 2
Q1. What is a business process? Define business process and give an example of two business processes not
in this text. Define activity and give examples of five activities. Explain the need for an abstraction of a
business process and describe the purpose of the BPMN notation. Define role and actor and explain their
relationship. Identify four swimlanes in Figure 2-1 and explain their utility. Explain the meaning of each of
the symbols in Figure 2-2. Give an example of two repositories. Describe criteria for deciding how much
detail is enough in a process diagram. Describe four reasons that organizations standardize business
processes.
1. Business Process
A business process is a series of steps designed to achieve a specific goal within an organization. It includes a set
of activities that work together to produce an outcome, often involving multiple departments or individuals.
Examples**:
- Customer Onboarding Process**: Steps to guide new customers through setup and initial service use.
- Procurement Process**: Steps to acquire goods and services from suppliers.
Activity and Examples
An **activity** is an individual task or action within a business process.
**Examples of Activities**:
1. Reviewing applications.
2. Processing payments.
3. Updating customer records.
4. Generating reports.
5. Shipping products.
Abstraction of a Business Process and BPMN Notation
An abstraction** simplifies a complex business process, allowing for a clear overview of essential steps. BPMN
(Business Process Model and Notation) provides a standardized visual language to map these processes, helping
stakeholders understand workflow and responsibilities.
Role and Actor
A role is a function or responsibility within a business process, while an **actor** is the person or system
performing that role. Roles and actors work together, with actors assigned to fulfill specific roles.
Swimlanes in Figure 2-1
Swimlanes divide a process diagram by **roles or departments** to clarify who is responsible for each activity.
Four example swimlanes might be:
1. Sales.
2. Operations.
3. Customer Support.
4. Finance.
These distinctions improve clarity and accountability by visually organizing tasks by the responsible party.
Symbols in Figure 2-2
In BPMN:
- Circle**: Represents the start and end of a process.
- Rectangle**: Represents an activity or task.
- Diamond**: Represents decision points.
- Arrows**: Show the flow or sequence of activities.
- Data Stores/Repositories**: Indicate places where information is stored.
Repositories Examples
- **Customer Database**: Stores client information.
- **Inventory System**: Tracks product quantities and locations.
Detail Level in Process Diagrams
To determine the right level of detail, ensure the diagram:
- Shows all major steps but avoids excessive specifics.
- Includes critical decision points and flows.
- Balances clarity with thoroughness.
Reasons for Standardizing Business Processes
1. **Efficiency**: Reduces redundancies and streamlines operations.
2. **Consistency**: Ensures uniformity in outputs across departments.
3. **Compliance**: Helps meet regulatory requirements.
4. **Training**: Simplifies onboarding and training by providing a clear process outline.
Q2. What is an information system? Define system and information system. Name and describe the five
components of an information system. Describe the five components of an information system required to
buy a product online.
Explain the five ways to apply the five-component model.
**Definition of a System and Information System:**
- **System:** A system is a set of interconnected components that work together to achieve a common goal. It
consists of inputs, processes, outputs, and feedback loops.
- **Information System (IS):** An information system is a combination of technology (hardware and software),
people, data, processes, and policies that collect, process, store, and disseminate information to support decision-
making and control in an organization.
**Five Components of an Information System:**
1. **Hardware:** The physical devices and equipment used in the information system. Examples include
computers, servers, and networking devices.
2. **Software:** The applications and programs that process data. This includes system software (like operating
systems) and application software (like word processors or databases).
3. **Data:** The raw facts and figures that are processed into meaningful information. This includes databases
and data management systems.
4. **Procedures:** The rules or guidelines for using the information system, including how to input data, process
it, and generate outputs.
5. **People:** The users who interact with the information system, including IT professionals, managers, and
end-users.
**Components Required to Buy a Product Online:**
1. **Hardware:** Personal computers, tablets, or smartphones that customers use to access online stores.
2. **Software:** E-commerce platforms (like Shopify or WooCommerce), web browsers, and payment processing
applications.
3. **Data:** Product information (descriptions, prices, availability), customer information (names, addresses,
payment details), and transaction records.
4. **Procedures:** Guidelines for navigating the online store, completing the checkout process, and handling
customer inquiries or returns.
5. **People:** Customers making purchases, customer service representatives assisting with inquiries, and IT
staff maintaining the e-commerce site.
**Five Ways to Apply the Five-Component Model:**
1. **System Development:** Ensuring that each component is designed and developed to meet user needs.
2. **Process Improvement:** Analyzing how each component interacts to optimize efficiency and effectiveness.
3. **User Training:** Providing training on how to use the hardware, software, and procedures effectively.
4. **Data Management:** Establishing data governance to ensure data quality and security.
5. **Support and Maintenance:** Implementing procedures for ongoing support and updates for the system
components.
Q3. How do business processes and information systems relate? How many IS can support a process, and
how many processes can be supported by one IS? What role do procedures play in Active Review linking
processes and information systems? Explain what a procedure is and give an example.
**Relationship:**
Business processes are the structured activities or tasks that produce a specific service or product for customers.
Information systems support these processes by providing the necessary information and tools to carry them out
effectively.
- **Support Dynamics:** One information system can support multiple processes, and one process can be
supported by multiple information systems. For instance, a customer relationship management (CRM) system
might support sales, marketing, and customer service processes.
**Role of Procedures:**
Procedures link processes and information systems by providing a clear set of instructions on how to perform tasks
within a process using the information system.
- **Definition of a Procedure:** A procedure is a documented process that outlines the steps needed to complete
a specific task.
- **Example:** A procedure for processing a customer order might include steps like verifying payment
information, checking inventory, and generating a shipping label.
Q4. How do structured and dynamic processes vary? In your own words, describe and characterize
structured processes. Describe and characterize dynamic processes. Describe the differences in expected
employee behavior for each type of process. Summarize differences in the character of IS that support each
category of process. Give several examples of structured processes and of dynamic processes.
Q4. Structured vs. Dynamic Processes
**Structured Processes:**
- **Description:** These are well-defined processes that follow a strict sequence of steps, often documented in
procedures. They are repetitive, predictable, and often have clear inputs and outputs.
- **Employee Behavior:** Employees are expected to follow specific guidelines and procedures, with little room
for variation.
**Dynamic Processes:**
- **Description:** These are more fluid and adaptable, allowing for changes and flexibility. They are less
predictable and often involve decision-making based on evolving circumstances.
- **Employee Behavior:** Employees may exercise discretion and creativity in their actions, adjusting their
approach based on the situation.
**Differences in IS Support:**
- **Structured Processes:** Typically supported by transaction processing systems (TPS) or enterprise resource
planning (ERP) systems that enforce consistency and accuracy.
- **Dynamic Processes:** Supported by decision support systems (DSS) or collaborative systems that allow for
flexibility and real-time adjustments.
**Examples:
- **Structured Processes:** Order processing, payroll processing, and inventory management.
- **Dynamic Processes:** Product development, customer service interactions, and crisis management.
Q5. What is information? Give four different definitions for information and give an example of information
for each definition. For the fourth definition, explain what the word difference means in each of its two uses.
Describe the three common elements in the four definitions. Where does information exist, and where does
data exist? Explain each of the benefits of understanding information.
**Definitions of Information:**
1. **Data Processed to be Meaningful:** Information is data that has been processed or organized to provide value
(e.g., sales figures converted into monthly revenue reports).
2. **Contextualized Data:** Information is data presented in a context that gives it meaning (e.g., a weather report
showing temperature trends).
3. **Actionable Insight:** Information is data that can inform decisions and actions (e.g., customer feedback
indicating a need for product improvement).
4. **Difference in Context:** Information highlights differences between data points, allowing for comparisons
(e.g., sales data showing a 20% increase compared to last quarter).
- **First Use:** Difference refers to the variation between data points (e.g., sales in two different periods).
- **Second Use:** Difference implies significance (e.g., the impact of the sales change on business strategy).
**Common Elements in Definitions:**
1. Processed Data
2. Context
3. Meaningfulness
**Where Information and Data Exist:**
- **Information:** Exists in reports, summaries, and dashboards where data is analyzed and interpreted.
- **Data:** Exists in raw form in databases, spreadsheets, or transaction logs before it is processed
**Benefits of Understanding Information:**
1. Improved Decision-Making: Enables better choices based on accurate insights.
2. Enhanced Communication: Facilitates clear sharing of ideas and results.
3. Increased Efficiency: Streamlines operations by using information effectively.
Q6. What are necessary data characteristics? Summarize the five critical data characteristics. For each of
the five, give an example of data that has that characteristic. Describe the ways Jake and Jennifer are
different. In which of these ways are you more like Jake or more like Jennifer?**Five Critical Data
Characteristics:**
1. **Accuracy:** Data must be correct and reliable.
- *Example:* A customer’s address that matches the postal records.
2. **Timeliness:** Data should be up-to-date and available when needed.
- *Example:* Real-time stock prices used for trading.
3. **Relevance:** Data should be pertinent to the task at hand.
- *Example:* Sales data relevant to a marketing campaign targeting a specific demographic.
4. **Completeness:** Data must be comprehensive and include all necessary information.
- *Example:* A customer profile that includes all required fields (name, email, purchase history).
5. **Consistency:** Data should be uniform across different systems and datasets.
- *Example:* The same product name and description appearing in both the inventory database and the e-
commerce platform.
**Differences Between Jake and Jennifer:**
This is likely a reference to a specific case study or scenario. Without additional context, I can't provide specific
characteristics of Jake and Jennifer.
**Personal Reflection:**
You would compare traits such as communication style, work preferences, or decision-making approaches and
assess where you align more closely with either individual. For example, you might find that you are more detail-
oriented like Jake or more adaptable like Jennifer.
2-1. Consider Jake’s processes in the opening vignette of this chapter.
a. Create a BPMN for the Burger Assembly process.
b. Write a procedure for how the in-store employee inputs a customer order on the cash register system.
c. What data is Jake using to make his information? Does the data have all the critical characteristics of good
data as shown in Figure 2-13?
**a. BPMN for the Burger Assembly Process:**
A Business Process Model and Notation (BPMN) diagram would visually represent the steps involved in
assembling a burger at a fast-food restaurant. Below is a textual description of what the BPMN would include:
- **Start Event:** Customer places an order.
- **Task 1:** Employee takes the order.
- **Task 2:** Employee prepares the burger components (grilling the patty, toasting the bun, etc.).
- **Task 3:** Employee assembles the burger (adding toppings, condiments).
- **Task 4:** Employee packages the burger.
- **End Event:** Burger is ready for delivery to the customer.
This BPMN would include gateways for decision points (e.g., "Is the order for dine-in or take-out?") and possibly
subprocesses for each component preparation.
*b. Procedure for Inputting a Customer Order:**
1. **Access Cash Register:** Employee logs into the cash register system using their employee ID.
2. **Select Order Type:** Employee selects if the order is for dine-in or take-out.
3. **Enter Items:** Employee inputs each item the customer orders (e.g., burgers, drinks, sides) using the register's
touchscreen or keypad.
4. **Confirm Order:** Employee reviews the order with the customer to ensure accuracy.
5. **Process Payment:** Employee selects payment method (cash, credit, etc.) and processes the transaction.
6. **Print Receipt:** Employee prints a receipt for the customer and provides it along with the order number.
7. **Communicate Order:** Employee informs the kitchen of the order details for preparation.
**c. Data Jake Uses:**
Jake uses various data points such as:
- Customer orders (items, quantities)
- Payment information (amount, method)
- Inventory levels (availability of ingredients)
**Critical Characteristics of Data:**
- **Accuracy:** The data must be correct to ensure customer satisfaction.
- **Timeliness:** The order data should be processed immediately to facilitate prompt service.
- **Relevance:** The data must pertain to the current menu and inventory.
- **Completeness:** All necessary information for each order must be recorded.
- **Consistency:** Data should match across the order system and inventory system

2-2. Explain, in your own words, the relationship between business processes and information systems. Assume
you are going to give your explanation to a business professional who knows little about information systems.
Relationship Between Business Processes and Information Systems
Business processes are sequences of activities that organizations perform to achieve specific goals, like delivering
products or services to customers. Information systems are tools that help manage, execute, and optimize these
processes by providing necessary data, software, and support for decision-making. For example, when a customer
places an order online, the information system captures the order, processes payment, updates inventory, and
notifies relevant departments, thereby streamlining the entire process. Essentially, business processes define what
needs to be done, while information systems provide the means to do it efficiently.
2-3. From your own life, choose three processes. These may be something like selecting a movie on Netflix, making
breakfast, or registering for an account on a new social media platform. For each, specify:
a. if the process is dynamic or structured
b. process objectives
c. the steps in one of the procedures if the process is supported by an IS
d. several data items, and write down at least two interpretations for each data item.
Selecting a Movie on Netflix:**
- **a. Type:** Dynamic process
- **b. Objectives:** Find a movie to watch based on personal preferences.
- **c. Steps (supported by IS):**
1. Open the Netflix app.
2. Browse genres or use the search function.
3. View trailers and read descriptions.
4. Select a movie to watch.
- **d. Data Items:**
- *Data Item:* Movie ratings
- *Interpretation 1:* Indicates the popularity of the movie.
- *Interpretation 2:* Suggests the quality of the movie based on viewer feedback.
- *Data Item:* User viewing history
- *Interpretation 1:* Affects recommendations based on previously watched movies.
- *Interpretation 2:* Reflects personal preferences for genres or directors.
2. **Making Breakfast:**
- **a. Type:** Structured process
 - **b. Objectives:** Prepare a nutritious meal efficiently.
- **c. Steps:**
1. Gather ingredients (eggs, bread, etc.).
2. Cook eggs and toast bread.
3. Serve on a plate.
- **d. Data Items:**
- *Data Item:* Cooking time
- *Interpretation 1:* The time needed to prepare the meal.
- *Interpretation 2:* Affects the decision of when to start cooking.
- *Data Item:* Nutritional information
- *Interpretation 1:* Determines dietary value of the breakfast.
- *Interpretation 2:* Influences choices based on health goals.
3. **Registering for an Account on Social Media:**
- **a. Type:** Structured process
- **b. Objectives:** Successfully create a new user account.
- **c. Steps:**
1. Go to the sign-up page.
2. Enter personal information (name, email, password).
3. Verify the email address.
- **d. Data Items:**
- *Data Item:* Email address
- *Interpretation 1:* Used for account verification.
- *Interpretation 2:* Serves as a point of contact for notifications.
- *Data Item:* Username
- *Interpretation 1:* Represents the user's identity on the platform.
- *Interpretation 2:* Affects visibility and discoverability by others
2-4. Consider some of the ramifications of the way in which information is defined in this chapter.
a. Why, according to this chapter, is it incorrect to say, “Consider the information in Figure 2-11?” Where is the
information?
b. When you read a news article on the Web, where is the news? When you and a friend read the same news, is it
the same news? What is going on here?
c. Suppose you are having a glass of orange juice for breakfast. As you look at the juice, where is it? Is the thing
that you know as orange juice on the table, or is it in your mind? After you drink the orange juice, where is it?
d. Consider the statement, “Words are just tokens that we exchange to organize our behavior; we don’t know
anything, really, about what it is they refer to, but they help us organize our social behavior. Reality is a mutual
hallucination. It only looks the way it does because all of us have the same, more or less, mental apparatus, and
we act as if it’s there.” Do you agree with this statement? Why or why not? e. Describe how you might use insights
from this sequence of questions to become a better business professional.
**a. Definition Clarification:**
It is incorrect to say, "Consider the information in Figure 2-11" because information is not inherent in the figure
itself; rather, it exists in the context of how the viewer interprets and uses the data presented in the figure.
Information arises when data is processed, contextualized, and made meaningful.
**b. News Article Interpretation:**
The news resides in the article's content, but the interpretation of the news can vary between readers based on
personal experiences, biases, and perspectives. Therefore, while the article is the same, each reader may take away
different insights, reflecting individual contexts and understanding.
**c. Glass of Orange Juice:**
When looking at the juice, it exists physically on the table, but your knowledge and perception of orange juice
reside in your mind. After drinking, the juice's physical form is gone, but the experience and the satisfaction it
provided remain in your memory.
**d. Reality as a Mutual Hallucination:**
I agree with this statement to an extent. Language and symbols help us organize our interactions and make sense
of the world. However, I believe there is an objective reality that exists independently of our perceptions, though
our understanding of it is indeed shaped by collective interpretations and societal constructs.
**e. Professional Insights:**
Understanding the nature of information and perception can enhance my effectiveness as a business professional
by encouraging me to consider different viewpoints, improve communication skills, and foster a collaborative
environment where diverse interpretations lead to richer insights and better decision-making.
2-5. Using Figure 2-8 as a guide, identify two structured processes and two dynamic processes at your university.
Explain how the degree of structure varies in these processes. How do you think change to these processes is
managed? Describe how the nature of the work performed in these processes varies. Explain how information
systems are used to facilitate these processes. How do you think the character of the information systems
supporting these processes varies?
**Structured Processes:**
1. **Course Registration:** Students follow a defined process to select courses, fill out forms, and submit
registrations. This process has clear steps, rules, and deadlines.
2. **Exam Grading:** Professors grade exams using a standardized rubric, ensuring consistency in evaluation
**Dynamic Processes:**
1. **Academic Advising:** Advisors tailor their guidance to individual student needs and circumstances, requiring
flexibility and adaptation to changing student situations.
2. **Event Planning:** Organizing university events involves various stakeholders and can change rapidly based
on input and circumstances.
**Degree of Structure Variations:**
Structured processes are rigid and have predetermined steps, while dynamic processes are fluid and adaptable.
Changes to structured processes are often managed through official channels (like policy updates), while dynamic
processes may evolve more organically based on feedback and experience.
**Work Nature Variations:**
Structured processes often involve repetitive, predictable tasks, whereas dynamic processes require creativity and
critical thinking.
**IS Facilitation:**
Information systems for structured processes often focus on efficiency and standardization (like a student
information system), while those for dynamic processes
2-6. Specify an e-commerce site where you have purchased something (e.g., Amazon, sports tickets, etc.).
a. Write down your Buying process, including the activities you perform to buy the product.
b. Specify the five components of the IS that is supporting your e-commerce purchase. One piece of software is the
Web browser.
c. How did you learn the necessary procedures?
enable collaboration and real-time adjustments (like project management tools).
**a. Buying Process on Amazon:**
1. Open the Amazon website.
2. Search for the desired product.
3. Review product details and customer reviews.
4. Add the product to the cart.
5. Proceed to checkout.
6. Enter shipping information.
7. Choose payment method and complete the purchase.
8. Confirm order and wait for shipping notification.
**b. Five Components of IS Supporting E-commerce Purchase:**
1. **Hardware:** Customer's computer or mobile device.
2. **Software:** Web browser (e.g., Chrome), e-commerce platform (Amazon).
3. **Data:** Customer account information, product details, order history.
4. **Procedures:** Steps for navigating the website, making a purchase, and returning items.
5. **People:** Customers, customer service representatives, IT support.
**c. Learning Necessary Procedures:**
I learned the necessary procedures through:
- Familiarity with the Amazon platform from previous use.
- Online tutorials or guides available on the site.
- Customer service assistance when needed.
CHAP 3
Q1. What do business professionals need to know about computer hardware? List hardware components
and explain the purpose of each. Summarize types of hardware and explain the differences between servers
and clients. Define server farm . Define bit and byte, and explain why bits are used to represent computer
data. Define the units of bytes used to size computer hardware. Explain why you should save your work
from time to time while you are using your computer.
Hardware Components and Their Purposes:*
1. **Central Processing Unit (CPU):**
- Often referred to as the brain of the computer, the CPU performs calculations and executes instructions that
make up computer programs.
2. **Random Access Memory (RAM):**
- RAM is temporary storage that holds data and instructions for programs currently in use, allowing for quick
access and processing. More RAM allows for smoother multitasking.
3. **Storage Devices:**
- **Hard Disk Drive (HDD) / Solid State Drive (SSD):** These devices store data permanently, with SSDs
providing faster data access speeds than traditional HDDs.
4. **Motherboard:**
- The motherboard is the main circuit board that connects the CPU, RAM, storage devices, and other hardware
components, facilitating communication between them.
5. **Power Supply Unit (PSU):**
- The PSU converts electricity from a wall outlet into usable power for the computer's internal components.
6. **Input Devices:**
- **Keyboard and Mouse:** These allow users to input data and commands into the computer.
- **Scanner:** Converts physical documents into digital format
7. **Output Devices:**
- **Monitor:** Displays visual output from the computer.
- **Printer:** Produces physical copies of documents and images.
8. **Network Interface Card (NIC):**
- This component allows the computer to connect to a network, enabling communication with other devices and
access to the internet
9. **Graphics Processing Unit (GPU):**
- The GPU handles rendering images and videos, enhancing visual performance, particularly important for
graphic-intensive applications and gaming.
**Types of Hardware:**
- **Personal Computers (PCs):** Desktops and laptops for individual use.
- **Servers:** Powerful machines designed to manage network resources and provide services to multiple users.
- **Workstations:** High-performance PCs optimized for professional applications, such as graphic design and
engineering.
- **Embedded Systems:** Specialized computers integrated into other devices (e.g., appliances, vehicles).
**Differences Between Servers and Clients:**
- **Servers:** Provide resources, data, services, or programs to other computers (clients) over a network. They
are optimized for performance, reliability, and security.
- **Clients:** Use the resources provided by servers. They are typically user-facing devices like PCs or mobile
devices that run applications and access data stored on servers.
**Server Farm:**
- A server farm is a collection of servers housed together to provide redundant and scalable resources, ensuring
high availability and performance for services like web hosting, cloud computing, and data processing.
**Bit and Byte Definitions:**
- **Bit:** The smallest unit of data in computing, represented as a 0 or 1.
- **Byte:** A group of 8 bits, representing a single character of data (e.g., a letter or a number).
**Why Bits Represent Computer Data:**
- Bits are used because they can effectively represent two states (on/off, true/false), which aligns with the binary
system that underpins all digital computing.
**Units of Bytes Used to Size Computer Hardware:**
- **Kilobyte (KB):** 1,024 bytes
- **Megabyte (MB):** 1,024 KB
- **Gigabyte (GB):** 1,024 MB
- **Terabyte (TB):** 1,024 GB
**Importance of Saving Work:**
- Saving your work regularly is crucial to prevent data loss due to unexpected issues such as software crashes,
power outages, or hardware failures. Regularly saving ensures that you don’t lose significant progress and can
recover your work.
Q2. What do business professionals need to know about software? Define operating system and explain the
meaning of each cell in Figure 3-5. Describe three types of virtualization. Explain the difference between
software ownership and software licenses. Explain the differences among horizontal-market, vertical-
market, and one-of-a-kind applications. Describe the three ways that organizations can acquire software.
Define firmware. Name three successful open source projects. Describe four reasons programmers
contribute to open source projects. Define open source, closed sour ce, source code, and machine code. In
your own words, explain why open source is a legitimate alternative but may or may not be appropriate for
a given application.
**Operating System (OS):**
- An operating system is system software that manages computer hardware and software resources and provides
services for computer programs. It acts as an intermediary between users and the computer hardware.
**Figure 3-5 Explanation:**
- Without the specific figure provided, generally, the cells in a software architecture diagram may represent
components like the OS, applications, middleware, and hardware that interact within a computing environment.
**Three Types of Virtualization:**
1. **Hardware Virtualization:** Involves creating virtual machines that emulate physical hardware, allowing
multiple operating systems to run on a single physical machine.
2. **Software Virtualization:** Isolates applications from the operating system, enabling applications to run in a
controlled environment without interference from other applications.
3. **Network Virtualization:** Combines hardware and software network resources to create a virtualized
network environment, allowing for easier management and resource allocation.
**Software Ownership vs. Software Licenses:**
- **Software Ownership:** Refers to the legal rights held by an individual or organization that purchased the
software, entitling them to use it as they see fit.
- **Software Licenses:** Grant permissions to use the software under specific terms and conditions, which may
restrict modifications, sharing, or redistribution.
**Types of Applications:**
- **Horizontal-Market Applications:** Software that is broadly applicable across various industries (e.g., word
processors, spreadsheets).
- **Vertical-Market Applications:** Tailored for specific industries or markets (e.g., medical record systems for
healthcare).
- **One-of-a-Kind Applications:** Custom-developed software designed for a unique business need (e.g., a
specific tool for a company’s internal process).
**Three Ways Organizations Can Acquire Software:**
1. **Buy Off-the-Shelf Software:** Purchase pre-made software that meets standard business needs.
2. **Custom Development:** Hire developers to create software tailored to specific requirements.
3. **Open Source Software:** Use software that is freely available for modification and redistribution.
**Firmware:**
- Firmware is specialized software programmed into hardware devices that provides low-level control and
functionality, typically not meant to be modified by end users (e.g., BIOS in a computer).
**Successful Open Source Projects:**
1. **Linux:** An open-source operating system kernel.
2. **Apache HTTP Server:** A widely used web server software.
3. **Mozilla Firefox:** An open-source web browser.
**Reasons Programmers Contribute to Open Source Projects:**
1. **Skill Development:** Enhance programming skills and gain practical experience.
2. **Collaboration:** Work with other developers and expand professional networks.
3. **Recognition:** Gain visibility and credibility within the developer community.
 4. **Passion Projects:** Contribute to causes or projects they are passionate about.
**Definitions:**
- **Open Source:** Software with source code that anyone can inspect, modify, and enhance.
- **Closed Source:** Software with proprietary code that is not shared publicly.
- **Source Code:** The human-readable instructions written by programmers to create software.
- **Machine Code:** The low-level code executed by a computer’s CPU, often generated from source code
through compilation.
**Open Source as an Alternative:**
Open source is a legitimate alternative because it allows for flexibility, cost savings, and community-driven
improvements. However, it may not be appropriate for every application, especially where support, security, and
compliance with specific industry standards are critical. Choosing open source depends on the specific needs of
the project, the level of technical expertise available, and the resources for maintenance and support.
Create an entity-relationship diagram that show the relationships among a database, database application
and users
Diagram Components:
• Database: The core storage system for data.
• Database Application: The software that interacts with the database to manage and manipulate data.
• User: Individuals who interact with the database through the application.
Relationships:
• Uses: The database application uses the database to store and retrieve data.
• Interacts With: Users interact with the database application to perform tasks.
• Accesses: Users access the database application to manipulate or view data.
 1a. Five Forces Analysis of Singing Valley’s Market:
1. Threat of New Entrants:
o Barrier to Entry: High. The luxury resort market requires significant investment in infrastructure, staff training,
and marketing to establish a brand reputation that can compete with existing resorts.
o Assumptions: Given the location and brand reputation, new entrants would struggle to gain market share without
substantial differentiation.
2. Bargaining Power of Suppliers:
o Medium to High: The resort relies on high-quality suppliers for food, beverages, and luxury amenities. Limited
suppliers for organic products may increase their bargaining power.
o Assumptions: Specialty suppliers (e.g., for organic meals and wines) have the ability to dictate prices due to their
unique offerings.
3. Bargaining Power of Buyers:
o High: The clientele of Singing Valley are affluent individuals with options for luxury accommodations elsewhere.
They demand high-quality service and may switch resorts if their needs are not met.
o Assumptions: Given the exclusivity and high costs, clients expect personalized experiences and can be vocal
about their dissatisfaction.
4. Threat of Substitute Products or Services:
o Medium: Alternatives such as boutique hotels, private vacation rentals, or different luxury resorts offer similar
 services. Clients may also choose to engage in different leisure activities outside the resort.
o Assumptions: Seasonal activities like skiing or hiking are also available at competing resorts, which can lure
customers away.
5. Industry Rivalry:
o High: The luxury resort market is competitive, with numerous options available to affluent clients. Rivals may
offer unique experiences or lower prices to attract guests.
o Assumptions: Competitors may also enhance their offerings through innovative services, making it crucial for
Singing Valley to differentiate itself continuously.

1b. Competitive Strategy of Singing Valley:

Singing Valley’s competitive strategy focuses on differentiation. The resort aims to provide superior service,
exceptional amenities, and unique experiences tailored to an affluent clientele. By promoting activities like yoga,
art lessons, and gourmet dining, Singing Valley seeks to stand out in the luxury market. The emphasis on high-
quality organic meals and top-tier service is designed to justify its premium pricing.

1c. Statement of the Problem:

The primary problem facing Singing Valley is how to effectively increase revenue from optional activities without
alienating its discerning clientele. The resort's recent automated email marketing efforts, intended to personalize
guest experiences and promote additional services, backfired, resulting in customer complaints and dissatisfaction.
This indicates a disconnect between the resort's understanding of customer preferences and their marketing
approach.

1d. Innovative Ideas for Solving Singing Valley's Problem:

Idea 1: Personalized Concierge Service
Description: Create a personalized concierge service that provides tailored recommendations based on past guest
preferences, avoiding generic marketing communications.
Process Diagram:
1. Data Collection: Gather historical data on guest visits and preferences (e.g., preferred activities, dietary
restrictions).
2. Profile Creation: Build detailed profiles for each returning guest.
3. Personalized Outreach: Concierge staff reach out before guests' arrival to suggest activities aligned with their
interests.
4. On-Site Follow-Up: During the stay, concierges offer personalized suggestions and book activities.
Information System Needed: An integrated Customer Relationship Management (CRM) system that tracks guest
preferences, manages profiles, and allows for easy communication between concierges and guests. This system
should enable the concierge to access and update guest profiles seamlessly.
 Idea 2: Interactive Guest Experience App
Description: Develop a mobile app that allows guests to explore activities, book services, and receive personalized
recommendations based on their interests and feedback.
Process Diagram:
1. User Registration: Guests create profiles upon app download, indicating preferences and interests.
2. Activity Recommendations: The app uses algorithms to suggest activities based on preferences and current offers.
3. Real-Time Booking: Guests can book activities directly through the app.
4. Feedback Mechanism: Post-activity, guests provide feedback that is used to refine future recommendations.
Information System Needed: A mobile application platform that integrates with Singing Valley's existing
booking systems and databases. The app would require user authentication, data analytics for personalized
suggestions, and booking functionality.

1-6. Application of Nonroutine Skills

1. Abstract Reasoning:
o Employees at Singing Valley can use abstract reasoning to identify patterns in guest feedback and preferences.
This skill allows them to develop more effective marketing strategies and tailor services to meet diverse client
needs.
2. Systems Thinking:
o Systems thinking helps employees understand how different aspects of the resort (service delivery, guest feedback,
marketing strategies) interact. By viewing the resort as a cohesive system, they can devise solutions that optimize
guest experiences and operational efficiency.
3. Collaboration:
o Collaboration among different departments (e.g., marketing, guest services, and culinary) can foster innovative
ideas for enhancing the guest experience. By sharing insights and feedback, employees can collectively develop
better approaches to upselling activities without overstepping guest comfort.
4. Experimentation:
o Employees can employ experimentation to test new ideas, such as different methods of communication or new
guest experiences. By piloting initiatives (e.g., personalized concierge service) and analyzing their impact on guest
satisfaction and revenue, they can iteratively refine strategies to ensure they align with customer expectations.
CHAP 4:
Q1. What is the purpose of a database? State the purpose of a database. Explain the circumstances in which
a database is preferred to a spreadsheet. Describe the key difference between Figures 4-1 and 4-2.
Here’s a detailed overview addressing your questions about databases and their applications:
Purpose of a Database:**
The primary purpose of a database is to store, manage, and retrieve large amounts of data efficiently. Databases
allow for organized data storage that supports querying, updating, and reporting, enabling businesses to manage
data systematically for decision-making, analysis, and reporting purposes.
**Circumstances in Which a Database is Preferred to a Spreadsheet:**
1. **Volume of Data:** When dealing with large volumes of data, a database can handle and efficiently manage
vast datasets that would be cumbersome in a spreadsheet.
2. **Data Relationships:** If the data has complex relationships, such as many-to-many relationships, a database
can manage these connections effectively through relational tables.
3. **Concurrent Users:** Databases support multiple users accessing and modifying the data simultaneously
without conflicts, while spreadsheets can lead to data inconsistency with multiple users.
4. **Data Integrity:** Databases enforce data integrity and constraints that ensure the accuracy and validity of the
data, something that can be challenging to maintain in spreadsheets.
5. **Scalability:** Databases can scale easily to accommodate growing data needs, while spreadsheets may
become slow and unmanageable as data grows.
**Key Difference Between Figures 4-1 and 4-2:**
Without specific figures, a general comparison could be:
- **Figure 4-1** might represent a flat-file structure typical of spreadsheets, showing data in a single table format
with limited relational capability.
- **Figure 4-2** likely illustrates a relational database model, showcasing multiple tables with defined
relationships, demonstrating the ability to link data across various tables
Q2. What are the contents of a database? Define the term database. Explain the hierarchy of data and name
three elements of a database. Define metadata. Using the example of Student and Office_Visit tables, show
how relationships among rows are represented in a database. Define the terms key, foreign key, and
relational database.
**Definition of Database:**
A database is a structured collection of data that is stored and accessed electronically. It is designed to support data
management and retrieval in a way that allows for efficient manipulation and querying.
**Hierarchy of Data and Three Elements of a Database:**
1. **Data Element:** The smallest unit of data, such as a single piece of information (e.g., a student's name).
2. **Record:** A collection of related data elements that describe an entity (e.g., a complete record for a student).
3. **File:** A collection of related records (e.g., a file containing records of all students).
**Definition of Metadata:**
Metadata is data that provides information about other data. It includes details such as data types, descriptions,
constraints, and relationships, facilitating better understanding and management of the data.
**Relationships in a Database:**
Using the example of `Student` and `Office_Visit` tables:
- A `Student` table may include fields like `Student_ID`, `Name`, and `Major`.
- An `Office_Visit` table may include `Visit_ID`, `Student_ID`, and `Visit_Date`.
- The relationship is represented by the `Student_ID` in the `Office_Visit` table, which serves as a foreign key
referencing the `Student_ID` in the `Student` table, establishing a link between the two tables.
**Definitions of Key Terms:**
- **Key:** A field or set of fields that uniquely identifies a record in a table (e.g., `Student_ID`).
- **Foreign Key:** A field in one table that uniquely identifies a row of another table, creating a link between the
two (e.g., `Student_ID` in the `Office_Visit` table).
- **Relational Database:** A type of database that stores data in tables that can be linked by relationships based
on keys.
Q3. What are the components of a database application system? Explain why a database, by itself, is not
very useful to business users. Name the components of a database application system and sketch their
relationship. Explain the acronym DBMS and name its functions. List five popular DBMS products. Explain
the difference between a DBMS and a database. Summarize the functions of a DBMS. Define SQL. Describe
the major functions of database administration. Name and describe the components of a database
application. Explain the need for application programs. For multi-user processing, describe one way in
which one user’s work can interfere with another’s. Explain why multi-user database processing involves
more than just connecting another computer to the network. Define two broad categories of DBMS and
explain their differences.
**Why a Database Alone is Not Useful:**
A database by itself does not provide user interfaces, querying capabilities, or application functionality. It requires
application systems to facilitate user interaction, data manipulation, and reporting.
**Components of a Database Application System:**
1. **Database:** Stores data.
2. **Database Management System (DBMS):** Software that interacts with the database and provides data access.
3. **Application Programs:** Interfaces for users to interact with the database (e.g., web applications, desktop
applications).
4. **User Interface:** The front-end through which users input and retrieve data.
**DBMS (Database Management System):**
- A DBMS is software that manages the creation, maintenance, and use of databases. Its functions include:
- Data storage and retrieval
- User access control
- Data integrity enforcement
- Backup and recovery processes
**Five Popular DBMS Products:**
1. **Oracle Database**
2. **Microsoft SQL Server**
3. **MySQL**
4. **PostgreSQL**
5. **MongoDB**
**Difference Between DBMS and Database:**
- A **DBMS** is the software that manages the database, while the **database** is the structured collection of
data itself.
**Functions of a DBMS:**
- Data definition, data manipulation, data security, data integrity, and data backup and recovery.
**Definition of SQL:**
- SQL (Structured Query Language) is a standard programming language used to manage and manipulate relational
databases, enabling users to perform tasks like querying, updating, and managing data.
**Major Functions of Database Administration:**
- Managing database performance, ensuring data integrity, implementing security measures, performing backups,
and planning for database growth.
**Components of a Database Application:**
1. **User Interface:** How users interact with the application.
2. **Application Logic:** The underlying code that processes user requests and interacts with the database.
3. **Database Management:** The systems that handle data storage, retrieval, and security.
**Need for Application Programs:**
Application programs are necessary to provide users with tools to interact with databases, allowing for data entry,
querying, and reporting without needing direct interaction with the DBMS.
**Multi-User Processing Interference:**
One user’s work can interfere with another’s through conflicts during data modification. For example, if two users
try to update the same record simultaneously, it could lead to data inconsistency.
**Why Multi-User Database Processing Involves More Than Just Connecting Another Computer:**
Multi-user processing requires complex management of transactions, locking mechanisms to prevent conflicts,
and ensuring data integrity and consistency across simultaneous accesses.
**Two Broad Categories of DBMS:**
1. **Relational DBMS (RDBMS):** Stores data in tabular form with predefined relationships among tables (e.g.,
Oracle, MySQL).
2. **NoSQL DBMS:** Designed for unstructured data and can store data in various formats (e.g., document-
based, key-value, graph) to provide flexibility and scalability for big data applications.
The differences primarily lie in how they structure data, support relationships, and handle scalability and
performance for various types of applications.
Q7. How can the intramural league improve its database? What two factors caused the problem at the
intramural league? Explain the first revision to the database. Explain what was lost in this revision. Explain
why the revision caused a data integrity problem. Describe the need for the Coach table and justify the
decision to model the relationship from Coach to Team_Season as 1:N. Explain how that relationship was
represented in the database
1. **Redundancy:** Duplicate records for teams, players, or seasons lead to inconsistency.
2. **Lack of Integrity:** Missing links between Coaches and Teams cause orphaned records.
 ### First Revision to the Database
- **Normalization:** Create a separate **Coach table** and a **Team_Season table** to eliminate redundancy
and better organize data.
### What Was Lost
- Specific coach-related details (like performance history) might be lost if not properly retained during
normalization.
### Data Integrity Issue
- If coaches are deleted without cascading updates, teams could reference non-existent coaches, causing confusion
in data retrieval
### Need for the Coach Table
- To manage coaches independently, ensuring unique identification and preventing redundancy.

### 1:N Relationship Justification

- One coach can manage multiple teams, while each team is assigned to one coach, reflecting real-world scenarios.
### Database Representation
- **Coach Table:** Contains `Coach_ID` (Primary Key).
- **Team_Season Table:** Contains `Coach_ID` (Foreign Key referencing Coach table), linking teams to their
respective coaches.
This structure maintains data integrity and facilitates efficient management of teams and coaches within the league.
CHAP 5
Q1. What are the important characteristics of processes in organizations? Define business process and the
key terms that describe business processes: activity, r esource, role, and actor. Name the term that can be
fulfilled by either a human or computer. Explain the four characteristics of processes. List the three main
categories of process scope, and explain how each one is different from the others. Give examples of
processes in each of the categories. Define efficiency and effectiveness. What things are efficient and
effective?
Important Characteristics of Processes:
1. Input and Output: Every process transforms inputs into outputs, contributing to the organization’s goals.
2. Activities: Processes consist of a series of activities that create value or achieve a specific objective.
3. Resources: Resources, including people, technology, and materials, are required to carry out the activities.
4. Roles and Actors: Roles define responsibilities within processes, while actors can be human (employees) or
automated (systems). The term that can be fulfilled by either a human or computer is "actor."
Definition of Business Process: A business process is a structured set of activities or tasks that produce a specific
service or product for a particular customer or customers.
Key Terms:
• Activity: A specific task or action within a process.
• Resource: The assets needed to execute activities (e.g., time, money, human resources).
• Role: A set of responsibilities assigned to an actor within the process.
• Actor: An entity (human or machine) that performs the activities in the process.
Four Characteristics of Processes:
1. Sequence of Activities: Processes are composed of a specific sequence of interrelated activities.
2. Goal Orientation: Each process has a clear purpose or goal, contributing to the organization’s objectives.
3. Repetition: Processes are often repeated, following the same sequence of activities to achieve consistent results.
4. Cross-Functional Nature: Processes often span multiple departments or functions within an organization.
Three Main Categories of Process Scope:
1. Operational Processes: Day-to-day activities that directly support the production and delivery of products or
services.
o Example: Order fulfillment in a retail company.
2. Managerial Processes: Processes that govern the operation of the organization, such as budgeting and resource
allocation.
o Example: Annual budget planning.
3. Strategic Processes: Long-term processes that determine the direction and goals of the organization.
o Example: Market analysis for entering a new market.
Definitions of Efficiency and Effectiveness:
• Efficiency: The ability to accomplish a task with the least amount of resources, time, and cost.
• Effectiveness: The degree to which a process achieves its intended goals or objectives.
Efficient and Effective Things:
• Efficient processes minimize waste and resource usage.
• Effective processes meet or exceed customer expectations and fulfill their intended purpose.
Q2. What are examples of common business processes? Explain a process in each of the primary activities
of the value chain. Specify if that process is operational, managerial, or strategic, and explain why you
classified it that way. Explain the support activities. Describe a procurement process and a sales and
marketing process. Describe how knowledge of process characteristics can be used.
Primary Activities of the Value Chain:
1. Inbound Logistics: Activities related to receiving, storing, and distributing inputs.
o Example: The process of managing raw material inventory (operational).
2. Operations: Activities that transform inputs into the final product.
o Example: Manufacturing assembly line (operational).
3. Outbound Logistics: Activities required to get the finished product to the customer.
o Example: Shipping products to customers (operational).
4. Marketing and Sales: Activities that inform buyers about products and services and induce them to make a
purchase.
o Example: Digital marketing campaigns (managerial).
5. Service: Activities that maintain and enhance the product's value.
o Example: Customer support service (operational).
Support Activities: These activities assist primary activities and enhance their effectiveness and efficiency:
• Procurement: The process of acquiring goods and services.
• Technology Development: The processes involved in developing new products or improving existing ones.
• Human Resource Management: Activities related to hiring, training, and compensating employees.
• Firm Infrastructure: Includes management, planning, finance, and quality control.
Procurement Process: The procurement process involves sourcing goods or services, negotiating contracts, and
managing supplier relationships.
Sales and Marketing Process: This involves strategies to promote and sell products or services, including market
research, advertising, and sales activities.
Use of Process Characteristics Knowledge: Understanding process characteristics helps organizations streamline
operations, identify bottlenecks, and enhance performance through targeted improvements.
Q3. How can management improve processes? What does the term process improvement imply? Explain
what managers of processes are responsible for. Describe ideal process objectives. Explain measures and
discuss why they are difficult to develop. Give examples of reasonable, accurate, and consistent process
measures. What should managers avoid about measures? Active Review
Management Improvement of Processes: Management can improve processes by analyzing them, identifying
inefficiencies, and implementing changes that enhance performance.
Process Improvement Definition: Process improvement refers to the systematic approach of optimizing processes
to enhance performance, reduce costs, and improve quality.
Responsibilities of Managers of Processes: Managers are responsible for overseeing process design,
implementation, monitoring, and continual improvement.
Ideal Process Objectives:
• Achieving high efficiency and effectiveness.
• Enhancing customer satisfaction.
• Reducing cycle time and costs.
Challenges in Developing Measures: Measuring process performance can be difficult due to variability, changing
conditions, and the need for accurate data collection.
Examples of Reasonable Process Measures:
• Cycle time for processing orders.
• Error rates in manufacturing.
• Customer satisfaction scores.
What Managers Should Avoid: Managers should avoid setting measures that are not aligned with strategic
objectives or that focus too narrowly on individual metrics rather than overall process performance
Q4. How can information systems be used to improve processes? Explain the five ways IS can be used to
improve a particular process. Specify a process and explain how an IS can improve that process. Specify
measures and objectives for the process. Give an example of a process where an activity can be improved
 using an IS. Describe how data flow can improve a process. Explain why control is important for a business
process. Describe an example of how IS can improve control in a process. Give an example where
automation of an activity improved the process. What makes the decision to automate challenging? Explain
the relationship between a process, an IS, and a procedure. Give an example of how a poorly executed
procedure limits the performance of a process.
Using Information Systems (IS) to Improve Processes:
1. Automation: Streamlining repetitive tasks to save time and reduce errors.
2. Data Analysis: Providing insights into performance and identifying improvement areas.
3. Communication: Facilitating better information flow and collaboration among team members.
4. Monitoring: Tracking process performance in real-time for quicker adjustments.
5. Integration: Connecting various processes and systems for smoother operations.
Example of Process Improvement with IS: Process: Order processing system in a retail environment.
• IS Improvement: Automating order entry reduces manual errors and processing time.
• Measures and Objectives: Reducing order processing time from 3 days to 1 day while maintaining accuracy.
Data Flow and Process Improvement: Improving data flow enhances visibility and coordination, allowing for
timely decision-making and reducing delays.
Importance of Control in Business Processes: Control ensures that processes meet predefined standards and can
lead to corrective actions if deviations occur.
Example of IS Improving Control: Implementing an enterprise resource planning (ERP) system helps maintain
consistent standards and control over financial reporting.
Automation Challenges: Deciding to automate can be challenging due to the need for significant investment,
potential disruptions during implementation, and the impact on employees.
Relationship Between Process, IS, and Procedure: A process outlines the steps to achieve a goal, an IS supports
the process by managing data and workflow, and a procedure details how to execute each step.
Example of Poorly Executed Procedure: If the procedure for handling customer complaints is unclear, it can lead
to inconsistent responses, damaging customer satisfaction and loyalty.
Q5. How can process management principles improve processes? Explain the ways process management
principles can improve a process. Give an example of each and explain the process objective that is
improved. State the goal of Six Sigma.
Improving Processes with Management Principles:
1. Standardization: Creating uniform procedures can enhance consistency and quality.
o Example: Standard operating procedures (SOPs) for manufacturing.
2. Continuous Improvement (Kaizen): Focusing on incremental improvements over time.
o Example: Regular team meetings to identify process inefficiencies.
3. Customer-Centric Approach: Aligning processes with customer needs for better service delivery.
o Example: Implementing feedback loops from customers to refine service processes.
Six Sigma Goal: The goal of Six Sigma is to reduce process variation and improve quality to achieve near-perfect
 performance.
Q7. How can an IS hinder a process? Describe how IS configuration in a company can hamper a process
and limit its improvement. Describe an information silo. Explain the impact of silos on process objectives.
Explain the most common fix to the silo problem. Describe why departments like to control the systems they
use. Explain why a department may legitimately seek to keep its data in multiple databases.
Impact of IS Configuration on Processes: Improper IS configuration can lead to inefficiencies, miscommunication,
and data inconsistencies, hampering overall process improvement.
Information Silos: An information silo occurs when departments or systems operate independently, leading to a
lack of information sharing and collaboration.
Impact of Silos on Process Objectives: Silos can result in fragmented processes, delays in information flow, and
an inability to achieve organizational goals.
Common Fix for the Silo Problem: Integrating systems through enterprise-wide platforms can facilitate better
communication and collaboration across departments.
Departmental Control Over Systems: Departments may prefer to control their systems to tailor them to specific
needs, leading to better usability and satisfaction.
Reasons for Multiple Databases: Departments may seek to maintain separate databases to preserve data integrity,
protect sensitive information, or support specific operational requirements.

5-1. For each of the following processes, suggest how an IS can improve the process. Specify if the improvement
is due to improving an activity, improving data flow, improving control, implementing automation, or improving
procedures. a. the process of selecting a job after college b. the process of planning and executing a wedding or a
funeral c. the process of taking photos and uploading the photos to Facebook d. the process the pizza shop uses to
buy supplies
a. Selecting a Job After College
Improvement:
• Activity Improvement: An IS can streamline the job search and application process through job boards and
networking platforms (e.g., LinkedIn).
• Data Flow Improvement: It can enhance communication between job seekers and employers, facilitating better
follow-up.
b. Planning and Executing a Wedding or Funeral
Improvement:
• Control Improvement: Project management software can help ensure that tasks are completed on schedule and
within budget, allowing for better oversight.
• Automation: Online RSVPs and gift registries can automate the management of guest lists and gifts.
c. Taking Photos and Uploading to Facebook
Improvement:
• Data Flow Improvement: An IS can enable easy upload and organization of photos, making them instantly
 accessible for sharing.
• Activity Improvement: Editing tools within the IS can enhance photo quality before sharing.
d. Buying Supplies for a Pizza Shop
Improvement:
• Automation: A supply chain management system can automate orders for ingredients based on inventory levels
and sales forecasts.
• Control Improvement: The IS can provide real-time data on inventory levels, helping manage supply effectively.

5-2. For each process, specify an IS that supports the process and the first three steps of the procedure that links
that IS to the process.
a. Job Selection Process
IS: LinkedIn Procedure Steps:
1. Create a user profile with education and experience.
2. Use job search filters to find suitable job listings.
3. Apply to jobs directly through the platform.
b. Wedding or Funeral Planning
IS: WeddingWire (or similar planning app) Procedure Steps:
1. Set up an account and create a wedding or funeral profile.
2. Browse vendors and services, comparing reviews and prices.
3. Schedule appointments and track tasks using a checklist feature.
c. Taking and Uploading Photos
IS: Facebook Procedure Steps:
1. Open the Facebook app and log in.
2. Select the 'Photo' option to upload new pictures from the device.
3. Add descriptions or tags before sharing.
d. Buying Supplies for a Pizza Shop
IS: Inventory Management System (e.g., Toast) Procedure Steps:
1. Monitor current inventory levels through the dashboard.
2. Set reorder points for essential ingredients.
3. Generate purchase orders based on inventory data.

5-3. For each of these processes, suggest how they may be improved by non-IS means; that is, by management and
by process management principles.
a. Job Selection Process
• Management: Career services can provide personalized coaching and workshops.
• Process Management Principle: Establish regular networking events to enhance connections.
b. Wedding or Funeral Planning
• Management: Hire a dedicated planner who can oversee all details.
• Process Management Principle: Use a checklist approach to ensure all steps are completed systematically.
c. Taking and Uploading Photos
• Management: Conduct workshops on photography skills.
• Process Management Principle: Create a user guide for best practices in photo sharing.
d. Buying Supplies for a Pizza Shop
• Management: Develop relationships with multiple suppliers for better pricing.
• Process Management Principle: Implement regular inventory audits to manage stock levels more effectively.

5-4. When you go to a restaurant, that restaurant must execute several operational processes. Apply the concepts
in this chapter to several of these processes. These processes might include seating, ordering, cooking, delivering,
and paying.
Processes in a Restaurant:
1. Seating: Welcoming guests, taking them to their tables, and providing menus.
o Objective: Minimize wait time for seating.
o Measure: Average time from arrival to being seated.
2. Ordering: Taking orders from customers accurately and efficiently.
o Objective: Ensure order accuracy.
o Measure: Order error rate.
3. Cooking: Preparing meals as per customer orders.
o Objective: Maintain food quality and timing.
o Measure: Average cooking time per dish.
4. Delivering: Serving food to customers.
o Objective: Timeliness of service.
o Measure: Average time from order to delivery.
5. Paying: Processing customer payments.
o Objective: Minimize checkout time.
o Measure: Time taken to process payment.

5-5. How can your college use IS to make its processes better? Can you think of ways to use new IS tools like
smartphones and social media to make college processes better? Specify the objective and measure that these IS
help improve. For two of these processes, describe the procedures. Does your college have information silos?
Which departments keep data needed by processes outside the department?
IS Improvements:
1. Student Information Systems (SIS): Streamlines enrollment and grading processes.
o Objective: Improve student enrollment efficiency.
o Measure: Time taken for processing applications.
2. Learning Management Systems (LMS): Enhances course delivery and student engagement.
o Objective: Increase student participation in courses.
o Measure: Course completion rates.
Use of Smartphones and Social Media:
• Students can use apps to check schedules and communicate with peers.
• Social media can facilitate group study sessions and event promotion.
Procedures:
• SIS Procedure: Log in to the system, update personal information, and check application status.
• LMS Procedure: Access course materials, submit assignments, and participate in discussions.
Information Silos in College: Yes, departments may keep data such as:
• Financial data held by the finance department.
• Student records kept by the registrar's office.
• Course materials stored by the academic departments.
5-6. When you order a meal at McDonald’s, that data is stored in an enterprise IS to be used by various processes.
Make a list of the McDonald’s processes in which your Happy Meal purchase will appear. You may want to review
the value chain processes discussed in Q2.
5-6: McDonald's Processes for Happy Meal Purchase
Processes Involved:
1. Order Processing: Taking the customer’s order.
2. Inventory Management: Tracking ingredient usage and availability.
3. Food Preparation: Cooking and assembling the Happy Meal.
4. Sales Transaction: Processing payment.
5. Customer Service: Handling any inquiries or issues post-purchase.

5-7. Make a Facebook cause (www.facebook.com/causes). Invite several friends to join. Using paper and pencil
or diagramming software, make a BPMN diagram of the three or four key activities in this promotional process.
Specify objectives and measures for this process and explain how Facebook (IS) improves the promotional process.
5-8. What are the key activities involved in the process of applying for leave in a firm? Specify the process
objectives and measures. Refer to figure 5-9, and discuss how the IS can improve this business process?
5-7: Facebook Cause and BPMN Diagram
Key Activities for Creating a Facebook Cause:
1. Create a cause page.
2. Invite friends to join.
3. Share updates and events related to the cause.
Objectives and Measures:
• Objective: Raise awareness and engagement.
• Measure: Number of members joining the cause and interaction rates on posts.
 How Facebook (IS) Improves the Process: Facebook facilitates easy sharing of the cause, allows for rapid
communication, and provides metrics for engagement through its analytics tools.

CHAP 6
Q1. What problem does an ERP system solve? Explain how businesses used IS before ERP systems. Identify
the problem solved by an enterprisesy system. Explain information silos. Sate the difference between the
two enterprise systems: EAI and ERP. Define EAI and describe how EAI works. Give several why a firm
might want to use nn EAI rather than ERP. Describe tile two key characteristics of ERP systems.
Problem Solved: Integrates business processes, eliminates information silos, and enhances data accuracy.
Pre-ERP IS Use: Businesses used disparate systems, leading to data duplication and inconsistency.
Information Silos: Isolated data within departments, hindering collaboration.
EAI vs. ERP:
• EAI: Connects different applications for data exchange.
• ERP: Integrated solution for managing all business operations.
EAI Benefits: Integrates legacy systems, cost-effective, flexible.
ERP Characteristics: Integrated platform, real-time data access.
Q2. What are the elements of an ERP system? Explain how businesses used computers for inventory
purposes before the Internet. Explain the difference between MRP and MRPII. Explain how business and
IS have coevolved. Name several of the business functions integrated by ERP. What is the difference between
an ERP product and an implemented ERP system at a company? Describe configuration. Explain why a
company might create a custom program for its ERP implementation. Describe the relationship between
ERP systems and databases. Differentiate among the three types of ERP data. Explain the two ERP
hardware issues. Describe how procedures can improve control of a process. Explain several ERP jobs.
Describe inherent processes.
• Elements: Database, modules (functional areas), user interface.
• Pre-Internet Inventory Management: Standalone systems with manual data entry.
• MRP vs. MRP II:
o MRP: Focuses on inventory control.
o MRP II: Includes additional resources.
• Co-evolution: IS and business practices evolve together.
• Integrated Functions: Finance, HR, sales, supply chain, CRM.
• ERP Product vs. Implemented System: Product is the software; implemented system is its configured version.
• Configuration: Adjustments made to meet specific business needs.
• Custom Programs: For unique business processes or competitive advantage.
• ERP and Databases: ERP systems depend on databases for data management.
• Types of ERP Data: Transactional, master, configuration.
• ERP Hardware Issues: Scalability, performance.
• Improving Control: Clear procedures enhance accountability.
• ERP Jobs: Analysts, administrators, project managers.
• Inherent Processes: Standardized processes built into ERP systems.
Q3. What are the benefits of an ERP system? Explain why it is not accurate to say that ERP improves
existing processes. Describe the advantages of the real-time data benefit of ERP systems. Explain how ERP
benefits management. Describe the contents and purpose of a dashboard. Active Review
Benefits of ERP Systems
• Benefits: Integrated data, improved reporting, efficiency gains.
• ERP Process Improvement: Standardizes rather than inherently improves processes.
• Real-Time Data Benefits: Facilitates informed decision-making and proactive management.
• Management Benefits: Offers insights for strategic oversight.
• Dashboard Purpose: Visual monitoring of KPIs for performance.

Q4. What are the challenges of implementing an ERP system? Why is selecting the right ERP vendor an
important decision? In a gap analysis, why should a company avoid creating a long list of things it would
like the ERP system to do? Give several examples of the types of decisions a firm must make to configure
an ERP system. Explain the general options the implementation team has for each decision. Explain the
disadvantages of using custom software with ERP. What makes the transition, the cutover, from the old
system to the new a challenge? Explain each of the people implementation challenges. Describe culture and
why it is important to ERP implementation. What problems are unique to ERP upgrades?
Challenges: Change management, data migration, cost overruns.
Vendor Selection Importance: Affects compatibility and support.
Gap Analysis: Avoid creating exhaustive wish lists to focus on critical needs.
ERP Configuration Decisions: Module selection, customization, integration with existing systems.
Options for Configuration: Standard features vs. custom, phased rollout vs. big bang.
Disadvantages of Custom Software: Increased costs, complex integration.
Transition Challenges: Operational disruptions during cutover.
People Challenges: Training needs and cultural alignment.
Cultural Importance: Encourages buy-in for successful implementation.
ERP Upgrade Issues: Data integrity, retraining, resistance to change.
Q5. What types of organizations use ERP? Explain how the type of firm that uses ERP has changed over
time. How can the size of the organization affect ERP success? What ERP needs are unique to large
organizations? Describe the unique benefits of ERP systems for international firms.
ERP User Types: Large corporations, mid-sized businesses, and international firms.
Changes Over Time: Initially adopted by large firms, now accessible to smaller organizations.
Unique Needs of Large Firms: Complexity in operations and more extensive data management.
International Firm Benefits: Streamlined global operations and compliance.
 Q6. Who are the major ERP vendors? How do the Tier 1 ERP vendors differ? Name the three top vendors
and explain how they are unique. Identify the relative market share of each. Explain which ERP vendors
serve small and midsized organizations and which serve large organizations.
Major ERP Vendors:
1. SAP
2. Oracle
3. Microsoft Dynamics
Tier 1 ERP Vendors:
• Definition: Tier 1 ERP vendors are characterized by their ability to serve large, multinational corporations with
complex needs. They offer comprehensive solutions that integrate various business processes across different
countries and regulatory environments.
• Differences:
o Scalability: Tier 1 solutions are designed to handle extensive data and transaction volumes.
o Customization: They offer more robust customization options to meet specific industry requirements.
o Global Reach: These vendors often have a broader global presence and support for multiple languages and
currencies.
Top Three Vendors and Their Uniqueness:
1. SAP:
o Unique Feature: Offers extensive functionality across multiple industries, with strong capabilities in supply chain
management and manufacturing.
o Market Share: Approximately 23% of the global ERP market.
2. Oracle:
o Unique Feature: Strong emphasis on data analytics and cloud solutions, offering advanced features for financial
management and customer experience.
o Market Share: Around 14% of the global ERP market.
3. Microsoft Dynamics:
o Unique Feature: Focuses on integration with other Microsoft products, offering a user-friendly interface and
flexible deployment options (on-premise or cloud).
o Market Share: Approximately 7% of the global ERP market.
ERP Vendors for Different Organization Sizes:
• Small and Midsized Organizations:
o Vendors: Microsoft Dynamics 365, Sage, NetSuite.
o Focus: These vendors typically offer more cost-effective solutions tailored for smaller organizations with fewer
complex needs.
• Large Organizations:
o Vendors: SAP, Oracle.
o Focus: These solutions cater to large enterprises needing comprehensive features and scalability.

Q7. What makes SAP different from other ERP products? Describe SAP AG. Break down the expenses for
implementing SAP. Define module and give examples of SAP modules. Explain how access to SAP screens
can be controlled and how SAP limits or controls data inputs. Describe SAP’s NetWeaver. Explain the
important characteristics of R/3.
What Makes SAP Different:
• Extensive Integration: SAP provides a highly integrated suite of applications that cover virtually all business
functions, making it one of the most comprehensive ERP solutions available.
• Industry-Specific Solutions: SAP offers tailored modules for various industries, providing specialized tools that
address unique business challenges.
SAP AG Overview:
• Description: SAP AG is a global software company specializing in ERP software. Founded in 1972 in Germany,
it has grown to become one of the largest software companies in the world, focusing on enterprise applications and
cloud solutions.
Implementation Expenses for SAP:
• Expenses Breakdown:
o Software Licensing Costs: Initial purchase or subscription fees for SAP software.
o Consulting Fees: Costs for implementation consultants to guide the deployment process.
o Training Costs: Expenses for training staff on how to use SAP effectively.
o Infrastructure Costs: Hardware and IT infrastructure necessary for supporting the software.
o Maintenance Costs: Ongoing support and updates after implementation.
Definition of Module:
• Module: A distinct component of an ERP system that addresses a specific business function (e.g., finance, HR,
supply chain).
• Examples of SAP Modules:
o SAP FI (Financial Accounting): Manages financial transactions and reporting.
o SAP MM (Materials Management): Oversees procurement and inventory management.
o SAP SD (Sales and Distribution): Manages sales orders, deliveries, and billing.
Access Control in SAP:
• Access Control: SAP allows organizations to define user roles and permissions to control access to different
screens and data inputs.
• Data Input Controls: Through role-based access, SAP limits who can view or modify specific data, ensuring data
integrity and compliance.

6-1. Identify the information silos that your university is experiencing. Would you advice your university to
implement an EAI solution or an ERP? Justify your answer.
 Information Silos Identification:
• Departments not communicating: Different departments (e.g., admissions, finance, athletics) may operate
independently, leading to disconnected data and decision-making.
• Lack of centralized data: Each department may maintain its own database, causing redundancy and
inconsistencies.
• Manual processes: Often, data is transferred between departments manually, increasing the likelihood of errors.
Recommendation:
• EAI Solution: I would advise implementing an Enterprise Application Integration (EAI) solution. An EAI
approach focuses on integrating existing applications within the university, facilitating communication without
the need for a complete overhaul of systems. It allows for better data sharing and streamlining processes without
the extensive costs and time required for a full ERP implementation.
• Justification: EAI can provide immediate improvements in communication and data accessibility while being less
disruptive compared to an ERP system, which might be better suited for larger-scale integration needs in the
future.

6-2. What would happen next fall if the freshman class is unexpectedly 20 percent larger than this year’s class?
Which campus organizations need to know that data early? Do you think your university has a way to share this
data efficiently?
If the freshman class is unexpectedly 20 percent larger, several campus organizations would need this data early:
• Admissions Office: To manage enrollments and adjust recruitment strategies.
• Housing Services: To ensure adequate accommodation for the increased number of students.
• Dining Services: To prepare for increased meal plans and dining capacity.
• Campus Security: To assess the need for increased security personnel or measures.
Data Sharing Efficiency:
• The university may not currently have an efficient data-sharing mechanism in place, often relying on manual
communication channels or disparate systems, leading to delays and potential operational challenges.

6-3. An ERP can create a digital dashboard of important statistics and measures. What data would you like on
your dashboard if you were the athletics director? Are they all measures of process objectives? What data would
you like if you were the president of the university? Who else at the university could use a dashboard to do their
work more effectively?
As the Athletics Director:
• Measures of Interest:
o Athlete performance metrics: GPA, training attendance, injury reports.
o Budget utilization: Spending vs. budget allocations for various sports.
o Fan engagement statistics: Attendance numbers, social media engagement.
• As the University President:
o Enrollment statistics: Current and projected student enrollment figures.
o Financial health metrics: Revenue from tuition, state funding, and donations.
o Graduation rates and retention data.
Other Potential Users:
• Department Heads: Could benefit from dashboards that track departmental performance metrics.
• Academic Advisors: Could utilize dashboards to monitor student success and retention rates.

6-4. What does this MIS class do differently than other classes? Maybe the assignments are a bit different, maybe
the instructor does some things a little differently. What if a university instructional ERP system was invented that
featured inherent processes that removed these unique elements? Would that make the school’s teaching process
more efficient and effective? How could you measure that improvement? Would it be worth it
Differentiation:
• Unique assignments focusing on practical applications, hands-on projects, and instructor engagement with real-
world scenarios.
Impact of a Standard ERP System:
• Efficiency vs. Effectiveness: While standardizing processes could improve efficiency, it may diminish the
innovative and flexible teaching approaches that differentiate the class.
• Measurement of Improvement: Student satisfaction surveys, academic performance metrics, and feedback on
engagement could be used to assess improvement.
6-5. If your school adopts a new ERP-like system to improve class scheduling, procurement, and HR functions,
which of the implementation people challenges in Figure 6-16 might be particularly hard in a university setting?
Challenges:
• Change Resistance: Faculty and staff may resist changes to established processes.
• Training Needs: Ensuring all users are adequately trained on the new system.
• Cultural Differences: Aligning diverse departmental cultures and practices may be difficult.

6-6. The athletics director buys sports equipment from a supplier with a well-implemented ERP. What advantages
are there for your school to buy from a supplier with an ERP system? You might expect to see an advertising claim
from that company like, “We can meet customer orders in 20 percent less time than the industry average.” Create
a list of two or three measures you would expect to hear from a supplier with an effective ERP system and two or
three measures that an ERP system might not improve.
Advantages:
• Faster Order Fulfillment: Suppliers with ERP systems can fulfill orders more quickly and accurately.
• Enhanced Visibility: Real-time inventory tracking, leading to better planning.
• Improved Customer Service: Streamlined communication and order management.
Expected Measures:
• Order Accuracy Rates: Percentage of orders fulfilled correctly.
• Lead Time Reduction: Average time taken to process and ship orders.
• On-time Delivery Rates.
Measures Not Improved:
• Product Quality: ERP systems focus on process efficiencies but may not guarantee the quality of the products
sold.
• Customer Relationship Management: While order processing may improve, the personal touch in customer
relations might not enhance.
6-7. To have a successful ERP system, a sports equipment supplier will have made a variety of good configuration
decisions. Give examples of what you think might be the company’s item identifiers and order sizes. Also, who do
you think approves customer credit and production capacity increases? What actions need to be taken if a customer
modifies an order?
Item Identifiers:
• SKU Numbers: Unique identifiers for each product.
• Order Sizes: Typically based on demand forecasts, historical sales data, and minimum order quantities.
Approval Processes:
• Credit Approval: Typically handled by the finance department or senior management.
• Production Capacity Increases: Usually approved by operations managers based on current demand forecasts.
Customer Order Modifications:
• Need to assess the impact on inventory and production schedules. Communication with the customer regarding
the feasibility of changes is critical.
6-8. Assume that a sports equipment supplier chose SAP and is an equipment wholesaler that does not produce
the equipment it sells to universities. As a wholesaler, which module in Figure 6-20 might the supplier not purchase
from SAP?
As a wholesaler, the supplier might not purchase the Manufacturing Module, as they do not produce the
equipment they sell. Their operations are more focused on distribution and logistics
6-9. Figure 6-4 shows the procurement process now used at the university and the objectives and measures used
by the athletics department. If you worked as the purchasing agent for dining services, buying all the food served
in campus dining halls, what would be the objectives and measures of your procurement process?
Objectives:
• Cost Control: Achieve a target cost for food supplies while maintaining quality.
• Supplier Reliability: Ensure timely delivery of food products to prevent shortages.
• Sustainability Goals: Prioritize local and sustainable sourcing.
Measures:
• Cost per Meal: Average expenditure on food per meal served.
• On-time Delivery Rate: Percentage of food deliveries received on time.
• Waste Reduction: Amount of food waste generated, aiming for a reduction percentage.