Management Information Systems -
Study Guide
Chapter 1: Information Systems in Global Business Today
What is an information system? Describe its components and how it works.
An information system (IS) is a set of interrelated components that collect, process, store,
and distribute information to support decision-making, coordination, analysis, control, and
visualization in organizations.
Components:
1. Hardware – physical devices.
2. Software – programs and applications.
3. Data – raw facts turned into meaningful information.
4. People – users.
5. Processes – procedures for data input, processing, and output.
Process: Input (data) → Processing (software/hardware) → Output (information) →
Feedback.
Six Strategic Business Objectives of IS
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
Define a digital firm. How does it differ from a traditional firm?
A digital firm is a business where nearly all core business processes are digitally enabled
and mediated via the internet.
Digital firm → real-time, agile, global. Examples: Amazon, Google.
Traditional firm → manual processes, slower decision-making, physical operations.
Chapter 2: Information Systems in Business and E-Business
Define a business process and example
A business process is a logically related set of tasks/activities designed to achieve a
business outcome.
Example: Order fulfillment → receiving order → verifying payment → shipping → updating
inventory.
Different types of IS for management groups
Operational-level: Transaction Processing Systems (TPS)
Management-level: MIS, DSS
Strategic-level: ESS
What is collaboration? Time/space collaboration and social tool matrix.
Collaboration is working together towards a shared goal.
Time/Space Matrix:
• Same time, same place → face-to-face meetings
• Same time, different place → video conferencing
• Different time, same place → shared workspaces
• Different time, different place → email, collaborative docs
Tools: Google Docs, Slack, MS Teams, Trello.
Chapter 3: Strategic Information Systems
Porter’s Five Forces model with examples
1. Threat of new entrants – high in e-commerce, low in airlines
2. Bargaining power of suppliers – e.g., Apple chip suppliers
3. Bargaining power of buyers – online retail
4. Threat of substitutes – Netflix vs cinema
5. Rivalry – Pepsi vs Coca-Cola
Four IS-enabled competitive strategies
1. Low-cost leadership – Walmart
2. Product differentiation – Apple
3. Focus on niche market – Airbnb
4. Strengthening customer/supplier ties – Amazon
Business Value Chain Model & IT improvement
Value chain: Inbound logistics, operations, outbound logistics, marketing & sales, service.
IT improvements: RFID, robotics, GPS tracking, CRM, chatbots.
Chapter 4: IT Infrastructure & Emerging Technologies
Define IT infrastructure and describe its evolution
IT infrastructure: Shared technology resources (hardware, software, networks, services).
Evolution: Mainframe → Minicomputers → PC → Client-server → Enterprise Internet →
Cloud & mobile.
Moore’s Law and Law of Mass Digital Storage
Moore’s Law: Transistors double every 18–24 months, power up, cost down.
Law of Mass Digital Storage: Storage cost falls, capacity rises rapidly.
Cloud computing & three unique features
Definition: On-demand computing resources over internet.
Features: On-demand service, broad network access, elastic scalability/pay-per-use.
Chapter 5: Business Intelligence & Databases
Problems in traditional file environment & DBMS solution
Problems: redundancy, inconsistency, isolation, security issues.
DBMS solutions: centralized control, reduced redundancy, enforced standards, improved
security.
OLAP & Data Mining
OLAP: multidimensional analysis, e.g., sales by time/region.
Data mining: hidden patterns, e.g., supermarkets (beer + diapers).
Data governance & quality assurance
Ensures accuracy, consistency, compliance.
Poor data → bad decisions, lost revenue, legal risks.
Chapter 6: Telecommunications, Internet & Wireless
Computer network & types
Computer network: two or more computers connected.
Types: LAN (local), WAN (wide).
TCP/IP model and its four layers
1. Application – HTTP, FTP, email
2. Transport – TCP/UDP
3. Internet – IP
4. Network access – Ethernet, Wi-Fi
Fiber-optic vs Coaxial vs Wireless
Fiber: high bandwidth, secure, expensive.
Coaxial: medium cost, lower capacity.
Wireless: flexible, mobile, but less secure.
Chapter 7: E-Commerce & Mobile Finance
Unique features of e-commerce technology
Ubiquity, global reach, universal standards, richness, interactivity, personalization, info
density.
Digital vs Traditional markets
Digital: lower cost, transparency, global.
Traditional: local, higher transaction costs.
E-commerce revenue models
Advertising (Google), Sales (Amazon), Subscription (Netflix), Freemium (Spotify),
Transaction fee (PayPal), Affiliate (influencers).
M-commerce and applications
Definition: commerce via mobile devices.
Apps: Mobile banking, mobile payments, location-based services, mobile shopping.
Chapter 8: Ethics, Social Issues & Security
Five moral dimensions of IS
1. Information rights & obligations
2. Property rights & obligations
3. Accountability & control
4. System quality
5. Quality of life
Computer crime & types
Computer crime: illegal acts involving computers/networks.
Types: hacking, phishing, identity theft, malware, DoS, cyberterrorism.
NORA & concerns
NORA: detects hidden relationships from multiple data sources.
Concern: invasion of privacy, surveillance risks.
Protecting against cybercrime
Methods: firewalls, encryption, intrusion detection, MFA, employee training, audits,
backups.
Short Notes
BYOD: Bring Your Own Device policy, pros: flexibility, cons: security risks.
Cloud computing: internet-based computing, scalable, flexible.
Crowdsourcing: large community contributing ideas/funds, e.g., Kickstarter, Wikipedia.
