Here’s an organized breakdown and explanation of the assignment questions:

1. Information Systems in Business

• a. Why are information systems essential in business today? Information
systems (IS) are vital to business today for several reasons:
o Data-driven decision-making: They enable businesses to collect and
analyze large amounts of data to make informed decisions.
o Operational efficiency: Automate tasks and processes, improving
speed, reducing costs, and minimizing human error.
o Competitive advantage: Help businesses innovate, adapt to market
changes, and create unique value propositions.
o Customer relationship management: Facilitate better communication,
engagement, and understanding of customer needs.
o Globalization: Information systems support businesses in operating in
global markets by providing tools for communication and management
across borders.
• b. Define an information system (IS) from both a technical and business
perspective.
o Technical Perspective: An IS is a set of interrelated components that
collect, process, store, and disseminate information for decision-
making. It involves hardware, software, databases, and networks.
o Business Perspective: An IS supports business operations,
management, and decision-making by helping to collect, organize, and
analyze data. It allows companies to improve efficiency, productivity,
and gain strategic advantages.
Three dimensions of information systems:
3. Technology: Includes hardware, software, and telecommunications.
4. People: Users who interact with the system, such as managers, employees,
and IT staff.
5. Processes: The workflows and procedures that data goes through in the
system, including how it is processed and used in decision-making.
• c. Complementary assets required for IT to provide value to business.
Complementary assets are non-IT resources and capabilities that enhance the
value of IT investments. These include:
1. Organizational capital: Proper structures, cultures, and business processes to
leverage IT effectively.
2. Human capital: Skilled employees who can manage and make the best use of
technology.
3. Social capital: Strong networks and relationships that help businesses
leverage technology to build partnerships, alliances, or customer bases.
2. Information Systems and Management Information Systems (MIS)
• a. What is information? Distinguish between information and data.
o Data: Raw, unprocessed facts or figures without context (e.g., numbers,
dates).
o Information: Processed, organized, or structured data that has meaning
and can be used for decision-making (e.g., sales reports, customer
analysis).
• b. Important functions of an MIS for efficient functioning of an organization.
A Management Information System (MIS) provides managers with tools to
help make decisions. Key functions include:
1. Data collection: Gathers relevant data from internal and external sources.
2. Data processing: Transforms data into usable information.
3. Information distribution: Provides information to decision-makers when
needed.
4. Decision support: Offers insights and analyses to assist in strategic and
operational decision-making.
• c. Classify the types of information that management uses. Management
uses various types of information, including:
1. Operational Information: Short-term, tactical data needed for day-to-day
operations (e.g., inventory levels, sales transactions).
2. Strategic Information: Long-term, high-level data used for decision-making
(e.g., market trends, competitive analysis).
3. Tactical Information: Used for medium-term decision-making, typically
related to improving organizational efficiency (e.g., departmental performance
reports).
4. Transactional Information: Information regarding routine business
transactions (e.g., purchase orders, invoices).
3. Information Systems Components and Properties
• a. Define an information system. Identify and discuss the various
components of an IS. An Information System is a coordinated set of
components that work together to process, store, and disseminate
information for decision-making. The components include:
1. Hardware: Physical devices such as computers and servers.
2. Software: Applications and systems that process data.
3. Data: Core content processed by the system.
4. People: Users who interact with the system (e.g., IT staff, end users).
5. Processes: Procedures and rules to follow for data processing and
decision-making.
• b. Important properties of a system and characteristics of information for
decisions. A system must have these properties:
 1. Interrelated components: Each part must work in harmony with the
others.
2. Purpose: It must have a clear goal (e.g., solving problems or providing
insights).
3. Boundary: Defined limits to determine which elements belong to the
system.
The characteristics of good information for decision-making are:
4. Accuracy: The information must be correct and reliable.
5. Timeliness: It should be available when needed.
6. Relevance: Information must be applicable to the decision at hand.
7. Completeness: Must include all necessary data.
• c. What is meant by computer-based information systems (CBIS)? Briefly
discuss the various parts of a CBIS. Computer-based Information Systems
(CBIS) use computer technologies to perform essential information
management tasks. The main components include:
1. Hardware: Physical machines (computers, storage devices, etc.).
2. Software: Programs or applications that process data.
3. Database: A collection of organized data that can be easily accessed
and managed.
4. Network: The communication system that allows data sharing and
connectivity.
5. People: Users who interact with the system, including IT staff and end-
users.
4. Business Processes and Information Systems
• a. Define business processes and their relationship with information
systems. Business processes are structured activities or tasks that produce a
 specific service or product. Information systems support these processes by
automating tasks, improving efficiency, ensuring accuracy, and enabling
communication across departments.
• b. How information systems support major business functions:
1. Sales and Marketing: IS support customer relationship management
(CRM), advertising campaigns, and sales analytics.
2. Manufacturing and Production: They optimize production schedules,
manage inventory, and track production performance.
3. Finance and Accounting: They manage transactions, budgets, financial
reporting, and audits.
4. Human Resources: IS helps in recruitment, payroll processing, and
performance evaluations.
• c. Evaluate the role of systems at various management levels. Information
systems serve:
1. Operational level: Routine, day-to-day tasks (e.g., transaction
processing systems).
2. Middle management: Tactical decision support (e.g., decision support
systems).
3. Top management: Strategic decision-making and business forecasting
(e.g., executive information systems).
5. Building and Using Information Systems in Organizations
• a. Features of organizations managers should know to build and use an IS
successfully. To build and use an IS effectively, managers need to understand:
1. Organizational structure: How departments interact and work together.
2. Culture: The values, practices, and norms that influence how
information systems are used.
3. Processes: The workflows and tasks that the IS needs to support.
• b. Porter’s competitive forces model and competitive strategies using IS.
Porter’s Five Forces Model identifies the competitive forces in an industry
that affect profitability. Information systems help companies address these
forces by enabling better decision-making, improving customer loyalty,
enhancing supply chain management, and optimizing product differentiation.
• c. Value chain and value web models for strategic information system
applications. The value chain refers to the activities within an organization
that create value for customers. Information systems help streamline these
activities, improve efficiency, and create competitive advantage. The value
web expands this concept to include external relationships and partnerships,
showing how businesses interact with suppliers, partners, and customers to
create a holistic value system.