665782 – ALLAN SHARAD

UNITED STATES INTERNATIONAL UNIVERSITY – AFRICA

SCHOOL OF BUSINESS
APT 30800: MANAGEMENT INFORMATION SYSTEMS

QUIZ 1 SUMMER 2024

Time allowed: 1.5 Hrs

Instructions:
Answer:
All questions

All questions carry equal marks

1. What is an organization?. Give the functions and specialties of the workers in each level.
An organization is a body created for a group of people who come together to work toward shared aims
and objectives within the boundaries of legal organizations. Many terms are used to describe
organizations, such as business, government agency, association, etc. They adhere to specific legal
processes, such as tax identification, business registration, and corporate bookkeeping.\ (What Is an
Organization: Definition, Characteristics, and Importance, 2024). There are three levels of management
(Management Levels: Definitions and FAQs, 2024):
 Top Management
Administrative or top-level managers set the overall course of a business. These management attest to
the company's achievement of its long-term objectives and consistent growth. Usually, their main
objectives are to establish a profitable business with a stellar reputation.
 Middle Management
In addition to supervising first-line managers and other staff members, mid-level managers—also
known as executory managers—carry out the directives of upper management. As the intermediary
between the administrative level and the rest of the workforce, these managers frequently discuss or
impart knowledge to staff members by using information from upper-level managers.
 First-line managers
First-line managers, also known as supervisory managers, provide support to the smallest divisions of a
corporation, such as individual employee groups or sections within a branch, and report to mid-level
managers. These managers successfully lead their teams and aid in the expansion of the business by
interpreting directives from mid-level managers.
2. Describe how information systems have changed the way businesses operate and their
products and services.
New business models: The emergence of fully online services such as on demand video, gaming and
cloud services
Ecommerce Expansion: Information systems have brought about a new way for companies to reach
new audiences via online platforms such as social media, ad spaces on blogs and videos.
Management Changes: Remote management has become the norm with companies managing
employees via wireless methods such as video conferencing and online collaboration tools, like github.
These allow managers to keep continuous communication with their employees
3. Identify three major new information system trends.
Artificial Intelligence and Machine Learning
Cloud Computing and Edge Computing
Internet of Things (IoT)
 4. Describe the characteristics of a digital firm.
The ability to operate in any location that has internet access
The ability to operate outside normal business hours
Data-driven decision Making-in which decisions are made based on real time data allowing the
company to respond to environment changes faster.
5. Describe the challenges and opportunities of globalization in a “flattened” world.
The "flattened" world poses several challenges: advanced countries have seen a decline in their
economic and cultural dominance, and many nations are experiencing economic hardships. An
increasing portion of economies relies on international trade, with jobs frequently shifting across
borders. Despite these issues, there are opportunities, such as the creation of 3.5 million new jobs in the
U.S. during a non-recession year. Additionally, outsourcing has spurred the advancement of new
systems both in the U.S. and globally.
6. Identify and explain 6 characteristics of a system
 Businesses gain an edge over their competitors by using information systems effectively. All major
market leaders leverage information systems to their advantage.
 Information systems are crucial tools that enable businesses to create new products and services and
develop entirely new business models.
 Information systems allow managers to use real-time data from the marketplace to make informed
decisions.
 Businesses invest in information systems and technologies because they are essential for staying
competitive and operational in the modern market.
 Improving the efficiency of business operations to achieve higher profitability.
 When businesses know their customers well, those customers are more likely to return and make more
purchases. This increases revenue and profit.
7. Identify and explain three importance of customer relationship management systems?
 Your consumer has the chance to have a more engaging, personalized experience with each and
every CRM-based engagement (Why You Need [the Right] CRM, 2023).
 It's also a chance for you to increase revenue, raise customer satisfaction, and develop your brand.
And that's how you get repeat business and boost sales.
 Analytics are vital for understanding customer behavior and improving business operations (7 Key
Benefits of CRM Platforms for Business, 2024). CRM systems offer built-in analytics, including
metrics like click-through rates and demographic data, to assess campaign effectiveness and
identify areas for optimization.

8. Define business processes and describe the role they play in organizations.
A business process is defined as collection of activities required to produce a valuable product or
service. Business processes largely impact the performance of a company, where an efficient, well-
 designed business process will yield innovation, as compared to a poor one which will lead to liabilities
in the business.
9. Explain how enterprise applications improve organizational performance
They increase the flow of information within the firm and with customers and suppliers. Firms use this
information to improve their business processes. They also link the firm to external sources of
knowledge.
10. What is IT governance and what type of questions does it resolve for a firm?
IT governance is defined as the processes that ensure effective and efficient use of IT in enabling
an organization to achieve its goals.
11. Identify four characteristics of flat organizations
few levels of hierarchy
Shorter Lines of communications, leading to faster decision making
One manager managing many employees
Employees have a wider range of responsibilities
12. Describe the major behavioral theories that help explain how information systems affect
organizations
 Technology Acceptance Model
According to the Technology Acceptance Model, a person's desire to utilize a technology is based
on how helpful and simple they believe it to be.
It is useful to comprehend how staff members accept new information systems in firms. Employee
adoption rates are higher and organizational outcomes are better when they believe a system is
helpful and simple to use.
 Theory of Diffusion of Innovation
This theory investigates the gradual dissemination of innovations, such as information technology,
inside a social system.
Application: Diffusion theory aids in the management and forecasting of new information
technology adoption in enterprises. Based on their inclination to accept innovations, people are
categorized as innovators, early adopters, early majority, late majority, and laggards.

13. Define disruptive technology and list three examples.

Disruptive technology is the term used to describe inventions that drastically change markets or sectors by
bringing in new goods and services that are frequently easier to use, more convenient, and less expensive
than the competition, upending long-standing rivals and business models in the process. These technologies
upend conventional business practices and frequently result in significant changes to the competitive
landscapes of industries.
1. Electric vehicles
2. Smartphones
3. Streaming services
14. Define Porter’s competitive forces model and explain how it works.
Porter's Competitive Forces Model analyzes the competitive environment of an industry by considering
five key factors:
 Threat of New Entrants: Assesses the likelihood of new competitors entering the market.
Bargaining Power of Suppliers: Examines suppliers' ability to influence supply terms and conditions.
Bargaining Power of Buyers: Evaluates buyers' ability to negotiate prices and terms.
Threat of Substitute Products or Services: Considers the availability and attractiveness of alternatives.
Competitive Rivalry Among Existing Firms: Examines the intensity of competition among industry
players.
15. What ethical, social, and political issues are raised by information systems?
New ethical, social, and political problems that need to be resolved on a personal, social, and political level
might arise from the introduction of new technologies. There are five moral elements to these issues:
responsibility and control, system quality, quality of life, property rights and obligations, and information
rights and obligations (MJ, 2020). A new information system may have an impact on moral dilemmas,
which may then result in social problems, which may then lead to political problems. This illustrates how
moral, social, and political concerns are closely related in today's information-driven world and how the
introduction of a new information system may eventually affect them all.
 References
What is an Organization: Definition, Characteristics, and Importance. (2024). Keka HR.
https://www.keka.com/glossary/organization
Management Levels: Definitions and FAQs. (2024). Indeed Career Guide. https://www.indeed.com/career-
advice/career-development/management-levels#:~:text=The%20typical%20management%20levels
%20are,and%20who%20reports%20to%20them.
Why you need [the right] CRM. (2023). Oracle.com. https://www.oracle.com/ke/cx/what-is-crm/why-crm-
is-important/#:~:text=Every%20interaction%20based%20on%20CRM,customer%20loyalty%20and
%20increase%20revenue.
7 Key Benefits of CRM Platforms for Business. (2024, March 13). WayPath.
https://waypathconsulting.com/top-benefits-of-customer-relationship-management/
MJ. (2020). Ethics Social and Political Issues of Information Systems – MASOMO MSINGI
PUBLISHERS. Masomomsingi.com. https://masomomsingi.com/ethics-social-and-political-issues-of-
information-systems/