Chapter 2: Management information systems – Vocabulary Flashcards

Vocabulary flashcards covering key MIS concepts from Chapter 2, including data vs information, information quality, IT vs IS, cost/benefit concepts, network technologies, controls, and data visualisation.

Data

Raw facts: numbers, letters, symbols, events and transactions that have been recorded but not yet processed into information.

Information

Data that has been processed to have meaning to the recipient and can be used to improve decision making.

Accuracy

Information that is sufficiently accurate to be relied upon.

Completeness

Information that includes all that is needed, but is not excessive.

Cost-effectiveness

The value of information should exceed the cost of producing it.

Understandable

Information that is clearly presented and easy to comprehend.

Relevant

Information that is appropriate and useful for its purpose.

Accessible

Information that can be accessed in an appropriate way (e.g., by email, verbally, or in a written report).

Timely

Information that is provided in time for decisions to be made.

Easy to use

Information that is clear and simple to use.

Information technology (IT)

Equipment concerned with the capture, storage, transmission, or presentation of information; the supporting hardware infrastructure.

Information systems (IS)

The provision and management of information to support the running of the organisation; can be a strategic resource.

Cost-benefit analysis (CBA)

A method to assess the expected costs and benefits of information systems, where benefits should exceed costs.

Initial costs

Design, development, hardware purchase, testing/implementation, and initial training costs.

Running costs

Ongoing costs such as labour to run the system, replacement parts, IT support, and ongoing training.

Direct data capture costs

Costs directly attributed to data input via a reader (e.g., barcode scanners); no manual data entry.

Processing costs

Costs of processing and analysing information.

Indirect costs

Costs required to produce information but not directly attributable to obtaining it (e.g., information that is not needed or duplicated).

Direct costs

Costs that can be directly attributed to obtaining the information.

LAN (Local Area Network)

A network that connects computers within a small geographic area to share data and devices.

WAN (Wide Area Network)

A network that connects multiple LANs across broader geographic areas.

Intranet

An internal network used to share information within an organisation, protected by a firewall.

Extranet

A collaborative network using internet technology to link organisations (e.g., with suppliers).

Internet

Global system of interconnected networks carrying a vast array of information and resources.

Wireless technology / WiFi

Mobile or wireless access to networks and the internet.

Cloud computing

Delivery of services over the internet, with data stored on remote servers accessible from anywhere.

General controls

Policies and procedures that relate to many applications and support proper operation of information systems (e.g., access controls, backups, disaster recovery, virus checks).

Application controls

Manual or automated controls that apply to individual applications to ensure completeness, accuracy and validity (e.g., batch totals, sequence checks, authorization).

Batch total checks

Aggregate totals used to verify the processing of a batch of transactions.

Sequence checks

Controls to ensure transactions are in the correct order and complete.

Authorization

Official approval to perform a transaction or action.

Back-up procedures

Procedures for copying data to safeguard against loss and enable recovery.

Disaster recovery procedures

Plans to recover IT facilities and data after a disaster.

Virus checks

Regular scanning to detect and remove computer viruses.

Data visualisation

Displaying large volumes of data in a visual form to facilitate understanding and decision making.

Features of data visualisation

Accessibility, integration with systems, live data, real-time collaboration, user-friendliness, real-time updates, performance optimization, and insights into cause-and-effect relationships.

Benefits of data visualisation

Improved decision making, faster insight, better understanding of data relationships, and real-time collaboration.