MIS 1

What is MIS

A system that collects, processes, stores, retrieves, and disseminates information to support decision-making and organisational goals

What is the difference between data and information

Data is raw facts, while information is processed data that is meaningful for decisions

What are the 5 main MIS steps

Data capturing, data processing, storage, retrieval, dissemination

What happens in data capturing

Raw data is collected from internal and external sources

What happens in data processing

Data is transformed into useful information through sorting, calculating, classifying, and summarising

What is the purpose of data storage

To keep data and information for future use

What is the purpose of data retrieval

To access stored information when needed

What is dissemination in MIS

The distribution of processed information to users in the organisation

What is the correct order of MIS steps

Capture → Process → Store → Retrieve → Disseminate

What is one key function of MIS

Improving decision-making by providing accurate and timely information

How does MIS improve organisational efficiency

By enabling faster and better-informed decisions

How does MIS support planning

By analysing data to indicate future situations

How does MIS support control

By identifying problems early and helping monitor operations

How does MIS enable predictions

By using data analysis, statistics, and models

What is organisational connectivity in MIS

The integration of different departments through shared information systems

What types of factors can MIS help analyse

Cost, quality, price, technology, productivity, and products

What is strategy in a business context

A plan to achieve competitive advantage and meet organisational goals

What is competitive advantage

The ability of a firm to outperform its competitors

What are the two main types of competitive advantage

Cost advantage and differentiation advantage

What is cost advantage

Offering products or services at a lower cost than competitors

What is differentiation advantage

Offering unique products or services that customers value

What is the role of technology in strategy

To support, enable, or shape competitive advantage

What is the relationship between MIS and strategy

MIS provides the information and tools needed to implement and support business strategy

What is a strategic information system

A system that helps an organisation gain a competitive advantage

What is Porter’s Five Forces model

A framework used to analyse the competitive environment of an industry

What are the five forces in Porter’s model

Threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, industry rivalry

What is the threat of new entrants

The risk of new competitors entering the market

What is bargaining power of buyers

The ability of customers to influence prices and terms

What is bargaining power of suppliers

The ability of suppliers to control prices or quality of inputs

What is threat of substitutes

The risk of customers switching to alternative products

What is industry rivalry

The level of competition among existing firms

How can MIS impact Porter’s Five Forces

By reducing costs, improving differentiation, and changing competitive dynamics

What is value chain

A set of activities that a firm performs to deliver a product or service

What are primary activities in the value chain

Inbound logistics, operations, outbound logistics, marketing and sales, service

What are support activities in the value chain

Firm infrastructure, HR management, technology development, procurement

How does MIS support the value chain

By improving efficiency and coordination across activities

What is business process

A set of logically related tasks performed to achieve a business outcome

How does technology improve business processes

By automating, speeding up, and reducing errors in processes

What is alignment between business and IT

When technology strategy supports business strategy

Why is IT-business alignment important

Because misalignment leads to inefficiency and loss of competitive advantage

What is digital transformation

The use of technology to fundamentally change business operations and value delivery

What is operational effectiveness

Performing activities better than competitors

What is the difference between strategy and operational effectiveness

Strategy is about being different while operational effectiveness is about doing things better

What are switching costs

The costs or barriers a customer faces when changing providers

How can MIS help reduce costs

Through automation, better data management, and improved efficiency

How can MIS support differentiation

By enabling unique services, customization, or improved customer experience

What is a platform in business

A business model that creates value by connecting two or more groups of users

What is a two-sided market

A market where a platform connects two distinct user groups that depend on each other

What is network effect

The value of a product or service increases as more users join it

What is the difference between direct and indirect network effects

Direct effects come from more users in the same group, while indirect effects come from growth on the other side of the platform

What is the difference between positive and negative network effects

Positive effects increase value as usage grows, while negative effects reduce value through congestion or overload

What is winner-take-all market

A market where one firm dominates due to strong network effects

What is critical mass in platforms

The minimum number of users needed for a platform to become self-sustaining

What is the chicken-and-egg problem in platforms

The difficulty of attracting both sides of a market at the same time

What is multi-sided platform strategy

A strategy focused on managing multiple user groups simultaneously

What is disintermediation

Removing intermediaries from a supply chain

What is reintermediation

The reintroduction of intermediaries in a new digital form

Why are switching costs important in platforms

They help retain users and strengthen competitive advantage

What is platform lock-in

When users stay because leaving is too costly or inconvenient

What is platform scalability

The ability to grow rapidly with low marginal cost

What is marginal cost in digital platforms

The cost of serving one additional user, usually very low

What is user-generated content

Content created by users that adds value to the platform

Why is user-generated content important

It increases engagement and platform value without high cost

What is platform governance

Rules and mechanisms that control interactions between users

Why is platform governance important

To maintain quality, trust, and prevent misuse

What is data advantage in platforms

The benefit gained from collecting and analysing user data

How does data strengthen platforms

It improves personalization, efficiency, and user experience

What is ecosystem in platforms

A network of users, developers, and partners around a platform

Why are ecosystems important

They expand functionality and increase platform value

What is tipping point in platforms

The moment when a platform gains enough users to dominate the market