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System Analysis Ch1

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1. What is information technology, and why is it important to a business?
Information Technology (IT) is combination of hardware, software and services that people use to manage, communicate, and share information. It helps a business with product development, process improvement, stakeholder integration, cost efficiencies, and globalization.
2. Define business profiles, processes, and modeling.
Business profile is an overview of a company’s mission, functions, organization, products, services, customers, suppliers, competitors, constraints, and future direction.
Business process describes specific events, tasks, and desired results.
Business process model (BPM) displays one or more business processes, such as an airline reservation, filling a product order, or updating a customer account.
3. Identify the main components of an information system and describe the system’s stakeholders.
The main components of an information system are hardware, software, data/Information, processes/procedures, and people.
Stakeholders are the people who have an interest in an information system. This includes the management group, the users (end users), and IT staff members.
4. Explain the differences between vertical and horizontal systems packages.
A horizontal application is a basic software package system that can be adapted to common business processes for example inventory and payroll.
A vertical application system is customized to meet the unique needs of a particular business, industry, or organization.
5. How do companies use EDI? What are some advantages of using XML?
Companies use EDI to plan production, adjust inventory levels, or stock up on raw materials using data from another company’s information system.
XML enables company-to-company traffic to migrate to the Internet. This offers standard protocols, universal availability, and low communication

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