Direction: Based on the Chapter 4 topic. Briefly discuss the following.

1. What are the Pyramid of Uses in Information Systems? Briefly discuss each
function.
The Pyramid of Uses in Information Systems is a hierarchical model that explains the
different types of information systems used within an organization.
At the bottom layer of the pyramid, we have Transaction Processing Systems.
Transaction processing systems are automated systems that handle an organization's routine
transactions and operational activities. TPS is designed to efficiently record, process, and
store large volumes of data generated from day-to-day operations, such as sales transactions,
inventory management, and employee payroll. They ensure the accuracy and reliability of
data and provide the operational information needed for smooth business operations.
Moving up to the pyramid, we have Management Information Systems. These systems
are used by middle management to generate reports and provide information for decision-
making. MIS gathers data from TPS and other sources, processes it, and then delivers it to
managers through summarized reports that give them essential information about the
organization's performance, including sales figures, inventory levels, and financial data. MIS
supports day-to-day operations and short-term planning by assisting middle managers in
monitoring operations, analyzing patterns, and making well-informed decisions.
Above MIS, we have Decision Support Systems. These systems were used by senior
management to analyze data and make strategic decisions. Typically, DSS relies on advanced
analytics techniques such as data mining and predictive modeling to generate insights in
order to assist senior managers in identifying trends, forecasting future outcomes, and
evaluating alternative courses of action. DSS supports strategic planning, risk analysis, and
decision-making processes at the organizational level.
We proceed to the Executive Information Systems at the pyramids' top. Top-level
executives facilitate these systems to monitor the overall performance of the organizations.
The executive information system provides a comprehensive and summarized view of key
performance indicators and critical metrics, allowing executives to assess the organization's
health and progress toward strategic goals. Moreover, they provide executives with an
aggregated view of the organization's financials, market position, sales trends, and other
relevant data to support high-level decision-making and strategic planning.

2. What is Enterprise Resource Planning System?

Enterprise Resource Planning (ERP) system enables organizations to manage their
business operations more effectively. It provides various functions that may be used to
control various business operations, such as accounting, inventories, sales, finance, and
human resources. An ERP system may enhance an organization's accuracy, productivity,
reporting, efficiency, and teamwork by combining all these tasks into a single system. With
an ERP system, different departments can interact and exchange information more
effectively, which allows organizations to work more efficiently and make informed
decisions based on real-time automation and assistance provided by the software. As a result,
organizations can automate routine tasks, improve their decision-making process, reduce
errors, and streamline their business processes.

3. What is Supply Chain Management System?

When we say Supply Chain Management System, it is a software tool that assists
organizations to manage their supply chain operations more efficiently and effectively. These
systems aim to streamline the transfer of products and services, guaranteeing prompt and
effective delivery of products to customers. It serves as a centralized platform that gives
companies real-time visibility into their supply chain, allowing them to manage inventory
levels, keep track of supplier performance, and identify possible bottlenecks in the supply
chain. By leveraging this system, organizations can streamline their supply chain operations,
reduce lead times, improve inventory accuracy, boost customer satisfaction, improve supplier
relationships, and improve bottom-line results. SCM systems include modules that provide
companies with a comprehensive view of their supply chain operations, enabling them to
take prudent steps and act rapidly in response to changes in supply or demand.

4. What is Customer Relationship Management System?

Organizations can manage their interactions and relationships with customers more
efficiently with the help of the customer relationship management (CRM) system. Its primary
objective is to provide companies with a centralized platform for storing and organizing
customer data, along with their behavior and preferences, for them to know their customer
behavior, purchasing patterns, and trends, empowering them to make well-informed
decisions regarding product offerings, pricing strategies, and market segmentation. By
utilizing the CRM system, businesses can streamline their sales and marketing campaigns,
allowing sales teams to track leads and manage opportunities while maintaining an eye on the
sales funnel. Consequently, there will be an improvement in customer retention and
satisfaction, increased sales and revenue, and a competitive edge in the industry. Generally, a
CRM system is helpful for organizations to enhance their customer relationships and drive
revenue growth.

5. What is Knowledge Management System?

Knowledge management systems are essential IT systems that organize, store, and
retrieve an organization's collective knowledge, including both explicit and tacit knowledge.
These systems can be used both internally within a company and externally as customer
service tools. The primary goal of a KM system is to leverage the aggregate knowledge and
skills of individuals within an organization, giving them better access and use of information
effectively to improve performance and productivity. For instance, it enables employees or
users to access information and knowledge quickly and easily, making them more productive
and efficient. Ultimately, knowledge management systems assist organizations in achieving
particular goals more successfully, reducing expenses, enhancing customer satisfaction and
employee engagement, and facilitating faster innovation.

6. Why do People in Information Systems important?

Information systems are crucial for any organization to achieve its goals, and people are
crucial in making these systems work effectively. While technology is an essential part of
information systems, people design, operate, maintain, and use these systems. People are
involved in every aspect of information systems, from the design and development stages to
implementation, maintenance, and use. They assist in determining the technical requirements
of the system, the user interface, and the business requirements that the system should fulfill.
For instance, they develop the system by writing code, testing it, fixing bugs, and
implementing it in the organization.

Moreover, they keep the system current by monitoring it for potential problems, fixing
errors, and adding new features. Finally, they use the information system to carry out their
tasks, input data, retrieve information and produce reports. People, therefore, hold the key to
successful information systems as they bring the technical knowledge and business expertise
necessary to make them function well and accomplish organizational objectives.