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Lesson Objective ReviewLearning Outcome Review1.1. Describe the information age and the differences among data, information, business intelligence, and knowledge.We live in the information age, when infinite quantities of facts are widely available to anyone who can use a computer. The core drivers of the information age include data, information, business intelligence, and knowledge. Data are raw facts that describe the characteristics of an event or object. Information is data converted into a meaningful and useful context. Business intelligence (BI) is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making. Knowledge includes the skills, experience, and expertise, coupled with information and intelligence that create a person's intellectual resources. As you move from data to knowledge, you include more and more variables for analysis, resulting in better, more precisesupport for decision making and problem solving. 1.2. Identify the different departments in a company and why they must work together to achieve success.Accounting:Records, measures, and reports monetary transactions.Finance:Deals with strategic financial issues including money, banking, credit, investments, and assets.Human resources:Maintains policies, plans, and procedures for the effective management of employees.Marketing:Supports sales by planning, pricing, and promoting goods or services.Operations management:Manages the process of converting or transforming resources into goods or services.Sales:Performs the function of selling goods or services.It is easy to see how a business decision made by one department can affect other departments. Marketing needs to analyze production and sales data to come up with product promotions and advertising strategies. Production needs to understand sales forecasts to determine the company'smanufacturing needs. Sales needs to rely on information from operations to understand inventory, place orders, and forecast consumer demand. All departments need to understand the accounting and finance departments' information for budgeting. For the firm to be successful, all departments must work together as a single unit sharing common information and not operate independently or in a silo.1.3. Explain systems thinking and how management information systems enable business communications.
A system is a collection of parts that link to achieve a common purpose. Systems thinking is a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part. Feedback is information that returns to its original transmitter (input, transform, or output) and modifies the transmitter's actions. Feedback helps the system maintain stability. Management information systems (MIS) isa business function, like accounting and human resources, which moves information about