Enterprise information comes from many places. Information systems produce useful information by processing data from which sources inside and outside the organization?

Difficulty: Easy

Correct Answer: All of the above

Explanation:


Introduction / Context:
Information systems transform raw data into actionable insights. Organizations collect data from operational transactions, management directives, and the external environment. Recognizing the full spectrum of inputs ensures that reports and dashboards reflect reality and support sound decisions at all levels.



Given Data / Assumptions:

  • Internal operations create transactional data (sales, inventory, production).
  • Management contributes plans, targets, and policy parameters.
  • External sources include market prices, competitor moves, regulations, and macroeconomic indicators.


Concept / Approach:
Useful information is often a synthesis: internal performance compared with external benchmarks; actuals measured against management plans; forecasts conditioned by external signals. Therefore, inputs flow from higher and lower management levels (e.g., goals and status), internal systems (e.g., ERP, CRM), and external feeds (e.g., market data APIs, public statistics). Modern MIS and BI platforms integrate these sources to create a coherent, timely view.



Step-by-Step Solution:

List internal transactional and master data streams. Add managerial inputs such as budgets, targets, and constraints. Incorporate external drivers like demand signals and regulatory changes. Conclude that all listed sources contribute to information outputs.


Verification / Alternative check:
Balanced scorecards, variance analyses, and market share reports all demonstrate the combination of internal actuals, managerial plans, and external references.



Why Other Options Are Wrong:
Picking only one subset ignores critical context; decisions suffer when either internal realities or external conditions are omitted.



Common Pitfalls:
Focusing only on internal numbers; failing to align with management intent; ignoring competitive or regulatory environments.



Final Answer:
All of the above

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