Management Information System (MIS) Practice Exam

The integration of business processes is a key feature of which information system?

1. Management information system

2. Transaction processing system

3. Executive information system

4. Enterprise resource planning system

The correct answer is: Enterprise resource planning system

The integration of business processes is a defining characteristic of an enterprise resource planning (ERP) system. An ERP system is designed to collect, store, manage, and interpret data from various business activities within an organization. It offers a centralized framework that streamlines operations by integrating functions such as finance, human resources, supply chain, customer relationship management, and more into a cohesive system. This integration allows for improved data accuracy and consistency across different departments, as all users access the same information. The system automates many processes and provides real-time insights, enhancing decision-making and organizational efficiency. By breaking down silos between functions and promoting collaboration, an ERP system can respond effectively to the dynamic needs of the business. In contrast, the other systems mentioned have different focuses. A management information system primarily deals with the collection of data for managerial decision-making but may not facilitate the extensive integration of business processes across departments. A transaction processing system is typically centered around handling day-to-day operations and processing transactions efficiently but lacks the broader integration capabilities of an ERP. An executive information system is geared towards providing top-level executives with easy access to internal and external information, often through dashboards, but does not emphasize the integration of overall business processes like an ERP does.