Chapter 1

Question 1

Artificial Intelligence (AI)

Answer 1

a field in which the computer system takes on the characteristics of human intelligence.

Question 2

Competitive advantage

Answer 2

a significant and (ideally) long-term benefit to a company over its competition.

Question 3

Computer-based information system (CBIS)

Answer 3

a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data and information.

Question 4

Database

Answer 4

an organized collection of facts and information

Question 5

Data

Answer 5

the raw facts, such as an employee’s name and number of hours worked in a week, inventory parts numbers, or sales orders.

Question 6

Decision support system (DSS)

Answer 6

a system that supports decision making in organizations. It allows the decision maker to enter parameters, decision data and evaluate alternatives using various types of models.

Question 7

E-commerce

Answer 7

any business transaction executed electronicly between parties such as companies (business-to business, B2B), companies and consumers (business-to-consumer, B2C), consumers and other consumers (consumer-to-consumer, C2C), companies and the public sector, and consumers and the public sector.

Question 8

Enterprise resource planning (ERP) system

Answer 8

a set of integrated programs capable of managing a company’s vital business operations for an entire multisite, global organization.

Question 9

Expert system

Answer 9

a system that gives a computer the ability to make suggestions and act like an expert in a particular field.

Question 10

Extranet

Answer 10

a network based on Web technologies that allows selected outsiders, such as business partners and customers, to access authorized resources of the intranet of a company.

Question 11

Feedback

Answer 11

the output that is used to make changes to input or processing activities.

Question 12

Five-forces model

Answer 12

a widely accepted model that identifies five key factors that can lead to attainment of competitive advantage, including (1) the rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute products and services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers.

Question 13

Hardware

Answer 13

the computer equipment used to perform input, processing, and output activities.

Question 14

Information system (IS)

Answer 14

a set of interrelated components that collect, manipulate, store, and disseminate data and information and provide a feedback mechanism to meet an objective.

Question 15

Information

Answer 15

a collection of facts organized in such a way that they have additional value beyond the value of the facts themselves.

Question 16

Input

Answer 16

the activity of gathering and capturing raw data.

Question 17

Internet

Answer 17

the world’s largest computer network, actually consisting of thousands of interconnected networks, all freely exchanging information.

Question 18

Intranet

Answer 18

an internal network based on Web technologies that allows people within an organization to exchange information and work on projects.

Question 19

Knowledge base

Answer 19

the collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome.

Question 20

Knowledge

Answer 20

the awareness and understanding of a set of information and the ways it can be used.

Question 21

Management information system (MIS)

Answer 21

an organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers. A term often used to refer to legacy information systems in an organization.

Question 22

Mobile commerce (m-commerce)

Answer 22

transactions conducted anywhere, anytime using mobile devices.

Question 23

Networks

Answer 23

the connected computers and computer equipment in a building, around the country, or around the world to enable electronic communications.

Question 24

Organization

Answer 24

a formal collection of people and other resources established to accomplish a set of goals.

Question 25

Organizational change

Answer 25

the responses that are necessary so that for-profit and nonprofit organizations can plan for, implement, and handle change.

Question 26

Organizational culture

Answer 26

the major understandings and assumptions for a business, a corporation, or an organization.

Question 27

Output

Answer 27

the production of useful information, usually in the form of documents and reports.

Question 28

Procedures

Answer 28

the strategies, policies, methods, and rules for using a CBIS.

Question 29

Process

Answer 29

a set of logically related tasks performed to achieve a desired outcome.

Question 30

Processing

Answer 30

the activity of converting or transforming data into useful outputs.

Question 31

Return on investment (ROI)

Answer 31

one measure of IS value that investigates the additional profits or benefits that are generated as a percentage of the investment in information systems technology.

Question 32

Software

Answer 32

the computer programs that govern the operation of the computer.

Question 33

Strategic alliance (strategic partnership)

Answer 33

an agreement between two or more companies that involves the joint production and distribution of goods and services.

Question 34

Systems development

Answer 34

the activity of creating or modifying existing business systems.

Question 35

Technology acceptance model (TAM)

Answer 35

a model that describes the factors that can lead to higher acceptance and usage of technology.

Question 36

Technology infrastructure

Answer 36

all the hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information.

Question 37

Telecommunications

Answer 37

the electronic transmission of signals for communications; enables organizations to carry out their processes and tasks through effective computer networks.

Question 38

Transaction processing system (TPS)

Answer 38

an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.

Question 39

Transaction

Answer 39

any business-related exchange such as payments to employees, sales to customers, and payments to suppliers.

Question 40

Value chain

Answer 40

a series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service.