Chapter 1- Information Systems in Global Business Today Flashcards
True or False.
Internet advertising is growing at approximately 10 percent a year.
True.
True or False.
Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.
True.
True or False.
A fully digital firm produces only digital goods or services.
False.
True or False.
A business model describes how a company produces, delivers and sells a product or service to create wealth.
True.
True or False.
Information technology or IT consists of all the hardware that a firm needs to use in order to achieve its business objectives. Whereas, information systems consists of all the software and business processes needed.
False.
True or False.
Computers are only part of an information system.
True.
True or False.
Information systems literacy describes the behavioral approach to information systems. Whereas, computer literacy describes the technical approach.
False.
True or False.
The dimensions of information systems are management, organizations, and information technology.
True.
True or False.
Knowledge workers assist with paperwork at all levels of the firm.
False.
True or False.
There are 4 major business functions, sales and marketing, manufacturing and production, finance and accounting, and information technology.
False.
True or False.
In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company.
True.
True or False.
Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.
False.
True or False.
A substantial part of management responsibility is creative work driven by new knowledge and information.
True.
True or False.
Intranets allow firms to work easily with third party suppliers and vendors.
False.
True or False.
Investment in IT is over 50% of all invested capital.
True.
True or False.
UPS’s use of web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own websites was an information systems solution used to achieve customer intimacy.
True.
True or False.
Studies have consistently shown that firms that invest greater amounts in information technology receive greater benefits than firms that invest less.
False.
True or False.
Government and private sector standards are examples of complimentary social assets required to optimize returns from IT investments.
True.
True or False.
A firm that invests in inefficient business processes is making an investment in organizational complimentary assets.
True.
True or False.
The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social and economic impacts of systems.
True.
The six important business objectives of information technology are new products, services, and business models, customer and supplier intimacy, survival, competitive advantage, operational excellence, and
a) improved flexibility
b) improved decision making
c) improved business practices
d) improved efficiency
b) improved decision making
Dell Computer’s use of information systems to improve efficiency and implement “mass customization” techniques to maintain consistent profitability and an industry lead illustrates which business objective?
a) improved flexibility
b) improved business practices
c) competitive advantage
d) survival
c) competitive advantage
Which of the following choices may lead to competitive advantage: 1. New products, services, and business models 2. Charging less for superior products 3. Responding to customers in real time?
a) 1 only
b) 1 and 2
c) 2 and 3
d) 1, 2, and 3
d) 1, 2, and 3
The use of information systems because of necessity describes the business objective of
a) survival
b) improved business practices
c) competitive advantage
d) improved flexibility
a) survival
Verizon’s implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of
a) improved flexibility
b) improved decision making
c) improved efficiency
d) customer and supplier intimacy
b) improved decision making
The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?
a) improved efficiency
b) customer and supplier intimacy
c) survival
d) competitive advantage
c) survival
Which of the following objectives best describes the business strategy behind the technologies implemented in Disney’s Operational Command Center, as discussed in the chapter case?
a) operational excellence
b) new products and services
c) competitive advantage
d) customer support
d) customer support
The three activities in an information system that produce the information organizations use to control operations are
a) information retrieval, research, and analysis
b) input, output, and feedback
c) input, processing, and output
d) data analysis, processing, and feedback
c) input, processing, and output
Order data for baseball tickets and bar code data are examples of
a) raw input
b) raw output
c) customer and product data
d) sales information
a) raw input
The average number of tickets sold daily online is an example of
a) input
b) raw data
c) meaningful information
d) feedback
c) meaningful information
Output
a) is feedback that has been processed to create meaningful information
b) is information that is returned to appropriate members of the organization to help them evaluate the input stage
c) transfers data to the people who will use it or to the activities for which it will be used
d) transfers processed information to the people who will use it or to the activities for which it will be used
d) transfers processed information to the people who will use it or to the activities for which it will be used
Converting raw data into a more meaningful form is called
a) capturing
b) processing
c) organizing
d) feedback
b) processing
An example of raw data from a national chain of automobile stores would be
a) an average of 13 Toyotas are sold daily in Kentucky
b) 30 percent increase in Toyota RAV4 sales during September in Kentucky
c) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky
d) all of the above
c) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky
The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called
a) information systems literacy
b) information systems architecture
c) management information systems
d) information technology infrastructure
c) management information systems
In a hierarchical organization, the upper levels consist of
a) managerial and professional employees
b) managerial, professional and technical employees
c) professional and operational employees
d) managerial, professional, and operational employees
b) managerial, professional, and technical employees
Which of the following is NOT one of the current changes taking place in information systems technology?
a) growing business use of “big data”
b) growth in cloud computing
c) development of videopresence software
d) emerging mobile platform
c) development of videopresence software
The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company’s members is called its
a) culture
b) environment
c) atmosphere
d) values
a) culture
Thomas Friedman’s declaration that the world was now “flat” meant that
a) the Internet has reduced the economic advantages of developed countries
b) globalization is starting to offer less advantage to large corporations
c) the global economy is increasingly commanded by fewer and larger corporations
d) global capitalism is homogenizing culture and business practices throughout the world
a) the Internet has reduced the economic advantages of developed countries
Data management technology consists of
a) physical hardware and media used by an organization for storing data
b) detailed, programmed instructions that control and coordinate the computer hardware components in an information system
c) software governing that organization of data on physical storage media
d) hardware and software used to transfer data
c) software governing the organization of data on physical storage media
Organizational culture is best described by which of the following statements?
a) It encompasses the sum of beliefs and assumptions by all members.
b) It enables the organization to transcend the different levels and specialties of its employees.
c) It reflects the senior management’s perspective on the organization and goals.
d) It is a set of assumptions and values accepted by most members.
d) It is a set of assumptions and values accepted by most members.
Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization’s
a) data management environment
b) networked environment
c) IT infrastructure
d) information system
c) IT infrastructure
An example of a business using information systems to create new products and services is
a) Wal-Mart’s RetailLink system
b) the Mandarin Oriental hotel’s customer-preference tracking system
c) Verizon’s Web-based digital dashboard
d) Apple Inc.’s iPod
d) Apple Inc.’s iPod
An example of a business using information systems to attain operational excellence is
a) Wal-Mart’s RetailLink system
b) the Mandarin Oriental hotel’s customer-preference tracking system
c) Verizon’s Web-based digital dashboard
d) Apple Inc.’s iPod
a) Wal-Mart’s RetailLink system
Maintaining the organization's financial records is a central purpose of which main business function? a) manufacturing and accounting b) finance and accounting sales and manufacturing d) finance and sales
b) finance and accounting
Which of the following is NOT one of the primary environmental factors that interacts with an organization and its information systems?
a) sales force
b) regulatory agencies
c) customers
d) suppliers
a) sales force
Which of the following best describes the primary reason for implementing a new information system, from a business perspective?
a) The system enables the firm to create new products and services.
b) The system will create new value for the firm, beyond its costs
c) The system will automate key business processes.
d) The system is in use by our primary competitors.
b) the system will create new value for the firm, beyond its costs.
Which of the following would NOT be a complementary asset for a solar panel manufacturer?
a) international solar equipment certification standards
b) government funding for green technology
c) centralized hierarchical decision making.
d) innovation-driven management team
c) centralized hierarchical decision making
The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers’ skills is an example of using technology to achieve which business objective?
a) customer and supplier intimacy
b) survival
c) competitive advantage
d) improved decision making
b) survival
In business hierarchy, the level that is responsible for monitoring the daily activities of the
a) middle management
b) service workers
c) production management
d) operational management
d) operational management
From a business perspective, raw data is transformed systematically during various stages, transforming is into valuable information, in a process called
a) the information value chain
b) the IT value chain
c) information processing
d) feedback
a) the information value chain
A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?
a) managerial
b) governmental
c) social
d) organizational
c) social
Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to
a) invest in technology
b) adopt a new business model
c) invest in complementary assets
d) modernize their information value chain
b) adopt a new business model
An example of an organizational complementary asset is
a) using the appropriate business model
b) a collaborative work environment
c) laws and regulations
d) all of the above
a) using the appropriate business model
An example of a social complementary asset is
a) technology and service firms in adjacent markets
b) training programs
c) distributed decision-making rights
d) all of the above
a) technology and service firms in adjacent markets
An example of a business using information systems for customer and supplier intimacy is
a) Wal-Mart’s RetailLink system
b) the Mandarin Oriental hotel’s customer-preference tracking system
c) Verizon’s Web-based digital dashboard
d) Apple Inc.’s iPod
b) the Mandarin Oriental hotel’s customer-preference tracking system
Disciplines that contribute to the technical approach to information systems are
a) computer science, engineering, and networking
b) operations research, management science, and computer science
c) engineering, utilization management, and computer science.
d) management science, computer science, and engineering
b) operations research, management science, and computer science
The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is
a) management science
b) MIS
c) operations research
d) utilization management
c) operations research
Sociologists study information systems with an eye to understanding
a) how systems affect individuals, groups, and organizations
b) how human decision makers perceive and use formal information
c) how new information systems change the control and cost structure within the firm
d) the production of digital goods
a) how systems affect individuals, groups, and organizations
Psychologists study information with an eye to understanding
a) how systems affect individuals, groups, and organizations
b) how human decision makers perceive and use formal information
c) how new information systems change the control and cost structures within the firm
d) the production of digital goods
b) how human decision makers perceive and use formal information
All of the following are advantages for a firm, of cloud computing EXCEPT
a) ability to support mobile computing
b) ability to support remote work
c) ability to improve communication
d) ability to rely on markets to build value
c) ability to improve communication
Which of the following are key corporate assets?
a) intellectual property, core competencies, and financial and human assets
b) production technologies and business processes for sales, marketing, and finance
c) knowledge and the firm’s tangible assets, such as goods or services
d) time and knowledge
a) intellectual property, core competencies, and financial and human assets
Which of the following roles in a firm would be LEAST affected by using mobile devices to access firm information systems?
a) senior executives
b) sales executives
c) production workers
d) operational managers
c) production workers
A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?
a) customer intimacy
b) operational excellence
c) survival
d) improved reporting
c) survival
Which of the following would NOT be used as an input for an information system?
a) digital dashboard
b) handheld computer
c) barcode scanner
d) cell phone
a) digital dashboard
Which field of study focuses on both a behavioral and technical understanding of information systems?
a) sociology
b) operations research
c) economics
d) management information systems
d) management information systems
The three principle levels within a business organization hierarchy are
a) senior management, operational management, and service workers
b) senior management, middle management, and operational management
c) senior management, operational management, and information systems
d) senior management, middle management, and service workers
b) senior management, middle management, and operational management
Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy?
a) middle management
b) production workers
c) knowledge workers
d) data workers
c) knowledge workers
Which main business function is responsible for maintaining employee records?
a) sales and marketing
b) human resources
c) finance and accounting
d) manufacturing and production
b) human resources
Which of the following constitutes an organizational element in the UPS tracking system described in the chapter?
a) the specification of procedures for identifying packages with sender and recipient information
b) monitoring service levels
c) promoting the company strategy of low-cost, superior service
d) the use of handheld computers and networks for managing package delivery
a) the specification of procedures for identifying packages with sender and recipient information
A managerial element in the UPS tracking system described in the chapter is
a) taking inventory
b) providing package status reports to customers
c) the decision to use automation
d) in-house package tracking software
c) the decision to use automation
________ is data that has been shaped into a form that is meaningful to human beings.
Information
_________ is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
Feedback
The key elements of an organization are its people, structure, business processes, politics, and _________.
Culture
__________ makes long-range strategic decision about the firm’s products and services.
Senior management
Computer __________ consists of the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
software
__________ is a global network that uses universal standards to connect millions of different networks around the world.
The internet
The __________ is a service provided by the internet that uses universally accepted standards for strong, retrieving, formatting, and displaying information in a page format.
World Wide Web/ Web/ WWW
__________ are private corporate networks extended to authorized users outside the organization.
Extranets
The enormous volume of data generated by Internet activity, such as web traffic and e-mail, is referred to as _________.
big data
In a(n) _________ perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained.
sociotechnical
