Chapter 2

Question 1

What is the use of information systems to add value to the organization influenced by

Answer 1

Its influenced by organizational structure, and the organization’s attitude and ability to change

Question 2

Define an organization

Answer 2

it is a formal collection of people and other resources established to accomplish a set of goals meaning that it has inputs, processing mechanisms, outputs, and feedback
Resources such as materials, people, and money are the inputs

-Through adding value or worth, organizations attempt to achieve their goals

Question 3

Define the value chain

Answer 3

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

Question 4

Explain the value chain

Answer 4

• It is a useful tool for analyzing where and how this value gets added

-It is used to examine what happens to raw material to add value to them before the finished product gets sold to customers
Information systems can be developed to focus on those activities that add the most value

Question 5

What are the key parts of managing the value chain

Answer 5

-The SCM and CRM

Question 6

Explain the functions of supply chain management

Answer 6

-It helps determine what supplies are required for the value chain, what quantities are needed, how they should be turned into finished products and shipped to customers
Increasingly, SCM is accomplished using the Internet and B2B e-commerce

Question 7

Explain the functions of customer relationship management

Answer 7

-It programs help a company manage all aspects of customer encounters, including marketing and advertising, sales, customer service after the sale, and help retain loyal customers

Question 8

Define organizational structure

Answer 8

-refers to organizational subunits and the way they relate to each other. An organization’s structure depends on its approach to management, and can affect how it views and uses information systems

Question 9

List the types of organizational structures

Answer 9

-traditional
-project & team
-virtual

Question 10

Explain the traditional organizational structure

Answer 10

-It is a managerial pyramid
-There is a hierarchy that flows from strategic management to operational and then to non-management

Question 11

Flat organisational structure

Answer 11

The reduction of management levels in the traditional organizational structure

Question 12

Explain project and team organisational cultures

Answer 12

-Centered around major products/services

-Each major product has its own business functions

-The team organizational structure is centred on work teams or groups

Question 13

Explain virtual organizational structure

Answer 13

-It is made up of individuals, teams, or complete business units that work with other individuals, teams, or complete business units in different geographic locations
This almost always requires the use of the Internet (or other telecommunications) to facilitate communication

Question 14

List the careers in information systems

Answer 14

Chief Information Officer
LAN administrators
Internet Careers:
system developers

Question 15

List the approaches to evaluating information systems

Answer 15

Productivity: examine how output has changed since implementation
Return on Investment: examine how profits have increased

Earnings Growth: another measure of profit increase

Market Share: examine the change in market share since implementation

Customer Awareness and
Satisfaction: possibly a qualitative measure of satisfaction

Total Cost of Ownership: estimate the total cost of the IS breaking cost into areas such as the cost to acquire the technology, technical support, administrative costs, and end-user operations

Question 16

Define competitive advantage

Answer 16

It is the ability of a firm to outperform its industry, that is, to earn a higher rate of profit than the industry norm

It can result from higher-quality products, better customer service, and lower costs

Often, a competitive advantage will depend on a carefully designed information system

Question 17

What is the main way of achieving alignment?

Answer 17

-for senior managers to consider the business processes they have in place to achieve company goals, and ask, what information

Question 18

List the other success factors

Answer 18

Senior management must be committed
End-users of the system should be involved in the development
Time must be taken to carefully determine requirements
Strong project management

Question 19

Elaborate on the applications portfolio

Answer 19

-it classifies information systems according to the contribution they make to the business:

Question 20

Explain the different types of applications portfolios

Answer 20

Support applications are nice to have but not essential

Key operational applications are essential, and without them, the organization would not be able to do business

Strategic applications are information systems that give a business an advantage over some or all of its competitors

Potential strategic application (also known as a future strategic or high potential application) is an idea for, or a prototype of, an information system which, if developed, might one day become a strategic system

Question 21

What is the main objective of Reengineering and continuous improvement

Answer 21

To result in satisfied users and be accepted and used throughout the organization

Question 22

Define technology diffusion

Answer 22

It is is a measure of how widely technology is spread throughout an organization. An organization in which computers and information systems are located in most departments and areas has a high level of technology diffusion

Question 23

Define technology infusion

Answer 23

-It is the extent to which technology permeates an area or department. In other words, it is a measure of how deeply embedded technology is in an area of the organization

An organization might have a high level of diffusion and infusion, but this does not necessarily mean that information systems are being used to their full potential

Question 24

Differences between BPR and continuous improvement

Answer 24

-BPR:

Strong action taken to solve serious problems

Change driven by senior executives

Broad in scope

-Continuous Improvement

Routine action taken to make minor improvements

Change driven by workers

Narrow in scope

Question 25

Define reengineering

Answer 25

-also called process redesign and business process reengineering (BPR), involves the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results

Question 26

Define continuous improvement

Answer 26

-It involves constantly seeking ways to improve business processes and add value to products and services