MBA SIMULATION GAMES - FREE WINNING GUIDE AND TIPS (MIS): 2017

Wednesday, February 8, 2017

MIS 2017 - Laudon 15th Edition - Test Bank - Quiz and Answers - Chapter 01.1

MBA - MIS - Management Information Systems - Case Study Guides and Test Banks
Management Information Systems, 15e (Laudon)
Chapter 1 Information Systems in Global Business Today

1) Which of the following is not one of the six strategic business objectives of information systems?

A) New products and services
B) Improved decision making
C) Competitive advantage
D) Improved employee morale
E) Survival

Answer: D
Difficulty: 3: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

2) Verizon’s use of a web-based digital dashboard to provide managers with precise real-time information enabled it to improve which of the following?

A) Compliance with regulations
B) Managerial decision making
C) Efficiency in creation of new products
D) Employee morale
E) Intimacy with its suppliers

Answer: B
Difficulty: 3: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

3) Which of the following may lead to competitive advantage?

New products, services, and business models;
Charging less for superior products;
Responding to customers in real time?
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3
E) 1, 2, and 3

Answer: E
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
4) A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives?

A) Operational excellence
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival

Answer: E
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

5) The Mandarin Oriental’s use of computer systems to keep track of guests' preferences is an example of which of the following?

A) Improved flexibility
B) Improved decision making
C) Improved efficiency
D) Customer intimacy
E) Operational excellence

Answer: D
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

6) Competitors were seeking which of the following business objectives when they rushed to provide ATMs after Citibank introduced the first ATMs in New York?

A) Improved efficiency
B) Customer and supplier intimacy
C) Survival
D) Competitive advantage
E) Improved decision making

Answer: C
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
7) Which of the following is the key business metric behind the technologies implemented by Kroger, as discussed in the chapter-opening case?

A) Higher customer satisfaction levels
B) Survival
C) Improved employee morale
D) Improved decision making
E) Reduced cost of supplies

Answer: A
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

8) Which of the following is an example of a business using information systems to create a new product?

A) Walmart's RetailLink system
B) The Mandarin Oriental’s use of computers to keep track of guest preferences
C) Verizon's use of a web-based digital dashboard to provide real-time company information for managers
D) Apple’s creation of the iPod
E) Kroger’s use of sensors to monitor cold food storage temperatures

Answer: D
Difficulty: 3: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

9) Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following?

A) New products and services
B) Operational efficiency
C) Survival
D) Customer intimacy
E) Competitive advantage

Answer: B
Difficulty: 3: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
10) How much did American businesses spend on information systems hardware, software, and telecommunications equipment in 2015?

A) About $100 million
B) About $1 billion
C) About $100 billion
D) About $1 trillion
E) About $10 trillion

Answer: D
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

11) ) To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support?

A) Customer intimacy
B) Survival
C) Operational excellence
D) Improved decision making
E) New products and services

Answer: C
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

12) What percent of U.S. businesses have some form of remote work program?

A) About 15 percent
B) About 25 percent
C) About 35 percent
D) About 60 percent
E) About 75 percent

A) cloud computing.
B) big data.
C) IoT.
D) the mobile digital platform.
E) co-creation of business value.

Answer: E
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

14) Which of the following statements about digital firms is not true?

A) In digital firms, time shifting and space shifting are the norm.
B) Today, most firms are fully digital..
C) Digital firms offer extraordinary opportunities for flexible global organization and management.
D) Digital firms sense and respond to their environments more rapidly than traditional firms.
E) Digital firms have more flexibility to survive in turbulent times.

Answer: B
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

15) A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective?

A) Customer intimacy
B) Operational excellence
C) Survival
D) Creation of new products
E) Improved decision making

Answer: C
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

16) Internet advertising is growing at approximately 5 percent a year.
Answer: FALSE
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
17) Creating a marketing plan is an example of a business process.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

18) In order to be considered a digital firm, all of the firm’s significant business relationships and core business processes must be digitally enabled.
Answer: FALSE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

19) A business model describes how a company produces, delivers, and sells a product or service to create wealth.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

20) Private business investment in information technology constituted 37 percent of all invested capital in 2015.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

21) The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as:

A) IoT
B) big data.
C) the mobile digital platform.
D) cloud computing.
E) business intelligence.

Answer: B
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
22) You are starting a small bike messenger company. Given your type of services (hand-delivering packages within a small geographical area), could your firm be a digital firm? If so, what would make this a digital firm?
Answer: Yes, your firm could be a digital firm. Being a digital firm doesn't mean that you just offer digital goods and services. A digital firm would have most of its relationships with customers, suppliers, and employees be digitally enabled. Ordering deliveries, assigning deliveries, managing employees and assignments could certainly be digitally enabled; using cell phones, information systems, and handheld devices to connect customers, delivery management, and bike messengers.
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

23) What are the main changes taking place in organizational use of information systems? Which of these do you think is having the greatest impact on businesses?
Answer: The main organizational changes taking place are:

businesses using social networking platforms to deepen interactions with employees, customers, and suppliers.,
telework gaining momentum in the workplace, with growing numbers of people working away from a traditional office, and
co-creation of business value, with the sources of business value shifting from products to solutions and experiences and from internal sources to networks of suppliers and collaboration with customers.

Student answers as to the greatest impact will vary. An example answer is: The increase in collaboration is having the greatest impact, as customers are essentially gaining greater control in determining the end product; businesses who are flexible enough to listen to and respond to customer demand will be more successful.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

24) The three activities in an information system that produce the information organizations use to control operations are:

A) information, research, and analysis.
B) input, output, and feedback.
C) data, information, and analysis.
D) data analysis, processing, and feedback.
E) input, processing, and output.

Answer: E
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
25) RFID sensor-generated data on stored food items such as storage location is an example of:

A) raw input.
B) raw output.
C) customer and product data.
D) sales information.
E) information systems.

A) Input
B) Raw data
C) Meaningful information
D) Feedback
E) Processing

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.
E) converts raw input into a meaningful form.

Answer: D
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
28) Converting raw data into a more meaningful form is called:

A) capturing.
B) processing.
C) organizing.
D) feedback.
E) analysis.

Answer: B
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

29) Which of the following is an example of raw data from an automobile manufacturer?

A) An average of 120 Subarus sold daily in New York in 2016
B) 1,200 Subaru Outbacks sold during the first quarter 2016 in New York
C) One Subaru Outback sold July 2 7, 2016 in Mohegan Lake, New York for $24,000
D) Annual sales of Subaru Outbacks increased 5.3 percent
E) An average sale price of $25,500 for all Subaru Outbacks sold during July 2016 in Mohegan Lake, New York

Answer: C
Difficulty: 3: Challenging
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

30) In a hierarchical organization, the upper level consists of:

A) scientists.
B) senior management.
C) professional employees.
D) data workers.
E) knowledge workers.

Answer: B
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
31) 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) Growth in the PC platform
D) Emerging mobile digital platform
E) Increased usage of data generated by the Internet of Things

Answer: C
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

32) 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) business process.
E) mission.

Answer: A
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

33) Thomas Friedman's description of the world as "flat" refers to:

A) the flattening of economic and cultural advantages of developed countries.
B) the use of the Internet and technology for instantaneous communication.
C) the reduction in travel times and the ubiquity of global exchange and travel.
D) the growth of globalization.
E) the increased use of global currencies.

Answer: A
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

34) Data management technology consists of which of the following?

A) Physical hardware and media used by an organization for storing data
B) Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system
C) Two or more computers to share data or resources
D) Hardware and software used to transfer data
E) Software governing the organization of data on physical storage media

Answer: E
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

35) Which of the following statements best describes organizational culture?

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 allows a company to achieve greater operational efficiency.
E) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.

Answer: E
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

36) 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) information technology (IT) infrastructure.
D) information system.
E) culture.

Answer: C
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
37) Maintaining the organization's financial records is a central purpose of which main business function?

A) Manufacturing and accounting
B) Finance and accounting
C) Sales and manufacturing
D) Finance and sales
E) Human resources

Answer: B
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

38) All of the following are examples of environmental actors in an information system except:

A) competitors.
B) regulatory agencies.
C) customers.
D) suppliers.
E) sales force.

Answer: E
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

39) 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.
E) The system integrates well with the Web.

Answer: B
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
40) 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
E) Subsidies for adoption of solar energy

A) Middle management
B) Service workers
C) Production management
D) Operational management
E) Knowledge workers

Answer: D
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

42) In _____________, raw data is systematically acquired and transformed during various stages that add value to that information.

A) an information value chain
B) the firm value chain
C) information processing
D) the feedback process
E) the dissemination process.

Answer: A
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
43) 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
E) Auxiliary

A) Using the appropriate business model
B) A collaborative work environment
C) Laws and regulations
D) The Internet and telecommunications infrastructure
E) Strong senior management

Answer: A
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

45) Which of the following is an example of a social complementary asset?

A) Technology and service firms in adjacent markets
B) Training programs
C) Distributed decision-making rights
D) Incentives for management innovation
E) A strong IS development team

Answer: A
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
46) 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
E) Knowledge workers

Answer: C
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

47) Which of the following would not be used as an input for an information system?

A) Digital dashboard
B) Tablet computer
C) Barcode scanner
D) Smartphone
E) RFID reader

Answer: A
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

48) The three principal 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.
E) senior management, data workers, and service workers.

Answer: B
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
49) Personnel 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
E) Service workers

Answer: C
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

50) 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
E) Middle management

Answer: B
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

51) 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
E) A web-based Post Sales Order Management System

Answer: A
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
52) Which of the following constitutes a managerial element in the UPS tracking system described in the chapter?

A) Taking inventory
B) Providing package status reports to customers
C) The decision to use automation
D) In-house package tracking software
E) Ability to embed UPS functions in external sites

Answer: C
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

53) Information technology (IT) consists of the hardware and software that a firm needs to use in order to achieve its business objectives.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

54) Computers and programs are the only things required to produce the information an organization needs.
Answer: FALSE
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

55) Information systems literacy focuses primarily on knowledge of information technology.
Answer: FALSE
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
56) The three main dimensions of information systems are management, organizations, and information technology.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

57) Knowledge workers make long-range strategic decisions about products and services.
Answer: FALSE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

58) There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology.
Answer: FALSE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

59) You need to know something about the hierarchy and culture of the company in order to understand how a specific business firm uses information systems
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

60) All business processes are formally documented by an organization.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
61) Creative work driven by new knowledge and information is a significant part of management responsibility.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

62) Intranets link different systems and networks within a firm.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

63) UPS's use of web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites is an information systems solution used to achieve customer intimacy.
Answer: TRUE
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

64) There is little variation in returns on IT investment across firms.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

65) Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
66) A firm that invests in a strong IS development team is making an investment in organizational complementary assets.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

67) The behavioral approach to information systems focuses on analyzing the psychological, social, and economic impacts of systems rather than the technical aspects.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

68) Data is information that has been shaped into a form that is meaningful to human beings.
Answer: FALSE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

69) Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

70) The key elements of an organization are its structure, business processes, politics, culture, and people.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
71) Middle managers make long-range strategic decisions about the firm's products and services.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

72) Detailed, programmed instructions that control computer hardware components in an information system are known as computer software.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

73) Which of the following is a global network that uses universal standards to connect millions of different networks around the world?

A) An extranet
B) The World Wide Web
C) The Internet
D) An intranet
E) Verizon

Answer: C
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

74) Which of the following is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format?

A) HTML
B) The World Wide Web
C) E-mail
D) An extranet
E) FTP

Answer: B
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

75) Which of the following is a private corporate network extended to authorized users outside the organization?

A) An intranet
B) The World Wide Web
C) The Internet
D) An extranet
E) FTP

Answer: A
Difficulty: 1: Easy
AACSB: Information technology
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
76) Define operational excellence. How can information systems help achieve it?
Answer: Operational excellence is the achievement of higher levels of productivity, efficiency, and profitability. Information systems can help achieve operational excellence by improving communications to suppliers and optimizing the supply chain. Information systems could help managers communicate with workers more efficiently, enable technological innovation in products, minimize warehouse overhead, and streamline distribution.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

77) You work for an auto manufacturer and distributor. How could you use information systems to achieve greater customer intimacy?
Answer: You could create a website that allows customers to customize cars, communicate with support personnel and other car owners. You could create an automated e-mail service reminding car owners to take their car in for periodic checkups. You could have an information system that tracks customer preferences in local areas, so you can provide cars that reflect local customer needs and desires.
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

78) What is the difference between information technology and information systems? Describe some of the functions of information systems.
Answer: Information technology (IT) consists of all the hardware and software that a firm needs to use to achieve its business objectives. Information systems are more complex. An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.
An information system:

supports decision making, coordination, and control.
helps employees analyze problems.
helps employees visualize complex subjects.
helps create new products.

Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
79) You are a marketing manager for a national movie theater chain. Give an example of data that your department could use for creating meaningful information. What type of information could that data produce?
Answer: Movie ticket sales from individual theaters would be an example of raw data. Meaningful information from this would be: average number of tickets sold to seniors on certain days of the week.
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

80) Define business process. What might be a business process used at a hospital?
Answer: A business process is a set of logically related tasks and behaviors for accomplishing work. Hiring a new employee, customer intake, and filing medical records are examples of business processes at a hospital.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

81) This chapter discusses how each organization has its own culture and sets of values shared by most of its members. What kind of shared values might you find at a law firm?
Answer: Shared values at a law firm might be: The legal system works, the legal system is fair, lawyers help people, and people need help with the legal system because it is complicated.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?
82) You work at the business headquarters for a chain of movie theaters. Describe this firm's information value chain.
Answer: An information value chain adds value to data at various stages, transforming it into valuable data. At a chain of movie theaters, data would be gathered from ticket sales and concession sales. Information systems would help transform this into meaningful information, such as determining the types of movies popular in certain regions, times and days of the week that people most often saw movies, what snacks were the most popular. This information would be valuable in making decisions, such as offering ticket discounts during less popular time slots and offering more popular snack items. Further feedback based on the results of these decisions could determine whether these decisions were effective.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

83) How does a company's use of information systems affect its corporate strategies? Provide an example.
Answer: A firm's ability to effectively use information technology is interdependent with its ability to implement corporate strategies and achieve corporate goals. More and more, the ability to compete and succeed depends on a company's ability to implement technology. What a business would like to do in the future can depends on what its systems will be able to do. Examples of this might be a company who invests in information systems that enable it to create new products or to make its distribution system more efficient, allowing the company to become the low-cost producer.
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

84) Which of the following 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?

A) Information systems literacy
B) Information systems architecture
C) Business processes
D) Information technology infrastructure
E) Management information systems

Answer: E
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?
85) Disciplines that contribute to the technical approach to information systems include:

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.
E) economics, sociology, and psychology.

Answer: B
Difficulty: 3: Challenging
AACSB: Information technology
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?

86) Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control?

A) Management science
B) MIS
C) Computer science
D) Utilization management
E) Operations research

Answer: E
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?

87) 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 structures within the firm.
D) the production of digital goods.
E) mathematically based models and physical technology.

Answer: A
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?
88) Psychologists 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 structures within the firm.
D) the production of digital goods.
E) mathematically based models and physical technology.

Answer: B
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?

89) Which field of study focuses on both a behavioral and technical understanding of information systems?

A) Sociology
B) Operations research
C) Economics
D) Behavioral computing
E) Management information systems

Answer: E
Difficulty: 2: Moderate
AACSB: Information technology
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?

90) In 2015, what percent of the U.S. economy resulted from foreign trade?

A) 10 percent
B) 25 percent
C) 30 percent
D) 50 percent
E) 66 percent

Answer: C
Difficulty: 3: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
1-3
91) All of the following describe the effects of globalization except:

A) significant decreases in operating costs.
B) reduction of labor costs through outsourcing.
C) ability to find low-cost suppliers.
D) increases in transaction costs.
E) replication of business models in multiple countries

Answer: D
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

92) How many service jobs move offshore to lower-wage countries in a typical year?

A) 3,000
B) 30,000
C) 300,000
D) 3 million
E) 30 million

Answer: C
Difficulty: Challenging
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

93) Which of the following statements is not true?

A) In 2015, American businesses invested about $1 trillion in information systems hardware, software, and telecommunications equipment.
B) In 2015, American businesses spent $500 billion on business and management consulting and information technology services,
C) Private business investment in information technology has grown from 21 percent of total invested capital in 1999 to 37 percent of all invested capital in 2015.
D) Most of the business value of IT investment derives from organizational, management, and cultural changes inside firms.
E) Much of the money spent by American businesses on business and management consulting involves redesigning firms’ business operations to take advantage of new technologies.

A) 118 million
B) 172 million
C) 194 million
D) 220 million
E) 258 million

Answer: C
Difficulty: 3: Challenging
AACSB: Application of knowledge
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

95) Which of the following statements is not true?

A) Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations.
B) Most PCs manufactured in China use microprocessor chips manufactured in Korea.
C) Eighty percent of the toys sold in the United States are manufactured in China.
D) In 2015, 60 percent of Apple’s revenue was generated outside of the United States.
E) Technology companies are particularly dependent on offshore revenue.

Answer: B
Difficulty: 3: Challenging
AACSB: Application of knowledge
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

96) Why is the building of a house an appropriate analogy for the building of an information system?
Answer: Houses are built with hammers, nails, and wood, but these alone do not make a house. The architecture, design, setting, landscaping, and all of the decisions that lead to the creation of these features are part of the house and are crucial for solving the problem of putting a roof over one’s head. Computers and programs are the hammer, nails, and lumber of computer-based information systems, but alone they cannot produce the information a particular organization needs. To understand information systems, you must understand the problems they are designed to solve, their architectural and design elements, and the organizational processes that lead to these solutions.
Difficulty: 3: Challenging
AACSB: Analytical thinking; Written and oral communication
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

97) Describe the sociotechnical view of management information systems.
Answer: In the sociotechnical view of management information systems, optimal organizational performance is achieved by jointly optimizing both the social and technical systems used in production. Adopting a sociotechnical systems perspective helps to avoid purely technological approach to information systems.
Difficulty: 2: Moderate
AACSB: Analytical thinking; Written and oral communication
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?

98) Which academic disciplines contribute to the behavioral approach to information systems? Answer: Sociologists study information systems with an eye toward how groups and organizations shape the development of systems and also how systems affect individuals, groups, and organizations. Psychologists study information systems with an interest in how human decision makers perceive and use formal information. Economists study information systems with an interest in understanding the production of digital goods, the dynamics of digital markets, and how new information systems change the control and cost structures within the firm.
Difficulty: 2: Moderate
AACSB: Analytical thinking; Written and oral communication
LO: 1-3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?

99) What is the single most important theme of the book?
Answer: The single most important theme of the book is that managers need to consider the broader organization and management dimensions of information systems to understand current problems as well as to derive substantial above-average returns from information technology investments.
Difficulty: Moderate
AACSB: Analytical thinking; Written and oral communication
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

100) What are complementary assets and how does investment in them impact returns on technology investments?
Answer: Complementary assets are those assets required to derive value from a primary investment. Research indicates that firms that support their technology investments with investments in complementary assets, such as new business models, new business processes, management behavior, organizational culture, or training, receive superior returns, whereas those firms failing to make these complementary investments receive less or no returns on their information technology investments.
Difficulty: Moderate
AACSB: Analytical thinking; Written and oral communication
LO: 1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

......
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Course: Management Information Systems
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Website:
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Link to power point slides: laudon, 2016, MIS, slides
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Laudon, Management Information Systems, 2016
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Free MIS Ebooks 2016: https://drive.google.com/drive/u/1/folders/0ByL8IO2RG9cVZDZ6QWhiWVI0bms
Free Case Study Guides and Suggested Answers:http://www.topten.edu.vn/mba-cases/54-mba-management-information-systems
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MIS 2017 - Laudon 15th Edition - Test Bank - Quiz and Answers - Chapter 02 (3)

MBA - MIS - Management Information Systems - Case Study Guides and Test Banks
Management Information Systems, 15e (Laudon)
Chapter 2 Global E-Business and Collaboration

1) Producing a bill of materials is a business process in which of the following functional areas?

A) Finance and accounting
B) Human resources
C) Manufacturing and production
D) Research and development
E) Sales and marketing

Answer: C
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 2-1: What are business processes? How are they related to information systems?

2) Which of the following is an example of a cross-functional business process?

A) Identifying customers
B) Transporting the product
C) Creating a new product
D) Assembling a product
E) Paying creditors

Answer: C
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-1: What are business processes? How are they related to information systems?

3) Identifying customers is a business process handled by the human resources function.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-1: What are business processes? How are they related to information systems?

4) One example of a business process is shipping a product to a customer.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-1: What are business processes? How are they related to information systems?

5) Order fulfillment involves all of the following business processes except:

A) checking the customer’s credit.
B) assembling the product.
C) submitting the order.
D) making customers aware of the product.
E) shipping the product.

Answer: D
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 2-1: What are business processes? How are they related to information systems?
6) What is the connection between organizations, information systems, and business processes?
Answer: Business processes refer to the manner in which work activities are organized, coordinated, and focused to produce a specific business result. They also represent unique ways in which organizations coordinate work, information, and knowledge and the ways in which management chooses to coordinate work. Managers need to pay attention to business processes because they determine how well the organization can execute, and thus are a potential source for strategic success or failures. Although each of the major business functions has its own set of business processes, many other business processes are cross functional. Information systems can help organizations achieve great efficiencies by automating parts of these processes or by helping organizations rethink and streamline them. Firms can become more flexible and efficient by coordinating and integrating their business processes to improve management of resources and customer service.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-1: What are business processes? How are they related to information systems?

7) What are cross-functional business processes? Give an example.
Answer: Cross-functional processes are those that require input, cooperation, or coordination between the major business functions in an organization. For instance, when a salesman takes an order, the major business functions of planning, production, inventory control, shipping, accounting, and customer relations will all be involved before the order is completed.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-1: What are business processes? How are they related to information systems?

8) Your aunt has asked you for your suggestions to make her business, a local sandwich shop, more efficient. Describe at least three types of business processes that a sandwich shop has. Can any be better coordinated through the use of information systems?
Answer: The business processes of a sandwich shop include: Taking orders, making sandwiches, selling to the customer, ordering supplies, opening the store, closing the store, cleaning the store, paying employees, hiring employees, paying creditors and vendors, creating financial statements, paying taxes, managing cash. Many of these processes could be helped by better information systems, specifically those that require recorded data, such as any financial processes (payments, cash management, taxes, salaries) and information gathered from and distributed to employees.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-1: What are business processes? How are they related to information systems?
9) The ________ function is responsible for identifying customers.

A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
E) distribution and logistics

Answer: D
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

10) If your main supplier was late in delivering goods, which type of system would you use to update your production schedule?

A) ESS
B) TPS
C) MIS
D) DSS
E) BIS

Answer: B
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

11) You have been hired by a non-profit agency to implement a system to handle their donations. The system must be able to handle and record telephone, SMS, and Internet donations, provide up-to-the-minute reports, and create highly customizable mailing lists. In addition, event fundraisers need to be able to quickly access a donor's information and history. Which of the following systems will best meet these needs?

A) TPS
B) TPS with DSS capabilities
C) TPS with MIS capabilities
D) TPS with ESS capabilities
E) DSS with MIS capabilities

Answer: C
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
12) To monitor the status of internal operations and the firm's relations with the external environment, managers need which of the following types of system?

A) DSS
B) KWS
C) TPS
D) MIS
E) BIS

A) TPS
B) MIS
C) ESS
D) DSS
E) KMS

Answer: A
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

14) The term management information systems refers to a specific category of information systems serving:

A) integrated data processing throughout the firm.
B) transaction process reporting.
C) employees with online access to historical records.
D) the information technology function.
E) middle management functions.

Answer: E
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
15) Which of the following would you use in order to determine which of your suppliers has the best and worst records for keeping to your production schedule?

A) MIS
B) TPS
C) UPS
D) DSS
E) CRM

Answer: A
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

16) A relocation control system that reports summaries on the total moving, house hunting, and home financing costs for employees in all company divisions falls into which of the following categories?

A) KMS
B) TPS
C) ESS
D) MIS
E) DSS

Answer: D
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

17) Non-typical business problems with causes and effects that are rapidly changing are typically handled by which of the following types of information system?

A) MIS
B) TPS
C) ESS
D) DSS
E) KMS

Answer: D
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
18) Which of the following types of information system is especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance?

A) MIS
B) TPS
C) DSS
D) KMS
E) RPS

Answer: C
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

19) Which type of information system would you use to forecast the return on investment if your firm planned to switch to a new supplier that offered products at a lower cost?

A) ESS
B) TPS
C) MIS
D) CRM
E) DSS

Answer: E
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

20) Which level of the organization is an ESS specifically designed to serve?

A) Operational
B) End-user
C) Middle management
D) Senior management
E) Knowledge workers

Answer: D
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
21) An ESS supports which of the following?

A) Long-range planning activities of senior management
B) Knowledge and data workers in an organization
C) Decision making and administrative activities of middle managers
D) Day-to-day processes of production
E) Transactional needs of the organization

Answer: A
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

22) Which of the following systems would you expect to deliver integrated, personalized business content through a web-based interface?

A) TPS
B) ESS
C) MIS
D) DSS
E) SCM

Answer: B
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

23) Which of the following would you use to forecast trends in your supplier's industry that could affect your firm over the next five years?

A) ESS
B) TPS
C) MIS
D) DSS
E) KMS

Answer: A
Difficulty: 1: Easy
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
24) Which of the following is a highly structured decision?

A) Creating a new product
B) Estimating the effect of changing costs of supply materials
C) Calculating the best trucking routes for product delivery
D) Granting credit to a customer
E) Forecasting new industry trends

Answer: D
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

25) Using the Internet to buy or sell goods is called:

A) e-commerce.
B) e-business.
C) an intranet.
D) an extranet.
E) e-government.

Answer: A
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

26) Transaction-level information is essential for operational management to be able to direct the day-to-day operations of the business.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Reflective thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

27) Cross-functional systems are being phased out in favor of systems that support business processes within a single functional group, such as human resources.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
28) A DSS is most commonly used by the operations management level of an organization.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

29) You would use an MIS to help determine if your business should introduce a new product line.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

30) For nonroutine decision making, senior managers rely on management information systems.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

31) Most transaction processing systems use sophisticated mathematical models or statistical techniques.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

32) Managers can use DSS to make decisions about problems that are unusual and not easily specified in advance.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

33) A DSS uses internal information as well as information from external sources.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
34) An organization's MIS and DSS supply an ESS with summarized information.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

35) Operational managers use ESS primarily to solve specific problems.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

36) All of the following are examples of business intelligence systems except a system that:

A) summarizes and reports on a company’s basic operations.
B) tracks the flows of materials in a factory.

C focuses on problems that are unique and rapidly changing.

D) compares total annual sales figures for specific products to planned targets.
E) addresses nonroutine decisions.

Answer: B
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

37) Which of the following types of system typically uses a digital dashboard to display an array of charts and graphs of a business's key performance indicators?

A) MIS
B) TPS
C) ESS
D) CRM
E) SCM

Answer: C
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

38) A web interface used to present integrated personalized business content to users is called a portal.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
39) Enterprise applications integrate information from multiple functions and business processes to enhance the performance of the organization as a whole.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

40) An SCM is considered to be an intraorganizational system because it manages information that flows between different companies.
Answer: FALSE
Difficulty: 3: Challenging
AACSB: Information technology
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

41) The pet products chain you work for, Pets Galore, has noticed that one of its brands of dog food is not selling nearly as well as anticipated. What information systems of the business will you use to determine the reason for the poor sales? Discuss what information you will retrieve from which system. Which of the information systems will be most important for your analysis? Which of the systems will be least important?
Answer: You might query operational level TPS to make sure that the product is actually getting to the stores and being restocked. You could query MIS to see average sales levels according to geography, location, and other factors to see if there are any specific factors affecting the sales. You might query ESS to see if the same faucets are being sold by competitors and what these prices are. You might use DSS to see what factors could increase sales.
Assuming that the faucets are being properly stocked at the stores, the most important systems to query are the managerial-level systems: MIS for summaries of sales records to help pinpoint any other factors; ESS to check competition, and DSS for higher-level analysis to forecast possible solutions.
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
42) Identify and discuss the major types of information systems that serve the main management groups within a business. What are the relationships among these systems?
Answer: The four major categories of information systems are:

Transaction processing systems, such as payroll or order processing, track the flow of the daily routine transactions that are necessary to conduct business.
Management information systems (MIS) provide the management control level with reports and access to the organization's current performance and historical records. Most MIS reports condense information from TPS and are not highly analytical.
Decision-support systems (DSS) support management decisions when these decisions are unique, rapidly changing, and not specified easily in advance. They have more advanced analytical models and data analysis capabilities than MIS and often draw on information from external as well as internal sources.
Executive support systems (ESS) support senior management by providing data of greatest importance to senior management decision makers, often in the form of graphs and charts delivered via portals. They have limited analytical capabilities but can draw on sophisticated graphics software and many sources of internal and external information.

The various types of systems in the organization exchange data with one another. TPS are a major source of data for other systems, especially MIS and DSS. ESSs primarily receive data from lower-level systems.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

43) Zoom Vacuum, a family-owned manufacturer of high-end vacuums, has grown exponentially over the last few years. However, the company is having difficulty preparing for future growth. The only information system used at Zoom is an antiquated accounting system. The company has one manufacturing plant located in Iowa; and three warehouses, in Iowa, New Jersey, and Nevada. The Zoom sales force is national, and Zoom purchases about 25 percent of its vacuum parts and materials from a single overseas supplier. You have been hired to recommend the information systems Apex should implement in order to maintain their competitive edge. However, there is not enough money for a full-blown, cross-functional enterprise application, and you will need to limit the first step to a single functional area or constituency. What will you choose, and why?
Answer: Student answers will vary. E.g. A TPS focusing on production and manufacturing to keep production costs low while maintaining quality, and for communicating with other possible vendors. The TPS would later be used to feed MIS and other higher level systems.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?
44) You have been hired to work with 8 employees from different branches of a national business to help create a web application to be used to train new sales employees. Identify six collaboration tools that are available to help the team work together. Which single tool would be the most helpful for the project, in your opinion, and why?
Answer: Collaboration tools include e-mail and instant messaging; social networking; wikis; virtual worlds, collaboration platforms such as virtual meeting systems, Google Apps/Google Sites. The most helpful of these might be a collaboration platform because it would enable people to have discussions, calendars, conferences, and share documents.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance?

45) What is the most important function of an enterprise application?

A) Increasing speed of communicating
B) Enabling business functions and departments to share information
C) Enabling a company to work collaboratively with customers and suppliers
D) Enabling cost-effective e-business processes
E) Enabling inventory and supply chain management

Answer: B
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

46) Which of the following systems is designed to support organization-wide process coordination and integration?

A) DSS
B) MIS
C) CRM
D) Enterprise applications
E) SCM

Answer: D
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
47) A(n) ________ system collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business.

A) transaction processing
B) enterprise
C) automatic reporting
D) management information
E) knowledge management

Answer: B
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

48) The four major types of enterprise applications are:

A) SCM, CRM, DSS, and KMS.
B) SCM, CRM, ESS, and KMSs.
C) ERP, SCM, DSS, and CRM.
D) ERP, SCM, CRM, and KMS.
E) TPS, MIS, DSS, and ESS.

Answer: D
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

49) ________ systems are also known as enterprise systems.

A) Resource planning
B) Enterprise resource planning
C) Enterprise support
D) Management information
E) Decision-support

Answer: B
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
50) SVF uses which of the following collaboration tools?

A) EMC Documentum eRoom
B) IBM Notes
C) Microsoft SharePoint Online
D) Microsoft Yammer
E) Salesforce Chatter

Answer: C
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

51) Which of the following types of system enables management to make better decisions regarding organizing and scheduling sourcing, production, and distribution?

A) SCM
B) TPS
C) KMS
D) ERP
E) MIS

Answer: A
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

52) Which type of system integrates supplier, manufacturer, distributor, and customer logistics processes?

A) Collaborative distribution system
B) Supply-chain management system
C) Reverse logistics system
D) Enterprise planning system
E) Transaction processing system

Answer: B
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
53) Which of the following types of system would you use to manage relationships with your customers?

A) CRM
B) MIS
C) CLE
D) CLU
E) KMS

Answer: A
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

54) Which of the following is the greatest obstacle in enabling collaboration between employees at different, distant corporate locations?

A) Privacy
B) Permissions
C) Time zones
D) Language
E) Corporate culture

Answer: C
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

55) Which of the following would you use to consolidate the relevant knowledge and experience in the firm and make it available to improve business processes and management decision making?

A) TPS
B) An extranet
C) KMS
D) CRM
E) MIS

Answer: C
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
56) A(n) ________ social networking tool creates business value by connecting the members of an organization through profiles, updates, and notifications that are tailored to internal
corporate uses.

A) cloud-based
B) social-commerce
C) collaborative
D) remote, asynchronous
E) enterprise

Answer: E
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

57) You have been hired by BizCom, a business communications consultancy that services many clients in different industries throughout the United States, to help it improve its profit margin. BizCom provides customized recommendations for the best use of a client's existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 50 consultants, all of whom are located in its central headquarters in Alexandria, Virgina. What type of system do you recommend that BizCom install to improve its business processes and increase its profit margin?

A) An extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed
B) A CRM, to maintain easily accessible customer records to minimize the time spent looking for client data
C) A KMS, for minimizing redundant work on similar clients
D) A marketing system, for improving sales levels
E) A TPS, to help manage all daily activities and transactions

Answer: A
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
58) You manage the IT department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. Which type of system will most efficiently provide a solution?

A) CRM
B) Enterprise system
C) Extranet
D) Intranet
E) MIS

Answer: C
Difficulty: 3: Challenging
AACSB: Analytical thinking
CASE: Evaluation
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

59) Which of the following types of system helps coordinate the flow of information between the firm and its suppliers and customers?

A) Intranet
B) Extranet
C) KMS
D) TPS
E) DSS

Answer: B
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

60) Using ________ to enable government relationships with citizens, businesses, and other arms of government is called e-government.

A) the Internet and networking technologies
B) e-commerce
C) e-business
D) any computerized technology
E) telecommunications

Answer: A
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
61) In ________, digital technology and the Internet are used to execute the major business processes in the enterprise.

A) e-commerce
B) e-business
C) enterprise applications
D) MIS
E) SCM

Answer: B
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

62) Which of the following statements about collaboration is not true?

A) In business, a collaboration can last as little as a few minutes.
B) Business collaboration relies on the formation of teams that are assigned a specific task or goal.
C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure.
D) One business benefit of collaboration is improved innovation.
E) Businesses need special systems for collaboration.

Answer: C
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

63) Which of the following tools would you use to evaluate and choose a collaboration tool for your organization?

A) Virtual meeting system
B) Cloud collaboration
C) IBM Notes
D) The collaboration matrix
E) The time/space collaboration and social tool matrix

Answer: E
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
64) Which of the following decisions requires knowledge based on collaboration and interaction?

A) How long will it take to manufacture this product?
B) Should we work with outside vendors on new products and services?
C) In which geographical locations are our products garnering the most sales?
D) Which product design is the most efficient for the user in terms of energy use?
E) How can we produce this product more cheaply?

Answer: B
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

65) Which of the following is not a business benefit of collaboration?

A) Improved quality
B) Improved financial performance
C) Improved customer service
D) Improved innovation
E) Improved compliance with government regulations

Answer: E
Difficulty: 1: Easy
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

66) ________ allows you to communicate with avatars using text messaging.

A) A virtual world
B) Screen sharing
C) Collaborative writing
D) A large audience Webinar
E) Telepresence

Answer: A
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
67) All of the following are reasons for the increased business focus on collaboration and teamwork, except for:

A) the need for creating innovative products and services.
B) growth of "interaction" jobs.
C) greater global presence.
D) the need for more efficient work hierarchies.
E) the need to reduce communication costs.

Answer: D
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

68) Which of the following statements regarding IBM Notes is not true?

A) It began as an e-mail and messaging client.
B) It is a widely used collaboration tool at larger firms.
C) It provides capabilities for wikis and microblogging.
D) It provides tools for full version control of all company documentation.
E) It is designed to provide security for sensitive corporate information.

Answer: A
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

69) Which of the following is not one of the four main classifications for collaboration tools identified by the space/time matrix?

A) Synchronous/colocated
B) Same time/remote
C) Different time/remote
D) Remote/colocated
E) Same time/same place

Answer: D
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
70) ________ is a collaboration tool that supports remote (different place), synchronous (same time) collaboration.

A) Video conferencing
B) E-mail
C) A MUD
D) A wall display
E) A virtual world

Answer: A
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

71) Production tasks are coordinated through the use of social networks in social business.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

72) A key word in social business is "conversations."
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

73) Supply chain management systems are more externally oriented than enterprise systems.
Answer: TRUE
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

74) An example of a remote, synchronous collaboration tool is a Skype conference call using VOIP and webcams.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
75) Global firms can collaborate from different locations at the same time using synchronous collaboration tools.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

76) A website that allows citizens to file taxes online is a form of ________.
Answer: e-government
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

77) Describe at least two benefits of using enterprise systems.
Answer: Enterprise systems integrate the firm's key business processes in sales, production, finance, logistics, and human resources into a single software system so that information can flow throughout the organization, improving coordination, efficiency, and decision making. These systems help create a more uniform organization in which everyone uses similar processes and information, and measures their work in terms of organization-wide performance standards. The coordination of the firm's key business processes allows the firm to respond more rapidly to customer demands.
Difficulty: 1: Easy
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

78) You have been hired by an international architectural firm, with offices in Singapore, Paris, and Mumbai. The firm would like architects and draftspeople from different teams to be able to collaborate efficiently. How will you determine what the best collaboration tools are for their needs?
Answer: The first step in evaluation is to determine what the collaboration challenges are and to locate the firm in the time/space matrix. Secondly, for each block of the matrix that the firm is in, determine what solutions are available from which vendors. Third, analyze the products in terms of their costs and benefits to the firm. Next, identify any risks involved with using the product. Then, seek the help of potential users to identify implementation and training issues. Finally, make a shortlist of tools and invite vendors to make presentations.
Difficulty: 3: Challenging
AACSB: Analytical thinking
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?
79) The principal liaison between the information systems groups and the rest of the organization is a(n):

A) programmer.
B) information systems manager.
C) systems analyst.
D) CTO.
E) CIO.

Answer: C
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

80) A ________ is a senior manager who oversees the use of IT in the firm.

A) CEO
B) CFO
C) CIO
D) CTO
E) CKO

Answer: C
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

81) An information systems manager:

A) writes software instructions for computers.
B) acts as liaison between the information systems group and the rest of the organization.
C) translates business problems into information requirements.
D) manages data entry staff.
E) oversees the company's security policy.

Answer: D
Difficulty: 3: Challenging
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

82) The ________ helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes.

A) CTO
B) CSO
C) CKO
D) CPO
E) CEO

Answer: C
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?
83) Which of the following is a firm's CPO responsible for?

A) Ensuring that the company complies with existing data privacy laws
B) Making better use of existing knowledge in organizational and management processes
C) Enforcing the firm's information security policy
D) Overseeing the use of information technology in the firm
E) Acting as liaison between the information systems group and the rest of the company

Answer: A
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

84) A TPS is an information system that keeps track of all of the daily routine transactions of a business.
Answer: TRUE
Difficulty: 1: Easy
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

85) An inventory control system is an example of an MIS.
Answer: FALSE
Difficulty: 2: Moderate
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

86) The number of IS/MIS jobs is projected to grow 50% faster than the average job growth for the economy as a whole in the next eight years.
Answer: TRUE
Difficulty: 3: Challenging
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

87) In 2016, the median wage for IT/MIS jobs is about twice the level for all occupations.
Answer: TRUE
Difficulty: 2: Moderate
AACSB: Reflective thinking
LO: 2-4: What is the role of the information systems function in a business?
88) Which of the following statements about Plan International’s new human resources system, as described in the chapter case, is not true?

A) It took six months to implement a working system at Plan International’s international headquarters.
B) The new system helps manage grants and donations received by Plan International.
C) The new system is cloud-based and delivers information on a secure mobile platform.
D) The new system enables employees to update their own personal information.
E) The new system provides a bird’s-eye view of the entire Plan workforce.

Answer: A
Difficulty: 2: Moderate
AACSB: Analytical thinking; Information technology
LO: 2-2: How do systems serve different management groups in a business and how do systems that link the enterprise improve organizational performance?

89) IT governance refers to the overall decision-making that guides the IT strategy of a firm.
Answer: TRUE
Difficulty: 3: Challenging
AACSB: Information technology
LO: 2-4: What is the role of the information systems function in a business?

90) Describe the role of IT governance within the firm.
Answer: IT governance is the management of how the information systems function is organized and handled within the firm. IT governance includes the strategy and policies for using information technology within an organization. It specifies the decision rights and framework for accountability to ensure that the use of information technology supports the organization's strategies and objectives. For example, IT governance decides how decisions implementing and evaluating new systems are made, whether the IT function should be decentralized or centralized, who has power to create and manage systems, and what kind of ROI is expected from systems.
Difficulty: 2: Moderate
AACSB: Analytical thinking
LO: 2-4: What is the role of the information systems function in a business?
91) How do collaborative business culture and business processes differ from “command-and-control” firms?
Answer: In command-and-control organizations, the top leaders determine all the really important matters and then order lower-level employees to execute senior management plans. The job of middle management is to pass messages back and forth up and down the hierarchy. Command-and-control firms require lower-level employees to carry out orders without asking too many questions, with no responsibility to improve processes, and with no rewards for teamwork or team performance. If workgroups need help from another work group, that is something for the bosses to figure out. Employees never communicate horizontally, always vertically, so management can control the process.
A collaborative business culture and business processes are very different. Senior managers are responsible for achieving results but rely on teams of employees to achieve and implement the results. Policies, products, designs, processes, and systems are much more dependent on teams at all levels of the organization to devise, to create, and to build. Teams are rewarded for their performance, and individuals are rewarded for their performance in a team. The function of middle managers is to build the teams, coordinate their work, and monitor their performance. The business culture and business processes are more social. In a collaborative culture, senior management establishes collaboration and teamwork as vital to the organization, and it actually implements collaboration for the senior ranks of the business as well.
Difficulty: 3: Challenging
AACSB: Application of knowledge; Written and oral communication
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

92) Why are “conversations” relevant to social business?
Answer: Customers, suppliers, employees, managers, and even oversight agencies continually have conversations about firms, often without the knowledge of the firm or its key actors (employees and managers). Supporters of social business assert that if firms could tune into these conversations, they will strengthen their bonds with consumers, suppliers, and employees, increasing their emotional involvement in the firm.
Difficulty: 3: Challenging
AACSB: Application of knowledge; Written and oral communication
LO: 2-3: Why are systems for collaboration and social business so important and what technologies do they use?

93) How have the technologies associated with e-business impacted government?
Answer: Governments on all levels are using Internet technology to deliver information and services to citizens, employees, and businesses with which they work. The term e-government refers to the application of the Internet and networking technologies to enable government and public sector agencies’ relationships with citizens, businesses, and other arms of government digitally. In addition to improving delivery of government services, e-government can make government operations more efficient and empower citizens by giving them easier access to information and the ability to network digitally with other citizens. For example, citizens in some states can renew their driver’s licenses or apply for unemployment benefits online, and the Internet has become a powerful tool for instantly mobilizing interest groups for political action and fund-raising.
Difficulty: 3: Challenging
AACSB: Application of knowledge; Written and oral communication
LO: 2-2: How do systems serve different management groups in a business and how do systems that link the enterprise improve organizational performance?
94) What is a digital dashboard, and why are they becoming an increasingly popular tool?
Answer: A digital dashboard displays information graphical information and charts of key performance indicators on a single screen. They are becoming increasingly popular because they provide comprehensive and accurate information for decision making that helps managers quickly spot areas that need attention.
Difficulty: 3: Challenging
AACSB: Application of knowledge; Written and oral communication
LO: 2-2: How do systems serve different management groups in a business and how do systems that link the enterprise improve organizational performance?

95) How can a good CRM system increase profits for a company?
Answer: Customer relationship management uses information systems to coordinate all of the business processes surrounding the firm's interactions with its customers. The systems consolidate customer information from multiple sources - telephone, e-mail, wireless devices, traditional sales and marketing systems, and the web - so that the firm can obtain a unified view of a customer. Understanding the customer allows a firm to increase the effectiveness of their marketing campaigns.
Difficulty: 2: Moderate
AACSB: Analytical thinking; Information technology; Written and oral communication
LO: 2-2: How do systems serve different management groups in a business and how do systems that link the enterprise improve organizational performance?
96) All of the following job categories are expected to grow over the next eight years except:

A) computer support specialists.
B) software engineers.
C) systems analysts.
D) computer programmers.
E) database administrators.

Answer: D
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 2-4: What is the role of the information systems function in a business?

97) Which of the following job categories is expected to experience the most growth over the next eight years?

A) Computer support specialists
B) Software engineers
C) Systems analysts
D) Computer programmers
E) Database administrators

Answer: C
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 2-4: What is the role of the information systems function in a business?
98) Which of the following statements is not true?

A) In 2016, the median wage for IT/MIS jobs is about $80,000.
B) In the next eight years to 2024, IS/MIS will add about 500,000 jobs.
C) Out of 114 occupations, MIS is ranked 15th in terms of salaries.
D) In general, the technical occupations in IT are showing faster expansion than occupations involved with the management of IT.
E) The growth of online software services and cloud computing is impacting the job prospects for computer programmers.

Answer: D
Difficulty: 3: Challenging
AACSB: Reflective thinking
LO: 2-4: What is the role of the information systems function in a business?
99) According to the chapter case, ABB decided to switch from its existing corporate intranet for all of the following reasons except:

A) the intranet was too expensive to maintain.
B) the intranet was too static and outmoded to meet its current needs.
C) the intranet had poor capabilities for searching for information.
D) the intranet lacked collaboration tools.
E) the intranet was confusing and inefficient.

Answer: A
Difficulty: 3: Challenging
AACSB: Reflective thinking
LOL 2-3: Why are systems for collaboration and social business so important, and what technologies do they use?

100) According to the chapter case, which of the following statements about Cisco’s IX5000 telepresence system is not true?

A) No special changes to a room are required to install the IX5000 system.
B) A six-seat IX500 system costs about $500,000.
C) The IX5000 system is able to capture an entire room in fine detail.
D) The IX5000 system needs only half the power, installation time, and data transmission capacity (bandwidth) as Cisco’s previous telepresence systems.
E) Produban was the first company to deploy the IX5000 system.

Difficulty: 2: Moderate
AACSB: Reflective thinking
LOL 2-3: Why are systems for collaboration and social business so important, and what technologies do they use?

......
MBA - MIS COURSE - FREE ONLINE RESOURES
Course: Management Information Systems
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Laudon, Management Information Systems, 2016
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Thanks for the videos! Management Information Systems. http://toptenmba.com
See full list of MIS Videos: https://www.youtube.com/watch?v=51uGOkJrqD8&list=PLRYuVYJhTowQx144mVepzY_ZEL5-frcBh
Free MIS Ebooks 2016: https://drive.google.com/drive/u/1/folders/0ByL8IO2RG9cVZDZ6QWhiWVI0bms
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