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WorksheetsMis - Ch1 - Testbank (2)
Total questions: 100
Worksheet time: 50mins
Which of the following is not one of the six strategic business objectives of information systems?
New products and services
Improved decision making
Competitive advantage
Improved employee morale
Survival
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?
Compliance with regulations
Managerial decision making
Efficiency in creation of new products
Employee morale
Intimacy with its suppliers
Which of the following may lead to competitive advantage? 1. New products, services, and business models; 2. Charging less for superior products; 3. Responding to customers in real time
1 only
1 and 2
2 and 3
1 and 3
1, 2, and 3
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?
Operational excellence
Improved decision making
Competitive advantage
Customer intimacy
Survival
The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of which of the following?
Improved flexibility
Improved decision making
Improved efficiency
Customer intimacy
Operational excellence
Competitors were seeking which of the following business objectives when they rushed to provide ATMs after Citibank introduced the first ATMs in New York?
Improved efficiency
Customer and supplier intimacy
Survival
Competitive advantage
Improved decision making
Which of the following is the key business metric behind the technologies implemented by Kroger, as discussed in the chapter-opening case?
Higher customer satisfaction levels
Survival
Improved employee morale
Improved decision making
Reduced cost of supplies
Which of the following is an example of a business using information systems to create a new product?
Walmart's RetailLink system
The Mandarin Oriental's use of computers to keep track of guest preferences
Verizon's use of a web-based digital dashboard to provide real-time company information for managers
Apple's creation of the iPod
Kroger's use of sensors to monitor cold food storage temperatures
Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following?
New products and services
Operational efficiency
Survival
Customer intimacy
Competitive advantage
How much did American businesses spend on information systems hardware, software, and telecommunications equipment in 2015?
About $100 million
About $1 billion
About $100 billion
About $1 trillion
About $10 trillion
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?
Customer intimacy
Survival
Operational excellence
Improved decision making
New products and services
Approximately what percent of U.S. businesses have some form of remote work program?
About 15 percent
About 25 percent
About 35 percent
About 60 percent
About 75 percent
All of the following are new technology-related trends in MIS except:
cloud computing.
big data.
IoT.
the mobile digital platform.
co-creation of business value.
Which of the following statements about digital firms is not true?
In digital firms, time shifting and space shifting are the norm.
Today, most firms are fully digital.
Digital firms offer extraordinary opportunities for flexible global organization and management.
Digital firms sense and respond to their environments more rapidly than traditional firms.
Digital firms have more flexibility to survive in turbulent times.
A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective?
Customer intimacy
Operational excellence
Survival
Creation of new products
Improved decision making
The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as:
IoT.
big data.
the mobile digital platform.
cloud computing.
business intelligence.
Which of the following is not one of the current changes taking place in information systems technology?
Growing business use of big data
Growth in cloud computing
Growth in the PC platform
Thomas Friedman's description of the world as "flat" refers to:
the flattening of economic and cultural advantages of developed countries.
the use of the Internet and technology for instantaneous communication.
the reduction in travel times and the ubiquity of global exchange and travel.
the growth of globalization.
the increased use of global currencies.
In 2015, what percent of the U.S. economy resulted from foreign trade?
10 percent
25 percent
30 percent
50 percent
66 percent
All of the following describe the effects of globalization except:
significant decreases in operating costs.
reduction of labor costs through outsourcing.
ability to find low-cost suppliers.
increases in transaction costs.
replication of business models in multiple countries.
How many service jobs move offshore to lower-wage countries in a typical year?
3,000
30,000
300,000
3 million
30 million
Which of the following statements is not true?
In 2015, American businesses invested about $1 trillion in information systems hardware, software, and telecommunications equipment.
In 2015, American businesses spent $500 billion on business and management consulting and information technology services.
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.
Most of the business value of IT investment derives from organizational, management, and cultural changes inside firms.
Much of the money spent by American businesses on business and management consulting involves redesigning firms' business operations to take advantage of new technologies.
Approximately how many Americans access the Internet using a smartphone or tablet?
118 million
172 million
194 million
220 million
258 million
Which of the following statements is not true?
Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations.
Most PCs manufactured in China use microprocessor chips manufactured in Korea.
Eighty percent of the toys sold in the United States are manufactured in China.
In 2015, 60 percent of Apple's revenue was generated outside of the United States.
Technology companies are particularly dependent on offshore revenue.
Internet advertising is growing at approximately 5 percent a year.
True
False
Creating a marketing plan is an example of a business process.
True
False
In order to be considered a digital firm, all of the firm's significant business relationships and core business processes must be digitally enabled.
True
False
A business model describes how a company produces, delivers, and sells a product or service to create wealth.
True
False
Private business investment in information technology constituted 37 percent of all invested capital in 2015.
True
False
You are starting a small bike messenger company providing hand delivery of packages within a small geographical area. Which characteristic would make this firm a digital firm?
Digitally enabling most relationships with customers, suppliers, and employees, such as ordering deliveries and assigning routes via information systems.
Relying on paper forms and phone calls for all orders and assignments.
Using bicycles but avoiding smartphones or handheld devices for coordination.
Focusing only on physical delivery while keeping all internal operations manual.
Which of the following are main changes taking place in organizational use of information systems?
Businesses using social networking platforms to deepen interactions with employees, customers, and suppliers.
Telework gaining momentum, with more people working away from a traditional office.
Co-creation of business value, with sources of value shifting from products to solutions and experiences and to networks of suppliers and collaboration with customers.
Decline in collaboration tools across firms due to security concerns.
Reduced use of mobile devices for business communication.
The three activities in an information system that produce the information organizations use to control operations are:
information, research, and analysis.
input, output, and feedback.
data, information, and analysis.
data analysis, processing, and feedback.
input, processing, and output.
RFID sensor-generated data on stored food items such as storage location is an example of:
raw input.
raw output.
customer and product data.
sales information.
information systems.
The total number of food items with storage temperatures problems is an example of which of the following?
Input
Raw data
Meaningful information
Feedback
Processing
Output:
is feedback that has been processed to create meaningful information.
is information that is returned to appropriate members of the organization to help them evaluate the input stage.
transfers data to the people who will use it or to the activities for which it will be used.
transfers processed information to the people who will use it or to the activities for which it will be used.
converts raw input into a meaningful form.
Converting raw data into a more meaningful form is called:
capturing.
processing.
organizing.
feedback.
analysis.
Which of the following is an example of raw data from an automobile manufacturer?
An average of 120 Subarus sold daily in New York in 2016.
1,200 Subaru Outbacks sold during the first quarter 2016 in New York.
In a hierarchical organization, the upper level consists of:
scientists.
senior management.
professional employees.
data workers.
knowledge workers.
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:
culture.
environment.
atmosphere.
business process.
mission.
Data management technology consists of which of the following?
Physical hardware and media used by an organization for storing data
Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system
Two or more computers to share data or resources
Hardware and software used to transfer data
Software governing the organization of data on physical storage media
Which of the following statements best describes organizational culture?
It encompasses the sum of beliefs and assumptions by all members.
It enables the organization to transcend the different levels and specialties of its employees.
It reflects the senior management's perspective on the organization and goals.
It allows a company to achieve greater operational efficiency.
It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.
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:
data management environment.
networked environment.
information technology (IT) infrastructure.
information system.
culture.
Maintaining the organization's financial records is a central purpose of which main business function?
Manufacturing and accounting
Finance and accounting
Sales and manufacturing
Finance and sales
Human resources
All of the following are examples of environmental actors in an information system except:
competitors.
regulatory agencies.
customers.
suppliers.
sales force.
Which of the following best describes the primary reason for implementing a new information system, from a business perspective?
The system enables the firm to create new products and services.
The system will create new value for the firm, beyond its costs.
The system will automate key business processes.
The system is in use by our primary competitors.
The system integrates well with the Web.
Which of the following would not be a complementary asset for a solar panel manufacturer?
International solar equipment certification standards
Government funding for green technology
Centralized hierarchical decision making
Innovation-driven management team
Subsidies for adoption of solar energy
In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business?
Middle management
Service workers
Production management
Operational management
Knowledge workers
In _______, raw data is systematically acquired and transformed during various stages that add value to that information.
an information value chain
the firm value chain
information processing
the feedback process
the dissemination process
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?
Managerial
Governmental
Social
Organizational
Auxiliary
Which of the following is an example of an organizational complementary asset?
Using the appropriate business model
A collaborative work environment
Laws and regulations
The Internet and telecommunications infrastructure
Strong senior management
Which of the following is an example of a social complementary asset?
Technology and service firms in adjacent markets
Training programs
Distributed decision-making rights
Incentives for management innovation
A strong IS development team
Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems?
Senior executives
Sales executives
Production workers
Operational managers
Knowledge workers
Which of the following would not be used as an input for an information system?
Digital dashboard
Tablet computer
Barcode scanner
Smartphone
RFID reader
The three principal levels within a business organization hierarchy are:
senior management, operational management, and service workers.
senior management, middle management, and operational management.
senior management, operational management, and information systems.
senior management, middle management, and service workers.
senior management, data workers, and service workers.
Personnel who design new products or services for a firm belong to which level of a business hierarchy?
Middle management
Production workers
Knowledge workers
Data workers
Service workers
Which main business function is responsible for maintaining employee records?
Sales and marketing
Human resources
Finance and accounting
Manufacturing and production
Middle management
Which of the following constitutes an organizational element in the UPS tracking system described in the chapter?
The specification of procedures for identifying packages with sender and recipient information
Monitoring service levels
Promoting the company strategy of low-cost, superior service
The use of handheld computers and networks for managing package delivery
A web-based Post Sales Order Management System
Which of the following constitutes a managerial element in the UPS tracking system described in the chapter?
Monitoring service levels
Promoting the company strategy of low-cost, superior service
The specification of procedures for identifying packages with sender and recipient information
The use of handheld computers and networks for managing package delivery
Which of the following is a global network that uses universal standards to connect millions of different networks around the world?
An extranet
The World Wide Web
The Internet
An intranet
Verizon
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?
HTML
The World Wide Web
An extranet
FTP
Which of the following is a private corporate network extended to authorized users outside the organization?
An intranet
The World Wide Web
The Internet
An extranet
FTP
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?
Information systems literacy
Information systems architecture
Business processes
Information technology infrastructure
Management information systems
Which field of study focuses on both a behavioral and technical understanding of information systems?
Sociology
Operations research
Economics
Behavioral computing
Management information systems
Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives.
True
False
Computers and programs are the only things required to produce the information an organization needs.
True
False
Information systems literacy focuses primarily on knowledge of information technology.
True
False
The three main dimensions of information systems are management, organizations, and information technology.
True
False
Knowledge workers make long-range strategic decisions about products and services.
True
False
There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology.
True
False
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.
True
False
All business processes are formally documented by an organization.
True
False
Creative work driven by new knowledge and information is a significant part of management responsibility.
True
False
Intranets link different systems and networks within a firm.
True
False
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.
True
False
There is little variation in returns on IT investment across firms.
True
False
Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments.
True
False
A firm that invests in a strong IS development team is making an investment in organizational complementary assets.
True
False
Data is information that has been shaped into a form that is meaningful to human beings.
True
False
Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
True
False
The key elements of an organization are its structure, business processes, politics, culture, and people.
True
False
Middle managers make long-range strategic decisions about the firm's products and services.
True
False
Detailed, programmed instructions that control computer hardware components in an information system are known as:
Computer software
Computer hardware
Data
Network protocols
Define operational excellence. How can information systems help achieve it?
Achieving higher levels of productivity, efficiency, and profitability by using information systems to improve communications with suppliers, optimize the supply chain, and streamline distribution
Reducing technology spending by limiting information systems to basic accounting tasks
Replacing all human decision-making with automated systems to eliminate managerial roles
Maintaining existing processes without introducing new technologies to avoid risk
You work for an auto manufacturer and distributor. How could you use information systems to achieve greater customer intimacy?
Create a website that allows customers to customize cars and communicate with support personnel and other car owners
Create an automated e-mail service reminding car owners to take their car in for periodic checkups
Track customer preferences in local areas to provide cars that reflect local customer needs and desires
Use information systems to minimize warehouse overhead without interacting with customers
What is the difference between information technology and information systems? Describe some of the functions of information systems.
Information technology consists of all the hardware and software a firm uses; information systems are a set of interrelated components that collect, process, store, and distribute information to support decision making and control in an organization
Information systems support decision making, coordination, and control
Information systems help employees analyze problems and visualize complex subjects
Information systems eliminate the need for design and organizational processes
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?
Raw data: individual theater ticket sales; meaningful information: average number of tickets sold to seniors on certain days of the week
Raw data: staff lunch schedules; meaningful information: average duration of employee breaks
Raw data: projector bulb inventory; meaningful information: forecast of concession staffing needs
Raw data: theater seat colors; meaningful information: regional snack preferences
Define business process. What might be a business process used at a hospital?
A set of logically related tasks and behaviors for accomplishing work; examples include hiring a new employee, customer intake, and filing medical records
A single ad-hoc task performed once; examples include turning on lights and locking doors
A list of software features; examples include menu navigation and password resets
A random sequence of unrelated activities; examples include hallway chatting and personal browsing
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?
Beliefs that the legal system works, the legal system is fair, lawyers help people, and people need help with the legal system because it is complicated
Preferences for casual dress and flexible lunch breaks
Prioritizing sports events over client work
Avoiding written contracts to encourage verbal agreements
You work at the business headquarters for a chain of movie theaters. Describe this firm's information value chain.
Data gathered from ticket and concession sales are transformed into meaningful information about movie popularity, times and days, and snack preferences; this information supports decisions such as discounts during less popular time slots and offering more popular snacks, with feedback used to assess effectiveness
Data are stored without transformation and decisions are made randomly without analysis
Information systems focus solely on hardware purchases and do not analyze sales data
All decisions are based on national news headlines rather than theater data
How does a company's use of information systems affect its corporate strategies? Provide an example.
Effective use of information technology is interdependent with strategy execution and corporate goals; investing in information systems can enable new products or a more efficient distribution system to become a low-cost producer
Information systems operate independently of corporate strategies and have no impact on competitive position
Corporate strategies must avoid information systems to reduce complexity
Information systems only affect employee email usage and cannot influence products or distribution
Why is the building of a house an appropriate analogy for the building of an information system?
Tools like hammers, nails, and lumber (computers and programs) are necessary but not sufficient; architecture, design, and organizational processes are crucial to produce the system needed
Houses and information systems are identical because both are built only with tools
Information systems can be produced entirely by purchasing more hardware
The analogy is inappropriate because houses lack any design elements
What is the single most important theme of the book?
Managers must consider broader organization and management dimensions of information systems to understand problems and derive substantial above-average returns from technology investments
Technical programming skills are the only determinant of information systems success
Firms should avoid investing in information systems due to uncertain returns
User interfaces are the single most important dimension of information systems
What are complementary assets and how does investment in them impact returns on technology investments?
Assets required to derive value from a primary investment; firms that support technology investments with complementary assets such as new business models, new processes, management behavior, organizational culture, or training receive superior returns
Assets that replace technology; investing in them reduces the need for information systems
Irrelevant extras that do not affect returns on technology investments
Only physical assets like buildings; training has no effect on returns
Disciplines that contribute to the technical approach to information systems include:
computer science, engineering, and networking.
operations research, management science, and computer science.
engineering, utilization management, and computer science.
management science, computer science, and engineering.
economics, sociology, and psychology.
Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control?
Management science
MIS
Computer science
Utilization management
Operations research
Sociologists study information systems with an eye to understanding:
how systems affect individuals, groups, and organizations.
how human decision makers perceive and use formal information.
how new information systems change the control and cost structures within the firm.
the production of digital goods.
mathematically based models and physical technology.
Psychologists study information systems with an eye to understanding:
how systems affect individuals, groups, and organizations.
how human decision makers perceive and use formal information.
how new information systems change the control and cost structures within the firm.
the production of digital goods.
The behavioral approach to information systems focuses on analyzing the psychological, social, and economic impacts of systems rather than the technical aspects.
True
False
Describe 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 this perspective helps avoid a purely technological approach
Performance depends solely on upgrading technical systems; social systems are irrelevant
Social systems should replace technical systems entirely to improve performance
The sociotechnical view prioritizes hardware purchases over organizational processes
Which academic disciplines contribute to the behavioral approach to information systems?
Sociology, focusing on how groups and organizations shape system development and how systems affect individuals, groups, and organizations
Psychology, focusing on how human decision makers perceive and use formal information
Economics, focusing on production of digital goods, dynamics of digital markets, and how information systems change control and cost structures
Operations research, focusing on mathematical optimization of transportation and inventory
Electrical engineering, focusing on circuit design
