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Kroenke - Using MIS 12th Ed - Instructor’s Manual

SOLUTION MANUAL FOR

Using MIS, 12th edition By David M. Kroenke, Randall J. Boyle|Chapter 1-12

1. The Importance of MIS LEARNING OBJECTIVES Q1-1 Q1-2 Q1-3 Q1-4 Q1-5 Q1-6 Q1-7

Why is Introduction to M IS the most important class in the business school? How M IS will affect you? What is M IS? How can you use the five-component model? What is information? What are necessary data characteristics? 2031?

CHAPTER OUTLINE Q1-1       Q1-2  

Why is Introduction to M IS the most important class in the business school? The Digital Revolution Evolving capabilities Moore’s Law Metcalfe’s Law Other forces pushing digital change This is the most important class in the school of business How will M IS affect you? How can you attain job security? How can Intro to M IS help you learn nonroutine skills? o Abstract Reasoning o Systems Thinking o Collaboration o Ability to Experiment o Jobs  What is the bottom line? Q1-3 What is M IS?  Components of an information system  Management and use of information systems  Achieving strategies Q1-4 How can you use the five-component model?  The most important component—You  All components must work

Kroenke - Using MIS 12th Ed - Instructor’s Manual

   Q1-5   Q1-6      Q1-7

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High-tech versus low-tech information systems Understanding the scope of new information systems Components ordered by difficulty and disruption What is information? Definitions vary Where is information? What are necessary data characteristics? Accurate Timely Relevant Just barely sufficient Worth its cost 2031?

SECURITY GUIDE Passwords and Password Etiquette 1. Here is a line from Shakespeare’s Macbeth: ―Tomorrow and tomorrow and tomorrow, creeps in its petty pace.‖ Explain how to use these lines to create a password. How could you add numbers and special characters to the password in a way that you will be able to remember? There are several correct ways to create a password from this line. One way might be to take the first letters from each word. The password would then be ―tatatciipp.‖ You could then capitalize a couple of the letters and add in a special character or numbers. The resulting password could be ―T&2morrow&tciiPP.‖ This would be a very secure password. 2. List two different phrases that you can use to create a strong password. Show the password created by each. There will be many correct answers to this question. Using a passphrase to create a password is done by using the first letters in the phrase, then changing some of the letters by substituting in special characters, numbers, or changes of case. For example, the phrase, ―I never count my chickens before the eggs have hatched!‖ could create the password ―iNcmCHKNSb4t3ggsHH!‖ This would be a great password. 3. One of the problems of life in the cyberworld is that we all are required to have multiple passwords—one for work or school, one for bank accounts, another for eBay or other auction sites, and so forth. Of course, it is better to use different passwords for each. But in that case, you have to remember three or four different passwords. Think of different phrases you can use to create a memorable, strong password for each of these different accounts. Relate the phrase to the purpose of the account. Show the passwords for each.

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There will be many correct answers to this question. For example, a passphrase for a university account may look something like, ―I will graduate from state university before 2020 or bust!‖ This could yield a password that would look like ―IwgfSUb42020ORB!‖ 4. Explain proper behavior when you are using your computer and you need to enter, for some valid reason, another person’s password. In this case, say to the other person, ―We need your password,‖ and then get out of your chair, offer your keyboard to the other person, and look away while she enters the password. Among professionals working in organizations that take security seriously, this little ―do-si-do‖ move—one person getting out of the way so another person can enter her password—is common and accepted. 5. Explain proper behavior when someone else is using her computer and that person needs to enter, for some valid reason, your password. If someone asks for your password, do not give it out. Instead, get up, go over to that person’s machine, and enter your own password yourself. Stay present while your password is in use, and ensure that your account is logged out at the end of the activity. No one should mind or be offended in any way when you do this. It is the mark of a professional.

SO WHAT? IOTrends 1. People often use the terms Web and Internet interchangeably, but they are not the same. Do your best to define each and identify exactly how they are different. Student answers will vary but a good explanation can be found at the website https://www.geeksforgeeks.org/whats-difference-internetweb/#:~:text=The%20Internet%20is%20a%20global,on%20top%20of%20that%20in frastructure. It states: ―The Internet is a global network of networks while the Web, also referred formally as World Wide Web (www) is collection of information which is accessed via the Internet. Another way to look at this difference is; the Internet is infrastructure while the Web is service on top of that infrastructure.‖ 2. The article talks about Web 1.0 and Web 2.0. You may be wondering if Web 2.0 is the end of the line. What do you think—will there be a Web 3.0, and if so, what would it entail? Student responses will vary, but should cover some ideas and concepts that are not already part of Web 1.0 or Web 2.0 specifically. 3.

While IoT is clearly having an impact on businesses (e.g., tracking manufacturing using sensors in production lines) and cities (e.g., tracking traffic flows, lighting, public transportation), how has IoT impacted your life? Do you have any IoT devices in your apartment or home? If not, which IoT devices would you be interested in owning?

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Student answers will vary, btu some devices could include Amazon Echo, Google Nest, and similar devices. 4. Do you think IoT devices feature the newest and most advanced security measures, or could there be potential security risks from using IoT devices? Student answers will vary, but should point out that often times upon release new products do not have all their security holes covered so users should be aware and proceed with caution.

COLLABORATION EXERCISE 1 This chapter discussed why collaboration is a key skill for maintaining job security. In this exercise, you will build a collaboration IS and then use that IS to answer the questions below in a collaborative fashion. You might want to read the four questions below before you build your IS. Until you answer question 1-5, you’ll have to make do with email or face-to-face meetings. Once you’ve answered that question, use your communication method to answer question 1-6. Once you’ve answered question 1-6, use your communication method and your content-sharing method to answer question 1-7. Then use the full IS to answer questions 1-8 and 1-9. 1-5 Build a communication method: a. Meet with your team and decide how you want to meet in the future. Student decisions will vary. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) b. From the discussion in step a, list the requirements for your communication system. Student answers will vary. Expect students to include requirements in terms of ease of use, availability, and features that support the way the team wants to work. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) c. Select and implement a communication tool. It could be Skype, Google Meet, Zoom, or Skype for Business. Student choices will vary depending on decision from step b above. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACS B: Interpersonal Relations and Teamwork) d. Write procedures for the team to use when utilizing your new communication tool. Student answers will vary. Look for students to include procedures regarding meeting notifications, tardiness and missing meetings, and designating a team member to send out reminders. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations

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and Teamwork) 1-6 Build a content sharing method: a. Meet with your team and decide the types of content that you will be creating. Student answers will vary. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) b. Decide as a team whether you want to process your content using desktop applications or cloud-based applications. Choose the applications you want to use. Student answers will vary. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) c. Decide as a team the server you will use to share your content. You can use Google Drive, Microsoft OneDrive, Microsoft SharePoint, or some other server. Student answers will vary. Student decision will depend in part on the availability of tools, such as SharePoint, in their environment. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) d. Implement your content-sharing server. No specific answer; a task to be performed by students. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) e. Write procedures for the team to use when sharing content. Student answers will vary. Look for students to include procedures regarding responding to requests to edit, timeliness of responses, and expectations for participating in content review. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-7 Build a task management system: a. Meet with your team and decide how you want to manage tasks. Determine the task data that you want to store on your task list. Student answers will vary. Check to see that the task data listed by the team is complete, and includes at least: a task name, task description, task assignment, task due date, task check-out and check-in, and priority. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) b. Decide as a team the tool and server you will use for sharing your tasks. You can use Google Drive, Microsoft OneDrive, Microsoft SharePoint, or some other facility. Copyright © 2022 Pearson Education, Inc.

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Student decision will depend in part on the availability of tools, such as SharePoint, in their environment. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) c. Implement the tool and server in step a. No specific answer; a task to be performed by students. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) d. Write procedures for the team to use managing tasks. Student answers will vary. Look for students to include procedures regarding task creation, task assignment, priority setting, check-out and check-in, and meeting deadlines. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-8 Nonroutine skills: a. Define abstract reasoning and explain why it is an important skill for business professionals. Give three other examples of abstractions commonly used in business. Abstract reasoning is the ability to construct and use a model or representation. Being able to construct a model or representation of a complex situation through abstract reasoning is an important skill for business professionals, who frequently must make decisions under uncertain and highly complex situations. This is a highly marketable skill. Student answers will vary, but some examples of abstractions used in business include a list of items in inventory and their quantity on hand, project plans, budgets, and business process models. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) b. Define systems thinking and explain why it is an important skill for business professionals. Give three other examples of the use of systems thinking with regard to the consequences of Bell’s Law, Moore’s Law, or Metcalfe’s Law. Systems thinking involves identifying and modeling the components of a system and connecting the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed. This is an important skill because business people must be able to identify and understand the relationships among the elements involved in a complex situation. Regarding examples, student answers will vary. Bell’s Law, for example, states that digital devices will evolve so quickly that they will enable new platforms, programming environments, industries, networks, and information systems every 10 years. Right now, smartphones and tablet devices are predominant platforms for consumers, but how will that evolve and what does that mean for current smartphone/tablet providers? Will smart watches finally catch on, or some other ―wearable‖ product? (LO: 2, Learning Outcome: Describe the components of an information

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system (I S), AACSB: Reflective Thinking) c. Define collaboration and explain why it is an important skill for business professionals. Is the work product of your team better than any one of you could have done separately? If not, your collaboration is ineffective. If that is the case, explain why. Collaboration is the ability to work productively with others when developing ideas and plans. A good collaboration results in a final work product that is superior to one that would be developed by a person working alone. Regarding student teams, the students answers will vary. It is likely that students have not spent enough time and effort reviewing and evaluating each other’s ideas and improving the work product. Often student groups are satisfied with whatever is contributed and little attention is paid to critique and refinement. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, A ACSB: Interpersonal Relations and Teamwork) d. Define experimentation and explain why it is an important skill for business professionals. How does the fear of failure influence your willingness to engage in experimentation? Experimentation involves creating and testing promising new alternatives, consistent with available resources. In today’s demanding business environment, new ideas will be essential to success, and business people must overcome their fear of failure and pursue new approaches rationally. If any of the group members respond to a suggested process with the comment, ―that will never work,‖ he may be reflecting his fear of failure. Unwillingness to try a new way of doing things may be an accurate assessment that the approach is unworkable, but it could also be an unwillingness to work in a new way. (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking) 1-9 Job security: a. State the text’s definition of job security. The text defines job security as ―a marketable skill and the courage to use it.‖ The text also argues that marketable skills are no longer specific task-related skills, but rather ―strong nonroutine cognitive skills.‖ (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking) b. Evaluate the text’s definition of job security. Is it effective? If you think not, offer a better definition of job security. It is likely that students will be dismayed that the more traditional task-oriented skills they are learning (e.g., computer programming, accounting) will not provide them with job security. That is probably contrary to the message they receive from their parents and grandparents. However, this definition of job security should cause the students to think critically about what they are getting from their college education and may cause them to think differently about their experiences in college. (LO: 2, Learning Outcome: Describe the components of an

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information system (IS), AACSB: Reflective Thinking) c. As a team, do you agree that improving your skills on the four dimensions in Collaboration Exercise Questions will increase your job security? Student answers will vary, but we hope that thinking about these dimensions will change their attitudes about what comprises marketable skills and how to work to develop them. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) d. Do you think technical skills (accounting proficiency, financial analysis proficiency, etc.) provide job security? Why or why not? Do you think you would have answered this question differently in 2000? Why or why not? Technical skills are not irrelevant to job security, but they are not sufficient to guarantee job security. This circumstance is very different than in 2000, when technical skills probably were sufficient to get and keep a decent job. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AAC SB: Reflective Thinking)

CASE STUDY 1 Pluralsight Go to http://pluralsight.com and search for a course you might be interested in taking. What is attractive to you about online versus traditional training? Student answers will vary in terms of the course that is interesting. Attractive features of online training versus traditional classroom training include the convenience and flexibility of taking a lesson/course when time allows. (LO: 1, Learning Outcome: Describe the effects of e-commerce on the modern business world, AACSB: Analytic Skills)

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1-11. What advice would you give executives at Pluralsight if they wanted to grow their

business? How could they increase revenues? Pluralsight has traditionally focused on corporate training. Students might be more familiar with an academic environment and might suggest that Pluralsight establish programs with universities so that students could take courses to supplement their traditional coursework at a reduced rate. Possibly some companies could be lined up to help pay the subscription rate, since the students should be more able to provide needed skills to those companies when they graduate. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 1-12. Why would corporate clients be interested in online technology training for their

internal employees? How would they benefit from paying Pluralsight for training? Technical skill requirements are constantly changing and employee skills constantly need to be updated. Paying for skills training from Pluralsight is probably much more cost effective for a company than trying to provide the training in-house.

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Pluralsight is a training outsourcer and if their training quality is good, the company is much better off obtaining the training this way. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 1-13. Why is there a technology skills gap? Why do employers have the need for highly

skilled workers, and why do too few workers have these skills? It is difficult for a traditional college or university to include every type of technology skill in its curriculum, so graduates will not necessarily know every type of technology an employer requires. In addition, skills required evolve quickly and employees need to be updated and retrained on new technologies. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 1-14. How might a traditional university benefit from a partnership with Pluralsight? Why

might some universities see such a partnership as a threat to their existence while others might see it as a great opportunity? Universities could benefit from a partnership with Pluralsight in several ways. One, a university’s IT staff would undoubtedly benefit from access to these training courses. Two, faculty members in certain fields might like to enhance their own knowledge and skills. Finally, students might like to supplement their more traditional classes with training that is more skills-focused, such as those offered in Pluralsight courses. Many universities would not fear this partnership because their courses are not focused only on technical skills but more on conceptual knowledge. Colleges and universities that do offer focused skills training might find this partnership a little threatening if students preferred the Pluralsight online courses to the traditional university offerings. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 1-15. Suppose you were considering buying stock in Pluralsight. What types of threats

might Pluralsight face in the future? Could a large tech company mimic its business model and threaten its profitability? How could Pluralsight defend against this type of competition? Like any company today, there are constant competitive threats. An example of a threat that could disrupt Pluralsight is the rapid growth of cloud computing. A major cloud computing provider, such as Amazon, could launch a skills training business geared toward all its cloud computing environments and tools that would be far superior to Pluralsight’s. Pluralsight could defend against this by establishing a partnership with Amazon to provide Amazon’s cloud computing skills training. (L O: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

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Strategy and Information Systems

LEARNING OBJECTIVES Q2-1 Describe how organizational strategy determines information systems structure. Q2-2 Explain the five forces that determine industry structure. Q2-3 Describe how analysis of industry structure determines competitive strategy. Q2-4 Describe how competitive strategy determines value chain structure. Q2-5 Explain how business processes generate value. Q2-6 Describe how competitive strategy determines business processes and the structure of information systems. Q2-7 Explain how information systems provide competitive advantages. Q2-8 Explain how businesses may use information systems for competitive advantage in 2029.

CHAPTER OUTLINE Q2-1 How does organizational strategy determine information systems structure? Q2-2 What five forces determine industry structure? Q2-3 How does analysis of industry structure determine competitive strategy? Q2-4 How does competitive strategy determine value chain structure?  Primary activities in the value chain  Support activities in the value chain  Value chain linkages Q2-5 How do business processes generate value? Q2-6 How does competitive strategy determine business processes and the structure of information systems? Q2-7 How do information systems provide competitive advantages?  Competitive advantage via products o First mover advantage  Competitive advantage via business processes  How does an actual company use IS to create competitive advantages?  How does this system create a competitive advantage? Q2-8 2031?

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SECURITY GUIDE Critical Ransom 1. Do you think criminals will actually decrypt your data if you pay them the ransom? Student answers will vary. Explain to them that it generally is common for them to follow through with decrypting the data, because if they do not, they lose any future leverage to get paid by companies if history shows they do not follow through with their end of the arrangement. 2. If you are 100 percent certain that paying the ransom for your data will result in it being decrypted, should you do it? Explain. Student answers will vary. Point out that many security professionals feel strongly that companies should never cave to these ransoms and pay them as it encourages them to further carry out these types of attacks. Look for some justification on how it might make sense for specific instances depending on that company’s situation as it relates to backups and ways around it as well as how much they can tolerate potential downtime. 3. The article mentions that surveillance of and attacks against critical infrastructure are growing commonplace. Take a few minutes to search for the latest examples of these types of attacks against critical infrastructure organizations. (Refer to the CISA list in the article to help guide your search of relevant industries.) Student responses will vary. They should pull from some researched/current examples at the time of response. 4. Can you think of any examples of known international cyberattacks that have succeeded in damaging their targets? Student responses will vary. For a good look at current examples, direct students to https://www.csis.org/programs/strategic-technologies-program/significant-cyberincidents which keeps a running list of international cyberattacks.

SO WHAT? Amazon Everywhere 1. Some of the most innovative and powerful companies in the world are technology companies (e.g., Google, Facebook, Apple, Amazon, and Netflix). Out of the five companies on this list, could a case be made that Amazon should be considered the most powerful company of them all? Why?

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Students answers will vary. Some considerations for this could be that Amazon is more diverse in what its business is involved in with online retail, physical stores, cloud computing, streaming media, etc. 2. Can you think of any other technologies that employ sensor fusion, cameras, and computer vision? Student answers will vary. Based on their responses, do some research to better understand how their proposals meet the requirement of this topic. 3. Can you think of any other industries that have been disrupted, or seen processes drastically changed, due to innovations in technology over the past 10-plus years? Student answers will vary, but consider the streaming music/video industry. Just 10 years ago, downloadable digital music files were still quite commonplace through services such as iTunes whereas these have now been largely replaced by streaming services such as Spotify and Pandora. 4. Can you think of any emerging technologies that will disrupt, or change, processes in industries over the next 10-plus years? Student answers will vary. Ensure whatever examples are provided are clearly explained or backed up with reference sources to the technology.

COLLABORATION EXERCISE 2 Your team’s task is to develop two innovative ideas for solving Singing Valley’s problem. At the minimum, include the following in your response: a. An analysis of the five forces of the Singing Valley market. Make and justify any necessary assumptions about their market. Student answers will vary, but look for the following:  Rivalry (strong force) – Upscale resorts will compete strongly for a relatively small market.  Bargaining power of customer (strong force) – Upscale customers will have many choices.  Threat of substitutions (strong force) – Many other options are available besides Colorado mountain resorts, for example, cruises or island resorts.  Bargaining power of suppliers (fairly weak force) – Singing Valley will have ample supplier options.  Threat of new entrants (fairly weak force) – The cost of developing similar new resorts will be steep, but remember that Singing Valley’s customers are the type of customers who are always looking for the newest new thing. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) b. A statement of Singing Valley’s competitive strategy. Copyright © 2022 Pearson Education, Inc.

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Singing Valley follows a differentiation focus strategy. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) c. A statement of the problem. If the members of your group have different perceptions of the problem, all the better. Use a collaborative process to obtain the best possible problem description to which all can agree. Singing Valley management believes that customers can provide a larger revenue stream than they are currently producing. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) d. Document in a general way (like the top row of Figure 2-10) the process of up-selling an activity. Customer contact recognizes interest areas and/or previous experience with activity.

Determine interest in activity, making suggestions.

Add cost to customer hotel bill. Assess customer satisfaction. Record interest in future similar activities.

(LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) e. Develop two innovative ideas for solving the Singing Valley problem. For each idea, provide:  A brief description of the idea.  A process diagram (like Figure 2-11) of the idea. Figure 2-11 was produced using Microsoft Visio; if you have access to that product, you’ll save time and have a better result.  A description of the information system needed to implement the idea. Student answers will vary. A good classroom exercise is to have each group present their two ideas and have the class vote to determine the most innovative idea and the idea most likely to be successful in producing more revenue (not necessarily the most innovative). (LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) f. Compare the advantages and disadvantages of your alternatives in part e and recommend one of them for implementation. When discussing implementation, have your students think carefully about Neil Miyamoto’s statement: ―Every business owner needs to determine the performance indicators that drive his or her business and then wrap technology around those indicators.‖ Ask your students to identify the information that will be needed to measure the success of their recommended alternative. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills)

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CASE STUDY 2 The Amazon of Innovation 2-4. Based on the facts presented in this case, what do you think is Amazon’s competitive

strategy? Justify your answer. Amazon seeks to differentiate itself by providing a huge array of goods at very good prices. (LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 2-5. Jeff Bezos, CEO of Amazon, has stated that the best customer support is none. What

does that mean? There are several interpretations of this comment. First, Amazon may strive to do such an excellent job serving its customers that no customer support is needed. Second, Amazon seeks to provide its customers with excellent self-service. This means that a customer rarely has to utilize customer support directly with a human customer support representative; rather, its information systems enable customers to perform virtually any customer service task by themselves. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 2-6. Suppose you work for Amazon or a company that takes innovation as seriously as

Amazon does. What do you suppose is the likely reaction to an employee who says to his or her boss, ―But, I don’t know how to do that!‖? A company that is serious about innovation would not tolerate employees who are fearful of taking risks and experimenting. Employees in these types of companies will be expected to do things they don’t know how to do all the time! A boss is likely to tell the employee that he/she was hired not for what they already know how to do, but for the new things they can figure out how to do. It is that willingness to push into the unknown that is valued. Employees who can’t tolerate this expectation will not stay employed at that company for long. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Reflective Thinking Skills) 2-7. Using your own words and your own experience, what skills and abilities do you

think you need to have to thrive at an organization like Amazon? Student answers will vary, depending upon their personal experiences. We hope that they will mention several things at a minimum, including abstract reasoning, critical thinking, ability to engage fully in collaborative endeavors, willingness to experiment, and continuous engagement in process improvement. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking Skills)

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2-8. What should UPS and FedEx be doing in response to Amazon’s interest in drone

delivery via Amazon Prime Air? Certainly, this interest in drone delivery will have an effect on Amazon’s delivery partners like UPS and FedEx. Rather than resisting the exploration of this innovation, companies like FedEx and UPS should be discussing ways that they can partner with Amazon in this venture (form an alliance). (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 2-9. Summarize the advantages and disadvantages for brick-and-mortar retailers to sell

items via Amazon. Would you recommend that they do so? Brick-and-mortar retailers can sell items via Amazon.com and gain access to the huge number of shoppers that use that site. They would have to do business following Amazon’s rules, however. Retailers might want to keep customers coming to their own websites rather than lose the customers to Amazon’s site. (LO: 6, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) If a brick-and-mortar retailer were to use FBA, what business processes would it not need to develop? What costs would it save? Brick-and-mortar retailers would not need to develop business processes for receiving, repackaging, and shipping. They would save on the labor costs associated with these processes, plus they would no longer need warehouse space for these processes. (LO: 5, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

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If a brick-and-mortar retailer were to use FBA, what information systems would it not need to develop? What costs would it save? Brick-and-mortar retailers could use FBA’s systems for placing orders with its

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vendors and paying its vendors for these orders; they would also not need to develop systems that interface with the shippers. Brick-and-mortar retailers would save the costs of developing and supporting these systems. (LO: 6, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

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If a brick-and-mortar retailer were to use FBA, how would it integrate its

information systems with Amazon’s? (To add depth to your answer, Google the term Amazon MWS.) Amazon’s integrated Web service API (Application Programming Interface) helps Amazon sellers to programmatically exchange data on listings, orders, payments, reports, and more. XML data integration with Amazon enables higher levels of

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selling automation, which helps sellers grow their business. (LO: 6, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

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Business Intelligence Systems

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Kroenke - Using MIS 12th Ed - Instructor’s Manual

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LEARNING OBJECTIVES Q3-1 Explain how organizations use business intelligence (BI) systems. Q3-2 Describe how organizations use data warehouses and data marts to acquire data. Q3-3 Describe the three primary techniques for processing BI data. Q3-4 Explain the alternatives for publishing BI. Q3-5 Explain why artificial intelligence (AI) is important. Q3-6 Explain how AI and automation affect organizations. Q3-7 Describe the goal of AI. Q3-8 Explain how AI works.

Kroenke - Using MIS 12th Ed - Instructor’s Manual

Q3-9 Discuss the future of business intelligence systems in 2031.

CHAPTER OUTLINE Q3-1 How do organizations use business intelligence (BI) systems? 

How do organizations use BI?

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What are the three primary activities in the BI process?

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Using business intelligence to find candidate parts o Acquire data o Analyze data o Publish results

Q3-2 How do organizations use data warehouses and data marts to acquire data? 

Problems with operational data

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Data warehouses versus data marts

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Data lakes

Q3-3 What are three techniques for processing BI data? 

Reporting analysis o RFM analysis o Online analytical processing (OLAP)

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Data mining analysis o Unsupervised data mining o Supervised data mining o Identifying changes in purchasing patterns

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Big Data o MapReduce o Hadoop

Q3-4 What are the alternatives for publishing BI? 

Characteristics of BI publishing alternatives

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What are the two functions of a BI server?

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Kroenke - Using MIS 12th Ed - Instructor’s Manual

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What is the role of knowledge management systems?

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Resistance to knowledge sharing

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What are content management systems?

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What are the challenges of content management?

Q3-5 Why is artificial intelligence (AI) important? 

Advances in AI

Q3-6 How will artificial intelligence and automation affect organizations? 

Benefits of automated labor

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How will AI affect me?

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Unwanted dirty jobs

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Retraining and retooling

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Surviving a shifting workplace

Q3-7 What is the goal of AI? 

Integrated enabler of other technology o Saying No to AI

Q3-8 How does AI work? 

Machine learning o Using machine learning to automatically detect spam o Continuous intelligence

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IBM’s Watson o How does Watson work? o The future for Watson

Q3-9 2031?

SECURITY GUIDE Capital Data Breach

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Kroenke - Using MIS 12th Ed - Instructor’s Manual

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1. You have likely seen many TV shows or movies depicting hackers in futuristic looking rooms or in poorly lit basements breaking into high-security targets. Do you think these representations glorify criminal activity in a way that may entice people to engage in these activities? Since this is an opinion question, student responses will vary..

2. One of the biggest assets that financial institutions have to secure is their reputation. If your bank or credit card company was the victim of a breach, would you have trepidation about continuing to use that financial institution? Would you switch to a competitor? What factors would inform your decision? Since this is an opinion question, student responses will vary.

3. The article introduces security fatigue as a phenomenon that occurs when a person is so tired or overwhelmed by information security information and/or controls that they give up and actually behave insecurely (either benignly or maliciously). Do you think there would be different thresholds of security fatigue within different types of organizations? Student answers will vary. Responses should touch on the security fatigue concept that is mentioned, and should mention how the fatigue might be different based on the individual company’s rules and restrictions related to security and how they impact individual employees.

4. Think about the security controls that have been put in place by your university (or employer). Do you remember the contents of the security policy that is in place? Have you ever found yourself frustrated or tired of security communications or controls that you have encountered? Explain. Student answers will vary based on their own experience.

SO WHAT? Continuous Intelligence