Test Bank for Essentials of MIS, 14th Edition, Kenneth C. Laudon Jane P. Laudon. by welldoneassistant

Essentials of MIS, 14e (Laudon/Laudon) Chapter 1 Business Information Systems in Your Career 1) Which of the following is the key business objective behind the technologies implemented by PCL Construction, as discussed in the chapter-opening case? A) Operational excellence B) Survival C) Improved employee morale D) Increased supplier intimacy E) Creation of a new business model Answer: A Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 2) Journalist Thomas Friedman's description of the world as "flat" refers to the: A) reduction of economic and cultural advantages of developed countries. B) use of the Internet for instantaneous communication. C) reduction in travel times and the ubiquity of global exchange and travel. D) growth of globalization. E) increased use of global currencies. Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 3) The six important business objectives of information system investment include all of the following except: A) competitive advantage. B) employee morale. C) improved decision making. D) survival. E) new products. Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems 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) Survival B) Improved decision making C) Competitive advantage D) Operational excellence E) Customer intimacy Answer: A Difficulty: Moderate AACSB: Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 5) Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following? A) New business models B) Operational efficiency C) Customer intimacy D) Competitive advantage E) Survival Answer: B Difficulty: Challenging AACSB: Analytical Thinking LO: 1-1: Why are information systems so essential for running and managing a business today? 6) Verizon uses a web-based digital dashboard to provide managers with real-time information, in order to: A) improve flexibility. B) improve decision making. C) gain competitive advantage. D) create supplier intimacy. E) create a new business model. Answer: B Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 7) Which business objective were competitors seeking 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: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 2 Copyright © 2021 Pearson Education, Inc.

8) All of the following describe the effects of globalization except: A) significant decreases in operating costs. B) reduction of labor costs through outsourcing. C) increased ability to find low-cost suppliers. D) increases in transaction costs. E) ability to reliably obtain price and quality information worldwide. Answer: D Difficulty: Challenging AACSB: Analytical Thinking LO: 1-1: Why are information systems so essential for running and managing a business today? 9) A firm that must invest in a new information system in order to comply with federal legislation is investing to achieve which of the following business objectives? A) Customer intimacy B) Operational excellence C) New products. D) Improved decision making E) Survival Answer: E Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 10) Which of the following is an example of a business using information systems to create new products and services? A) Apple's creation of the iPad B) JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced C) The Mandarin Oriental's use of computers to keep track of guests' preferences D) Verizon's web-based digital dashboard providing real-time company information for managers E) Walmart's Retail Link system Answer: A Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today?

11) An example of a business using information systems for supplier intimacy is: A) Apple's creation of the iPad. B) JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced. C) Citibank's ATM system. D) Verizon's web-based digital dashboard providing real-time company information for managers. E) the Mandarin Oriental's use of computers to keep track of guests' preferences. Answer: B Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 12) To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A) New products B) Survival C) Customer intimacy D) Supplier intimacy E) New services Answer: C Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 13) Software as a Service (SaaS) is an example of which of the following? A) Business intelligence B) Social business C) IoT D) Big Data E) Cloud computing Answer: E Difficulty: Easy AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today?

14) Which of the following is one of the management and people changes posing a major challenge in the business use of information systems? A) IoT B) Big Data C) Mobile Platform. D) Cloud Computing. E) Online collaboration Answer: E Difficulty: Easy AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 15) E-commerce and Internet advertising reached $105 billion in 2018, growing at about: A) 5 percent. B) 10 percent. C) 15 percent. D) 20 percent. E) 25 percent. Answer: C Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 16) What percent of employed Americans report spending some time working remotely? A) 13 percent B) 23 percent C) 33 percent D) 43 percent E) 53 percent Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 17) All of the following are technology-related challenges in MIS except: A) cloud computing. B) big data. C) IoT. D) the mobile platform. E) co-creation of business value. Answer: E Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today?

18) Which of the following statements is not true? A) In 2018, American businesses invested nearly $1 trillion in information systems hardware, software, and telecommunications equipment. B) In 2018, American businesses spent over $140 billion on business and management consulting and information technology services. C) In 2018, about 25 percent of all capital investment in the United States was for information systems hardware, software, and telecommunications equipment. D) In 2018, investments in the United States for technology and management consulting grew at a faster rate than the U.S. economy as a whole. E) Worldwide, non-U.S. expenditures for information technology exceeded $3.8 trillion. Answer: C Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 19) In 2018, approximately how many adult Americans bought something online? A) 150 million B) 180 million C) 190 million D) 220 million E) 230 million Answer: C Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 20) What percent of the Fortune 500 companies uses Twitter to communicate with their customers? A) 20 percent B) 40 percent C) 50 percent D) 60 percent E) 80 percent Answer: E Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 21) Over 90 percent of Internet users access the web with mobile devices. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today?

22) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 23) Federal law requires many businesses to keep email messages for ten years. Answer: FALSE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 24) Define operational excellence. How can information systems help achieve it? Answer: Operational excellence is the achievement of higher levels of productivity and efficiency. 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: Moderate AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1-1: Why are information systems so essential for running and managing a business today? 25) You work for an auto dealer. How could you use information systems to achieve greater customer intimacy? Answer: You could create a website that allows customers to order customized cars, and communicate with support personnel and other car owners. You could create an automated email service reminding car owners to take their car in for periodic check-ups. You could have an information system that tracks customer preferences in your local area, so you can offer cars that reflect local customer needs and desires. Difficulty: Moderate AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1-1: Why are information systems so essential for running and managing a business today?

26) Which of the following is the best definition of an information system? A) A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization B) Computers, keyboards, printers, and telecommunications devices C) A set of detailed programmed instructions that transform raw data into information D) Physical devices and software that can be connected to share voice, data, images, sound, and video E) A global network that uses universal standards Answer: A Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 27) The three activities in an information system that produce the information are: A) information, research, and analysis. B) input, output, and feedback. C) input, processing, and output. D) data analysis, processing, and feedback. E) information, data, and processing. Answer: C Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 28) The average number of baseball tickets sold at a particular price is an example of: A) input. B) raw data. C) meaningful information. D) output. E) feedback. Answer: C Difficulty: Easy AACSB: Analytical Thinking LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

29) Output: A) is feedback that has been processed to create meaningful information. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transforms raw data into processed information. D) transfers processed information to the people who will use it or to the activities for which it will be used. E) is a stream of raw facts representing events occurring in organizations or the physical environment. Answer: D Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 30) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) inputting. Answer: B Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 31) Which of the following is an example of raw data from an automobile manufacturer? A) An average of 130 Subarus sold daily in New York in 2019 B) 1,300 Subaru Outbacks sold during the first quarter 2019 in New York C) One Subaru Outback sold January 7, 2019 in Mount Kisco, New York for $25,000 D) Annual sales of Subaru Outbacks increased 4.5 percent E) An average sale price of $26,000 for all Subaru Outbacks sold during January 2019 in Mount Kisco, New York Answer: C Difficulty: Challenging AACSB: Analytical Thinking LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

32) Which of the following fields 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) Management information systems D) Information technology infrastructure E) Computer information systems Answer: C Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 33) All of the following are examples of environmental actors in an information system except: A) customers. B) stockholders. C) feedback. D) competitors. E) regulatory agencies. Answer: C Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 34) In a hierarchical organization, the upper levels consist of: A) managerial, professional and knowledge workers. B) managerial, professional, and technical workers. C) professional and operational workers. D) managerial, professional, and operational workers. E) knowledge, technical and operational workers. Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

35) 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) business process. B) environment. C) atmosphere. D) values. E) culture. Answer: E Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 36) All of the following can be considered managerial responsibilities except: A) making action plans to solve organizational problems. B) creating new products and services. C) designing new information systems. D) allocating human resources to coordinate the work to be done. E) setting strategy for responding to business challenges in the environment. Answer: C Difficulty: Moderate AACSB: Analytical Thinking LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 37) Data management technology consists of the: 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) software governing the organization of data on physical storage media. D) hardware and software used to transfer data. E) universally accepted standards for storing data. Answer: C Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

38) Intranets: A) are based on mainframe technology. B) are multiple networks joined together. C) are typically used to communicate with the business's trusted vendors. D) use Internet technology for a private company network. E) provide the platform on which a firm builds its information systems. Answer: D Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 39) As described in the chapter case, which of the following constitutes an organizational element in the UPS tracking system? 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) Routing software that creates the most efficient delivery route for each driver Answer: A Difficulty: Challenging AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 40) As described in the chapter case, which of the following constitutes a people element of the UPS tracking system? A) The web-based Post Sales Order Management System B) The ability to provide package status reports to customers C) The decision to use automation D) The implementation of in-house package tracking software E) The ability to embed UPS functions in external sites Answer: C Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

41) A moving company has an information system that analyzes travel patterns and decides which routes are the most efficient for every van. The need for employees to follow procedures to update this system with arrival and departure times is a(n) ________ dimension of the system. A) organizational B) managerial C) people D) technology E) cultural Answer: A Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 42) Why is "culture" an important factor to consider when building information system solutions to business problems? A) Culture is one element that can be radically changed, not always for the better, by new information systems. B) Culture affects how information system solutions are implemented and used. C) Culture is a cauldron of employee perspectives and conflicts, which can be used to improve business processes. D) Culture is the driving force behind decision making and innovation. E) Culture is the basis for organizational politics. Answer: B Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 43) 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: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

44) ________ consists of detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. A) Computer software B) Programming C) Enterprise applications D) Business intelligence E) Data management technology Answer: A Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 45) ________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format. A) FTP B) Email C) The World Wide Web D) HTML E) An extranet Answer: C Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 46) Information systems contain information about significant people, places, and things within the organization or in the environment surrounding it. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 47) An extranet is a private intranet extended to authorized users outside the organization. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 48) Computer literacy focuses primarily on knowledge of information systems. Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 14 Copyright © 2021 Pearson Education, Inc.

49) People, organizations, and information technology are all dimensions of information systems. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 50) The history and culture of business firms affects how it uses information technology. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 51) Developing a new product, fulfilling an order, and hiring a new employee are all examples of business processes. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 52) Business processes are logically related tasks for accomplishing work that have been formally encoded by an organization. Answer: FALSE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 53) Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 54) The Internet is the world's largest and most widely used network. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 15 Copyright © 2021 Pearson Education, Inc.

55) A firm's IT infrastructure provides the platform on which the firm can build its information systems. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 56) UPS's use of web-based tools that allow customers to embed UPS functions, such as tracking and cost calculations, into their own websites, described in the chapter case, is an information systems solution used to achieve supplier intimacy. Answer: FALSE Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 57) Data is information that has been shaped into a form that is meaningful to human beings. Answer: FALSE Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 58) Feedback is a specific type of output. Answer: TRUE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 59) Intranets are private corporate networks extended to authorized users outside the organization. Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

60) What important managerial function is impaired by not having access to timely and accurate information? What is the effect of this lack of data? Answer: The managerial function is decision making. Without access to timely and accurate information, business managers rely on forecasts, best guesses, and luck. The result is over- or under-production of goods and services, misallocation of resources, and poor response times. The potential poor outcomes can raise costs, and the company can lose customers. Difficulty: Moderate AACSB: Analytical Thinking; Information Technology; Written and Oral Communication LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 61) Describe the people dimension of information systems and give an example. Is this dimension as vital as the technology dimension when considering a technology-based solution to a business problem? Answer: The people dimension describes all of the factors related to employees, from operational personnel to senior management. Essentially, an organization and its information systems are worthless without skilled employees. For example, a people dimension of implementing a new information system is ensuring users are properly trained to use the system. The people dimension is just as vital as the other dimensions - the success of an information system depends on the people implementing and operating it. In addition, as a resource, employees are expensive to hire, manage, and train, whereas technology and hardware can be relatively inexpensive. Difficulty: Moderate AACSB: Analytical Thinking; Information Technology; Written and Oral Communication LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 62) 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: Easy AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 63) Define a 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: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 17 Copyright © 2021 Pearson Education, Inc.

64) What is the difference between information technology and 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. Difficulty: Moderate AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 65) 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: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 66) 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: Challenging AACSB: Analytical Thinking; Information Technology; Written and Oral Communication LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

67) A database into which employees manually input customer names and addresses is riddled with errors and you have been charged with rectifying the situation. In considering the organizational dimensions of this problem, you should consider the: A) skill levels of the employees inputting the data. B) training given to the employees inputting the data. C) business processes in place governing the manual input of the data. D) types of automatic error checking provided by the input software. E) storage capacity of the database. Answer: C Difficulty: Moderate AACSB: Application of Knowledge; Information Technology LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 68) The first step in the model of business problem solving discussed in the chapter is: A) interviewing the people involved in the problem. B) identifying the problem. C) outlining the problem's causes. D) assigning the problem to a problem solver. E) evaluating possible solutions to the problem. Answer: B Difficulty: Easy AACSB: Application of Knowledge LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 69) Outdated software is an example of the ________ dimension of business problems. A) technology B) organizational C) people D) management E) cultural Answer: A Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems?

70) Work environment is an example of the ________ dimension of business problems. A) management B) organizational C) people D) technology E) cultural Answer: C Difficulty: Challenging AACSB: Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 71) Which of the following is not an element of critical thinking? A) Following a rote pattern of decision making B) Maintaining doubt and suspending judgment C) Being aware of different perspectives D) Testing alternatives and letting experience guide E) Being aware of organizational and personal limitations Answer: A Difficulty: Challenging AACSB: Application of Knowledge; Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 72) Inadequate resources are an example of the ________ dimension of business problems. A) management B) organizational C) people D) infrastructure E) cultural Answer: B Difficulty: Moderate AACSB: Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems?

73) The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once the messengers have left the office. This is a business problem that falls into the: A) management dimension. B) people dimension. C) organizational dimension. D) technology dimension. E) cultural dimension. Answer: B Difficulty: Challenging AACSB: Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 74) Flapjack Flats, a new pancake restaurant chain, is having difficulty finding pancake chefs. This is a business problem that falls into the: A) management dimension. B) people dimension. C) organizational dimension. D) technical dimension. E) cultural dimension. Answer: C Difficulty: Challenging AACSB: Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 75) In choosing the best solution for a business problem, all of the following are important considerations except: A) the cost of the solution. B) the feasibility of the solution given existing resources and skills. C) the length of time to implement the solution. D) the attitudes of employees. E) the ability to forget about the problem once it has been solved. Answer: E Difficulty: Challenging AACSB: Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems?

76) The final step in the four-step model of business problem solving is: A) outcome. B) implementation. C) change management. D) feedback. E) employee retraining. Answer: B Difficulty: Easy AACSB: Application of Knowledge LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 77) Which of the following would not be considered part of the implementation phase of problem solving? A) Change management B) Purchasing hardware for an information systems solution C) Training an employee on new systems software D) Evaluating a selection of software packages for implementing a new business process E) Determining the attitude of employees about the solution Answer: D Difficulty: Moderate AACSB: Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 78) The failure of NASA's initial solution to preventing the space shuttle shedding foam illustrates the: A) importance of training employees on new business processes. B) need to prepare for measuring outcomes of a business solution. C) continuous nature of problem solving. D) need to quickly adapt to new technological innovations. E) importance of organizational change in problem solving. Answer: C Difficulty: Moderate AACSB: Analytical Thinking LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems?

79) Perhaps the most frequent error in problem solving is: A) rushing to judgment about the nature of a problem. B) not being aware of personal limitations. C) being too doubtful. D) following a rote pattern of decision making. E) failing to consider all dimensions of a problem. Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 80) Assume you work for a package delivery service in a major metropolitan area and that the business has been losing customers for several years. You have been asked to find a solution to this problem. What is the correct way to proceed? A) Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution. B) Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution. C) Identify the problem, design alternative solutions, choose the best solution, and then implement the solution. D) Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution. E) Identify relevant information technologies, interview employees, choose a technology, and implement the technology. Answer: C Difficulty: Moderate AACSB: Analytical Thinking; Application of Knowledge; Information Technology LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 81) Which are the three major dimensions of business problem solving? A) Organizational dimensions, people dimensions, and technology dimensions B) Organizational dimensions, people dimensions, and environmental dimensions C) People dimensions, technology dimensions, and environmental dimensions D) Technology dimensions, organizational dimensions, and environmental dimensions E) Organizational dimensions, technology dimensions, and cultural dimensions Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems?

82) Identifying a problem includes agreeing that a problem exists. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 83) An unsupportive culture is an example of the people dimension of business problems. Answer: FALSE Difficulty: Challenging AACSB: Application of Knowledge LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 84) Encouraging employees to adapt to new business processes is an important factor in change management. Answer: TRUE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 85) Describe the four steps taken in solving a business problem. Answer: The four steps are problem identification, solution design, choice of a solution, and implementation. In the problem identification step, relevant people in an organization must agree that a problem exists, what the problem is, what its causes are, and what can be done about the problem given the organization's resources. In the solution design step, as many solutions as possible should be determined. In the choice step, you choose the best solution from the list of options determined in the previous step. It is important to match a choice to existing resources, skills, and feasibility. In the last step, implementation, the solution is put in place. In information systems solutions, this may include purchasing hardware or software and testing it. Implementation also includes employee training, change management, and using a method to measure the outcome. Difficulty: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems?

86) What are the three dimensions of business problems? Give an example of each. Answer: (1) Organizational: This may include outdated business processes, unsupportive culture and attitudes, political conflict, turbulent business environment and change, complexity of task, and inadequate resources. (2) Technology: This may include insufficient or aging hardware, outdated software, inadequate database capacity, insufficient network capacity, incompatibility of old systems with new technology, and rapid technological change and failure to adopt new technologies. (3) People: This may include lack of employee training, difficulties in evaluating performance, legal and regulatory compliance, work environment, lack of employee support and participation, indecisive management, poor management and wrong incentives. Difficulty: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 87) The department chain you work for has had numerous complaints about slow customer service. Your colleague, a sales manager, informs you that this happened at a previous store she worked for, and it was cleared up by hiring more sales representatives. Should you take her advice? Why or why not? What techniques can you use in evaluating the problem? Answer: The advice should not be taken, as it is a rush to judgment, which could mean that the wrong solution is used, wasting time and resources. You should ask the colleague to employ critical thinking. Critical thinking is sustained suspension of judgment with an awareness of multiple perspectives and alternatives. It involves at least four elements: • Maintaining doubt and suspending judgment • Being aware of different perspectives • Testing alternatives and letting experience guide • Being aware of organizational and personal limitations Difficulty: Challenging AACSB: Interpersonal Relations and Teamwork; Analytical Thinking; Written and Oral Communication LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems?

88) How does critical thinking relate to the problem-solving process? Answer: Simply following a rote pattern of decision making, or a model, does not guarantee a correct solution. The best protection against incorrect results is to engage in critical thinking throughout the problem-solving process. Perhaps the most frequent error in problem solving is to arrive prematurely at a judgment about the nature of the problem. By doubting all solutions at first and refusing to rush to a judgment, you create the necessary mental conditions to take a fresh, creative look at problems and you keep open the chance to make a creative contribution. Second, it is important to recognize that all interesting business problems have many dimensions and that the same problem can be viewed from different perspectives such as the technology perspective, the organization perspective, and the people perspective. The third element of critical thinking involves testing alternatives, or modeling solutions to problems, and letting experience be the guide. Not all contingencies can be known in advance and much can be learned through experience. Therefore, it is important to experiment, gather data, and reassess the problem periodically. Difficulty: Challenging AACSB: Application of Knowledge; Analytical Thinking; Written and Oral Communication LO: 1-3: How will a four-step method for business problem solving help you solve information system-related problems? 89) Which of the following is an important skill for an accounting major? A) An understanding of online transaction and reporting systems B) An understanding of product management enterprise systems C) An understanding of supplier management enterprise systems D) An understanding of enterprise systems that enhance leadership E) An understanding of enterprise systems for customer relationship management Answer: A Difficulty: Moderate AACSB: Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers? 90) Which of the following is an important skill for a marketing major? A) An understanding of online transaction and reporting systems B) An understanding of product management enterprise systems C) An understanding of supplier management enterprise systems D) An understanding of enterprise systems that enhance leadership E) An understanding of financial reporting systems Answer: B Difficulty: Moderate AACSB: Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers?

91) What is the estimated growth rate for information systems managers' jobs through 2026? A) 5% B) 9% C) 13% D) 15% E) 17% Answer: C Difficulty: Moderate AACSB: Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers? 92) Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals. A) operations managers B) senior managers C) marketing managers D) accounting managers E) knowledge workers Answer: B Difficulty: Moderate AACSB: Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers? 93) Which of the following statements is not true? A) The most common and successful offshore outsourcing projects involve production programming and system maintenance programming work, along with call center work related to customer relationship management systems. B) Inflation in Indian and Chinese wages for technology work is leading to a counter movement of some IT jobs back to the United States. C) Innovative new products, services, and systems are rarely outsourced. D) Software outsourcing of routine IS work to low-wage countries has increases the cost of building and maintaining systems in the United States. E) Management and organizational tasks required in systems development usually are not outsourced. Answer: D Difficulty: Moderate AACSB: Application of Knowledge LO: 1-4: What information systems skills and knowledge are essential for business careers? 94) Accountants need to understand online transaction and reporting systems. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers?

95) IT managerial jobs are outsourced easily because of the universal standards used by the Internet. Answer: FALSE Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers? 96) An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers? 97) Whereas marketing and financial careers have been transformed by the growth in information systems, thus far managerial positions have remained relatively unaffected. Answer: FALSE Difficulty: Moderate AACSB: Information Technology LO: 1-4: What information systems skills and knowledge are essential for business careers? 98) There are two types of outsourcing: offshore outsourcing and foreign outsourcing. Answer: FALSE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-4: What information systems skills and knowledge are essential for business careers? 99) Describe at least three of the general information skills essential for all business careers. Answer: General information skills essential for all business careers include (1) understanding how information systems and technologies can help firms achieve business objectives such as operational efficiency, developing new products and services, and maintaining customer intimacy. Also essential is (2) developing skills in the analysis of information in order to help firms understand and make their data, as well as (3) business analytics and intelligence skills, in order to be able to analyze the mountains of big data that the online business environment and Internet of Things produce. (4) All business majors need to be able to work with specialists and system designers who build and implement information systems. This is necessary to ensure that the systems that are built actually service business purposes and provide the information and understanding required by managers and employees. In addition, students need to (5) understand how information systems can be used to meet business requirements for reporting to government regulators and the public and how information systems affect the ethical issues in their fields. Difficulty: Challenging AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1-4: What information systems skills and knowledge are essential for business careers?

100) What types of jobs are not likely to be outsourced and why? Answer: Jobs involved with the creation of innovative new products, services, and systems are rarely outsourced either domestically or globally. The advantage of low-wage countries is their low wages and ready availability of technical talent, not their keen sense of new products, services, and technologies for other countries' markets. Difficulty: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 1-4: What information systems skills and knowledge are essential for business careers?

Essentials of MIS, 14e (Laudon/Laudon) Chapter 2 Global E-Business and Collaboration 1) Suppliers, customers, invoices and payments, products and services, and ________ are the five basic components with which businesses must deal. A) the environment B) manufacturing and production C) sales and marketing D) employees E) technology Answer: D Difficulty: Moderate AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 2) Producing a bill of materials is a responsibility of the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing E) technology Answer: C Difficulty: Easy AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 3) Identifying potential customers for the businesses' products or services is an activity associated with the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) technology E) sales and marketing Answer: E Difficulty: Easy AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems?

4) Which of the following is an interorganizational business process? A) Hiring an employee B) Identifying a customer C) Creating financial statements D) Ordering raw materials E) Checking product quality Answer: D Difficulty: Moderate AACSB: Analytical Thinking LO: 2-1: What major features of a business are important for understanding the role of information systems? 5) Employees that assist with administrative work at all levels of the firm are called: A) data workers. B) knowledge workers. C) operational management. D) service workers. E) senior managers. Answer: A Difficulty: Easy AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 6) The three principal levels of hierarchies within a business organization are: A) senior management, knowledge workers, and service workers. B) senior management, middle management, and operational management. C) senior management, data workers, and operational management. D) senior management, operational management, and workers. E) senior management, operational management, and data workers. Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 7) Key forces in a business' immediate environment include: A) regulations. B) technological innovations. C) economic conditions. D) politic conditions. E) global events. Answer: A Difficulty: Challenging AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 2 Copyright © 2021 Pearson Education, Inc.

8) Engineers and scientists are examples of: A) senior management. B) production workers. C) knowledge workers. D) middle management. E) operational management. Answer: C Difficulty: Easy AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 9) Which of the following is an example of a key force in a firm's broader, less immediate environment? A) Competitors B) Regulations C) Suppliers D) Socioeconomic trends E) Customers Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 10) Which of the following is not a true statement with respect to business processes? A) Every business can be seen as a collection of business processes. B) Analyzing business processes can enable you to achieve a clear understanding of how a business actually works. C) The efficiency of a business firm is not related to its business processes. D) Information systems can automate many steps in business processes that were formerly performed manually. E) A business process may involve a unique way in which work, information, and knowledge are coordinated within an organization. Answer: C Difficulty: Challenging AACSB: Analytical Thinking LO: 2-1: What major features of a business are important for understanding the role of information systems? 11) Business organizations are hierarchies consisting of five principal levels. Answer: FALSE Difficulty: Easy AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 3 Copyright © 2021 Pearson Education, Inc.

12) Operational-level manufacturing systems provide transaction-level information that enable monitoring of the daily activities of a business. Answer: TRUE Difficulty: Moderate AACSB: Analytical Thinking LO: 2-1: What major features of a business are important for understanding the role of information systems? 13) Business processes that impede organizational responsiveness are a source of competitive strength for a company. Answer: FALSE Difficulty: Challenging AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 14) Senior management is responsible for ensuring the financial performance of the firm. Answer: TRUE Difficulty: Moderate AACSB: Analytical Thinking LO: 2-1: What major features of a business are important for understanding the role of information systems? 15) A business is a formal organization created to sell services or products at a profit. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 16) Every business process is tied to one specific functional area. Answer: FALSE Difficulty: Moderate AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems? 17) The efficiency of a business firm depends to a large extent on how well its internal and interorganizational business processes are designed and coordinated. Answer: TRUE Difficulty: Moderate AACSB: Application of Knowledge LO: 2-1: What major features of a business are important for understanding the role of information systems?

18) What is the connection between organizations, information systems, and business processes? Answer: Business processes are how work is actually performed, step by step, in an organization. An organization can be viewed as a collection of business processes. Information systems are used to help the organization execute its business processes. In some cases, an information system might hinder a business process, making it more complex than necessary, or it might greatly improve a business process, moving essential information seamlessly between parts of the organization and different business processes. Difficulty: Moderate AACSB: Analytical Thinking; Information Technology; Written and Oral Communication LO: 2-1: What major features of a business are important for understanding the role of information systems? 19) Define and give an example of a cross-functional business process within a firm. 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. What at first appears to be a simple process, fulfilling an order, turns out to be a very complicated series of business processes that require the close coordination of major functional groups in a firm. Difficulty: Easy AACSB: Analytical Thinking; Written and Oral Communication LO: 2-1: What major features of a business are important for understanding the role of information systems? 20) Why do businesses invest in information systems? Answer: Businesses invest in information systems as a way to cope with and manage their internal production functions and cope with the demands of key actors in their environments. Specifically, firms invest in information systems to achieve operational excellence (productivity, efficiency, agility); to develop new products and services; to attain customer intimacy and service (continuous marketing, sales, and service; customization and personalization); to improve decision making (accuracy and speed); to achieve competitive advantage; and to ensure survival. Difficulty: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 2-1: What major features of a business are important for understanding the role of information systems?

21) A(n) ________ performs and records the daily activities of a firm necessary to conduct business. A) executive support system B) management-level system C) decision support system D) transaction processing system E) business intelligence system Answer: D Difficulty: Easy AACSB: 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? 22) Which type of system would you use to change a production schedule if a key supplier was late in delivering goods? A) ESS B) CRM system C) MIS D) DSS E) SCM system Answer: E Difficulty: 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? 23) A human resources system that summarizes the total moving, house-hunting, and home financing costs for employees in all company divisions is an example of which of the following? A) KMS B) TPS C) ESS D) MIS E) CRM system Answer: D Difficulty: Challenging 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?

24) 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) senior management. D) middle management functions. E) knowledge workers. Answer: D Difficulty: Easy AACSB: 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? 25) Which of the following systems is designed to summarize and report on the company's basic operations? A) KMS B) DSS C) ESS D) TPS E) MIS Answer: E Difficulty: Moderate AACSB: 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? 26) Which of the following systems supports making decisions that are unique, rapidly changing, and not easily specified in advance? A) MIS B) TPS C) ESS D) DSS E) KWM Answer: D Difficulty: Easy AACSB: 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?

27) Which of the following systems would you use to determine the five suppliers with the worst record in delivering goods on time? A) ESS B) TPS C) MIS D) DSS E) CRM Answer: C Difficulty: 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? 28) Which of the following systems is especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance? A) MIS B) TPS C) DSS D) KMS E) CRM Answer: C Difficulty: Moderate AACSB: 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? 29) Which of the following systems would you use to forecast the return on investment if you used new suppliers with better delivery track records? A) ESS B) TPS C) MIS D) DSS E) CRM Answer: D Difficulty: 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?

30) An ESS is an information system that supports the: 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) management of customer relationships. Answer: A Difficulty: Easy AACSB: 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? 31) Which of the following systems would you use to determine which trends in your supplier's industry will affect your firm the most during the next five years? A) ESS B) TPS C) MIS D) DSS E) KWM Answer: A Difficulty: 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? 32) 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) ESS Answer: D Difficulty: Easy AACSB: Application of Knowledge; 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?

33) A(n) ________ collects data from various key business processes and stores the data in a single comprehensive data repository, usable by many parts of the business. A) TPS B) DSS C) automatic reporting system D) MIS E) enterprise system Answer: E Difficulty: Moderate AACSB: Application of Knowledge; 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? 34) What is the most important benefit of an enterprise application? A) Enabling 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 managers to make better decisions Answer: B Difficulty: Challenging 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? 35) ________ systems integrate and share information from suppliers, manufacturers, distributors, and logistics companies. A) Collaborative distribution B) Supply chain management C) Reverse logistics D) Enterprise planning E) Digital dashboard Answer: B Difficulty: Easy AACSB: 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?

36) A(n) ________ provides information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention. A) TPS B) MIS C) ESS D) CPS E) CRM system Answer: E Difficulty: Easy AACSB: 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? 37) Which of the following can typically access a company's intranet? A) The general public B) The firm's employees C) The firm's customers D) The firm's suppliers E) The firm's outside contractors Answer: B Difficulty: Moderate AACSB: Application of Knowledge; 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? 38) You manage the Information Systems department at a small startup Internet advertising company. 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 display ads. Which type of system will most efficiently provide a solution? A) CRM B) Enterprise system C) Extranet D) Intranet E) KWM Answer: C Difficulty: 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?

39) Which of the following refers to the purchase or sale of goods and services over the Internet? A) E-commerce B) E-business C) CRM D) MIS E) SCM Answer: A Difficulty: Easy AACSB: Application of Knowledge LO: 2-2: How do systems serve different management groups in a business, and how do systems that link the enterprise improve organizational performance? 40) The use of digital technology and the Internet to execute the major business processes in the enterprise is called: A) e-commerce. B) e-business. C) enterprise applications. D) MIS. E) KWM. Answer: B Difficulty: Easy AACSB: 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? 41) You work for a highly successful advertising company that is about to expand nationally. Of utmost importance will be finding a way to store and disseminate its clients' frequently updated branding and style guides throughout the organization. The guides include multiple image files and text documents. What system will best serve these needs? A) A wiki B) An extranet with KMS capabilities C) A TPS with KMS capabilities D) A telepresence system E) A virtual world Answer: B Difficulty: Challenging 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?

42) You have been hired by Inspiration Inc. to help improve its financial performance. Inspiration Inc. is a business communications consulting firm that services many clients in different industries throughout the world. The firm provides customized written recommendations about how to best use a client's existing resources to improve the client's internal communications. The company has approximately 100 consultants, all of whom are located in its central headquarters in Chicago. Which of the following systems would you recommend to improve Inspiration Inc.'s business processes and improve its financial performance? A) Extranet, to enable quick collaboration via the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed B) CRM, to maintain easily accessible customer records to minimize the time spent looking for client data C) KMS, to minimize redundant work on similar clients D) Video conferencing system, to improve collaboration E) MIS, to produce reports on the firm's operations Answer: A Difficulty: Challenging 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? 43) Which of the following types of systems could be used to enable different firms to work collaboratively on a product? A) Intranet B) Extranet C) KMS D) CRM E) DSS Answer: B Difficulty: 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? 44) SCM systems are considered to be a(n) ________ because they automate the flow of information across company boundaries. A) KMS B) enterprise system C) MIS D) interorganizational system E) cross-functional system Answer: D Difficulty: Moderate AACSB: 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? 13 Copyright © 2021 Pearson Education, Inc.

45) The principal purpose of an MIS is to answer routine questions and track the flow of transactions through an organization. Answer: FALSE Difficulty: Moderate AACSB: 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? 46) A TPS helps managers monitor the firm's relations with the external environment. Answer: TRUE Difficulty: Moderate AACSB: 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? 47) A payroll system is a typical example of an MIS. Answer: FALSE Difficulty: Easy AACSB: 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? 48) A TPS typically uses data supplied by an MIS. Answer: FALSE Difficulty: Moderate AACSB: 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? 49) An MIS generally is not flexible and has little analytical capability. Answer: TRUE Difficulty: Moderate AACSB: 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? 50) Most MIS's use sophisticated mathematical models or statistical techniques. Answer: FALSE Difficulty: Moderate AACSB: 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?

51) A DSS often uses information from external sources. Answer: TRUE Difficulty: Moderate AACSB: 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? 52) An ESS is designed to serve the middle management of the organization. Answer: FALSE Difficulty: Moderate AACSB: 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? 53) An ESS is designed to incorporate data about external events, but it also draws summarized information from internal MIS and DSS. Answer: TRUE Difficulty: Moderate AACSB: 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? 54) An ESS is designed primarily to solve specific problems. Answer: FALSE Difficulty: Moderate AACSB: 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? 55) Information supplied by an enterprise system is structured around cross-functional business processes. Answer: TRUE Difficulty: Moderate AACSB: 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? 56) SCM systems are more internally oriented than enterprise systems. Answer: FALSE Difficulty: 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?

57) Enterprise systems do not utilize order transaction data. Answer: FALSE Difficulty: Moderate AACSB: 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? 58) A KMS and a CRM system are both types of enterprise applications. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge; 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? 59) Identify the different types of systems used for the different levels of management in a business. Answer: The types of information systems used for different levels of management are transaction processing systems (TPS), management information systems (MIS), decision-support systems (DSS), and executive support systems (ESS). TPS, such as payroll or order processing, track the flow of the daily routine transactions that are necessary to conduct business. They are used by operational managers to manage day-to-day operations. MIS summarize and report on the company's basic operations using data supplied by TPS. They provide middle managers with reports on the organization's current performance and are not highly analytical. DSS also support middle management decisions when these decisions are unique, rapidly changing, and not specified easily in advance. They use advanced analytical models and data analysis capabilities and often draw on information from external as well as internal sources. ESS support senior management by providing data of greatest importance to senior management decision makers. ESS provide a generalized computing and communications capacity that can be applied to a changing array of problems. ESS present graphs and data from many sources through an interface that is easy for senior managers to use, often a portal. Difficulty: Easy AACSB: 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?

60) Eternal Friend, a family-owned manufacturer of pet caskets, has grown exponentially over the last few years. However, they are having difficulty in preparing for future growth. The only information system used at Eternal Friend is an antiquated accounting system. The company has one manufacturing plant located in Arkansas, and three warehouses, in Arkansas, Delaware, and California. The Eternal Friend sales force is national, and Eternal Friend purchases most of its raw materials from a single overseas supplier. You have been hired to recommend the information systems Eternal Friend should implement in order to maintain their competitive edge. However, there is not enough money for a full scale, cross-functional enterprise application, and you will need to limit the first step to a single management level. What will you choose, and why? Answer: A TPS, as this is the basis of business systems and used to keep day-to-day operations running smoothly. A TPS will help to keep production costs low while maintaining quality, and can be used for communicating with other possible vendors. The TPS could later be used to feed MIS and other higher-level systems when they are installed. Difficulty: Challenging 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? 61) 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: 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? 62) 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—phone, email, 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: 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?

63) The automotive tire supply company you work for, Tires4U, has noticed that one of its brands of tires is not selling nearly as well as anticipated at most of its locations. For each of the four main types of information systems found in a business, identify a query that might help understand this development. Of the four types of systems, which do you think will be the most helpful and why? 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 tires are being sold by competitors and what these prices are. You might use DSS to see what factors could increase sales. Assuming that the tires are being properly stocked at the stores, the most important system to query is the MIS for summaries of sales records to help pinpoint any other factors, sales and marketing to assure that promotion and pricing is accurate. Difficulty: Challenging 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? 64) What is a digital dashboard, and why are they becoming an increasingly popular tool? Answer: A digital dashboard displays 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: Moderate 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? 65) 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. Difficulty: 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?

66) From your reading of the chapter-opening case study discussing Sharp Corporation's use of enterprise social networking, which of the following statements best expresses Sharp's experience? A) Sharp's primary motivation was to enhance its security. B) Sharp's primary motivation was to change its organizational culture. C) Efforts to implement Yammer were met with significant resistance from employees. D) Yammer provided Sharp with a single entry point to all the information and tools employees need for their jobs. E) Sharp is primarily using Yammer to create an external network to link suppliers, customers, and others outside the organization. Answer: B Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 67) Interaction jobs are those jobs which: A) require close coordination and collaboration. B) involve knowledge that can't be put into an information system. C) are performed typically by operational-level employees. D) require intense levels of interaction with clients. E) require an emphasis on innovation. Answer: A Difficulty: Moderate AACSB: Application of Knowledge; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 68) In a business environment, the focus of collaboration is to: A) accomplish the task at hand. B) provide a sense of community. C) foster better communication. D) prevent miscommunication. E) increase a firm's profit margin. Answer: A Difficulty: Moderate AACSB: Application of Knowledge; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

69) Which of the following statements is not true about collaboration in a business setting? A) Collaboration may be a short-lived activity, lasting just a few minutes. B) Collaboration is a many-to-many activity as opposed to a one-to-one or one-to-many activity. C) Meaningful collaboration requires a supportive business firm culture and the right, decentralized structure. D) The evidence of the business benefits of collaboration is largely anecdotal. E) Special types of information systems are available to support collaboration. Answer: B Difficulty: Challenging AACSB: Application of Knowledge; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 70) Each of the following is required for successful collaboration, except: A) open culture. B) strong hierarchy. C) decentralized structure. D) breadth of collaboration. E) appropriate collaboration technology. Answer: B Difficulty: Challenging AACSB: Analytical Thinking; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 71) A wiki is a type of collaborative: A) social network. B) blog. C) virtual world. D) website. E) MIS. Answer: D Difficulty: Easy AACSB: Application of Knowledge LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

72) Second Life is an example of a(n): A) virtual world. B) wiki. C) social network. D) mind mapping tool. E) extranet. Answer: A Difficulty: Easy AACSB: Application of Knowledge LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 73) The goal of social commerce applications is to: A) connect through personal and business profiles. B) use social media to connect with customers. C) share opinions about purchasing products or services. D) upload and share business documents. E) harness collective knowledge to generate new ideas. Answer: C Difficulty: Moderate AACSB: Information Technology LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 74) What analytical framework discussed in the chapter helps understand and evaluate the benefits and uses of collaboration tools? A) Cost/use matrix B) Task/time matrix C) Space/cost matrix D) Time/space matrix E) Time/cost matrix Answer: D Difficulty: Moderate AACSB: Application of Knowledge LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

75) Adobe Connect is an example of which of the following types of collaboration tools? A) Blog B) Team room C) Online meeting D) Group calendar E) Wiki Answer: C Difficulty: Moderate AACSB: Application of Knowledge; Information Technology; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 76) Which of the following Google tools allows people to engage in group video chat? A) Google Drive B) Google Docs C) Google Sites D) Google Circles E) Google Hangouts Answer: E Difficulty: Moderate AACSB: Application of Knowledge; Information Technology LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 77) Instant messaging, videoconferencing, and shared screens are all examples of ________ collaboration tools. A) bimodal B) co-located C) synchronous D) spontaneous E) asynchronous Answer: C Difficulty: Moderate AACSB: Information Technology; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

78) ________ technology allows a videoconference participant to give the appearance of being present at a location other than his or her true physical location. A) Telepresence B) Virtual reality C) Screen sharing D) Mind mapping E) Virtual world Answer: A Difficulty: Moderate AACSB: Information Technology; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 79) As discussed in the chapter case, what is the primary reason why Spacebook failed? A) It was too expensive to implement. B) It was designed and developed without taking the organization's culture into consideration. C) It did not include enough collaboration tools. D) Its user interface was confusing. E) It was riddled with technical issues. Answer: B Difficulty: Challenging AACSB: Application of Knowledge LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 80) ________ systems help organizations manage both structured, semistructured, and unstructured types of information. A) Digital asset management B) Knowledge network C) Enterprise content management D) Knowledge work E) Learning management Answer: C Difficulty: Moderate AACSB: Information Technology LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

81) In order to search for and retrieve knowledge objects in an enterprise content management system, the objects themselves must be: A) linked to their original sources. B) organized into relevant directories. C) tagged with a classification. D) indexed. E) associated with an in-house expert. Answer: C Difficulty: Challenging AACSB: Information Technology LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 82) Nearly all of the research on the business benefits of collaboration is anecdotal. Answer: TRUE Difficulty: Moderate AACSB: Application of Knowledge; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 83) The primary goal of social business is to deepen interactions with employees and customers. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge; Interpersonal Relations and Teamwork LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 84) You are consulting on software purchases for a translation agency whose headquarters is in New Jersey, but which works with translators located globally. Headquarters needs to share documents with groups of translators working on the same documents, who also need to communicate with each other, in real time if possible, as many people are working in different time zones. (1) What is your process for determining the most appropriate collaboration software? (2) In this particular case, what features will you be looking for? Answer: (1) The first step is to determine what the challenges facing the company are and to place these needs in the time/space matrix—does collaboration need to be synchronous or asynchronous; does it need to be remote or colocated? Once the firm's location in the matrix is determined, you can look for vendor products that fill these needs and analyze the products' cost, features, benefits, risks, training, and implementation issues. A selection of the top contenders can be presented to the company. (2) In this case, we will be looking for products that allow remote interactions that are both synchronous and asynchronous. Difficulty: Challenging AACSB: Analytical Thinking; Information Technology; Written and Oral Communication LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

85) Identify and describe at least four business benefits of collaboration. Which do you feel is the most important and why? Answer: Business benefits from collaboration are (1) productivity; (2) quality; (3) innovation; (4) customer service; and (5) financial performance. Collaboration helps productivity because people working together on a task can complete the task more quickly. It helps quality because people working together will be more able to correct each other's mistakes. It helps innovation because people working in groups come up with more ideas than those working in isolation. It helps customer service because teams can solve customer complaints more quickly together rather than working in isolation. And as a result of all of these benefits, collaboration helps finance, because collaborative firms have superior sales, sales growth, and financial performance. Student evaluations will vary: for example, the most important of the benefits might be: innovation, because new products, services, and means of production are at the heart of being able to outperform your competitors. Difficulty: Moderate AACSB: Analytical Thinking; Interpersonal Relations and Teamwork; Written and Oral Communication LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 86) 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: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

87) How does a firm with collaborative business culture and business processes differ from a "command-and-control" firm? 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: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use? 88) How do enterprise content management (ECM) systems help organizations manage knowledge? Answer: Enterprise content management (ECM) systems help organizations manage structured, semistructured, and unstructured types of information. They have capabilities for knowledge capture, storage, retrieval, distribution, and preservation. Such systems include corporate repositories of documents, reports, presentations, and best practices as well as capabilities for collecting and organizing semi-structured knowledge such as email. Major ECM systems also enable users to access external sources of information, such as news feeds and research, and to communicate by email, chat/instant messaging, discussion groups, and videoconferencing. They are starting to incorporate blogs, wikis, and other enterprise social networking tools. A key problem in managing knowledge is the creation of an appropriate classification scheme to organize information into meaningful categories. Once the categories for classifying knowledge have been created, each knowledge object needs to be tagged, or classified, so that it can be easily retrieved. ECM systems have capabilities for tagging, interfacing with corporate data repositories where the documents are stored, and creating an enterprise portal environment for employees to use when searching for corporate knowledge. Difficulty: Moderate AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 2-3: Why are systems for collaboration, social business, and knowledge management so important, and what technologies do they use?

89) Which of the following is most likely to have direct responsibility for ensuring that his or her company complies with existing data privacy laws? A) CPO B) CKO C) CIO D) CIP E) CSO Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 2-4: What is the role of the information systems function in a business? 90) 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) CIO. E) CSO. Answer: C Difficulty: Easy AACSB: Information Technology LO: 2-4: What is the role of the information systems function in a business? 91) A ________ is a senior manager who oversees the use of IT in the firm. A) CEO B) CFO C) CIO D) CIT E) CPO Answer: C Difficulty: Easy AACSB: Application of Knowledge LO: 2-4: What is the role of the information systems function in a business? 92) Development and support services for a firm's business systems are provided by: A) IT educational services. B) IT management services. C) data management services. D) IT standards services. E) application software services. Answer: E Difficulty: Challenging AACSB: Information Technology LO: 2-4: What is the role of the information systems function in a business?

93) Policies that determine which information technology will be used, when, and how, are provided by: A) IT educational services. B) IT management services. C) application software services. D) IT standards services. E) data management services. Answer: D Difficulty: Challenging AACSB: Information Technology LO: 2-4: What is the role of the information systems function in a business? 94) Which of the following would a CSO not be responsible for? A) Educating and training users about security B) Keeping management aware of security threats C) Maintaining tools chosen to implement security D) Providing physical security E) Enforcing the firm's information security policy Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 2-4: What is the role of the information systems function in a business? 95) Which of the following would be primarily responsible for enterprise-wide governance and usage of information to maximize the value of an organization's data? A) CKO B) CPO C) End users D) CDO E) CSO Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 2-4: What is the role of the information systems function in a business? 96) Which of the following is not a service typically provided by an information systems department? A) Telecommunications services B) Physical facilities management services C) Data management services D) Project management services E) Human resources services Answer: E Difficulty: Challenging AACSB: Application of Knowledge LO: 2-4: What is the role of the information systems function in a business? 28 Copyright © 2021 Pearson Education, Inc.

97) Systems analysts are the principal liaisons between the information systems group and the rest of the organization. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 2-4: What is the role of the information systems function in a business? 98) End users are playing an increasing role in the design and development of information systems. Answer: TRUE Difficulty: Moderate AACSB: Application of Knowledge LO: 2-4: What is the role of the information systems function in a business? 99) List and describe the services that an information systems department typically provides. Answer: An information systems department typically provides the following services: Computing services, which connect employees, customers, and suppliers into a coherent digital environment, including large mainframes, desktop and laptop computers, and mobile handheld devices; telecommunications services, which provide data, voice, and video connectivity to employees, customers, and suppliers; data management services, which store and manage corporate data and provide capabilities for analyzing the data; application software services, which provide development and support services for the firm's business systems; IT management services, which plan and develop the infrastructure, coordinate with the business units for IT services, manage accounting for the IT expenditure, and provide project management services; IT standards services, which provide the firm and its business units with policies that determine not only which information technology will be used but when and how it is used; IT educational services, which provide training in system use to employees and IT specialists; and IT research and development services, which provide the firm with research on potential future information systems projects and investments that could help the firm differentiate itself in the marketplace. Difficulty: Moderate AACSB: Information Technology; Written and Oral Communication LO: 2-4: What is the role of the information systems function in a business? 100) The role of the information systems department in a company is solely to support the needs of other groups as determined by senior managers. Explain why you agree or disagree with this statement. Answer: Answers will vary but should include an understanding of the role this department plays in creating new products and services and coordinating organizational change. An example answer is: I disagree with this statement. While a major function of the information systems department is to install, run, and manage the technology infrastructure, another role that it should play is to inform the company about new technologies, suggest capabilities the firm could have based on new or existing technologies, and helping the firm manage business processes and change. Difficulty: Challenging AACSB: Analytical Thinking; Information Technology; Written and Oral Communication LO: 2-4: What is the role of the information systems function in a business? 29 Copyright © 2021 Pearson Education, Inc.

Essentials of MIS, 14e (Laudon/Laudon) Chapter 3 Achieving Competitive Advantage with Information Systems 1) Which of the following is not one of the competitive forces in an industry's environment in Porter's model? A) Suppliers B) New market entrants C) Substitute products D) Customers E) Technology Answer: E Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 2) A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces? A) Product differentiation B) Traditional competitors C) Low number of suppliers D) New market entrants E) Substitute products Answer: D Difficulty: Challenging AACSB: Analytical Thinking LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 3) Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer chip C) Small retailer D) Airline E) Solar energy Answer: C Difficulty: Moderate AACSB: Analytical Thinking LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

4) All of the following could be considered substitute products for industrial electricity generation except: A) solar. B) wind. C) coal. D) hydropower. E) ethanol. Answer: E Difficulty: Easy AACSB: Analytical Thinking LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 5) Which of the following can force a business and its competitors to compete on price alone? A) High switching costs B) Poor process efficiency C) Demand control D) Transparent marketplace with little product differentiation E) Multiple competing suppliers Answer: D Difficulty: Challenging AACSB: Analytical Thinking LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 6) A firm can exercise greater control over its suppliers in terms of price, quality, and delivery schedules by having: A) more suppliers. B) fewer suppliers. C) global suppliers. D) local suppliers. E) only a single supplier. Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

7) Which of the following is not one of the basic strategies a company can employ to deal with competitive forces? A) Strengthen customer and supplier intimacy B) Focus on market niche C) Differentiate products D) Compete on employee loyalty E) Low-cost leadership Answer: D Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 8) Walmart's continuous inventory replenishment system allows it to do all of the following except: A) provide mass customization. B) transmit orders to restock directly to its suppliers. C) keep costs low. D) better meet customer demands. E) fine-tune merchandise availability. Answer: A Difficulty: Challenging AACSB: Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 9) Which of the following illustrates the use of information systems to achieve product differentiation? A) A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy B) A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers C) A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules D) A grocery store chain's use of information systems to produce products and services at a lower price than competitors E) A hotel chain's use of information systems to analyze detailed data on guests to determine each guest's profitability Answer: B Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 3 Copyright © 2021 Pearson Education, Inc.

10) Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy? A) A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy B) A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers C) A PC manufacturer's use of information systems to facilitate direct access from suppliers to their production schedules D) A grocery store chain's use of information systems to produce products and services at a lower price than competitors E) An airline's use of information systems to analyze detailed data on customers to determine each customer's profitability Answer: C Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 11) Which of the following illustrates the use of information systems to focus on market niche? A) A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy B) A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers C) A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules D) A grocery store chain's use of information systems to produce products and services at a lower price than competitors E) An airline's use of information systems to analyze detailed data on customers to determine each customer's profitability Answer: A Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

12) When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. A) product differentiation B) market niche C) mass customization D) process efficiency E) market transparency Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 13) ________ is the ability to offer individually tailored products or services using the same production resources as mass production. A) Mass customization B) Size customization C) Personalization D) Demand customization E) CAD Answer: A Difficulty: Easy AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 14) An information system can enable a company to focus on a market niche through: A) complex trend forecasting. B) tailoring products to the client. C) intensive product trend analysis. D) intensive customer data analysis. E) tightening linkages with suppliers. Answer: D Difficulty: Moderate AACSB: Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

15) Hilton Hotels' use of customer information software to identify the most profitable customers to direct its services to is an example of using information systems to: A) strengthen customer intimacy. B) differentiate their service. C) focus on market niche. D) increase efficiency. E) provide services at a lower price than its competitors. Answer: C Difficulty: Moderate AACSB: Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 16) As discussed in the chapter opening case, which of the following statements about Starbucks is not true? A) Starbucks is focusing on improving the in-store customer experience through information technology. B) Starbucks' business model is based on a product differentiation strategy. C) Customers in the United States who wish to use Starbucks' in-store Wi-Fi network must first supply an email address. D) Starbucks believes that online retailing of Starbucks branded merchandise will contribute significantly to its future profits. E) Starbucks' mobile app helps it to target products to customers more effectively. Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 17) To what competitive force did the printed encyclopedia industry succumb? A) Positioning and rivalry among competitors B) Low cost of entry C) Substitute products or services D) Increased bargaining power of customers E) Increased bargaining power of suppliers Answer: C Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

18) Internet technology: A) makes it easy for rivals to compete on price alone. B) imposes a significant cost of entry, due to infrastructure requirements. C) increases the difference between competitors because of the wide availability of information. D) makes it easy to sustain operational advantages. E) has lessened competitive rivalries. Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 19) The Internet raises the bargaining power of customers most effectively by: A) creating new opportunities for building loyal customer bases. B) making more products available. C) making information available to everyone. D) lowering transaction costs. E) reducing barriers to entry. Answer: C Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 20) The value chain model: A) categorizes five related advantages for adding value to a firm's products or services. B) sees the supply chain as the primary activity for adding value. C) categorizes four basic strategies a firm can use to enhance its value chain. D) helps a firm identify points at which information technology can most effectively enhance its competitive position. E) focuses primarily on collaboration with suppliers. Answer: D Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

21) All of the following are considered primary activities of a firm except: A) inbound logistics. B) sales and marketing. C) procurement. D) service. E) outbound logistics. Answer: C Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 22) The support activities of a firm include: A) inbound logistics, technology, outbound logistics, sales and marketing, and service. B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. C) organization infrastructure, human resources, sales and marketing, and technology. D) organization infrastructure, human resources, technology, and procurement. E) sales and marketing, procurement, human resources, and technology. Answer: D Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 23) Benchmarking: A) compares the efficiency and effectiveness of your business processes against strict standards. B) allows industry participants to develop industry-wide standards. C) is used to measure the speed and responsiveness of information technology. D) synchronizes the business processes of customers, suppliers, and trading partners. E) coordinates the value chains of independent firms to enable them to collectively produce a product or service. Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

24) The most successful solutions or methods for achieving a business objective are called: A) core processes. B) best processes. C) benchmarks. D) best practices. E) value webs. Answer: D Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 25) Which of the following is not a true statement about value webs? A) Value webs involve a collection of independent firms that use information technology to coordinate their value chains. B) Value webs are more customer-driven than traditional value chains. C) Value webs operate in a less linear fashion than traditional value chains. D) Value webs are inflexible and cannot adapt quickly to changes in supply and demand. E) Value webs involve highly synchronized industry value chains. Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 26) A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively. A) value chain B) business network C) value web D) consortia E) supply chain Answer: C Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

27) How are information systems used at the industry level to achieve strategic advantage? A) By building industry-wide, IT-supported consortia, symposia, and communications networks B) By raising the bargaining power of suppliers C) By encouraging the entry of new competitors D) By enforcing standards that reduce the differences between competitors E) By enabling companies to develop customer intimacy Answer: A Difficulty: Moderate AACSB: Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 28) When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created. A) value webs B) value chains C) synergies D) core competencies E) benchmarks Answer: C Difficulty: Easy AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 29) An information system can enhance core competencies by: A) providing better reporting facilities. B) creating educational opportunities for management. C) allowing operational employees to interact with management. D) encouraging the sharing of knowledge across business units. E) synchronizing the value chains of business partners with an industry. Answer: D Difficulty: Moderate AACSB: Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

30) The idea that the more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output, is referred to as: A) the point of no return. B) the law of diminishing returns. C) supply and demand. D) inelasticity. E) virtual economics. Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 31) Which of the following statements about network economics is not true? A) eBay is an example of a business model that is based on the principle of network economics. B) The law of diminishing returns does not always apply to every situation. C) From a network economics perspective, the value of a community of people grows as the number of participants in the community increases. D) Information technology can be strategically useful from a network economics perspective. E) In network economics, the marginal cost of adding new members to the network is higher than the marginal gain. Answer: E Difficulty: Challenging AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 32) In network economics, the value of a commercial software vendor's software products: A) increases as more people use them. B) decreases as more people use them. C) increases due to higher marginal gain in output. D) decreases according to the law of diminishing returns. E) is unrelated to the number of people that use them. Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

33) A virtual company: A) uses networks to link people, assets, and ideas enabling it to ally with other companies to create and distribute products and services without being limited by traditional organizational boundaries or physical locations. B) uses Internet technology to maintain a virtual storefront. C) uses Internet technology to maintain a networked community of users. D) provides entirely Internet-driven services, or virtual products. E) is an example of the law of diminishing returns. Answer: A Difficulty: Easy AACSB: Application of Knowledge LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 34) The emergence of software as a web service has acted as a disruptive technology for: A) traditional key-word search engines. B) telecommunications providers. C) PC manufacturers. D) local Internet service providers. E) traditional boxed software companies. Answer: E Difficulty: Easy AACSB: Information Technology LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage? 35) Which of the following is not an advantage for new companies entering the marketplace? A) They can implement new systems and equipment. B) They are not locked into an existing brand image. C) They are more highly motivated. D) They can establish new relationships with suppliers. E) They can often hire younger, less expensive workers. Answer: D Difficulty: Moderate AACSB: Analytical Thinking LO: 3-1: How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

64) Native apps can function even if the device is not connected to the Internet. Answer: TRUE Difficulty: Challenging AACSB: Information Technology LO: 12-3: What are the alternative methods for building information systems? 65) Systems analysts typically gather facts about existing systems by interacting with end users. Answer: TRUE Difficulty: Challenging AACSB: Application of Knowledge LO: 12-3: What are the alternative methods for building information systems? 66) One problem with prototyping is that the systems constructed may not be able to handle large quantities of data in a production environment. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 12-3: What are the alternative methods for building information systems? 67) End-user developed solutions can be developed much faster than other approaches. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 12-3: What are the alternative methods for building information systems? 68) Domestic outsourcing is driven primarily by the fact that outsourcing firms possess skills, resources, and assets that their clients do not have. Answer: TRUE Difficulty: Challenging AACSB: Application of Knowledge LO: 12-3: What are the alternative methods for building information systems? 69) In the traditional systems development life cycle, each stage must be completed before the next stage begins. Answer: TRUE Difficulty: Moderate AACSB: Application of Knowledge LO: 12-3: What are the alternative methods for building information systems? 70) A prototype is the final working version of an information system. Answer: FALSE Difficulty: Moderate AACSB: Information Technology LO: 12-3: What are the alternative methods for building information systems?

71) Identify and describe the main five systems development approaches. Answer: Features of the systems development life cycle include: sequential step-by-step formal process, written specification and approvals, and limited role of users. Features of prototyping include: requirements specified dynamically with experimental system; rapid, informal, and iterative process; users continually interact with the prototype. Features of end-user development include: systems created by end users using fourth-generation software tools, rapid and informal, minimal role of information systems specialists. Applications software packages are appropriate for universal functions with standard processes that do not change a great deal over time. However, customization may be needed if the software doesn't match the business processes. If a firm does not want to use its internal resources to build or operate information systems, it can outsource the work to an external organization that specializes in providing these services. The vendor may or may not be responsible for operating the system on its own computers. Difficulty: Moderate AACSB: Application of Knowledge; Written and Oral Communication LO: 12-3: What are the alternative methods for building information systems? 72) What are the advantages and disadvantages of prototyping? Describe the steps in prototyping. Give at least two circumstances under which prototyping might be useful. Answer: Because prototyping encourages intense end-user involvement throughout the process, it is more likely to produce systems that fulfill user requirements. Working prototype systems can be developed very rapidly and inexpensively. Rapid prototyping can gloss over essential steps in systems development. If the completed prototype works reasonably well, management may not see the need for reprogramming, redesigned, full documentation in testing to build a polished production system. This can backfire later with large quantities of data or large numbers of users in a production environment. The steps in prototyping are: (1) identifying the user's basic requirements, (2) developing an initial prototype, (3) using the prototype, and (4) revising and enhancing the prototype. Prototyping is most useful when there is some uncertainty about requirements or design solutions. It is especially useful in designing the end-user interface. Difficulty: Moderate AACSB: Application of Knowledge; Written and Oral Communication LO: 12-3: What are the alternative methods for building information systems? 73) Identify four types of rapid-cycle systems development. Why is rapid-cycle development a trend in current software development? Answer: Rapid-cycle development methods include rapid application development (RAD), joint application design (JAD), prototyping, and component-based development. Organizations are interested in rapid-cycle development because it has become important to be flexible and able to react quickly to changes in scale and user needs. It may also reduce time and costs of development. Difficulty: Moderate AACSB: Application of Knowledge; Written and Oral Communication LO: 12-3: What are the alternative methods for building information systems?