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Questions and answers - Digitization in business and society
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Questions and answers - Digitization in business and society
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Chapter 11) Which of the following is not one of the six strategic business objectives of information systems?
A) New products and services
B) Improved decision making
C) Improved community relations
D) Competitive advantage
E) Survival
13) All of the following are new technology-related trends in MIS except: A) cloud computing.
B) big data.
C) IoT.
D) the mobile digital platform.
E) co-creation of business value.
30) You are starting a small bike messenger company. Given your type of services (hand- delivering
packages within a small geographical area), could your firm be a digital firm? If so, what would make
this a digital firm?
Answer: Yes, your firm could be a digital firm. Being a digital firm doesn't mean that you just offer
digital goods and services. A digital firm would have most of its relationships with customers,
suppliers, and employees be digitally enabled. Ordering deliveries, assigning deliveries, managing
employees and assignments could certainly be digitally enabled; using cell phones, information
systems, and handheld devices to connect customers, delivery management, and bike messengers.
32) Define business process. What might be a business process used at a hospital?
Answer: A business process is a set of logically related tasks and behaviors for accomplishing work.
Hiring a new employee, customer intake, and filing medical records are examples of business
processes at a hospital.
36) Output:
A) is feedback that has been processed to create meaningful information that can be used by
others.
B) is information that is returned to appropriate members of the organization to help them evaluate the
input stage.
C) transfers data to the people who will use it or to the activities for which it will be used.
D) is the result of processing raw input data into meaningful information.
E) converts raw input into a meaningful form.
41) Data management technology consists of which of the following?
A) Physical hardware and media used by an organization for storing data
B) Detailed, preprogrammed instructions that control and coordinate the computer hardware
components in an information system
C) Two or more computers to share data or resources
D) Hardware and software used to transfer data
E) Software governing the organization of data on physical storage media
43) Networking and telecommunications technologies, along with computer hardware, software, data
management technology, and the people required to run and manage them, constitute an
organization's:
A) data management environment.
B) networked environment.
C) information technology (IT) infrastructure.
D) information system.
E) culture.
,46) Which of the following best describes the primary reason for implementing a new information
system, from a business perspective?
A) The system enables the firm to create new products and services.
B) The system will create new value for the firm, beyond its costs.
C) The system will automate key business processes.
D) The system is in use by our primary competitors.
E) The system integrates well with the Web.
49) In ________, raw data is systematically acquired and transformed during various stages that add
value to that information.
A) an information value chain
B) the firm value chain
C) information processing D) the feedback process
E) the dissemination process
52) Which of the following is an example of a social complementary asset?
A) Technology and service firms in adjacent markets
B) Training programs
C) Distributed decision-making rights
D) Incentives for management innovation E) A strong IS development team
58) Which of the following constitutes an organizational element in the UPS tracking system
described in the chapter?
A) The specification of procedures for identifying packages with sender and recipient
information
B) Monitoring service levels
C) Promoting the company strategy of low-cost, superior service
D) The use of handheld computers and networks for managing package delivery
E) A web-based Post Sales Order Management System
62) Which of the following is a private corporate network extended to authorized users outside the
organization?
A) An intranet
B) The World Wide Web
C) The Internet
D) An extranet
E) FTP
63) Which of the following deals with behavioral issues as well as technical issues surrounding the
development, use, and impact of information systems used by managers and employees in the firm?
A) Information systems literacy
B) Information systems architecture
C) Business processes
D) Information technology infrastructure
E) Management information systems
85) You work for an auto manufacturer and distributor. How could you use information systems to
achieve greater customer intimacy?
Answer: You could create a website that allows customers to customize cars, communicate with
support personnel and other car owners. You could create an automated e-mail service reminding car
owners to take their car in for periodic checkups. You could have an information system that tracks
customer preferences in local areas, so you can provide cars that reflect local customer needs and
desires.
,86) What is the difference between information technology and information systems? Describe some
of the functions of information systems.
Answer: Information technology (IT) consists of all the hardware and software that a firm needs to use
to achieve its business objectives. Information systems are more complex. An information system can
be defined technically as a set of interrelated components that collect (or retrieve), process, store, and
distribute information to support decision making and control in an organization.
An information system:
• supports decision making, coordination, and control.
• helps employees analyze problems.
• helps employees visualize complex subjects.
• helps create new products.
89) You work at the business headquarters for a chain of movie theaters. Describe this firm's
information value chain.
Answer: An information value chain adds value to data at various stages, transforming it into valuable
data. At a chain of movie theaters, data would be gathered from ticket sales and concession sales.
Information systems would help transform this into meaningful information, such as determining the
types of movies popular in certain regions, times and days of the week that people most often saw
movies, and what snacks were the most popular. This information would be valuable in making
decisions, such as offering ticket discounts during less popular time slots and offering more popular
snack items. Further feedback based on the results of these decisions could determine whether these
decisions were effective.
90) How does a company's use of information systems affect its corporate strategies? Provide an
example.
Answer: A firm's ability to effectively use information technology is interdependent with its ability to
implement corporate strategies and achieve corporate goals. More and more, the ability to compete
and succeed depends on a company's ability to implement technology. What a business would like to
do in the future can depend on what its systems will be able to do. Examples of this might be a
company who invests in information systems that enable it to create new products or to make its
distribution system more efficient, allowing the company to become the low-cost producer.
93) What are complementary assets and how does investment in them impact returns on technology
investments?
Answer: Complementary assets are those assets required to derive value from a primary investment.
Research indicates that firms that support their technology investments with investments in
complementary assets, such as new business models, new business processes, management behavior,
organizational culture, or training, receive superior returns, whereas those firms failing to make these
complementary investments receive less or no returns on their information technology investments.
94) Disciplines that contribute to the technical approach to information systems include:
A) computer science, engineering, and networking.
B) operations research, management science, and computer science.
C) engineering, utilization management, and computer science.
D) management science, computer science, and engineering. E) economics, sociology, and
psychology.
95) Which of the following disciplines focuses on mathematical techniques for optimizing parameters
of organizations, such as transportation and inventory control?
A) Management science
B) MIS
C) Computer science
D) Utilization management
E) Operations research
, 99) Describe the sociotechnical view of management information systems.
Answer: In the sociotechnical view of management information systems, optimal organizational
performance is achieved by jointly optimizing both the social and technical systems used in
production. Adopting a sociotechnical system's perspective helps to avoid purely technological
approach to information systems.
Chapter 2
2) Which of the following is an example of a cross-functional business process? A) Identifying
customers
B) Transporting the product
C) Creating a new product
D) Assembling a product
E) Paying creditors
6) What is the connection between organizations, information systems, and business processes?
Answer: Business processes refer to the manner in which work activities are organized, coordinated,
and focused to produce a specific business result. They also represent unique ways in which
organizations coordinate work, information, and knowledge and the ways in which management
chooses to coordinate work. Managers need to pay attention to business processes because they
determine how well the organization can execute, and thus are a potential source for strategic success
or failures. Although each of the major business functions has its own set of business processes, many
other business processes are cross functional. Information systems can help organizations achieve
great efficiencies by automating parts of these processes or by helping organizations rethink and
streamline them. Firms can become more flexible and efficient by coordinating and integrating their
business processes to improve management of resources and customer service.
7) What are cross-functional business processes? Give an example.
Answer: Cross-functional processes are those that require input, cooperation, or coordination between
the major business functions in an organization. For instance, when a salesman takes an order, the
major business functions of planning, production, inventory control, shipping, accounting, and
customer relations will all be involved before the order is completed.
10) If your main supplier was late in delivering goods, which type of system would you use to update
your production schedule?
A) ESS
B) TPS
C) MIS
D) DSS
E) BIS
11) You have been hired by a non-profit agency to implement a system to handle their donations. The
system must be able to handle and record telephone, SMS, and Internet donations, provide up-to-the-
minute reports, and create highly customizable mailing lists. In addition, event fundraisers need to be
able to quickly access a donor's information and history. Which of the following systems will best
meet these needs?
A) TPS
B) TPS with DSS capabilities
C) TPS with MIS capabilities
D) TPS with ESS capabilities
E) DSS with MIS capabilities
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