ISDS 3001 FINAL TEST QUESTIONS AND ANSWERS.docx

ISDS 3001 FINAL TEST QUESTIONS AND ANSWERS.docx An information system vision defines the role that information systems should play in the organization. For what kind of organizations do information systems play a more strategic role? - Answer-The organizations whose success in the marketplace depends heavily on their ability to introduce IT innovations In September 2018, Facebook suffered the biggest data breach in its 14-year history as a social media platform. An attack on Facebook's computer network exposed the personal information of nearly 50 million users. Going forward, one of the critical success factors of Facebook would be to: - Answer-A.Increase user confidence and trust in Facebook by ensuring improved security measures within the platform Why do we need to create an Information System Vision during the strategic IS planning process? - Answer-It defines the role that information systems should play in the organization. A long-term proposal that identifies new systems, new projects, or new directions for the IS organization is an example of: - Answer-A.A strategic initiative Which of the following is not an advantage offered by the information system planning process? - Answer-The information systems plan is an informal contract that specifies the objective of information systems deployment and the responsibilities of the parties involved. The four quadrants of the strategic impact grid are the factory, strategic, support, and turnaround. - Answer-The four quadrants of the strategic impact grid are the factory, strategic, support, and turnaround. Delta Airlines is a major United States airline which, along with subsidiaries and regional affiliates, operates over 5,400 flights daily. Its infrastructure enables Delta to operate with the needed degree of efficiency and effectiveness. Even small disruptions can endanger Delta's wellbeing and future viability as an airline carrier. Which quadrant of the strategic impact grid do you think Delta can be placed in? - Answer-Factory As part of its' IS strategic business planning process, a multinational large bank is conducting a SWOT analysis to review how well equipped it is to achieve its vision in accordance with the newly developed IS guidelines. The bank is globally recognized as one of the most innovative institutions in the industry that tends to keep up with the latest technology trends. In this context, blockchain, the distributed ledger technology, is likely to be perceived by the bank as: - Answer-An opportunity The following statement: "We will store data centrally for all mission critical applications" is an example of: - Answer-Information Systems Guideline There are six key questions that senior executives should answer when getting involved in information systems management. The first question is "How much should we spend on IT?" This question is intended to: - Answer-Decide what the role of information systems and technology should be in the organization. Added value is: - Answer-That portion of the total value created that would be lost if the firm did not partake in the exchange. You invented the iPet, an app that lets pet owners track their animals. There is only one competitor, iDog, and it produces a similar product. Your analysis shows that SOC for iPet and iDog is the same: $20. But CWP for iPet is $25 and for iDog it is $23. Do you have a competitive advantage? - Answer-Yes. Because iPet is the only firm in the market able to create $5 worth of value Supplier opportunity cost is: - Answer-The minimum amount of money suppliers are willing to accept to provide the firm with the needed resources. Which of the following is an entity that does NOT share the total value created by a transformation made in your firm? - Answer-Competitor A brand name is a driver of value creation: - Answer-Yes, as long as the brand increases customer willingness to pay. Competitive advantage is: - Answer-The condition where a firm engages in a unique transformation process and has been able to distinguish its offerings from those of competitors. A customer's willingness to pay is the same as the price they pay. - Answer-False In Abraham's coffee shop customers are willing to buy medium coffee for 3 dollars. He says it creates 2 dollars' worth of value on each cup. How much is the supplier opportunity cost? - Answer-. 1$ To create value you must increase customer willingness to pay more than supplier opportunity cost. - Answer-True We defined the concept of value appropriation as: - Answer-The process by which the total value created in the transaction is split among all the entities who contributed to creating it. Which of the following is a primary activity? - Answer-Inbound logistics The iPod's entrance into the music player-industry caused the increased threat of which of the following: - Answer-Threat of substitutes or services for other music players Which of the following is an example of mirroring capabilities? - Answer-Your university library electronic reservation system The pharmaceutical industry is characterized by a substantial need for capital investments in research and development, strong economies of scale, well-known brand names with multiple issues on patents and government regulations. Threat of new entrants can be characterized as one of the following options: - Answer-Low The CSLC should be viewed from which viewpoint? - Answer-Customers The CSLC is broken down into thirteen stages. One of these involves making sure that the goods or services that have been purchased actually meet the applicable specifications. Which stage is this? - Answer-Evaluate and Accept Which of the following is NOT a part of the support activities carried out in a typical value chain? - Answer-Marketing and sales Of the five forces, rivalry amongst competitors is the most important because it represents the best determinant of profitability for an average company within an industry. - Answer-False The virtual value chain (VVC) model is designed to map the set of sequential activities that enable a firm to transform data in input into some output information that, once distributed to the appropriate user, has higher value than the original data. - Answer- True A small local coffee shop has two suppliers, A and B. Supplier A went bankrupt and had to close its business. Assuming that both suppliers are able to provide the coffee shop with all its needs in term of suppliers, which of the following is likely to happen: - Answer-The bargaining power of supplier B will increase Which of the following are the two main dynamics for rejuvenation and strengthening of barriers of erosion? - Answer-capability development, asset-stock accumulation The process by which a firm accrues or builds up a resource over time is important for you to recognize as it is often the basis for rejuvenating barriers to erosion. Such process is called: - Answer-Asset-stock accumulation The process by which an organization is able to improve its performance over time by developing its ability to use available resources for maximum effectiveness is known as: - Answer-Capability development The sustainability of a competitive advantage grounded in an IT-dependent strategic initiative is measured by: - Answer-An estimate of the likely time delay competitors will face in replicating the leader's initiative When an IT initiative is being developed as part of a consortium, the leader shares the risks and costs associated with the initiative with competitors that are part of the consortium. - Answer-True Response lag is: - Answer-A measure of the delay of competitive response to an IT- dependent strategic initiative Is IT an indistinct commodity? - Answer-No, because IT ranges from extremely complex technology (e.g., large data warehouses, infrastructure projects), to small applications (e.g., a personal web site) After evaluating an IT-dependent strategic initiative using the sustainability framework, managers are left with three possible decisions. Which of the following is NOT one of these three decisions? - Answer-analyze the IT-dependent strategic initiative independently The two major components of the IT resources barrier are: - Answer-IT assets and IT capabilities Which of the following is NOT a barrier to erosion of advantage? - Answer-IT team barrier There are three main methods used by modern organizations to fund IS. These include: - Answer-Chargeback, Allocation, and Overhead