Chapter 1

An example of raw data from an automobile manufacturer would be: Answers: an average of 130 Subarus sold daily in New York in 2015. 1,300 Subaru Outbacks sold during the first quarter 2015 in New York. 1 Subaru Outback sold January 7, 2015 in Mount Kisco, New York for $25,000. annual sales of Subaru Outbacks increased 4.5 percent. an average sale price of $26,000 for all Subaru Outbacks sold during January 2015 in Mount Kisco, New York.

1 Subaru Outback sold January 7, 2015 in Mount Kisco, New York for $25,000.

What is the estimated growth rate for information systems managers' jobs through 2020? Answers: -10% -1% 15% 5% 45%

15%

Approximately how many adult Americans are online? Answers: 118 million 170 million 205 million 220 million 227 million

227 million

What percent of U.S. businesses have some form of remote work program? Answers: 15 percent 25 percent 35 percent 55 percent 75 percent

55 percent

What percent of the Fortune 500 companies uses Twitter to communicate with their customers? Answers: 20 percent 40 percent 50 percent 60 percent 80 percent

80 percent

Which of the following is the best definition of an information system? Answers: A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization Computers, keyboards, printers, and telecommunications devices A set of detailed programmed instructions that transform raw data into information Physical devices and software that can be connected to share voice, data, images, sound, and video A global network that uses universal standards

A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

Which of the following is an important skill for an accounting major? Answers: An understanding of online transaction and reporting systems An understanding of product management enterprise systems An understanding of supplier management enterprise systems An understanding of enterprise systems that enhance leadership An understanding of enterprise systems for customer relationship management

An understanding of online transaction and reporting systems

Which of the following is an important skill for a marketing major? Answers: An understanding of online transaction and reporting systems An understanding of product management enterprise systems An understanding of supplier management enterprise systems An understanding of enterprise systems that enhance leadership An understanding of financial reporting systems

An understanding of product management enterprise systems

Which of the following is an example of a business using information systems to create new products and services? Answers: Apple's creation of the iPad JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced The Mandarin Oriental's use of computers to keep track of guests' preferences Verizon's web-based digital dashboard providing real-time company information for managers Walmart's Retail Link's system

Apple's creation of the iPad

The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages. Based on your reading of Chapter 1, why is "culture" an important factor to consider when building information system solutions to business problems? Answers: Culture is one element that can be radically changed, not always for the better, by new information systems. Culture affects how information system solutions are implemented and used. Culture is a cauldron of employee perspectives and conflicts, which can be used to improve business processes. Culture is the driving force behind decision making and innovation. Culture is the basis for organizational politics.

Culture affects how information system solutions are implemented and used.

To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? Answers: New products Survival Customer intimacy Improved decision making Operational excellence

Customer intimacy

As discussed in the chapter opening case, the San Francisco Giants are taking advantage of wireless technology to do which of the following? Answers: Improve decision making Achieve operational excellence Implement dynamic ticket pricing Perform data analysis Enhance fan experience

Enhance fan experience

Which of the following would not be considered part of the implementation phase of problem solving? Answers: Change management Purchasing hardware for an information systems solution Training an employee on new systems software Evaluating a selection of software packages for implementing a new business process Determining the attitude of employees about the solution.

Evaluating a selection of software packages for implementing a new business process

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? Answers: Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution. Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution. Identify the problem, design alternative solutions, choose the best solution, and then implement the solution. Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution. Identify relevant information technologies, interview employees, choose a technology, and implement the technology.

Identify the problem, design alternative solutions, choose the best solution, and then implement the solution.

An example of a business using information systems for supplier intimacy is: Answers: Apple's creation of the iPad. JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced. Citibank's ATM system. Verizon's web-based digital dashboard providing real-time company information for managers. the Mandarin Oriental's use of computers to keep track of guests' preferences.

JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced.

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? Answers: Information systems literacy Information systems architecture Management information systems Information technology infrastructure Computer information systems

Management information systems

In 2015, what percent of Internet users will access the web through mobile devices? Answers: Less than 15 percent Around 25 percent 50 percent More than 60 percent More than 75 percent

More than 60 percent

Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following? Answers: New business models Operational efficiency Customer intimacy Competitive advantage Survival

Operational efficiency

Which are the three major dimensions of business problem solving? Answers: Organizational dimensions, people dimensions, and technology dimension Organizational dimensions, people dimensions, and environmental dimensions People dimensions, technology dimensions, and environmental dimensions Technology dimensions, organizational dimensions, and environmental dimensions Organizational dimensions, technology dimensions, and cultural dimensions

Organizational dimensions, people dimensions, and technology dimension

You are a new manager at a plumbing supply manufacturer where there are an unusually high number of returns for a new aerator used in the production of high-end faucets. In examining the problem you determine that the primary cause is the improperly designed die cast for the aerator. Which dimension of a business problem does this reflect? Answers: People Technology Management Organizational Cultural

People

________ consists of detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. Answers: Software Programming Enterprise applications Business intelligence Data management technology

Software

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? Answers: Survival Improved decision making Competitive advantage Operational excellence Customer intimacy

Survival

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? Answers: Customer intimacy Operational excellence New products. Improved decision making Survival

Survival

Which business objective were competitors seeking when they rushed to provide ATMs as well after Citibank introduced the first ATMs in New York? Answers: Improved efficiency Customer and supplier intimacy Survival Competitive advantage Improved decision making

Survival

Which of the following is a global network that uses universal standards to connect millions of different networks around the world? Answers: An extranet The World Wide Web The Internet An intranet Verizon

The Internet

________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format. Answers: FTP Email The World Wide Web HTML An extranet

The World Wide Web

As described in the chapter case, which of the following constitutes a managerial element of the UPS tracking system? Answers: The web-based Post Sales Order Management System The ability to provide package status reports to customers The decision to use automation The implementation of in-house package tracking software The ability to embed UPS functions in external sites

The decision to use automation

Which of the following statements is not true? Answers: The most common and successful offshore outsourcing projects involve production programming and system maintenance programming work, along with call center work. Inflation in Indian wages for technology work is leading to a counter movement of some IT jobs back to the United States. The fear that offshore outsourcing will reduce demand for new information system hires in the United States is mitigated by the fact that reduced IT expenditures results in increased IT investments and the creation of domestic jobs. The impact of domestic IT outsourcing has been very disruptive to some regional areas of the United States. Management and organizational tasks required in systems development usually are not outsourced.

The impact of domestic IT outsourcing has been very disruptive to some regional areas of the United States.

As described in the chapter case, which of the following constitutes an organizational element in the UPS tracking system? Answers: The specification of procedures for identifying packages with sender and recipient information Monitoring service levels Promoting the company strategy of low-cost, superior service The use of handheld computers and networks for managing package delivery Routing software that creates the most efficient delivery route for each driver

The specification of procedures for identifying packages with sender and recipient information

Telepresence is an example of which of the following? Answers: Business intelligence Social business IoT Mobile digital platform Virtual meeting

Virtual meeting

Which of the following statements is not true? Answers: In 2015, American businesses will invest nearly $600 billion in information systems hardware, software, and telecommunications equipment. In 2015, American businesses will spend $400 billion on business and management consulting and information technology services, In 2015, about 25 percent of all capital investment in the United States will be for information systems hardware, software, and telecommunications equipment. Expenditures in the United States for information systems are growing at a faster rate than the U.S. economy as a whole. Worldwide expenditures for information were around $1 trillion.

Worldwide expenditures for information were around $1 trillion.

The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as: Answers: IoT. big data. the mobile digital platform. cloud computing. business intelligence.

big data.

All of the following are new technology-related trends in MIS except: Answers: cloud computing. big data. IoT. the mobile digital platform. co-creation of business value.

co-creation of business value.

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: Answers: business process. environment. atmosphere. values. culture.

culture.

All of the following can be considered managerial responsibilities except: Answers: making action plans to solve organizational problems. creating new products and services. designing new information systems. allocating human resources to coordinate the work to be done. setting strategy for responding to business challenges in the environment.

designing new information systems.

The six important business objectives of information system investment include all of the following except: Answers: competitive advantage. employee morale. improved decision making. survival. new products.

employee morale.

All of the following are examples of environmental actors in an information system except: Answers: customers. stockholders. feedback. competitors. regulatory agencies.

feedback.

The first step in the model of business problem solving discussed in the chapter is: Answers: interviewing the people involved in the problem. identifying the problem. outlining the problem's causes. assigning the problem to a problem solver. evaluating possible solutions to the problem.

identifying the problem.

The final step in the four-step model of business problem solving is: Answers: outcome. implementation. change management. feedback. employee re-training.

implementation.

Verizon's implementation of a web-based digital dashboard to provide managers with real-time information, such as customer complaints, is an example of: Answers: improved flexibility. improved decision making. competitive advantage. supplier intimacy. a new product.

improved decision making.

All of the following describe the effects of globalization except: Answers: significant decreases in operating costs. reduction of labor costs through outsourcing. ability to find low-cost suppliers. increases in transaction costs. replication of business models in multiple countries.

increases in transaction costs.

The three activities in an information system that produce the information organizations use to control operations are: Answers: information, research, and analysis. input, output, and feedback. input, processing, and output. data analysis, processing, and feedback. information, data, and processing.

input, processing, and output.

In a hierarchical organization, the upper levels consist of: Answers: managerial, professional and knowledge workers. managerial, professional, and technical workers. professional and operational workers. managerial, professional, and operational workers. knowledge, technical and operational workers.

managerial, professional, and technical workers.

The average number of baseball tickets sold at a particular price is an example of: Answers: input. raw data. meaningful information. output. feedback.

meaningful information.

Consider an information system in a moving company 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 would be considered a(n) ________ dimension of the system. Answers: organizational managerial people technology cultural

organizational

Poor business processes are an example of the ________ dimension of business problems. Answers: management organizational people infrastructure cultural

organizational

Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the: Answers: management dimension. people dimension. organizational dimension. technical dimension. cultural dimension.

organizational dimension.

Legal compliance is an example of the ________ dimension of business problems. Answers: management organizational people technology cultural

people

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: Answers: management dimension. people dimension. organizational dimension. technology dimension. cultural dimension.

people dimension.

Converting raw data into a more meaningful form is called: Answers: capturing. processing. organizing. feedback. inputting.

processing.

Perhaps the most frequent error in problem solving is: Answers: rushing to judgment about the nature of a problem. not being aware of personal limitations. being too doubtful. following a rote pattern of decision making. failing to consider all dimensions of a problem.

rushing to judgment about the nature of a problem.

Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals. Answers: operations managers senior managers marketing managers accounting managers knowledge workers

senior managers

Inadequate database capacity is an example of the ________ dimension of business problems. Answers: technology organizational people management cultural

technology

In choosing the best solution for a business problem, all of the following are important considerations except: Answers: the cost of the solution. the feasibility of the solution given existing resources and skills. the length of time to implement the solution. the attitudes of employees. the ability to forget about the problem once it has been solved.

the ability to forget about the problem once it has been solved.

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: Answers: the skill levels of the employees inputting the data. the training given to the employees inputting the data. the business processes in place governing the manual input of the data. the types of automatic error checking provided by the input software. the storage capacity of the database.

the business processes in place governing the manual input of the data.

The failure of NASA's initial solution to preventing the space shuttle shedding foam illustrates: Answers: the importance of training employees on new business processes. the need to prepare for measuring outcomes of a business solution. the continuous nature of problem solving. the need to quickly adapt to new technological innovations. the importance of organizational change in problem solving.

the continuous nature of problem solving.

Journalist Thomas Friedman's description of the world as "flat" refers to: Answers: the flattening of economic and cultural advantages of developed countries. the use of the Internet and technology for instantaneous communication. the reduction in travel times and the ubiquity of global exchange and travel. the growth of globalization. the increased use of global currencies.

the flattening of economic and cultural advantages of developed countries.

Data management technology consists of: Answers: the physical hardware and media used by an organization for storing data. the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. the software governing the organization of data on physical storage media. the hardware and software used to transfer data. the universally accepted standards for storing data.

the software governing the organization of data on physical storage media.

Output: Answers: is feedback that has been processed to create meaningful information. is information that is returned to appropriate members of the organization to help them evaluate the input stage. transfers raw data to the people who will use it or to the activities for which it will be used. transfers processed information to the people who will use it or to the activities for which it will be used. is a stream of raw facts representing events occurring in organizations or the physical environment.

transfers processed information to the people who will use it or to the activities for which it will be used.

Intranets: Answers: are based on mainframe technology. are multiple networks joined together. are typically used to communicate with the business's trusted vendors. use Internet technology for a private company network. provide the platform on which a firm builds its information systems.

use Internet technology for a private company network.