Chapter 1

A database that receives employee manual input of customer names and addresses is riddled with errors and you have been charged with rectifying the situation. In taking an organizational perspective of this problem, you would be considering: A) the skill levels of the employees inputting the data. B) the training given to the employees inputting the data. C) the types of reviews in place for selecting data input personnel. D) the types of automatic error checking provided by the input software.

C) the types of reviews in place for selecting data input personnel

A network requires at least three computers and a shared resource.

FALSE

Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization.

FALSE

Data is information that has been shaped into a form that is meaningful to human beings.

FALSE

IT managerial jobs are outsourced easily because of the universal standards used by the Internet.

FALSE

Information systems consists of all the hardware and software that a firm needs to use in order to achieve its business objectives.

FALSE

Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.

FALSE

Intranets are private corporate networks extended to authorized users outside the organization.

FALSE

Large corporations have been slow to adopt mobile computing as a platform.

FALSE

Political conflict is an example of the people dimension of business problems.

FALSE

There are two types of outsourcing: offshore outsourcing and foreign outsourcing.

FALSE

Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.

FALSE

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 iPod B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to become the world's largest auto maker D) Verizon's Web-based digital dashboard providing real-time company information for managers

a) Apple's creation of the iPod

An information skill important for an accounting major would be: 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.

a) an understanding of online transaction and reporting systems

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) culture. B) environment. C) atmosphere. D) values.

a) culture

An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support: A) decision making and control in an organization. B) communications and data flow. C) managers analyzing the organization's raw data. D) the creation of new products and services.

a) decision making and control in an organization

Which of the following is not one of the three major categories of business problem solving? A) Environment B) Organization C) Technology D) People

a) environment

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) ________ element of the system. A) organizational B) managerial C) people D) technology

a) organizational

You are a new manager at a plumbing supply manufacturer where there is an unusually high number of returns for a new aerator for a high-end faucet in production. In viewing 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? A) People B) Technology C) Management D) Organizational

a) people

One of the most frequent errors in problem solving is: A) rushing to judgment. B) not being aware of personal limitations. C) being too doubtful. D) following a rote pattern of decision making.

a) rushing to judgement

Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system describes: A) software. B) programming. C) enterprise applications. D) business intelligence.

a) software

The use of information systems because of necessity describes the business objective of: A) survival. B) improved business practices. C) competitive advantage. D) improved flexibility.

a) survival

Inadequate database capacity is an example of the ________ dimension of business problems. A) technology B) organizational C) people D) management

a) technology

Journalist Thomas Friedman's description of the world as "flat" referred to: A) the flattening of economic and cultural advantages of developed countries. B) the use of the Internet and technology for instantaneous communication. C) the reduction in travel times and the ubiquity of global exchange and travel. D) the growth of globalization.

a) the flattening of economic and cultural advantages of developed countries

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? 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.

b) Culture affects how information system solutions are implemented and used.

An example of a business using information systems for customer and supplier intimacy is: A) Apple's creation of the iPod. B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced. C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to become the world's largest auto maker. D) Verizon's Web-based digital dashboard providing real-time company information for managers.

b) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced

An information skill important for a marketing major would be: 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.

b) an understanding of product management enterprise systems

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.

b) employee morale

In choosing the best solution for a business problem, one of the most important considerations is: A) change management. B) existing resources and skills. C) employee training. D) outcome measurement.

b) existing resources and skills

The first step in the four-step model of business problem solving is: A) agreeing that a problem exists. B) identifying the problem. C) outlining the problem's causes. D) assigning the problem to a problem solver.

b) identifying the problem

The final step in the four-step model of business problem solving is: A) outcome. B) implementation. C) change management. D) feedback.

b) implementation

All of the following choices describe ways for a company to achieve a competitive advantage, except: A) producing a superior product and charging less than competitors. B) implementing information systems to support better management decision making. C) garnering more sales and profits than your competitors. D) using information systems to create new and popular products that your competitors cannot duplicate.

b) implementing information systems to support better management decision making

As discussed in the chapter opening case, the Giants' new ticketing information systems is an effort to achieve which of the primary business objectives? A) Customer and supplier intimacy B) Improved decision making C) Operational excellence D) New products and services

b) improved decision making

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information, such as customer complaints, is an example of: A) improved flexibility. B) improved decision making. C) improved efficiency. D) customer and supplier intimacy.

b) improved decision making

In a hierarchical organization, the upper levels consist of: A) managerial and professional workers. B) managerial, professional, and technical workers. C) professional and operational workers. D) managerial, professional, and operational workers.

b) managerial, professional, and technical workers

Poor business processes is an example of the ________ dimension of business problems. A) management B) organizational C) people D) infrastructure

b) organizational

The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once they 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.

b) people dimension

Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback.

b) processing

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

b) senior managers

An example of raw data from a national chain of automobile stores would be: A) average of 13 Toyotas sold daily in Kentucky in 2007. B) 300 Toyota RAV4s sold during fourth quarter 2007 in Kentucky. C) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky - $28000. D) annual sales of Toyota RAV4s increased 2.4 percent.

c) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky- 28000

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, perhaps one which uses modern information technologies. 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.

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

An example of a business using information systems to attain competitive advantage is: A) Apple's creation of the iPod. B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced. C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to become the world's largest auto maker. D) Verizon's Web-based digital dashboard providing real-time company information for managers.

c) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to become the world's largest auto maker

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. This is an example of using information systems to support a business strategy of: A) new products, services, and business models. B) survival. C) customer and supplier intimacy. D) improved decision making.

c) customer and supplier intimacy

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.

c) designing new information systems

The three activities in an information system that produce the information organizations use to control operations are: A) information retrieval, research, and analysis. B) input, output, and feedback. C) input, processing, and output. D) data analysis, processing, and feedback.

c) input, processing, and output

A hierarchy: A) results in a clear-cut division of labor. B) is composed primarily of experts trained for different functions. C) is a pyramid structure of rising authority and responsibility. D) is used primarily in large organizations to define job roles.

c) is a pyramid structure of rising authority and responsibility

The field that 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, is called: A) information systems literacy. B) information systems architecture. C) management information systems. D) information technology infrastructure.

c) management information systems

The average number of tickets sold daily online is an example of: A) input. B) raw data. C) meaningful information. D) output.

c) meaningful information

Electronic computers and related software programs are the technical foundation, the tools and materials, of: A) all business procedures. B) information accumulation. C) modern information systems. D) all industrialized countries.

c) modern information systems

Flapjack Flats, a new pancake 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.

c) organizational dimension

Legal and regulatory compliance is an example of the ________ dimension of business problems. A) management B) organizational C) people D) technology

c) people

All of the following are elements of critical thinking except: A) being aware of personal limitations. B) maintaining doubt. C) relying on gut instinct. D) testing alternatives.

c) relying on gut instinct

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of: A) improved efficiency. B) customer and supplier intimacy. C) survival. D) competitive advantage.

c) survival

________ 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) E-mail C) The Web D) HTML

c) the Web

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

c) the continuous nature of problem solving

The world's largest and most widely used network is: A) usa.gov. B) the Web. C) the Internet. D) DARPAnet.

c) the internet

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

c) the software governing the organization of data on physical storage media

A major criterion in deciding the most important perspectives of a business problem is: A) implementation. B) change management. C) usefulness. D) organizational needs.

c) usefulness

What is the estimated growth rate for information systems managers' jobs through 2020? A) 15% B) -1% C) 45% D) 5%

d) 5%

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

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

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. B) Inflation in Indian wages for technology work is leading to a counter movement of jobs back to the United States. C) The fear that offshore outsourcing will reduce demand for new information system hires in the U.S. is mitigated by the fact that reduced IT expenditures results in increased IT investments and the creation of domestic jobs. D) The impact of domestic IT outsourcing has been very disruptive to some regional areas of the U.S.

d) The impact of domestic IT outsourcing has been very disruptive to some regional areas of the U.S.

Based on your reading of the case discussing mobile handhelds in the workplace, PepsiCo's custom iPhone app to coordinate deliveries enhances which of the following generic business objectives? A) New products, services, and business models B) Survival C) Improved decision making D) Customer and supplier intimacy

d) customer and supplier intimacy

Operations management, as a discipline, is directly relevant to all of the following occupational categories except: A) industrial production managers. B) operations analysts. C) administrative service managers. D) financial managers.

d) financial managers

All of the following describe the effects of globalization except: A) significant decreases in operating costs. B) reduction of labor costs through outsourcing. C) ability to find low-cost suppliers. D) increases in transaction costs.

d) increases in transaction costs

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

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

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.

d) use Internet technology for a private company network

An IT infrastructure provides the platform on which the firm can build its information systems.

TRUE

An extranet is a private intranet extended to authorized users outside the organization.

TRUE

An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.

TRUE

As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.

TRUE

Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.

TRUE

Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.

TRUE

Encouraging employees to adapt to new business processes is an important factor in change management.

TRUE

Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.

TRUE

Identifying a problem includes agreeing that a problem exists.

TRUE

In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.

TRUE

Purchase of information systems and telecommunications equipment constituted more than half of all capital investment in the United States in 2013.

TRUE

The dimensions of information systems are people, organizations, and information technology.

TRUE

UPS's use of Web-based tools that allow customers to embed UPS functions, such as tracking and cost calculations, into their own Web sites was an information systems solution used to achieve customer intimacy.

TRUE

A business model describes how a company produces, delivers, and sells a product or service to create wealth.

TRUE