IS 3003 Exam 1 True and False
A business is a formal or informal organization created to sell services or products.
False
Deciding whether to introduce a new product line is the responsibility of an operational manager.
False
ESSs are designed primarily to solve specific problems.
False
ESSs are designed to serve the middle management of the organization.
False
Enterprise systems do not utilize order transaction data.
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
Management information systems primarily support nonroutine decision making.
False
Most MISs use sophisticated mathematical models or statistical techniques.
False
Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant.
False
The decision to grant credit to a customer is normally made by a senior manager.
False
The greatest barrier to changing business processes is, ironically, management itself.
False
The law of diminishing returns always applies to digital, as well as traditional products.
False
There are two types of outsourcing: offshore outsourcing and foreign outsourcing.
False
Transaction processing systems are most commonly encountered at the senior management level of an organization.
False
Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.
False
A primary challenge in BPM is employee resistance.
True
Business process reengineering is the radical redesign of business processes.
True
A business model describes how a company produces, delivers, and sells a product or service to create wealth.
True
A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
True
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
ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.
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
Information supplied by an enterprise system is structured around cross-functional business processes.
True
Probably the best single way to reduce quality problems is to reduce cycle time.
True
Purchase of information systems and telecommunications equipment constituted more than half of all capital investment in the United States in 2013.
True
Strong linkages to customers and suppliers increase switching costs.
True
Studies show that about half of a business firm's profits can be explained by alignment of IT with business.
True
Supply chain management systems are more externally oriented than enterprise systems.
True
TPS help managers monitor the firm's relations with the external environment.
True
The dimensions of information systems are people, organizations, and information technology.
True
The effect of the Internet has been to raise bargaining power over suppliers.
True
The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.
True
The value chain model classifies all company activities as either primary or support.
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 process is a single step taken in a set of logically related activities that accomplish a specific business task.
False
A hotel reservation system is a typical example of a management information system.
False
A network requires at least three computers and a shared resource.
False
A transparent marketplace means that there is high product differentiation.
False
BPM is considered concluded when the new processes are both implemented and accepted.
False
Benchmarks are specific standards for business processes set by industry leaders.
False
Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization.
False
IT managerial jobs are outsourced easily because of the universal standards used by the Internet.
False
Political conflict is an example of the people dimension of business problems.
False
Senior management is responsible for directing the day-to-day activities of the business.
False
The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
False
The more people that use Microsoft Office software and related products, the lower its value.
False
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
Customers are one of the competitive forces that affect an organization's ability to compete.
True
Decision-support systems often use information from external sources.
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
Identifying a problem includes agreeing that a problem exists.
True
In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
True
In the strategy of product differentiation, information systems are used to enable new products and services.
True
In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.
True
Teams are formal business groups that are created to accomplish a specific task.
True
Transaction processing systems are the basic business systems that serve the operational level of the organization.
True