C724 Information Systems Management

Module 1: A husband and wife open up a small winery on their personal property and become small-business owners. In setting up their new business, they purchase an iPad and a third-party cash register system that is designed for small-business owners. When new customers purchase bottles of wine at the winery, the customers are asked for their email addresses. The business owners would like to be able to market to these customers based on the type of wine that they like to purchase. Which of the following types of systems could be the first system that these small-business owners implement to assist with their marketing efforts? An enterprise resource planning (ERP) system A customer relationship management (CRM) system Management information system (MIS)

A customer relationship management (CRM) system Correct. Even though this business might be small, a CRM system is exactly what they need to organize customer information. It would be helpful to keep track of customer email addresses and purchase habits. This will allow them to target their marketing to those customers when they offer promotions on the wines they like to purchase.

Module 1: hich of these choices best describes a knowledge management system? A ski resort collects customer information when a new reservation is made. That customer information is sent to the children's ski school that is on property so that they can market the ski school to customers with young children. A large company with hundreds of employees creates a new department called Technical Writing. This new department will be responsible for collecting information from the employees and writing documentation to be shared with clients as well as internal documentation that will aid in employee training in the future.

A large company with hundreds of employees creates a new department called Technical Writing. This new department will be responsible for collecting information from the employees and writing documentation to be shared with clients as well as internal documentation that will aid in employee training in the future. Correct. This company is working to implement a new knowledge management system and is utilizing a new technical writing team to assist with capturing and writing the documentation. Capturing experiences into a knowledge-based system can replicate expertise. Sharing this knowledge can help a business avoid repeating mistakes.

Module 1: Which of these choices best describes an ERP system? A large theme park company enters information about a potential employee into a system during the hiring process. The same system is used by the company's management team to enter information about the employee's assigned roles and about their work performance. Everyone on the management team can access information in the system, and some pieces of the system are secure allowing only top level administrators to have access. The system is also used by the Accounting team to determine hours worked each week for payroll purposes. A receptionist at a recruiting company enters information about a potential candidate into a spreadsheet and emails key pieces of information to the recruiter responsible for that area. Only the receptionist has access to the spreadsheet.

A large theme park company enters information about a potential employee into a system during the hiring process. The same system is used by the company's management team to enter information about the employee's assigned roles and about their work performance. Everyone on the management team can access information in the system, and some pieces of the system are secure allowing only top level administrators to have access. The system is also used by the Accounting team to determine hours worked each week for payroll purposes. Correct. By tightly integrating functional business areas in a single database, businesses improve efficiencies and reduce costs. ERP systems also provide a place to integrate reporting from various systems so that executives have all the information at their fingertips.

Module 1: Which of the following is the best description of an information system? A network of servers is set up to share and manage client data across multiple satellite offices for a healthcare provider so the staff at any location can access the same data. A program is written to create mailing labels for marketing company. A restaurant's important recipes are stored in a database on their desktop computer.

A network of servers is set up to share and manage client data across multiple satellite offices for a healthcare provider so the staff at any location can access the same data. Correct. Hardware, software, data, and networks make up information technology. People, processes, machines, and information technology make up information systems. This description has the information technology component (hardware, software, and data) as a subset of the information system (which includes people (clients) and processes (share and manage the data for a health care provider).

Module 1: Which of the following companies has created a network-based strategy with other businesses? Chic Computers is a business that sells laptops and tablets. The business works with various laptop and tablet manufacturers and also multiple cell phone carriers to offer a few products from each manufacturer and carrier. The result for consumers is that they can go to one store and learn about the laptop and tablet options available from multiple companies, including pricing. Happy Hair is a hair salon catering to young teenagers. The business works hard to keep up with the current trends that teenagers are following for their hair styles, such as current TV shows and pop musicians. The business has been so successful that the owner is considering opening a new location.

Chic Computers is a business that sells laptops and tablets. The business works with various laptop and tablet manufacturers and also multiple cell phone carriers to offer a few products from each manufacturer and carrier. The result for consumers is that they can go to one store and learn about the laptop and tablet options available from multiple companies, including pricing. Correct. Chic Computers has created a network-based strategy with each of the laptop and tablet manufacturers and cell phone carriers.

Module 1: A _____ competency is an activity for which a business is a marketplace leader. Synergy Growth Core Competency Core

Competency Core Correct. A core competency is an activity for which a business is a marketplace leader.

Module 1: A financial consultant can use a(n) ________ to help his/her clients select investment choices and make informed financial decisions. EIS MIS TPS DSS

DSS Correct. DSS is designed to solve a specific problem. In this question, an investment DSS is loaded with all sorts of investment information to help a financial consultant narrow down the choices appropriate for his/her clients.

Module 1: How is information technology impacting the health care industry? E-learning supports the health care demand by training workers more quickly. Information technology eliminates data entry errors. Records are maintained electronically and allow easy access to anyone who needs them.

E-learning supports the health care demand by training workers more quickly. Correct. E-learning is one of the latest growing benefits to train and educate new health care professionals as well as current ones so they can advance in their careers and stay up to date with the many tools and systems involved in the medical field.

Module 1: Different types of information systems are based on the different levels of hierarchy in an organization. Which of the following represents the highest level of responsibility in an organization? EIS DSS MIS TPS

EIS Correct. EIS is used by top executives in an organization. EIS organizes and presents summarized data and information using internal (MIS and TPS) and external data sources to support strategic decision making.

Module 1: A digital dashboard displays charts and graphs with up-to-the-minute performance indicators on sales, profit, expenses and inventory. This is an example of a(n) ___________________________. DSS TPS EIS MIS

EIS. Correct. A digital dashboard is an example of an executive information system (EIS). These systems incorporate summarized information with external factors to forecast and analyze trends for top level executives.

Module 1: involve utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control. Enterprise resource planning (ERP) systems Supply chain management (SCM) systems Enterprise systems

Enterprise resource planning (ERP) systems Correct. ERP systems involve utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control.

Module 1: True or false. Accountants have no need to interact with an organization's information system. True False

False Correct. Accountants interact with an organization's information system on a daily basis. Accounts payable, accounts receivable, budgeting, general ledgers, payroll, cash flow and financial transactions are all typically contained with an information system.

Module 1: True or false. A business benefit of enterprise resource planning (ERP) systems is ease of use. True False

False Correct. ERP systems are very complex, and many companies have difficulty adjusting to the system.

Module 1: True or false. Managers only need to understand the basic features of their organization to build and use information systems successfully. True False

False Correct. Managers MUST understand the essential features of their organization to build and use information systems successfully. Having a knowledgeable and supportive staff would also be helpful so that they have someone who can answer questions or to consult with when problems arise.

Module 1: True or false. Michael Porter's five competitive forces include the following: threat of new entrants, threat of substitute products or services, bargaining power of customers (buyers), bargaining power of suppliers, and product development. True False

False Correct. Product development is not one of Michael Porter's five competitive forces. His forces include threat of new entrants, threat of substitute products or services, bargaining power of customers (buyers), bargaining power of suppliers, and intensity of competitive rivalry.

Module 1: True or false. Two types of business strategies include growth and product competition. True False

False Correct. Two types of business strategies include growth and product differentiation.

Module 1: True or false. Hardware, software, data, and networks make up information systems. True False

False Incorrect. Hardware, software, data, and networks make up information technology. Information technology and information systems are two different things.

Module 1: True or false. A transaction processing system is created to meet a specific business goal and to provide a competitive advantage.

False. Correct. A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.

Module 1: True or false. A customer relationship management system provides a business with an opportunity to allow customers to know which products are currently available by displaying them on a website.

False. Correct. CRM systems integrate information about each client's likes and dislikes to be able to tailor conversations with them. CRM systems market to each customer individually based on that customer's likes, dislikes, and previous purchasing history.

Module 1: True or false. The terms information technology and information systems have the same definition and can be used interchangeably.

False. Correct. Information technology is a subset of information systems; they are not the same thing.

Module 1: True or false. A virtual company provides only virtual services.

False. Correct. A virtual company may offer virtual services, but that alone does not make a company a "virtual company." Many companies now offer virtual services in addition to their brick-and-mortar stores and physical services. A virtual company is not limited by physical location or geography due to the use information technology to extend their services globally.

Module 1: True or false. A storage device consists of all the components that work together to process data into useful information.

False. Correct. An information system is a system that accepts input data and processes it into information as output.

Module 1: Joe and Mary work for a tax preparation company that is implementing new computer technology. What is a likely impact of this new technology to their jobs? Improved processes Reduced stress More job security

Improved processes Correct. IT helps improve processes by helping to identify, analyze, and improve upon existing business practices within an organization.

Module 1: Which of the following is NOT an organizational feature that managers should consider when building and using information systems? Incentives Environment Politics Structure

Incentives. Correct. Incentives are not an organizational feature managers use to build information systems. They are something a business uses to encourage employees to reach goals.

Module 1: _____ is the meaningful organization of data Information Knowledge

Information Correct. Information is the meaningful organization of data so that statements can be made about them. Knowledge is the practical application of that information.

Module 1: Which of the following is NOT a benefit of information technology? Lower implementation costs Increased globalization New product development Faster communication

New product development Incorrect. Product development is a benefit of IT. Information technology helps ensure quality new products reach the market faster and to more customers and suppliers.

Module 1: Which main business function is responsible for converting resources into goods or services as efficiently as possible? Production and operations Human resources Finance and accounting Sales and marketing

Production and operations Correct. Production and operations are responsible for converting resources into goods or services as efficiently as possible.

Module 1: ___ can have a negative impact on employees' interpersonal skills and ability to build business relationships. Telecommuting Social networking Texting

Social networking Incorrect. Some might argue that social networking is hurting our ability to have real-life relationships, but studies have shown that online interactions seem to enhance social skills and the ability to communicate and form relationships with others. Texting reduces face-to-face interactions and verbal communication skills.

Module 1: Joe is responsible for managing the IT department for a local medical records company. His town is in a high risk area for tornadoes. How should Joe prepare for the possibility of a tornado hitting the company facilities? Install weather tracking devices at the facility Watch weather forecasts daily Store backup data in the cloud Store daily data backup data on a server in a warehouse located in his community

Store backup data in the cloud Correct. Even if the facility, along with all of the installed hardware was destroyed, having backup data in the cloud or in another state would ensure that medical records were still available and protected.

Module 1: Frank works for a small landscaping company. He is trying to convince the owner to invest in information technology. Which of the following justifications should he use when he approaches his boss? The owner can have better communications with customers. The owner can better protect the privacy of his customer data. The owner will immediately begin saving money.

The owner can have better communications with customers. Correct. Information technology improves business communication with customers and suppliers. Improved communication improves a company's competitive advantage.

Module 1: Which one of Michael Porter's five competitive forces does this describe: Switching from one product or service to another similar product or service with little cost. Bargaining power of suppliers Threat of substitutes Threat of new entrants

Threat of substitutes Correct. If switching to a similar product or service costs little or nothing for the buyer, the threat of a competitor's substitute is great.

Module 1: If a student decides to switch classes because she wants a different teacher, this would be considered a ______ to the college's information system and would involve interaction with its accounting or human resource systems. Credit Payment Transaction Transaction

Transaction Correct. Even though no money may be exchanged, this simple transaction might impact student fees, faculty schedules, or classroom availability.

Module 1: True or false. A system where businesses work together to create a product or service for a customer is called a supply chain management system.

True Correct. A supply chain management system is one in which businesses are interconnected and work together to create a product or service for the customer.

Module 1: True or false. Information systems help managers to perform long-range strategic planning, decision making, and to assess external threats and opportunities. True False

True Correct. Information systems help managers to perform numerous business roles including long-range strategic planning, decision making, and assessing external threats and opportunities.

Module 1: True or false. One positive impact of information technology is the increasing number of jobs that are becoming available for the disabled. True False

True Correct. Information technology is having a positive impact on the availability of jobs for the disabled because it easier for disabled employees to take advantage of opportunities such as telecommuting, online shopping and banking, entertainment, relationships, and e-learning.

Module 1: True or false. Organizations gain many benefits from knowledge management systems, but one of the most important benefits is that the systems make best practices available for employees at any time so they can learn the most effective and efficient ways of doing things. True False

True Correct. Knowledge management systems are most effective when best practices are maintained and readily available to employees and managers whenever needed. This will help improve the organization's overall performance.

Module 1: True or false. The ATM (automated teller machine) at a bank is an example of an information system. True False

True Correct. The ATM is an information system because it has an input (customer bank card), a process (conduct banking transaction), and an output (dispatch cash, receipts, etc).

Module 1: True or false. Major threats to information systems facilities vary by region and can include floods, hurricanes, terrorism, power outages, and earthquakes. True False

True Correct. The type of threat will vary by region and can include any of the following: floods, hurricanes, terrorism, power outages, and earthquakes.

Module 1: True or false. The ability to build a responsive IT infrastructure is one of the key issues facing information systems management.

True. Correct. Building a responsive IT infrastructure is one of the key issues facing information systems management.

Module 1: True or false. Businesses invest in information systems for a number of reasons, including to achieve operational excellence, develop new products and services, improve decision making, and promote competitive advantage.

True. Correct. These are some of the reasons why businesses invest in information systems. Leveraging business operations to achieve growth and be the best globally is definitely essential.

Module 1: Which one of the following scenarios describes a strategic information system? Papa Jack's Pizza restaurant implemented a new system to help manage employee schedules and help with routine questions about inventory. We Be Fit gym implemented a new system to determine trends and identify new operational methods in order to improve customer service.

We Be Fit gym implemented a new system to determine trends and identify new operational methods in order to improve customer service. Correct. A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.

Module 1: Customer relationship management (CRM) is a strategy that companies use to handle customer interactions. One business benefit of a CRM system is manage flow of goods better internal communication automated reporting better internal communication

better internal communication. Incorrect. CRM benefits include personalized communication to customers, not internal communication. Personalized communications are used to target customers with special promotions and maintain customer loyalty.

Module 1: A business offers a marketing service that is offered by many other businesses in the local area. It is a highly competitive industry. The business finds an investor who gives the business enough money to expand the business into all 50 states in a short period of time. This business is using the strategy of synergy product differentiation growth

growth Correct. The business is working to be the first to market in multiple states by growing more quickly than their competitors.

Module 1: A payroll spreadsheet is an example of process information system data information

information Correct. A payroll spreadsheet contains data that are gathered, processed, and presented in a meaningful format.

Module 1: The process of sharing knowledge across business units and among employees of a business is called a(n) information management customer relationship management knowledge management

knowledge management Correct. The process of sharing knowledge across business units and among employees of a business is called knowledge management.

Module 1: An IT services company, a digital marketing company, and a photographer recognize that each party brings a unique skillset to the small and medium-size businesses that they service, so they decide to work together. These three companies work together to make it easy for a business to hire all three of these companies to do work for their business. This is an example of a business ecosystem virtual company network economics

network economics Incorrect. Network economics is when the value of something increases because more people are buying the product and businesses benefit from the positive feedback.

Module 1: One benefit of a supply chain management system is to outsource technical functions ___ of the company. plan daily operations automate office functions outsource technical functions

outsource technical functions Incorrect. Although moving operations overseas may help businesses lower costs, it is not a benefit of SCM. Supply chain management systems help lower costs by providing for quality assurance, inventory buffers, alternate shipping options, and risk mitigation.

Module 1: There is often considerable organizational _____ when implementing new information systems. compliance acceptance resistance

resistance Correct. Employees in an organization are often reluctant to change when it comes to implementing new information systems. It takes everyone out of their comfort zone and requires them to learn a lot of new information.

Module 1: Palm Beach Real Estate Company created a mobile application to allow prospective clients to view information about beachfront properties from their smartphone. No other local real estate agents currently offer such technology. This mobile app is an example of a(n) executive information system strategic information system decision support system strategic information system.

strategic information system Correct. A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage. This mobile app is providing the real estate company with a competitive advantage.

Module 1: There is less demand for DVDs because of the creation and quick distribution on-demand video services, such as those supplied by Netflix and iTunes. In terms of Porter's five competitive forces, this is an example of intensity of competitive rivalry threat of new entrants threat of substitute products or services threat of substitute products or services.

threat of substitute products or services Correct. Netflix and on-demand movie services are a substitute for DVDs, and therefore could be categorized as a threat of substitute products or services.