Chapter 1
Which of the following may lead to competitive advantage? 1. New products, services, and business models; 2. Charging less for superior products; 3. Responding to customers in real time
1, 2, and 3
Approximately how many Americans access the Internet using a smartphone or tablet?
230 million
In 2017, what percent of the U.S. economy resulted from foreign trade?
30 percent
How many service jobs move offshore to lower-wage countries in a typical year?
300,000
How much did American businesses spend on information systems hardware, software, and telecommunications equipment in 2017?
About $1 trillion
Approximately how much revenue was generated by e-commerce in 2017?
About $700 billion
Which of the following would not be a complementary asset for a solar panel manufacturer?
Centralized hierarchical decision making
The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of which of the following?
Customer intimacy
Which of the following is not one of the IT innovations changing the world of business today?
E-commerce
Creating a marketing plan is not an example of a business process.
False
In order to be considered a digital firm, all of the firm's significant business relationships and core business processes must be digitally enabled.
False
Internet advertising is growing at approximately 5 percent a year.
False
Private business investment in information technology constituted 55 percent of all invested capital in 2017.
False
Maintaining the organization's financial records is a central purpose of which main business function?
Finance and accounting
Which of the following is not one of the current changes taking place in information systems technology?
Growth in the PC platform
Which of the following is not one of the six strategic business objectives of information systems?
Improved community relations
Which of the following statements is not true?
In 2017, American businesses spent $500 billion on business and management consulting and information technology services.
Which of the following statements best describes organizational culture?
It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.
Verizon's use of a web-based digital dashboard to provide managers with precise real-time information enabled it to improve which of the following?
Managerial decision making
The total number of food items with storage temperature problems is an example of which of the following?
Meaningful information
Which of the following statements is not true?
Most PCs manufactured in China use microprocessor chips manufactured in Korea.
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?
Operational excellence
In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business?
Operational management
Data management technology consists of which of the following?
Software governing the organization of data on physical storage media
Which of the following is an example of a business using information systems to improve customer and supplier intimacy?
The Mandarin Oriental's use of computers to keep track of guest preferences
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:
culture.
The Toxic Substances Control Act requires firms to retain records of employee exposure to toxic chemicals:
for 30 years.
All of the following describe the effects of globalization except:
increases in transaction costs.
Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's:
information technology (IT) infrastructure.
The three activities in an information system that produce the information organizations use to control operations are:
input, processing, and output.
Data collected at checkout counters in a grocery store is an example of:
input.
Output:
is the result of processing raw input data into meaningful information.
Converting raw data into a more meaningful form is called:
processing.
All of the following are examples of environmental actors in an information system except:
sales force.
In a hierarchical organization, the upper level consists of:
senior management.
A corporation that funds an employee training program to build computer skills could be seen as investing in which main category of complementary assets?
Managerial
Which of the following is an example of raw data from an automobile manufacturer?
One Subaru Outback sold July 27, 20176 in Mohegan Lake, New York for $24,000
Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following?
Operational efficiency
Which of the following is the key business objective behind the technologies implemented by PCL Construction, as discussed in the chapter-opening case?
Reduced delays in document management
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?
Survival
A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective?
Survival
Which of the following best describes the primary reason for implementing a new information system, from a business perspective?
The system will create new value for the firm, beyond its costs.
Which of the following statements about digital firms is not true?
Today, most firms are fully digital.
A business model describes how a company produces, delivers, and sells a product or service to create wealth.
True
In ________, raw data is systematically acquired and transformed during various stages that add value to that information.
an information value chain
All of the following are new technology-related trends in MIS except:
co-creation of business value.
Thomas Friedman's description of the world as "flat" refers to:
the flattening of economic and cultural advantages of developed countries.
