ISDS 3001 Burns Final Exam

In Abraham's coffee shop customers are willing to buy medium coffee for 3 dollars. He says it creates 2 dollars' worth of value on each cup. How much is the supplier opportunity cost?

1$

Response lag is:

A measure of the delay of competitive response to an IT-dependent strategic initiative

A long term proposal that identifies new systems, new projects, or new directions for the IS organization is an example of:

A strategic initiative

The steering committee includes IT programmers who convene regularly to provide guidance to the IS function.

False

Total Cost of Ownership is a financial estimate designed to explicitly recognize the:

Full life cycle costs of IT assets

We defined the concept of value appropriation as:

The process by which the total value created in the transaction is split among all the entities who contributed to creating it.

The CSLC should be viewed from which viewpoint?

Customers

When a company is faced with a security threat, they have which three strategies available to them?

Acceptance, reduction, and transference

Which of the following balances pay-per-use against charging the department that uses the IS functions directly?

Allocation

The sustainability of a competitive advantage grounded in an IT-dependent strategic initiative is measured by:

An estimate of the likely time delay competitors will face in replicating the leader's initiative

As part of its' IS strategic business planning process, a multinational large bank is conducting a SWOT analysis to review how well equipped it is to achieve its vision in accordance with the newly developed IS guidelines. The bank is globally recognized as one of the most innovative institutions in the industry that tends to keep up with the latest technology trends. In this context, blockchain, the distributed ledger technology, is likely to be perceived by the bank as:

An opportunity

The process by which a firm accrues or builds up a resource over time is important for you to recognize as it is often the basis for rejuvenating barriers to erosion. Such process is called:

Asset-stock accumulation

Which of the following terms is related to the ability to overlay information on top of a photograph?

Augmented Reality

The process by which an organization is able to improve its performance over time by developing its ability to use available resources for maximum effectiveness is known as:

Capability development

Company X is charged for networking expenses based on the volume of traffic it initiates. Which of the following IS funding approaches fits this example?

Chargeback

There are three main methods used by modern organizations to fund IS. These include:

Chargeback, Allocation, and Overhead

Which two major trends have supported the rapid development in IoT:

Commoditization and price decline of sensors & emergence of cloud computing

Which of the following is an entity that does NOT share the total value created by a transformation made in your firm?

Competitor

There are six key questions that senior executives should answer when getting involved in information systems management. The first question is "How much should we spend on IT?" This question is intended to:

Decide what the role of information systems and technology should be in the organization.

Which of the following terms is related to capturing data in real-time, as things happen?

Digital Data Genesis

The CSLC is broken down into thirteen stages. One of these involves making sure that the goods or services that have been purchased actually meet the applicable specifications. Which stage is this?

Evaluate and Accept

Delta Airlines is a major United States airline which, along with subsidiaries and regional affiliates, operates over 5,400 flights daily. Its infrastructure enables Delta to operate with the needed degree of efficiency and effectiveness. Even small disruptions can endanger Delta's wellbeing and future viability as an airline carrier. Which quadrant of the strategic impact grid do you think Delta can be placed in?

Factory

A customer's willingness to pay is the same as the price they pay

False

Digital manufacturing consists of the use of computers to design objects.

False

Function creep is the situation where data collected for a stated or implied purpose is later on reused for the same purpose.

False

Outsourcing is the process of engaging a foreign provider to supply the products or services the firm no longer intends to produce internally.

False

The two major components of the IT resources barrier are:

IT assets and IT capabilities

Which of the following is NOT a barrier to erosion of advantage?

IT team barrier

Which of the following is a primary activity?

Inbound logistics

In September 2018, Facebook suffered the biggest data breach in its 14-year history as a social media platform. An attack on Facebook's computer network exposed the personal information of nearly 50 million users. Going forward, one of the critical success factors of Facebook would be to:

Increase user confidence and trust in Facebook by ensuring improved security measures within the platform

The following statement: "We will store data centrally for all mission critical applications" is an example of:

Information Systems Guideline

Bonita Dawn Boutique is an online vintage chinaware business. They have decided to implement an order tracking software for their business. This project is meant to increase control and improve information management (order tracking) for the business. What kind of project can this be considered as?

Informational

Why do we need to create an Information System Vision during the strategic IS planning process?

It defines the role that information systems should play in the organization

Why is a Trojan horse not a virus?

It does not self-replicate

Why is security considered a negative deliverable?

It produces no revenue or efficiency

The pharmaceutical industry is characterized by a substantial need for capital investments in research and development, strong economies of scale, well-known brand names with multiple issues on patents and government regulations. Threat of new entrants can be characterized as one of the following options:

Low

Many organizations limit their employees' access to certain websites and prevent the individual installation of new software. Which of the following best describes this practice?

Mitigating internal threats through monitoring

Is IT an indistinct commodity?

No, because IT ranges from extremely complex technology (e.g., large data warehouses, infrastructure projects), to small applications (e.g., a personal web site)

Which of the following is an automated method of seeking passwords?

Phishing

Which of the following is a viable method of dealing with internal security threats?

Policies regarding what computing resources are accessible to whom

Which of the following is not an example of digital data genesis?

Posting a birthday card to your friend through FedEx

Risk Audit provides the basis for:

Risk Analysis

If a company was based in Montgomery, Alabama, which of the following would be considered an offshoring activity?

Sending the help desk function to Mexico

A gold standard set of training examples is typically used in:

Supervised machine learning

Added value is:

That portion of the total value created that would be lost if the firm did not partake in the exchange.

A small local coffee shop has two suppliers, A and B. Supplier A went bankrupt and had to close its business. Assuming that both suppliers are able to provide the coffee shop with all its needs in term of suppliers, which of the following is likely to happen:

The bargaining power of supplier B will increase

Competitive advantage is:

The condition where a firm engages in a unique transformation process and has been able to distinguish its offerings from those of competitors.

Which of the following is not an advantage offered by the information system planning process?

The information systems plan is an informed contract that specifies the objective of information systems deployment and the responsibilities of the parties involved

Supplier opportunity cost is:

The minimum amount of money suppliers are willing to accept to provide the firm with the needed resources.

An information system vision defines the role that information systems should play in the organization. For what kind of organizations do information systems play a more strategic role?

The organizations whose success in the marketplace depends heavily on their ability to introduce IT innovations

The iPod's entrance into the music player-industry caused the increased threat of which of the following:

Threat of substitutes or services for other music players

A blockchain mechanism like bitcoin does not require the presence of a central authority (e.g. bank) for validation (accuracy and legitimacy) of the transactions.

True

IoT devices rely on cloud services as the backbone of their computational power.

True

Smart devices are digital computers in the shape of everyday objects that are capable of interconnecting to exchange data.

True

The difference between cybersecurity and privacy is that whereas cybersecurity is about safe keeping of collected data, privacy is about informed consent and permission to collect and use identifying information.

True

The four quadrants of the strategic impact grid are the factory, strategic, support, and turnaround.

True

The virtual value chain (VVC) model is designed to map the set of sequential activities that enable a firm to transform data in input into some output information that, once distributed to the appropriate user, has higher value than the original data.

True

To create value you must increase customer willingness to pay more than supplier opportunity cost.

True

When an IT initiative is being developed as part of a consortium, the leader shares the risks and costs associated with the initiative with competitors that are part of the consortium.

True

Security should be on managers' priority list because of peculiar characteristics that run the risk of leaving it what?

Underfunded

A brand name is a driver of value creation:

Yes, as long as the brand increases customer willingness to pay.

You invented the iPet, an app that lets pet owners track their animals. There is only one competitor, iDog, and it produces a similar product. Your analysis shows that SOC for iPet and iDog is the same: $20. But CWP for iPet is $25 and for iDog it is $23. Do you have a competitive advantage?

Yes. Because iPet is the only firm in the market able to create $5 worth of value

Which of the following is an example of mirroring capabilities?

Your university library electronic reservation system

After evaluating an IT-dependent strategic initiative using the sustainability framework, managers are left with three possible decisions. Which of the following is NOT one of these three decisions?

analyze the IT-dependent strategic initiative independently

Which of the following are the two main dynamics for rejuvenation and strengthening of barriers of erosion?

capability development, asset-stock accumulation

Mary is creating a business case for Turkish Airlines. She proposes that the company to "reduce the response time to customer complaints on Twitter." How would you categorize this type of business change?

do things better

Which of the following environments are not a part of the mixed reality (MR) continuum?

imagined reality

Which of the following makes decisions on the IS investment approach, portfolio, and risk?

the steering committee