ISDS 3001 Midterm
What is the revenue model of a firm that initially gives away its products or services for free and later attempts to charge for premium services?
Freemium
Which of the following is not one of the six key questions that senior executives should answer when getting involved in information systems management?
How many ERP systems should we have?
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
Amazon go is a new concept of retail stores designed by Amazon. The stores use a combination of image recognition, machine learning, and sensors to allow customers to pick up the products they need and just walk out of the store. The products are automatically charge to their credit card. What is the primary objective of Amazon go system?
Improve efficiency by eliminating cashiers, does drastically reducing cost of operations
Which of the following is a primary activity?
Inbound logistics
In September 2018, Facebook suffered the biggest data breach in his 14 year history as a social media platform. An attack on Facebook's computer network expose the personal information of nearly 50,000,000 users. Going forward, one of the critical success factors of Facebook would need to be:
Increase user confidence and trust in Facebook by ensuring improved security measures within the platform
The following statement: we will store that essentially for all mission critical applications Is an example of:
Information systems guideline
Which of the following is not one of the three main phases of the IS cycle?
Integrating transaction processing system
Enterprise systems are built around which concept?
Integration
Why do we need to create an information system vision during the strategic information systems planning process?
It helps define the role that information systems to play in the organization
The pharmaceutical industry is characterized by a substantial need for capital investments in research and development, strong economics of scale, well-known brand names with multiple issues on patents and government regulations. Threat of new entrance can be characterized as one of the following options:
Low
Which of the following is not an economic characteristic of information?
Low production costs
Which of the following is not a part of the support activities carried out in a typical value chain?
Marketing and sales
One of your friends who is enrolled in the college of business tells you: it's not important for me to understand IT and information systems. What would be a good argument to prove him wrong?
Moores law will continue to make computers more powerful and pervasive, but it is general and functional managers who must figure out how to use them to create value for organizations.
Are the terms information system in information technology synonymous
No because information technology is a component of modern information systems
Is IT indistinct commodity?
No, because I T ranges from extremely complex technology to small applications
Napoleons army would not need an information system. Is this statement correct?
No, they would need an information system to run their operations like keeping track of supplies and soldiers assignments.
In Abrahams coffee shop customers are willing to buy medium coffee for three dollars. He says it creates two dollars worth of value on each cup. How much is the supplier opportunity cost?
One dollar
In the context of digital technology we have defined intelligence as the ability of a digital computer to ?
Perform computations to process information
What kind of analytics makes use of statistical modeling and machine learning algorithms?
Predictive analytics
When categorizing e-commerce initiatives by company structure, which category to Spotify fall into?
Pure play
The information systems in organizational change which heavily involved people process and technology components of the information systems is called?
Second order change
A long-term proposal that identifies a new systems, new projects, or new directions for the IS organization is an example of:
Strategic initiative
A market is likely to tip when there are:
Strong economies of scale and low need for product variety
Which of the following is not part of the organizational context of an information system?
Structure
What is the revenue model of Netflix?
Subscription
Which of the following is not an element of an information system?
Subsystem
When designing and information system you should optimize the IS as a whole,Not each individual components. This is because the components of an IS interact with one another. We have termed this phenomenon?
Systematic effects
The ATM of your bank still run the windows XP operating system. In 2018 Microsoft decided to stop supporting windows XP. As a consequence, no more security update will be released for it. Because of systematic ethics, you could intervene on any one of the four components of the information systems to address this problem. Which intervention would be most appropriate for the bank in this case?
Technology. You should upgrade all ATM's to a newer version of the operating system.
Added value is:
That portion of the total value created that would be lost if the firm did not partake in the exchange
Who owns the Internet?
The Internet is owned by millions of entities
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 It's needs in terms 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 is offerings from those of competitors
In chapter 3 the book briefly introduce the notion of business process reengineering to refer to:
The fundamental rethinking and radical redesign of a firms existing business process
Which of the following is not an advantage over by the information system planning process?
The information systems plan is an in formal contract specifies the objective of information systems development and the responsibilities of the parties involved
First order change is easiest to manage because:
The introduction of an IT innovation only impacts process.
Supplier opportunity cost is:
The minimum amount of money suppliers are willing to except to provide the firm with the needed resources.
And information system vision defines the role that information system should play in the organization. For what kind of organizations the information systems play a More strategic roll?
The organizations who success in the marketplace depends heavily on their ability to introduce IT innovations
Which of the following is an example of the process element of an information system?
The procedure for enforcing security at airports using body scanners
We defined the concept of value appropriation as:
The process by which the total that you created in the transaction is split among all the entities who contributed to creating it?
Which of the following makes decisions on the IS investment approach, portfolio, and risk?
The steering committee
Which of the following is not an example of information system failure?
The system is not required so it does not deliver it's intended results
One of your friends who is enrolled in the college of business tells you: it's not important for me to understand IT and information systems. What evidence could you use to convince him that he is wrong?
The top five publicly traded companies are all technology companies, because software is now a key driver of business Success.
A business process is:
This series of steps a farm performs in order to complete an economic activity
The iPods entrance into the music player industry because the increased threat of which of the following:
Threat of substitute or services for other music players
What is the focus of predictive analytics
To better understand what will occur
Which of the following are not one of the levels of an organization according to the hierarchical perspective?
Transactional
We identified four main eras of data processing in business, what characterizes the batch era
Transactions were batched and processed by a mainframe at periodic intervals
An IS has two subsystems, a social and technical one
True
The four quadrants of the strategic impact grid are the factory, strategic ,support ,and turn around
True
The virtual value chain model is designed to map the set of sequential activities that enable a firm to transform data and input into some output information that, once distributed to the appropriate user, has higher value than the original data
True
Tippy markets are associated with strong positive feedback
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 risks And cost associated with the initiative with competitors that a part of the consortium
True
If you hear the statistic: they are almost 3,000,000,000 smart phones in use in the world today. Which of the following trends is the most closely related to?
Ubiquitous network access
Netflix has 100 million subscribers. Which of the following trends is most responsible for their success?
Ubiquitous network access
How is value created in networks?
Value is a function of the Number of connected nodes
The owner of a large car dealership in your hometown just told you he is thinking about using virtual reality to reduce the number of test drives by customers. He is all excited about the initiative because he thinks it will increase efficiency. Do you think this initiative will be very disruptive to the structural component of the existing car dealership information system. Why?
Virtual reality will significantly change the relationships between customers and sales associates, reducing the chance to earn commissions.
You invented the iPet,An app that lets pet owners track their animals. There is only one competitor, a dog, and it produces a similar product. Your analysis shows that SLC for iPet and I dog is the same: $20. But CWP for iPet it's $25 in for Idog it is $23. Do you have a competitive advantage
Yes because iPet is the only firm in the market able to create five dollars worth of value
A brand-name is a driver of value creation:
Yes, as long as the brand increases customer willingness to pay
Is an information system a Socio technical system?
Yes, because it includes a social subsystem and a technical subsystem
What is the top level position in the IT function?
Chief information officer (CIO)
You own a company and realize you have a weak IT Strategy, who should you replace?
Chief information officer (CIO)
What is the difference between a data warehouse in the data Mart?
Compared to a data warehouse, a data mart is smaller and easier to build.
Which of the following is An entity that does not share the total value created by a transformation made in your firm?
Competitor
Siri/Alexa/Google Assistant/Cortana are examples of voice user interface.Which of the following trend is most closely related to the fact that these interfaces are now widely available?
Computers have become easier to use
A system mainly concerned with automating recurring activities and structuring day today activities to ensure that they are performed with speed and accuracy is:
A TPS
A company is looking for someone with a business degree, a strong background in finance and leadership experience. What is the company most likely looking e?
A functional manager
Response lag is:
A measure of a delay of competitive response to an IT dependent strategic initiative
Which of the following is a simple definition of the Internet?
A network of networks
What is a two sided network ?
A network that has two types of members
The CSLC should be viewed from which viewpoint?
Customers
Network effects are associated with:
Demand-side economies of scale
When discussing the impacts of the Internet, we observed that marketplace is like Amazon or Ali Baba are edging out the middleman. We referred to this opportunity digitalization as :
Disintermediation
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 categorizes type of business change?
Do things better
When categorizing e-commerce initiatives my transaction type, which category does electronic filing of income taxes with the federal government fall into?
E government
Information goods are not:
Easy to produce
What have we defined as an online exchange of value?
Electronic commerce
The CSLC is broken down into 13 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 5400 flights daily. It's infrastructure and able to Delta to operate with a need a degree of efficiency and effectiveness. Even small disruptions Can endanger Delta's well-being 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
Of the five forces,Rivalry a monks competitors is the most important because it represents the best determinant of profitability for an average company within an industry
False
The steering committee includes IT programmers who convene regularly to provide guidance to the IS function
False
With the term Web 2.0, we refer to the second coming of the services provided over the Internet. More specifically,web 2.0 it's mostly based on mobility and mobile applications
False
When categorizing e-commerce initiatives by company structure, which category does Walmart fall into?
Bricks and clicks
When categorizing e-commerce initiatives by transaction type, which category does an online travel agency such as Expedia fall into?
Business to consumer (B2C)
What is the revenue model of Google?
Advertisement support
Which of the following is correct regarding the characteristics of decision making at the executive level of an organization
All choices are correct
Positive feedback refers to what?
An economic condition where the stronger gets stronger and the weaker get weaker
The sustainability of a competitive advantage grounded in an IT dependent strategic initiative is measured by
An estimate of the likely time delay competitors or face in replicating the leaders initiative
As part of it's IS Strategic business planning process, and multi national large bank is conducting a SWOT analysis to review how well equipped it is to achieve his vision in accordance with the newly developed guidelines. The bank is globally recognized as one of the most innovative institutions in the industry that tend to keep up with the latest technology trends.In this context, block chain, the distributed ledger technology, is likely to be perceived by the bank as:
An opportunity
Which of the following is an example of a managerial staff position in the IT function?
Analyst
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
The process by which a firm accrues Or builds up a resource overtime is important for you to recognize as it is often the basis for rejuvenating barriers to erosion. Such process is called:
Asset- stock accumulation
The process by which an organization is able to improve its performance overtime by developing its ability to use available resources for maximum effectiveness is known as:
Capability development
Which of the following are the two dynamics for rejuvenation and strengthening of barriers of erosion?
Capability development, asset stock accumulation
Company ex is charge for networking expenses based on the volume of traffic it initiates.Which of the following IS funding approaches fits the example
Charge back
There are three main methods used by modern organizations to fund IS. These include:
Charge back, allocation, and overhead
Which of the following is an example of mirroring capabilities?
Your university library electronic reservation system
