ISDS Final Exam

Response lag is: A) A measure of the delay of competitive response to an IT-dependent strategic initiative B) The time and cost it takes to identify whether IT investments can be used to generate added value C) One of the four barriers to erosion of IT-dependent competitive advantage D) all of the choices are correct

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

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? A) 1$ B) 5$ C) 0$ D) 6$

A) 1$

A brand name is a driver of value creation: A) Yes, as long as the brand increases customer willingness to pay. B) yes, as long as the brand increases firm cost C) no, because intangibles cannot increase value D) no, because a brand is just a trick that marketing people play on us

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

A gold standard set of training examples is typically used in: A) supervised machine learning B) unsupervised machine learning C) deeply supervised machine learning D) digital manufacturing

A) supervised machine learning

The iPod's entrance into the music player-industry caused the increased threat of which of the following: A) Threat of substitutes or services for other music players B) increased bargaining power of other suppliers C) decreased rivalry amongst existing competitors D) decreased rivalry amongst all competitors- old and new

A) Threat of substitutes or services for other music players

Nike decided to implement oracle. Oracle is a database management system produced by the multinational software corporation oracle, inc. Which approach does nike's decision fall into A) system selection and acquisition B) custom design and development C) end-user development D) offshoring

A) system selection and acquisition

Why is the systems development life cycle methodology typically referred to as "the waterfall model" A) To stress the fact that phases are sequential and iteration (or going back) should be B) Because it was first popularized in a town with many waterfalls C) Because the SDLC, like prototyping, is not iterative. D) To convey the notion that getting good user requirements is important and there should be multiple opportunities to elicit user requirements

A) To stress the fact that phases are sequential and iteration (or going back) should be

The sustainability of a competitive advantage grounded in an IT-dependent strategic initiative is measured by: A) An estimate of the likely time delay competitors will face in replicating the leader's initiative B) The inverse of the number of response lag drivers associated with the barrier C) An estimate of the amount of money competitors will lose before beginning to replicate the advantage D) The amount of profit a firm loses in creating the advantage in the first place E) Competitive advantages do not last long in hypercompetitive industries.

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

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: A) Decide what the role of information systems and technology should be in the organization B) Decide what business processes are most important to the firm at a given point. C) Decide the degree of service the firm needs, and that they are willing to pay for. D) Weigh the cost/benefits of standardization and flexibility. E) Assign responsibility for information systems projects.

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

The two major components of the IT resources barrier are: A) IT assets and IT capabilities B) IT technical skills and IT management skills C) IT technical skills, IT management skills, and relationship assets D) IT infrastructure and information repositories E) software, hardware, and networks

A) IT assets and IT capabilities

Which of the following is NOT a barrier to erosion of advantage? A) IT team barrier B) IT project barrier C) IT resources barrier D) preemption barrier

A) IT team barrier

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: A) Increase user confidence and trust in Facebook by ensuring improved security measures within the platform B) increase the overall pay of all employees by 5% C) let go of the employees who reported the data breach D) Pay off any fines that are levied by Data Protection authorities and refuse to take responsibility

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

Why do we need to create an Information System Vision during the strategic IS planning process? A) It defines the role that information systems should play in the organization. B) It tells us the opportunity for new strategic directions and initiatives that new technologies make possible. C) It helps us understand the performance of our current IS resources. D) It provides a set of guidelines that the firm should follow when using and managing IS resources.

A) It defines the role that information systems should play in the organization.

Is IT an indistinct commodity? A) No, because IT ranges from extremely complex technology (e.g., large data warehouses, infrastructure projects), to small applications (e.g., a personal web site) B) Yes, because IT is a transportation mechanism, which carries digital information just as railroads carry goods C) Yes, because information technology is just one of the support activities in creating value D) No, because companies are spending more and more money in IT investment

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

Added value is: A) That portion of the total value created that would be lost if the firm did not partake in the exchange. B) The maximum amount of money the firm's customers are willing to spend in order to obtain the firm's product. C) The actual amount of money the firm disbursed to acquire the resources needed to create its product or service. D) The minimum amount of money suppliers are willing to accept to provide the firm with the needed resources.

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

Competitive advantage is: A) The condition where a firm engages in a unique transformation process and has been able to distinguish its offerings from those of competitors. B) The set of activities the company engages in to convert inputs purchased from suppliers, into outputs to be sold to customer. C) The process by which the total value created in the transaction is split among all the entities who contributed to creating it. D) The process by which new economic value is generated through a transformation process."

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

Supplier opportunity cost is: A) The minimum amount of money suppliers are willing to accept to provide the firm with the needed resources. B) The actual amount of money the firm disbursed to acquire the resources needed to create its product or service. C) The maximum amount of money the firm's customers are willing to spend in order to obtain the firm's product. D) That portion of the total value created that would be lost if the firm did not partake in the exchange.

A) 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? A) The organizations whose success in the marketplace depends heavily on their ability to introduce IT innovations B) the organizations which are more mature and less IT-intensive C) the organizations whose information systems impact their day-to-day operations D) all of the above as information systems should always play a strategic role E) none of the answers are correct

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

We defined the concept of value appropriation as: A) The process by which the total value created in the transaction is split among all the entities who contributed to creating it. B) the set of activities the company engages in to convert inputs purchased from suppliers, into outputs to be sold to customer C) the process by which new economic value is generated through a transformation process D) The condition where a firm engages in a unique transformation process and has been able to distinguish its offerings from those of competitors.

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

T/F: function creep is the situation where data collected for a stated or implied purpose is later on reused for the same purpose

False

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? A) Yes. Because iPet is the only firm in the market able to create $5 worth of value B) Yes. because iPet is the only firm in the market able to increase CWP C) No. because iPet and iDog have the same SOC D) No. because iPet and iDog create the same amount of new value

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

A long-term proposal that identifies new systems, new projects, or new directions for the IS organization is an example of: A) a strategic initiative B) a business strategy C) an information system assessment D) an information systems vision E) an information systems guideline

A) a strategic initiative

When a company is faced with a security threat, they have which three strategies available to them? A) acceptance, reduction, and transference B) acceptance, avoidance, and transference C) avoidance, reduction, and transference D) acceptance, avoidance, and reduction E) all of the choices are correct

A) acceptance, reduction, and transference

Which of the following balances pay-per-use against charging the department that uses the IS functions directly A) allocation B) chargeback C) overhead D) investment

A) allocation

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: A) an opportunity B) a strength C) a threat D) a weakness

A) an opportunity

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? A) analyze the IT-dependent strategic initiative independently B) develop IT-dependent strategic initiative as part of a consortium C) develop IT-dependent strategic initiative independently D) shelve the IT-dependent strategic initiative

A) analyze the IT-dependent strategic initiative independently

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: A) asset-stock accumulation B) value-system link concentration C) IT infrastructure investing D) capability development

A) asset-stock accumulation

Which of the following terms is related to the ability to overlay information on top of a photograph A) augmented reality B) location based social networking C) green IS D) online analytical processing (OLAP) E) digital data genesis

A) 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: A) capability development B) asset-stock accumulation C) value-system link concentration D) IT infrastructure investing

A) capability development

Which of the following are the two main dynamics for rejuvenation and strengthening of barriers of erosion? A) capability development, asset-stock accumulation B) capability analysis, asset-stock transfer C) capability development, asset-stock transfer D) capability planning, asset-stock accumulation

A) capability development, asset-stock accumulation

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 A) chargeback B) allocation C) crowdfunding D) overhead

A) chargeback

There are three main methods used by modern organizations to fund IS. These include: A) chargeback, allocation, and overhead B) chargeback, allocation, and investment C) allocation, overhead, and investment D) chargeback, overhead, and investment E) allocation, chargeback, and investment

A) chargeback, allocation, and overhead

Which two major trends have supported the rapid development in loT: A) commoditization and price decline of sensors & emergence of cloud computing B) development of AI assistants (Alexa, Siri) & development of high-speed internet C) rapid development of mobile phone applications & increasing connected devicees D) none of the choices are correct

A) 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? A) competitor B) your firm C) supplier D) customer

A) competitor

The CSLC should be viewed from which viewpoint? A) customers B) suppliers C) the firm D) competitors E) any non-participant

A) customers

Which of the following terms is related to capturing data in real-time, as things happen A) digital data genesis B) location based social networking C) augmented reality D) green IS E) online analytical processing (OLAP)

A) digital data genesis

A business school has developed a new leave portal for all its employees and decides to immediately switch the old platform to the new one. This migration is considered a low risk endeavor for the school and its employees. This type of migration approach is considered as: A) direct B) parallel C) phased D) pilot

A) direct

Mary is creating a business case for Turkish airlines. She proposes that the company "reduce the response time to customer complaints on twitter." How would you categorize this type of business change A) do things better B) do new things C) stop doing things D) none of the above

A) do things better

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? A) evaluate and accept B) specify C) select source D) establish requirements E) acquire

A) evaluate and accept

T/F: outsourcing is the process of engaging a foreign provider to supply the products or services the firm no longer intends to produce internally

False

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? A) factory B) strategic C) support D) turnaround

A) factory

Which of the following is not one of the advantages related to making your own systems A) faster roll-out B) unique tailoring C) flexibility D) control

A) faster roll-out

Which of the following is an advantage of custom development A) flexibility and control B) economically attractive C) faster roll-out D) knowledge infusion

A) flexibility and control

Total cost of ownership is a financial estimate designed to explicitly recognize the: A) full life cycle costs of IT assets B) implementation costs of IT assets C) maintenance costs of IT assets D) depreciation costs of IT assets E) end of life costs of IT assets

A) full life cycle costs of IT assets

Which of the following environments are not a part of the mixed reality (MR) continuum A) imagined reality B) augmented reality C) augmented virtuality D) virtual environment

A) imagined reality

Which of the following is a primary activity? A) inbound logistics B) human resource management C) procurement D) infrastructure development E) technology development

A) inbound logistics

The following statement: "We will store data centrally for all mission critical applications" is an example of: A) information systems guideline B) information systems vision C) information systems assessment D) information systems SWOT analysis E) strategic planning

A) 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? A) informational B) infrastructural C) strategic D) transactional

A) informational

What are the three steps that occur during the implementation phase of the SDLC? A) installation, operations, maintenance B) programming, testing, installation C) investigation, installation, operations D) programming, installation, maintenance E) investigation, testing, installation

A) installation, operations, maintenance

Why is a Trojan horse not a virus? A) it doesn't to self-replicate B) it does not have a payload C) it does not have a trigger event D) it is a legitimate form of security protection E) it does not do anything harmful

A) it doesn't to self-replicate

Why is security considered a negative deliverable? A) it produces no revenue or efficiency B) it costs money C) it produces only tangible benefits D) it does not affect profits whether it is done well or poorly E) it is largely ignored

A) 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: A) low B) high C) medium D) none of the choices are corect

A) low

Which of the following is NOT a part of the support activities carried out in a typical value chain? A) marketing and sales B) firm infrastructure C) human resource management D) procurement

A) marketing and sales

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? A) mitigating internal threats through monitoring B) detecting internal threats through monitoring C) detecting external threats through monitoring D) answer is not listed

A) mitigating internal threats through monitoring

We have identified three general approaches to the acquisition of information processing functionalities and the introduction of IT-based information systems. Which of the following is not one of them A) open source development B) custom design and development C) system selection and acquisition D) end-user development E) none of the choices are correct

A) open source development

Which of the following is an automated method of seeking passwords A) phishing B) social engineering C) software bugs D) backdoors E) careless behavior

A) phishing

Which of the following is a viable method of dealing with internal security threats? A) policies regarding what computing resources are accessible to whom B) antivirus software C) firewalls D) policies that mandate frequent updates to programs and such E) not immediately deleting terminated employees

A) policies regarding what computing resources are accessible to whom

Which of the following is not an example of digital data genesis A) posting a birthday card to your friend through FedEx B) a Fitbit monitoring the heart rate of an individual C) ordering food over Alexa D) searching for LinkedIn contacts

A) posting a birthday card to your friend through FedEx

Which of the following statements is not part of the "agile manifesto" for software development: A) processes and tools over individuals and interactions B) customer collaboration over contract negotiation C) responding to change over following a plan D) working software over comprehensive documentation

A) processes and tools over individuals and interactions

Risk audit provides the basis for: A) risk analysis B) risk reduction C) risk transference D) reward mechanism E) risk increase

A) risk analysis

If a company was based in Montgomery, Alabama, which of the following would be considered an offshoring activity? A) sending the help desk function to mexico B) dealing with a customer in china C) purchasing parts from a supplier in Los Angeles, who gets them from india D) moving the IS department completely to hawaii E) shifting sales and marketing functions to a web page so that it is accessible everywhere

A) sending the help desk function to mexico

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: A) the bargaining power of supplier B will increase B) the bargaining power of supplier B will decrease C) the bargaining power of the small coffee shop will increase D) the threat of substitute products will increase

A) the bargaining power of supplier B will increase

Which of the following is not an advantage offered by the information system planning process? A) the information systems plan is an informal contract that specifies the objective of information systems deployment and the responsibilities of the parties involved B) the planning process enables and supports intra-organizational communication C) the planning process gives the firm an overall direction and purpose when selecting IS projects D) the planning process is a cost-effective way to select IS projects to fund as part of the yearly budgeting process

A) the information systems plan is an informal contract that specifies the objective of information systems deployment and the responsibilities of the parties involved

Which of the following makes decisions on the IS investment approach, portfolio, and risk A) the steering committee B) the investment committee C) the portfolio management committee D) the risk mitigation committee

A) the steering committee

Security should be on managers' priority list because of peculiar characteristics that run the risk of leaving it what? A) underfunded B) overfunded C) overstaffed D) irrelevant E) neutralized

A) underfunded

Your book describes the systems section process in-depth. Which of the following is not a step in the system selection process A) visit vendor sites B) compile an RFP C) develop a vendor short list D) solicit proposals E) have vendors provide demonstrations

A) visit vendor sites

Which of the following is an example of mirroring capabilities? A) your university library electronic reservations system B) amazon.com monitoring customer behavior while shopping C) amazon. com's suggestive selling initiative D) vending machines embedded with microchips E) RFID tags in books

A) your university library electronic reservations system

T/F: technical feasibility is concerned with taking the system requirements document and producing a robust, secure, and efficient application

False

T/F: Digital manufacturing consists of the use of computers to design objects

False

T/F: Of the five forces, rivalry amongst competitors is the most important because it represents the best determinant of profitability for an average company within an industry.

False

T/F: The steering committee includes IT programmers who convene regularly to provide guidance to the IS function

False

T/F: a customer's willingness to pay is the same as the price they pay

False

T/F: 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

T/F: LoT devices rely on cloud services as the backbone of their computational power

True

T/F: The four quadrants of the strategic impact grid are the factory, strategic, support, and turnaround.

True

T/F: 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

T/F: 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

T/F: smart devices are digital computers in the shape of everyday objects that are capable of interconnecting to exchange data

True

T/F: the difference between cybersecurity and privacy is what whereas cybersecurity is about safe keeping of collected data, privacy is about informed consent and permission to collect and use identifying information

True

T/F: to create value you must increase customer willingness to pay more than supplier opportunity cost

True