toreezy intro to business information systems 7-9

One of the advantages of cross-functional systems is that when a transaction takes place anywhere globally ________ is aware of it immediately.

the entire organization

What is the biggest disadvantage of radio transmissions?

they are susceptible to interference

What is the main purpose of cross-functional systems?

to integrate the processes and activities of the entire organization

the main purpose of a functional system

to record the transactions of one stand-alone department

The accounting system is responsible for tracking all the of the organization's transactions and their associated reports.This includes all of the following EXCEPT ________.

tracking customer orders

Which of the following describes the service provided by a router?

traffic maintenance

The main purpose of a functional system is to record the ________ of one stand-alone department. This allowed the system to be customized and simplified for the users without a lot of extraneous functionality that would be required if it interacted with other departments in the organization.

transactions

The factor of supply chain performance which concerns the movement of materials in the supply chain is called ________.

transportation

Which of the following does NOT characterize the nature of cross-organizational systems?

used to communicate across a single organization

If an organization successfully manages its ________, it can increase its profit.

value chain

One of the concerns of cloud computing is the ongoing debate about ________.

who owns the data

________ refers to transmission of data by electromagnetic waves.

wireless communication

One of the disadvantages of Cloud is that an organization ________.

cannot be sure that data is private and secure

The SCM system is a ________ system when used in an organization and a ________ system when used and linked with other businesses.

cross-functional, cross-organizational

Most Web sites are ________, which makes for easier targets by hackers because they do not have the security that ________ offer.

free access sites, private sites

The ________ consists of the organization's computer, network, and the application required to access the vendor's cloud computing system.

front end

difference between functional and cross-functional information systems

Functional: Focus is individual departments. Scope is business function. Decision making is top-down. Information system ownership is departmental. Cross-functional: Focus is the entire organization. Scope is business process. Decision making is team consensus (flattened approach). Information system ownership is organizational.

A ________ represents the type of medium used to transmit data from the transmitting device to the receiving device.

communication channel

supply chain management (SCM)

a system that oversees materials, data, and finances to provide information needed to manage supply chain tasks

The benefits of using Web 2.0 include all of the following EXCEPT ________.

access to information is dependent on the Internet

Many systems are designed to ________.

allow a customer to enter orders directly, monitor where the orders are logistically, and to access assistance when needed

Cloud computing ________ can be divided up into what is referred to as the front end (the organization's computer) and the back end (the vendor's system).

architecture

Large numbers of people ________.

are able to communicate and collaborate at the same time on Web 2.0

The potential for ________ between the organizations involved is a disadvantage of cross-organizational systems.

conflicts

enterprise-wide systems/enterprise resource management systems

cross-functional systems that encompass all aspects of the organization

The advantages of the ________ type of communication include simplicity, inexpensive hardware, and fast setup.

asynchronous

Advantages of using ________ include insulation from electrical interference and good signal transmission.

coaxial cable

Which network tool would provide opportunities for posting ideas and receiving feedback from others?

discussion forum

Functional systems lead to ________ as a result of using different systems and disrupting the flow of those processes between departments.

disjointed business processes

Wireless communication refers to transmission of data by ________ instead of sending data over a wired device.

electromagnetic waves

Cross functional processes help resolve problems by________.

eliminating duplication of data

Cloud is used to store data for an organization. Data would be transferred over the Internet with ________, and would be accessible from anywhere with connectivity.

encryption

A big disadvantage of ________ systems is that most organizations must adapt to the industry blueprint instead of the system adapting to the organization.

enterprise-wide

Which type of communications channel includes fast speeds of transmission?

fiber optic

The ________ covers all the activities of the personnel department.

human resource system

Personnel recruitment, compensation management, employee evaluation, training, and planning for future needs are all part of the ________ system.

human resources

With ________, an organization might pay for the storage it needs, with storage expansion available over the Internet.

infrastructure-as-a-service

The main disadvantage of functional systems is that they are not ________ other functional systems.

integrated with

One of the advantages of Web 2.0 is that ________.

large numbers of people can communicate and collaborate

What type of transmission uses super-narrow and focused laser beams to connect local area networks in two buildings?

light wave

Determining the demand for products the organization sells is a big part of the ________ system.

marketing

The ________ part of the system tracks programs and specials, such as advertising, promotions, and giveaways.

marketing

A company analyzes past sales levels and makes estimates of future sales to generate a ________.

master production schedule

disadvantages of customer relationship management systems

mplementation: Many companies rush to implement CRM software without thinking about how it will be used. Selection of software: Many organizations do not think of the connections between the CRM system and the other systems in the organization, such as accounting. Organizations must consider connectivity to ensure that all systems in the organization communicate with one another.

________ transmissions travel in straight lines and are narrow focused, and will not pass through buildings well.

Microwave

The average annual savings for organizations that moved to the Cloud was ________.

21%

Most cloud hosts usually have another ________ of total capacity available at all times.

50%

disadvantages of cross organizational systems

Additional security required when organizations open their systems to other firms Potential for conflicts among the organizations involved. Not all cross-organizational systems are conflict-free. How are problems handled? It is best to have conflict resolution procedures detailed in agreements/contracts when the systems are created. However, while there is conflict, many organizations maintain a collaborative relationship rather than a combative one.

Which of the following is NOT one of the three parts of Web 2.0?

Advantage Assistance Function (AAF)

________ that require little monitoring, thus, saving both time and money, is an advantage of cross-organizational systems

Automated processes

________ rate is the same as the modulation rate, which means the number of symbols that can be transmitted per second.

Baud

________ takes time and is not conducive to quick fixes.

Calloboration

advantages of customer relationship management systems

Centralized database: All data are kept in one centralized area without duplication. Tracking: Potential customers can be tracked. Customer interactions: The system provides a broad overview of all customer interactions. Better customer service: Data are collected regarding customer buying habits, preferences, and so forth, all of which lead to better customer service.

disadvantages of enterprise-wide systems

Challenging to build: Enterprise-wide systems are difficult, time-consuming, and expensive to build. Expensive: Enterprise-wide systems are expensive to build and maintain. Skilled workforce: Enterprise-wide systems are so expansive that they require many people with different skill sets to build and maintain them. Adaptability: Enterprise-wide systems are rigid, without much room for organizations to change them without incurring substantial costs. In other words, organizations must adapt to the industry blueprint instead adapting the system to the organization.

advantages of cross organizational systems

Cost savings when organizations share resources Time savings when organizations work together Automated processes that require little monitoring, thus saving both time and money Ease of data flow between organizations

common types of cross-organizational systems

Credit Cards: One of the most common uses of cross-organizational systems is when an organization takes credit cards for payment. The organization's system processes a sale, usually at a checkout. When the customer pays by a credit or debit card, a link between the organization and the credit card company (acting on behalf of the financial institution) processes the payment. This requires communication and data flow between the two systems. Product Shipment: Another example of a cross-organizational system is when an organization is linked with a shipper to deliver products to customers. This is the type of system UPS has created to work closely with organizations to fulfill their shipping needs. Again, the systems must be linked to use the service. Walmart: Like many other department stores, Walmart uses extensive cross-organizational systems to link with all of its suppliers. When a customer checks out at a point-of-sale terminal, a cross-functional system records this transaction against the inventory in the store. If a certain level is reached (a reorder point), a cross-organizational system is used to automatically send an order to a supplier by using an electronic data interface. The order is received by the supplier and filled, and then a shipper (another cross-organizational system) is used to deliver the products to Walmart. British Petroleum: British Petroleum found oil in the North Sea during the 1970s and wanted to figure out a way to economically develop the field. Its solution was to work with other organizations by forming teams of workers and systems that could communicate with one another. This decision saved the company more than $100 million and developed the field ahead of schedule. Other Firms: Many businesses develop systems that can interact with those of other organizations. For example, pharmaceutical companies have systems that can be placed in doctor's offices and hospitals to be used to order drugs when needed. This provides an immediate service to customers (in this case, hospitals and doctor's offices) and helps retain them in the long term. These systems are usually integrated with the customer's systems.

________ provide(s) opportunity for posting ideas and receiving feedback from others.

Discussion forums

Why are data duplicated in a functional information system?

Each application maintains its own database.

advantages of functional systems

If a system serves only one functional area or department, it is easier to plan, design, and build than a larger system because of the simplicity of the analysis and design phases. After it is implemented, it is easier to run. It is easier to modify a functional system than a networked system because each part of the system does one thing, not multiple functions. In addition, documentation for users is easier to write because there is little or no interaction with other systems, making the writing straightforward.

disadvantages of supply chain mangagement

Increases unemployment because of the use of automated systems Requires resource investments (capital) Requires cooperation and careful integration of all organizations in the supply chain, which can be time-consuming and costly to establish

________ transmissions are used for short-range communications such as the remote on a TV.

Infrared

Drivers of Supply Chain Management

Inventory: Inventory is products kept for future sales and is closely related to supply and demand. There are many reasons for maintaining inventory, such as the following: Anticipation of future demand Purchasing advantages (for example, the ability to buy larger lots at reduced prices) Seasonal demand for products (such as Christmas and Halloween) Transportation: How do companies get products to their customers? Do they ship using their own trucks or do they hire a shipper such as UPS? These are questions that management must answer. Modes of transportation include air, rail, and truck. Electronic transportation is also a viable method if a business sells items like music and books. After the organization determines the mode of transport, it must select the network or route. The main factor considered when planning delivery routes is cost. Facilities: A facility is the location where inventory is manufactured or stored. When considering facilities, the following factors must be taken into account: Location Capacity of storage Shipping method Information: Information is data and the results of analyzing and processing those data. Types of information required include the following: Manufacturing process: Does the organization use the push process (in which the business produces the products and then gives them to the sales force to sell) or the pull process (in which market demand determines the production of products)? Forecasting: This information is key to meeting demand and reducing inventory, thus saving resources.

advantages of supply chain management

Lowers inventory, resulting in cost savings Increases sharing of supplier information throughout the chain Improves productivity and efficiency through quality and inventory controls Reduces bad debts by establishing well-defined payment terms between suppliers and organizations

When an organization uses software and/or product development tools on the provider's site and then uses that site for its data storage needs, it is using ________.

NOT software as a service

Which of the following is NOT a benefit of cloud computing for organizations?

Organizations can develop Web farms to accommodate their peak needs.

the five components of SCM

Plan: An organization must plan the SCM to include resource management of consumer demand and metrics to measure the supply chain to ensure it is efficient and cost-effective and delivers quality and value to consumers. Source: An organization must choose the suppliers that deliver the goods and services it needs. This component includes pricing, delivery, payment, inventory management, verification of received goods, and manufacturing facilities processes. It also includes metrics for monitoring and improving relationships with suppliers. Make: This component includes scheduling the activities necessary for production and testing, packaging, and delivering products. Organizations must be able to measure quality levels, production output, and worker productivity by using metrics. Deliver: Organizations must rely on supply chain managers to coordinate the logistics of receiving orders with the warehousing network, select carriers to transport products, and set up the invoicing system to receive payments on delivered goods. Return: This component involves the systems needed to process returns of defective or excess products.

advantages of enterprise-wide systems

Real-time updates: When a transaction takes place anywhere around the globe, the entire organization is aware of it immediately. It is instantly incorporated into the financial statements. This enables the organization to have the latest information any time a decision needs to be made. Cross-functional view: Upper management is able to view the entire organization at once instead of each functional area individually. Centralized database: Data are organized and kept in a single, comprehensive database, which prevents data duplication and disjointed data. Standard industry blueprints: Each industry has a standard industry blueprint that incorporates the tables and structures needed for that particular industry. An ERP system makes it easier for a business to adapt to that blueprint instead of creating a new system from scratch.

the six types of functional systems

Sales and marketing: Sales and marketing systems are designed to track prospects, entice them into becoming customers, and then generate sales to them. The marketing part of the system tracks marketing programs and specials such as advertising, promotions, and giveaways. Determining the demand for products the organization sells is also an important part of the marketing system. The sales part of the system records generated sales and customer service, and forecasts future sales for budgeting purposes. Manufacturing: Manufacturing systems control inventory, plan manufacturing needs, schedule production, and administer operations of the manufacturing department. Inventory is controlled by carefully managing raw materials as they are needed. Organizations try to maintain a low inventory level of raw materials to reduce expenses and increase profits, but need to maintain enough stock on hand to satisfy manufacturing needs. The quantity level at which raw materials are reordered is known as the reorder point. This policy is known as a just-in-time (or JIT) policy because orders for raw materials are placed just at the point of need. Seasonal demand may alter the reorder point during the course of the year. Each product an organization manufactures has a bill of materials (BOM), which is used to plan manufacturing needs. The BOM is a list of all the materials that go into making a particular product. This list might contain subassemblies (products manufactured from raw materials that are part of the finished product) in addition to other materials. The manufacturing system also identifies and monitors other resources, such as people and equipment. The manufacturing system also manages master production schedules according to one of two philosophies: The first is the pull manufacturing process, which relies on the consumer demand for products to determine the quantity manufactured. The other, known as the push manufacturing process, is based on manufacturing a number of products and relying on the sales and marketing staff to sell them. Manufacturing operations include controlling and maintaining the machinery needed. Software, robotics, lathes, and mills are some examples of machinery used in the manufacture of goods. The manufacturing lines are monitored and scheduled according to the level of production required. Operations: Operations systems manage products after they are produced. They also control the logistics of getting the products to market. Order entry, management, and finished goods are included in these systems. Customer Service: Customer service systems are some of the most important because they monitor all information related to the customer, such as order tracking, support, and training. Many systems are designed to allow the customer to enter orders directly, monitor where those orders are logistically, and access assistance when needed. Human Resources: Human resources systems cover all activities of the human resources department. Personnel recruitment, compensation management, employee evaluation and training, and planning for future needs are all part of a human resources system. Accounting: Accounting systems are responsible for tracking all of the organization's transactions and their associated reports. These include general ledger, accounts receivable and payable, financial statements, budgeting, cost accounting associated with manufacturing, and financial management of the organization's resources.

________ are more difficult when dealing with multiple functional systems versus one or two cross-functional systems because each system is different and has its own precaution requirements.

Security issues

the five characteristics of functional systems

Size: Functional systems are usually small systems used to support a single functional area or department. In some cases, they may be comprised of several smaller systems built over time. Cost: Functional systems are relatively inexpensive because they lack sophisticated tie-ins with other functional systems. Design: Functional systems host simplified designed systems of hardware and software. Function: Each part of the system supports only one function. There is little or no interaction with other programs. Organization: Functional systems can support all levels of the organization (strategic, managerial, and operational), but as single units.

________ data transmission uses two channels to transmit data and timing information.

Synchronous

________ with other systems must be worked out by upper management to produce combined information and to satisfy departmental managers.

System integration

The Internet uses a five-layer blend of two protocol architectures called ________.

TCP/IP

disadvantages of functional systems

The main disadvantage of functional systems is that they are not integrated with other functional systems. Organizations have to expend a lot of personnel time creating integrated reports because of the different types of data contained in each system and the procedures each system uses to capture the data. Functional systems are more expensive to build and maintain overall because each individual system must be supported. They are also costly to operate because of the overlap in data and the resulting inefficiencies coordinating the data. Data duplication is a problem. Different systems might have the same data, such as customer information. If one department receives a modification and makes the change in its system, other departments that do not receive the change are operating with outdated, inaccurate data. Functional systems lead to disjointed business processes as a result of using different systems, which disrupts the flow of those processes between departments. In addition, departments may feel more territorial and guarded toward their own systems and data, resulting in reduced information exchange and less teamwork.

cross-functional systems

When we look at the historical evolution of information systems, we see that cross-functional systems were the beginning of a new era. Previous types of systems included functional systems. A cross-functional system integrates the processes and activities of the entire business organization, including every department and functional area. The main purpose of these systems is to support the functions of the business in marketing, production, operation, accounting and finance, and human resources. The change to cross-functional systems required employees and management to alter the way they worked. No longer do managers have control over the functional systems within their departments.

Order entry, management, and finished goods are included in the ________.

operations system

In cloud computing, there is a big fundamental shift of the computing workload from the ________.

organization to the vendor

Web 2.0 is a versatile platform for user interfaces to participate fully using software and data storage through the Web. The value added through different applications makes it extremely valuable as a(n) ________ tool.

personal and business

information silos

pg 257

ways information systems can improve process quality

pg 257

data integrity

pg 258

problems with information silos

pg 258

how organizations solve the problems of information silos

pg 259

business process reengineering

pg 261

customer life cycle

pg 262

customer relationship management system

pg 262

inherent processes

pg 262

These ________ are highly configurable, secure, and easy to customize for specific organizations.

physical servers

In the various layers of network architecture, a ________ is a standardized set of rules for coordinating an activity between two or more entities.

protocol

Which transmissions are omnidirectional and can easily penetrate buildings?

radio

A large ________ was realized by those organizations that moved their applications to the cloud.

reduction in capital costs and IT energy

Cloud computing involves an organization ________ computer time or computer resources over networks.

renting

When organizations run functional systems, they need to maintain each system separately, which requires more ________.

resources

What type of transmission can cover half of the earth?

satellite

Which of the following would NOT be an element in functional systems?

scope is business process

The benefit of ________ is that everything can be accessed from anywhere because it is hosted on the internet.

software as a service

functional systems

some of the first systems built in organizations. These systems are designed to support only one department or functional area

The ________ component of the supply chain management says that you must choose the suppliers to transport the goods and services you need. The processes needed to do this include pricing, transporting, payment, inventory management, verification of received goods, and manufacturing facilities processes. Metrics for monitoring and improving relationships with suppliers are included.

source

The types of COS that exist include those that ________ logistics, research, sales, and online web-based businesses.

support

What is a disadvantage of an omnidirectional device?

susceptible to interference