Chapter 1 - True/False

Studies have consistently shown that firms who invest greater amounts in information technology receive greater benefits than firms that invest less.

False, even though generally speaking it is true.

An IT infrastructure provides the platform on which the firm can build its information systems.

True

Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed.

False, information systems consist of something different.

There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology.

False, instead of information technology the fourth function is human resources.

Knowledge workers assist with paperwork at all levels of the firm.

False, not all levels do paperwork.

A business model describes how a company produces, delivers, and sells a product or service to create wealth.

True

A firm that invests in efficient business processes is making an investment in organizational complementary assets.

True

In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company.

True

Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments

True

Internet advertising is growing at approximately 10 percent a year.

True

The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems.

True

The dimensions of information systems are management, organizations, and information technology.

True

UPS's use of Web-based tools that allow customers to embed UPS functions such as tracing and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy.

True

A fully digital firm produces only digital goods or services.

False, an example is eBAY

Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.

False, computer literacy is the knowledge of information technology.

Intranets allow firms to work easily with third-party suppliers and vendors.

False, intranet is only applied within the business.

Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.

False, they are called business functions not processes.

A substantial part of management responsibility is creative work driven by new knowledge and information.

True

Computers are only part of an information system.

True

Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.

True