Information Systems Today Chapter 2

________ are a set of activities an organization performs in order to reach their business goals.

Business processes

Which type of innovation is best described as using innovative ways to connect offerings with customers?

Channel innovation

Which of the following is NOT a typical revenue model in the digital world?

Channel marketing

The steps (in order) in the disruptive innovation cycle is ________.

Choosing, Matching, Executing, and Assessing

________ is the securing of business financing from individuals in the marketplace.

Crowdfunding

________ are new technologies, products, or services that eventually surpass the existing dominant technology or product in a market.

Disruptive innovations

________ decisions are referred to as unstructured decisions because the problems are relatively complex and non-routine.

Executive-level

________ decisions deal with complex problems with broad and long-term ramifications for an organization.

Executive-level

The Game, Inc. company is offering a new game that can expand exponentially to new users. The company is offering the very basic game for free allowing the user to upgrade to several levels of a paid subscription model. Choose the selection below that best exemplifies this revenue model.

Freemium

Which of the following is an example of a best-cost provider strategy?

Global furniture retailer Rusicwood provides customers with affordable solutions for better living by offering home furnishings that combine good design, function, and quality with low prices.

Personnel forecasting is a functional area information system contained within the ________ department of an organization.

Human Resources

Which of the following defines marginal cost?

It is the cost of producing an additional unit of output.

Which of the following actions of a firm suggests that it uses the freemium approach for applying freeconomics?

It offers basic services for free, but charges a premium for special features.

________ decision making in an organization is referred to as semistructured decision making because solutions and problems are not clear-cut and often require judgment and expertise.

Managerial-level

According to ________, the number of transistors that could be squeezed onto a silicon chip would double every 18 months.

Moore's law

Inventory management is an application that is part of the ________ functional area.

Operations

________ reflect(s) the organization's specific assets that are utilized to achieve cost or product differentiation from its competitors.

Resources

What example of a platform based business model would Airbnb and Uber represent.

Service

Which type of innovation is best described as supporting and enhancing the value of an offering?

Service innovation

Which type of innovation is best described as using the company's talent and assets in innovative ways?

Structure innovation

Which of the following statements is true about the e-business innovation cycle?

The vertical dimension of the cycle shows the extent to which an organization derives value from a particular information technology and the horizontal dimension shows time.

Which of the following is NOT one of Porter's five primary forces?

Threat of flooding the industry with excellent products

________ is the process of analyzing an organization's activities to determine where value is added to products and/or services and what costs are incurred for doing so.

Value chain analysis

________ use(s) information systems to enhance a person's perception of reality by providing relevant information about the user's surroundings with the use of special glasses or other devices.

Virtual reality

What a company does, how a company uniquely does it, how a company gets paid for doing it, and what costs are involved are all part of an organization's ________.

business model

For a firm, reduced prices, need for increased quality, and demand for more services would result due to ________.

customers' bargaining power

Which of the following is an implication for firms that have a threat of new entrants into their market?

decreased market share

Identify the focus of managers at the tactical level of an organization.

deploying organizational resources to achieve the strategic objectives of the organization

The extent to which tasks are accomplished well is called ________.

effectiveness

The extent to which goals are accomplished faster, at lower cost, or with relatively little time and effort is called ________.

efficiency

At the ________ level of an organization, information systems provide key performance indicators (KPIs) that are focused on balancing performance across the organization.

executive

At the ________ level of an organization, managers focus on long-term strategic questions facing the organization, such as which products to produce, which countries to compete in, and what organizational strategy to follow.

executive

Jane Estroisch works as a manager in a multidomestic firm. She focuses on the long-term questions facing the organization such as which countries to compete in and what organizational policies to follow. Jane is in the ________ level of the organization.

executive

Managers at the ________ level include the president and chief executive officer, vice presidents, and possibly the board of directors.

executive

To assist ________ decision making, information systems are used to obtain aggregate summaries of trends and projections of the future.

executive-level

The term given to a company that is first to enter a market thus creating a competitive advantage is ________.

first-mover advantage

Iver Audio is an all-in-one music management tool that was first marketed in 1999. Most users can use the Basic version that is free, but a $19.99 upgrade provides extra features such as supertagging, faster ripping and burning. Which of the following explains this approach for applying freeconomics?

freemium approach

According to the disruptive growth engine, executive leadership will allow a firm to ________.

gain credibility and to bridge sustaining and disruptive product development

A metric deemed most critical to accessing progress toward a certain goal is referred to as a(an) ________.

key performance indicator

Walmart pursues a ________ strategy by which it offers the best prices in its industry on its goods and/or services.

low-cost leadership

Which of the following actions is a part of operational planning?

making day-to-day decisions that are highly structured and recurring

At the ________ level of an organization, functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization.

managerial

According to basic economics within a competitive marketplace, the price of a product is set by its ________.

marginal cost

In an e-business innovation cycle, after an organization scans the environment for new emerging and enabling technologies, the next step is to ________.

match the most promising new technologies with current economic opportunities

Which of the following actions would an organization take if it decides to pursue a best-cost provider strategy?

offering products or services of reasonably good quality at competitive prices

At the ________ level of a firm, the routine, day-to-day business processes and interactions with customers occur.

operational

Information systems at the ________ level of an organization often help in automating repetitive activities.

operational

In the context of organizational requirements for innovation, to deploy innovative information systems well, people in the organization must be willing to do whatever they can to bypass and eliminate internal bureaucracy, set aside political squabbles, and pull together for the common good. These requirements can be categorized as ________ requirements.

process

Value creation occurs when an organization can ________.

provide products at a lower cost or with superior benefits to the customer

Organizations deploying innovative information systems must have the human capital necessary to deploy the new systems. These requirements can be categorized as ________ requirements.

resource

With respect to organizational decision-making levels, for ________ decisions, some procedures to follow for a given situation can be specified in advance, but not to the extent where a specific recommendation can be made.

semistructured

A ________ is defined as an economic system in which assets or services are shared between private individuals, either free or for a fee.

sharing economy

The emergence of a highly successfully business that is technology based with potential for growth and scalability is often referred to as a(an) ________.

startup

Managers in the ________ level of an organization are referred to as "executives."

strategic

The executive level of an organization is also known as the ________ level.

strategic

When senior managers at the executive level of the organization conduct ________, they form a vision of where the organization needs to head.

strategic planning

With respect to decision making in organizations, ________ decisions are those in which the procedures to follow for a given situation can be specified in advance.

structured

With respect to organizational decision-making levels, ________ decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention.

structured

The managerial level of an organization is also known as the ________ level.

tactical

If the ABC company is losing customers on a regular basis, the force that would explain this is most likely to be ________.

the threat of new entrants or the bargaining power of customers

Why are information systems typically used at the operational level?

to increase efficiency

________ refers to anything that occurs as part of a daily business of which a record must be kept.

transaction

With respect to the components of a business model, ________ is the utility that the product/service must offer to customers.

value proposition