ISDS 3001 Final
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?
$1
"A system mainly concerned tic automating recurring activities and structuring day-to-day activities to ensure that they are preformed with speed and accuracy" is:
A TPS
A company is looking for a person with a business degree, a strong background in finance and leadership experience. What is the company most liking looking for?
A functional manger
Response lag is:
A measure of the 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
A long-term proposal that identifies new systems, new projects, or new directions for the IS organization is an example of:
A strategic initiative
When a company is faced with a security threat, they have which three strategies available to them?
Acceptance, reduction, and transference
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: The objective is to predict future future developments by evaluating trends It is concerned with high-level, long-term decisions It is highly unstructured and often ad hoc It is often supported by Executive Information Systems (EIS)
Which of the following balances pay-per-use against charging the department that uses the IS functions directly?
Allocation
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 and IT-dependent strategic initiative is measured by:
An estimate of the likely time delay competitors will face in replicating the leader's initiative
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:
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 over time is important or you to recognize as it it often the basis for rejuvenating barriers to erosion. Such a process is called:
Asset-stock accumulation
Which of the following terms is related to the ability to overlay information on top of a photograph
Augmented Reality
When categorizing eCommerce initiatives by company structure, which category does Walmart fall into?
Brick and clicks
When categorizing eCommerce initiatives by transactions type, which category does an Online Travel Agency such as Expedia fall into?
Business-to-Consumer (B2C)
You own a company and you realize your firm has a very weak IT strategy. Who should you replace?
CIO
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:
Capability development
Which of the following are the two main dynamics for rejuvenation and strengthening of barriers of erosion?
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?
Chargeback
There are three main methods used by modern organizations to fund IS. These include:
Chargeback, Allocation and Overhead
What is the top level position in the IT function?
Chief Information Officer (CIO)
Which two major trends have supported the rapid development in IoT:
Commoditization and price decline of sensors & emergence of cloud computing
What is the difference between a data warehouse and a 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, Cortana, Google Assistant are examples of voice user interfaces. Which of the following trend is most closely related to the fact that these interfaces are now widely available?
Computer have become easier to use
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:
Decide what the role of information systems and technology should be in the organization
Network effects are associated with:
Demand-side economies of scale
Which of the following terms is related to capturing data in real-time, as things happen?
Digital Data Genesis
A business school has developed a new leave portal for all its employees and decides to immediately switch from 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:
Direct
When discussing the impacts of the internet, we observed that marketplaces like Amazon or Alibaba are edging out the middlemen. We referred to this opportunity of 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 categorize this type of business change?
Do things better
Information goods are not:
Easy to produce
What we have defined as: "an online exchange of value"?
Electronic commerce
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?
Evaluate and Accept
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?
Factory
A customer's willingness to pay is the same as the price they pay.
False
Digital manufacturing consists of the use of computers to design objects.
False
Function creep is the situation where data collected for a stated or implied purpose is later on reused for the same purpose.
False
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
Outsourcing is the process of engaging a foreign provider to supply the products or services the firm no longer intends to produce internally.
False
Technical feasibility is concerned with taking the system requirements document and producing a robust, secure, and efficient application
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 is mostly based on mobility and mobile applications
False
Which of the following is not one of the advantages related to making your own systems?
Faster roll out
Which of the following is an advantage of custom development?
Flexibility and control
What is the revenue model of a firm that initial gives away its products or service for free and later attempts to charge for premium service?
Freemium
Total Cost of Ownership is a financial estimate designed to explicitly recognize the:
Full life cycle costs of IT assets
The two major components of the IT resources barrier are:
IT assists and IT capabilities
Which of the following is NOT a barrier to erosion of advantage?
IT team barrier
Which of the following environments are not a part of the mixed reality (MR) continuum?
Imagined reality
Which of the following is a primary activity?
Inbound logistics
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:
Increase user confidence and trust in Facebook by ensuring improved security measures within the platform
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?
Informational
What are the three steps that occur during the implementation phase of the SDLC?
Installation, Operations, Maintenance
Which one of the following is not one of the three main phases of the IS cycle?
Integrating transaction processing systems
Enterprise systems are built around which concept?
Integration
Why do we need to create an Information System Vision during the strategic IS planning process?
It defines the role that information systems should play in the organization
Why is a Trojan horse not a virus?
It does not self-replicate
Why is security considered a negative deliverable?
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:
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
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?
Mitigating internal threats through monitoring
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?
Moore's law will continue to make computers more powerful and pervasive, but it is general managers who must figure out how to use them to create value for organizations
Are the terms information systems and information technology synonymous?
No because information technology is a component of modern information systems
Is IT an indistinct commodity?
No, because IT ranges from extremely complex technology (e.g., large data warehouses, infrastructure projects), to small applications (e.g., a personal web site)
Napoleon's army would not need an information system. Is this statement correct?
No, they would need an IS to run their operations like keeping track of supplies and soldiers' assignments
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?
Open source development
In the context of digital technology we have defined 'intelligence' as the ability of a digital computer to:
Perform computations to process information
Which of the following is an automated method of seeking passwords?
Phishing
Which of the following is a viable method of dealing with internal security threats?
Policies regarding what computing resources are accessible to whom
Which of the following is not an example of digital data genesis?
Posting a birthday card to your friend through FedEx
Which kind of analytics make use of statistical modeling and machine learning algorithms?
Predictive analytics
Which of the following statements is not a part of the "agile manifesto" for software development:
Processes and tools over individuals and interactions
When categorizing eCommerce initiatives by structure, which category does Spotify fall into?
Pure play
If a company was based in Montgomery, Alabama, which of the following would be considered an offshoring activity?
Sending the help desk function to Mexico
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 Informational system?
Structure
What is the revenue model of Netflix?
Subscription
Which of the following is NOT an element of an information system?
Subsystem
A gold standard set of training examples is typically used in:
Supervised machine learning
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?
System selection and acquisition
When designing an information system you must optimize the IS as a whole, not each individual component. This is because the components of an IS interact with one another. We have termed this phenomenon:
Systemic effects
The ATMs 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 systemic effects, you could intervene on any one of the four components of the information systems to address the problem. Which intervention would be most appropriate for the bank in this case?
Tech. You should upgrade all atms to a newer version of the operating sys
Added value is:
That portion of the total value created that would be lost if the firm did not partake in the exchange.
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 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 introduced the notion of Business Process Reengineering (BPR) to refer to:
The fundamental rethinking and radical design of a firm's existing business processes
Which of the following is NOT an advantage offered by the information system planning process?
The information systems plan is an informal contract that specifies the objective of information systems deployment and the responsibilities of the parties involved
Who owns the internet?
The internet is owned by millions of entities
Supplier opportunity cost is:
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?
The organizations whose 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 value 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
One of your friends who is enrolled in the college of Business tells you: "its'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 5 publicly traded companies are all technology companies, because software is now a key driver of business success
The iPod's entrance into the music player-industry caused the increased threat of which of the following:
Threat of substitutes or services for other music players
What is the focus of 'predictive analytics'?
To better understand what will occur
Why is the Systems development Life Cycle methodology typically referred to as "the waterfall model"?
To stress the fact that phases are sequential and iteration (or going back) should be
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
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
An IS has two subsystems, a social and technical one
True
IoT devices rely on cloud services as the backbone of their computational power.
True
Smart devices are digital computers in the shape of everyday objects that are capable of interconnecting to exchange data.
True
The difference between cybersecurity and privacy is that whereas cybersecurity is about safe keeping of collected data, privacy is about informed consent and permission to collect and use identifying information.
True
The four quadrants of the strategic impact grid are the factory, strategic, support, and turnaround.
True
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
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 the risks and costs associated with the initiative with competitors that are a part of the consortium.
True
If you hear the statistic: "There are almost 3 billion smartphones in use in the world today ." Which of the following trend is it 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
Security should be on managers' priority list because of peculiar characteristics that run the risk of leaving it what?
Underfunded
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. You think this initiative will be very disruptive to the structure component of the existing car dealership information system. Why?
Virtual reality will significantly change the relationship between customers and sales associates, reducing their chance to earn commissions
Your book describes the systems selection process in-depth. Which of the following is not a step in the system selection process?
Visit vendor sites
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?
Yes because iPet is the only firm in the market able to create five dollars worth of value
Is an information system a sociotechnical system?
Yes, because it includes a social subsystem and a technical subsystem
Which of the following is an example of mirroring capabilities?
Your university library electronic reservation system
The CSLC should be viewed from which viewpoint?
customers
When categorizing eCommerce initiatives by transactions type, which category does electronic filing of income taxes with the federal government fall into?
eGovernment
The following statement: "We will store data centrally for all mission critical applications" is an example of:
information systems guideline
Risk Audit provides the basis for:
risk analysis
A brand name is a driver of value creation:
yes, as long as the brand increases customer willingness to pay.