ISDS 3001 Mid Term

What questions does the business model canvas answer?

1. Who is the business designed to serve? 2. What will the firm do for those customers? 3. How will the firm create its value proposition? 4. How will cash flow in and out of the business?

80/20 Rule (Pareto Principle)

80% of your sales will come from 20% of your product catalog

Pure Play

A business born on and still functioning soley on the internet. I.e. google, spotify, yahoo, etc. These businesses deal only in information goods.

What is a value proposition?

A value proposition is the specific set, or bundle, of products and services that create value for customers.

Which of the following is a simple definition of the Internet? A) A network of networks B) A user interface C) The cable infrastructure used to connect computers D) A place where network effects happen E) A connection between two or more computers

A) A network of networks

Network effects are associated with A) demand-side economies of scale B) Supply-side economies of scale C) large manufacturing facilities D) Word-of-mouth communication E) Both supply-side and demand-side economies of scale

A) Demand-side economies of scale

Which of the following is not one of the advantages related to making your own systems? Select one: A.Faster Roll-Out B.Unique Tailoring C.Flexibility D.Control

A. Faster Roll-Out

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? Select one: 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

Why is the Systems development Life Cycle methodology typically referred to as "the waterfall model"? Select one: 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

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? Select one: 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

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? Select one: A.Factory B.Strategic C.Support D.Turnaround

A. Factory

Security should be on managers' priority list because of peculiar characteristics that run the risk of leaving it what? Select one: A.Underfunded B.Overfunded C.Overstaffed D.Irrelevant E.Neutralized

A. Underfunded

Which of the following balances pay-per-use against charging the department that uses the IS functions directly? Select one: A.Allocation B.Chargeback C.Overhead D.Investment

A.Allocation

What is the revenue model of Google? Select one: A.Freemium B.Advertisement support C.Pay for service D.Subscription

Advertisement Support

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: Select one: A.Low B.High C.Medium D.None of the choices are correct

Al Low

"A system mainly concerned with automating recurring activities and structuring day-to-day activities to ensure that they are performed with speed and accuracy" is: A) a functional system B) A TPS C) An EIS D) A DSS E) None of the choices are correct

B) A TPS

Which of the following is an example of a managerial staff position in the IT function? A) Database architect B) Analyst C) Network administrator D) Developer

B) Analyst

Which kind of analytics make use of statistical modeling and machine learning algorithms? A) Prescriptive analytics B) Predictive analytics C) Descriptive analytics D) Big data analytics

B) Predictive analytics

Which of the following is NOT an element of an information system? A) Process B) Subsystem C) Technology D) People

B) Subsystem

Who owns the Internet? A) the internet is owned by the users who browse websites B) The Internet is owned by millions of entities C) The Internet is owned by the universities D) The Internet is owned by the web engineers E) The Internet is owned by the governments

B) The Internet is owned by millions of entities

What is the focus of predictive analytics? A) to better understand what has occurred B) To better understand what will occur C) To guide managerial decisions D) To better understand what should occur

B) To better understand what will occur

Netflix has 100 million subscribers. Which of the following trends is most responsible for their success? A) Digitization Law B) Ubiquitous network access C) Digital computers are increasingly complex D) Declining storage cost

B) Ubiquitous network access

What is an example of user-generated contect?

Blog comments, youtube videos, reviews, and Wikipedia

What is a two-sided network? A) A network that connects a physical network and a virtual network B) A network that has two kinds of devices C) A network that has two types of members D) A network that connects the web designers and the web users E) A network with multiple types of node connections

C) A network that has two types of members

Which of the following is not part of the organizational context of an Information System? A) Firm strategy B) IT infrastructure C) Structure D) Culture

C) Structure

In chapter #3 the book briefly introduced the notion of Business Process Reengineering (BPR) to refer to: A) A business process enacted to create a data warehouse B) the way a firm does business C) The fundamental rethinking and radical redesign of a firm's existing business processes D) the equivalent of paving the cow-paths E) A large, integrated software application designed to integrate old legacy systems

C) The fundamental rethinking and radical redesign of a firm's existing business processes

A company is looking for a person with a business degree, a strong background in finance and leadership experience. What is the company most likely looking for? A) A general manager B) A developer C) A functional manager D) A systems architect

C) a functional manager

You own a company and you realize that your firm has very weak IT strategy. Who should you replace? A) Project manager B) Strategy administrator C) Chief Information Officer (CIO) D) NEtwork administrator

C) chief information officer (CIO)

Enterprise systems are built around which concept? A) consistency B) atomization C) integration D) isolation E) durability

C) integration

Which of the following is not an economic characteristic of information? A) low distribution cost B) information goods are not consumed by use C) low production costs D) Low replication costs E) There is a high risk involved in producing information goods

C) low production costs

When categorizing eCommerce initiatives by transaction type, which category does an Online Travel Agency such as Expedia fall into? Select one: A.Consumer-to-Consumer (C2C) B.eGovernment C.Business-to-Consumer (B2C) D.Business-to-Business (B2B)

C.Business-to-Consumer (B2C)

What are channels?

Channels are the specific physical or digital conduits, or touch points, the firm utilizes to deliver value to its customers.

Define consumer-to-business

Consumer-to-business transactions occur when individuals transact with business organizations not as buyers of goods and services but as suppliers.

Define consumer-to-consumer

Consumer-to-consumer (C2C) transactions are those that enable individual consumers to interact and transact directly (like how Etsy enables individuals to sell their crafts to others or youtube/facebook who allow users to interact)

Crowdsourcing

Crowdsourcing is an online activity in which an individual or organization proposes via an open call to a heterogeneous "crowd" of individuals the voluntary undertaking of a task.

Napoleon's army would NOT need an information system. Is this statement correct? A) Yes, given the small amount of battles they fought, Napoleon's army would not need an information system. B) No, they would need IT to run their operations, even in the early 1800s. C) Yes, digital computers were not invented at the time, so Napoleon's army had no need for an information system. D) No, they would need an information system to run their operations like keeping track of supplies and soldiers' assignments.

D) No, they would need an information system to run their operations like keeping track of supplies and soldiers' assignments.

What are nodes?

Digital devices like a computer, printer, phone, etc.

Enterprise Resource Planning (ERP)

ERP is a modular, integrated software application that spans (all) organizational functions and relies on one database at the core

What have we defined as: "an online exchange of value"? Select one: A. Electronic commerce B. Electronic information goods C. Electronic business D. Electronic network effects

Electronic Commerce

A customer's willingness to pay is the same as the price they pay. Select one: True False

False

Digital manufacturing consists of the use of computers to design objects. Select one: True False

False

Function creep is the situation where data collected for a stated or implied purpose is later on reused for the same purpose. Select one: True False

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. Select one: True False

False

Outsourcing is the process of engaging a foreign provider to supply the products or services the firm no longer intends to produce internally. Select one: True False

False

Technical feasibility is concerned with taking the system requirements document and producing a robust, secure, and efficient application. Select one: True False

False

The steering committee includes IT programmers who convene regularly to provide guidance to the IS function. Select one: True False

False

What is folksonomy?

Folksonomy emerges by aggregating and compiling the individual categories created by users. The best example of this principle is a tag cloud—used, for example, to organize pictures in online sharing services such as Flickr.

What is the revenue model of a firm that initially gives away its product or service for free and later attempts to charges for premium services? Select one: A.Freemium B.Pay for service C.Advertisement support D.Subscription

Freemium

Define Identifiability

Identifiability represents the idea that mobile devices uniquely identify their user. In order to access the data grid, both smartphones and tablets utilize the cellular network and use a subscriber identification module (SIM card). Each SIM card has a unique identifier, and since telephones are usually personal devices, each user can be uniquely identified to the network.

the affiliate revenue model

In similar fashion to the advertising model, the affiliate model, pioneered by Amazon.com, seeks to generate revenue from a third party based on customer traffic to the firm's website. In this case, the referring site receives a commission once a customer who originated from the site makes a purchase on another site. This model is enabled by the ability to link pages directly to products

Firm Cost (FC)

Is the actual amount of money the firm disbursed to acquire the resources needed to create its product or service.

Supplier opportunity cost (SOC)

Is the minimum amount of money suppliers are willing to accept to provide the firm with the needed resources.

How has the Internet and its technologies changed since its inception?

It has undergone lots of front end change. The way in which it is utilized is very different now.

Marketplaces

Marketplaces (or exchanges, as they are sometimes called) are organizations that enable offer and demand for some product or service to meet and to transact. Thus, a marketplace does not take control of inventory or worry about fulfillment. Rather, it provides a "market-making" service and is compensated with fees, commission on sales, or consulting fees on more complex B2B transactions. The prototypical example of a marketplace is eBay.

Application and Data Integration

Native integration is the defining characteristic of enterprise systems. More specifically, ERPs enable application integration. With application integration, an event that occurs in one of the modules of the application automatically triggers an event in one or more of the other separate modules.

Has the underlying infrastructure of the Internet and its technologies undergone lots of change since its inception?

No. The underlying infrastructure has not changed dramatically

Online-to-offline (O2O)

Online-to-offline (O2O) refers to the use of digital technology (i.e., online) to spur transactions in physical stores (i.e., offline). Typical examples of O2O are services such as product pickups, free shipping, returns, and payments.

What are revenue streams?

Revenue streams specify how the firm "monetizes" its value proposition.

Market Efficiency

Since its advent, information technology has contributed to reduced search costs and improved efficiency of markets. The Internet and its related technologies continued and perhaps accelerated this process, empowering customers with the instruments and technologies they need to sift through large amounts of product and service data.

cloud computing

The cloud is such a departure from the traditional computing infrastructure centered on internal data centers owned by the firm that many regard it as the core innovation underpinning a new way of doing business. Business models powered by cloud computing generally revolve around software-as-a-service solutions, such as Box for business data storage or Workday for human resources and administration.

What is first order change?

The simplest order of change ensuing from the deployment of technology is automation. This level of change involves technology and processes but does not affect the sphere of the social subsystem. First-order change occurs when an IT innovation is introduced that modifies how an existing process is performed.

Total Value Created (TVC)

The total value created in the transaction is computed as the difference between customer willingness to pay and supplier opportunity cost (TVC = CWP - SOC).

Infomediaries

They link to online retailers and receive compensation for referrals as well as advertisement. Infomediaries are typically segment or product focused so as to offer domain-specific expertise. Examples of infomediaries abound, from retail products (e.g., PriceGrabber.com), to travel (Skyscanner.com), to automobiles (e.g., Edmunds.com).

What is third order change?

Third-order change represents the most pervasive and radical level of change, often referred to as transform. Third-order change subsumes first- and second-order change while also causing organizational structure disruptions. The interaction between structure and technology is substantiated by a change in the way the organization selects, uses, and manages technology. The interaction between the organizational structure and the people generally results in a change in the reporting and authority structure of the organization. A flatter or more permeable organizational structure usually emerges after the technology implementation. The interaction between the organizational structure and tasks manifests itself in a novel way of task accomplishment or a new set of tasks.

Broadcast search

This focuses on finding a single specialist, generally outside the field of expertise of the organization. The broadcast-search approach is appropriate for problems where the "right" answer exists but is not yet known by the organization.

Knowledge discovery and management

This is used to solve information gathering, organization, and reporting problems, such as the creation of collective resources. i.e. Wikipedia,

Atomicity

Transactions are atomic if one part of the transaction fails, the system must cancel the transaction. For example, if while withdrawing money at the ATM the cash dispenser jams, your balance should not be debited.

Consistency

Transactions are consistent. In other words, only valid data are committed to long-term memory and stored in the system. For example, if the airline seat assignment system requires only letters in the first-name field, no transaction with numbers in the field is accepted.

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. Select one: True False

True

IoT devices rely on cloud services as the backbone of their computational power. Select one: True False

True

Smart devices are digital computers in the shape of everyday objects that are capable of interconnecting to exchange data. Select one: True False

True

The four quadrants of the strategic impact grid are the factory, strategic, support, and turnaround. Select one: True False

True

information system failure

We can unequivocally deem an information system a failure if it is abandoned (i.e., the design and implementation phase is never concluded) or not used (i.e., the information system is completed only to be rejected by its intended users). In either case, the system is a failure because, due to nonuse, it will yield none of the promised benefits (e.g., efficiency improvements).

reintermediation

While disintermediation failed to eliminate traditional intermediaries, the Internet created opportunities for new intermediaries to exist alongside their brick-and-mortar counterparts—a process known as reintermediation. Consider the insurance industry, for instance. Today, insurance companies reach consumers directly (e.g., Progressive.com), through traditional insurance brokers, and through independent online insurance brokers (e.g., Insure.com).

define information system

a sociotechnical system that includes IT, processes, people, and organizational structure.

When categorizing eCommerce initiatives by transaction type, which category does electronic filing of income taxes with the federal government fall into? Select one: A.Consumer-to-Consumer (C2C) B.Business-to-Business (B2B) C.eGovernment D.Consumer-to-Business (C2B)

eGovernment

Customer Willingness to Pay (CWP)

is the maximum amount of money the firm's customers are ready to spend in order to obtain the firm's product.

A firm's added value

that portion of the total value created that would be lost if the firm did not take part in the exchange. the unique portion of the total value created that is contributed by the firm itself.

What is the business model?

the business model tells us who the firm's customer is, what the firm does for its customers, how it does it, and how it is going to be compensated for what it does.

organizational change is brought on by....

the introduction of new IT

Long tail

the long tail represents a phenomenon by which the frequency of an event is related to some characteristic of that same event. For example, Chris Anderson noted that only the top 10 major label music CDs were actually profitable.

firm culture

A firm's culture is defined as the collection of beliefs, expectations, and values shared by the organization's members. The firm's culture, a broad representation of how the firm does business, is an important characteristic of the organization because it captures the often unspoken and informal way in which the organization operates. Practices that are deemed appropriate in one organization may not be in another one.

firm strategy

A firm's strategy represents the manner in which the organization intends to achieve its objectives. In other words, understanding a firm's strategy tells us what the firm is trying to do and what course of action it has charted to get there.

Which one of the following i snot one of the three main phases of the IS cycle? A) Integrating transaction processing systems B) Preparing for the future C) Remembering the past D) Handling the present

A) Integrating transaction processing systems

Are the terms Information System and Information Technology synonymous? A) No because information technology is a component of modern information systems. B) Yes because information technology is a component of modern information systems. C) No because information technology is made with digital and modern information systems are made with analog. D) No because information systems is a component of modern information technology.

A) No because information technology is a component of modern information systems.

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: A) Systemic effects B) IT Infrastructure C) Organizational context D) Firm strategy

A) Systemic effects

Which of the following is an example of the process element of an information system? A) The procedure for enforcing security at airports using body scanners. B) The revenue management software that airlines use to change ticket prices. C) A tablet used to take restaurant orders at the table. D) A laptop used by a sales agent to quote prices to a client.

A) The procedure for enforcing security at airports using body scanners.

Is an information system a sociotechnical system? A) Yes, because it includes a social subsystem and a technical subsystem. B) Yes, because it includes an information technology. C) Yes, because the people component is most important. D) Yes, because it includes a people component.

A) Yes, because it includes a social subsystem and a technical subsystem.

Response lag is: Select one: 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

The sustainability of a competitive advantage grounded in an IT-dependent strategic initiative is measured by: Select one: 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

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: Select one: A.Capability development B.Asset-stock accumulation C.Value-system link concentration D.IT infrastructure investing

A. Capability development

Which two major trends have supported the rapid development in IoT: Select one: 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 devices D.None of the choices are correct

A. Commoditization and price decline of sensors & emergence of cloud computing

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: Select one: 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 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? Select one: A.Evaluate and Accept B.Specify C.Select Source D.Establish Requirements E.Acquire

A. Evaluate and Accept

The two major components of the IT resources barrier are: Select one: 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? Select one: A.IT team barrier B.IT project barrier C.IT resources barrier D.preemption barrier

A. IT team barrier

Which of the following environments are not a part of the mixed reality (MR) continuum? Select one: A.Imagined reality B.Augmented reality C.Augmented virtuality D.Virtual environment

A. Imagined reality

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: Select one: 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

The following statement: "We will store data centrally for all mission critical applications" is an example of: Select one: A.Information Systems Guideline B.Information Systems Vision C.Information Systems Assessment D.Information Systems SWOT analysis E.Strategic planning

A. Information Systems Guideline

Is IT an indistinct commodity? Select one: 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)

If a company was based in Montgomery, Alabama, which of the following would be considered an offshoring activity? Select one: 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

Added value is: Select one: 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.

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? Select one: 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: Select one: 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.

The iPod's entrance into the music player-industry caused the increased threat of which of the following: Select one: 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 Clear my choice

A. Threat of substitutes or services for other music players

Which of the following is an example of mirroring capabilities? Select one: A.Your university library electronic reservation 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 reservation system

Which of the following statements is not a part of the "agile manifesto" for software development: Select one: 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

Which of the following makes decisions on the IS investment approach, portfolio, and risk? Select one: A.the steering committee B.the investment committee C.the portfolio management committee D.the risk mitigation committee

A. the steering committee

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? Select one: A.1$ B.5$ C.0$ D.6$

A. 1$

A long-term proposal that identifies new systems, new projects, or new directions for the IS organization is an example of: Select one: A.A strategic initiative B.A business strategy C.An information systems 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? Select one: 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

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: Select one: A.An opportunity B.A strength C.A threat D.A weakness

A. An opportunity

Which of the following terms is related to the ability to overlay information on top of a photograph? Select one: A.Augmented Reality B.Location Based Social Networking C.Green IS D.Online Analytical Processing (OLAP) E.Digital Data Genesis

A. Augmented Reality

Which of the following is an entity that does NOT share the total value created by a transformation made in your firm? Select one: A.Competitor B.Your Firm C.Supplier D.Customer

A. Competitor

The CSLC should be viewed from which viewpoint? Select one: A.Customers B.Suppliers C.The firm D.Competitors E.Any non-participant

A. Customers

Which of the following is a primary activity? Select one: A.Inbound logistics B.Human Resource Management C.Procurement D.Infrastructure Development E.Technology Development

A. Inbound logistics

Why do we need to create an Information System Vision during the strategic IS planning process? Select one: 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.

Which of the following is NOT a part of the support activities carried out in a typical value chain? Select one: 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? Select one: 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

Which of the following is an automated method of seeking passwords? Select one: 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? Select one: 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

Risk Audit provides the basis for: Select one: A.Risk Analysis B.Risk Reduction C.Risk Transference D.Reward Mechanism E.Risk increase

A. Risk Analysis

Which of the following is not an advantage offered by the information system planning process? Select one: 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.

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: Select one: A.Asset-stock accumulation B.Value-system link concentration C.IT infrastructure investing D.Capability development

A.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? Select one: A.Chargeback B.allocation C.crowdfunding D.Overhead

A.Chargeback

There are three main methods used by modern organizations to fund IS. These include: Select one: 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 Clear my choice

A.Chargeback, Allocation, and Overhead

Which of the following terms is related to capturing data in real-time, as things happen? Select one: A.Digital Data Genesis B.Location Based Social Networking C.Augmented Reality D.Green IS E.Online Analytical Processing (OLAP)

A.Digital Data Genesis

Total Cost of Ownership is a financial estimate designed to explicitly recognize the: Select one: 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

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? Select one: A.Informational B.Infrastructural C.Strategic D.Transactional

A.Informational

What are the three steps that occur during the implementation phase of the SDLC? Select one: 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? Select one: A.It does not 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 does not self-replicate

Why is security considered a negative deliverable? Select one: 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

Which of the following is not an example of digital data genesis? Select one: 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

A gold standard set of training examples is typically used in: Select one: A.Supervised machine learning B.Unsupervised machine learning C.Deeply supervised machine learning D.Digital manufacturing

A.Supervised machine learning

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: Select one: 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

Competitive advantage is: Select one: 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: Select one: 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.

Your book describes the systems selection process in-depth. Which of the following is not a step in the system selection process? Select one: 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

A brand name is a driver of value creation: Select one: 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.

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? Select one: 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

Which of the following are the two main dynamics for rejuvenation and strengthening of barriers of erosion? Select one: 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

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: Select one: A.direct B.parallel C.phased D.pilot

A.direct

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? Select one: A.do things better B.do new things C.stop doing things D.none of the above

A.do things better

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

A.flexibility and control

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? Select one: A.system selection and acquisition B.custom design and development C.end-user development D.offshoring

A.system selection and acquisition

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? A) Declining storage cost B) computers have become easier to use C) Ubiquitous network access D) Cost of computing power have declined

B) Computers have become easier to use

Information goods are not: A) Reusable B) Easy to produce C) Easily distributed D) Reproducible E) Customizable

B) Easy to produce

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? A) Moore's law will continue to make computers slower. For this reason general and functional managers must figure out to create value for organizations. B) Moore's law will continue to make computers more powerful and pervasive, but it is general and functional managers who must figure out how to use them to create value for organizations. C) Moore's law will continue to make computers easier to use, therefore general and functional managers must learn how to write software programs to create value for organizations. D) Moore's law will continue to make computers more powerful and pervasive, therefore it is up to computer scientists to figure out how to create value for organizations.

B) Moore's law will continue to make computers more powerful and pervasive, but it is general and functional managers who must figure out how to use them to create value for organizations.

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? A) Cost of computing power have decline B) Ubiquitous network access C) Declining storage cost D) Computers have become easier to use

B) Ubiquitous network access

How is value created in networks? A) Value depends on the number of different kinds of users in the networks B) Value is a function of the number of connected nodes C) Value is a function of bandwidth and capital investment D) Value is a function of the number of high-tech devices in the network E) Value is a function of scarcity of connect nodes

B) 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? A) Virtual reality systems are too new, few people know how to use them B) Virtual reality will significantly change the relationships between customers and sales associates, reducing their chance to earn commissions. C) Virtual reality is an unproven technology and it will not work smoothly. D) Many customers will not want to use the new system because they believe it is not a substitute for a driver experience.

B) Virtual reality will significantly change the relationships between customers and sales associates, reducing their chance to earn commissions.

When categorizing eCommerce initiatives by company structure, which category does Walmart fall into? Select one: A.Bricks and Clicks B.Pure Play C.Brick and Mortar D.Affiliation

Bricks and Clicks

Define business-to-business

Business-to-business (B2B) transactions are those in which two or more business entities take part (i.e. one business buying ink from Staples which is another business)

Define Business-to-consumer

Business-to-consumer (BC2) transactions are those that involve a for-profit organization on one side and an end consumer on the other (i.e. online retailers)

Brick and Mortar

Businesses that have physical operations/locations. They do not provide their services exclusively through the internet. I.e. general electric, coffee shops, and boutqiues

Bricks and Clicks or Click and Mortar

Businesses with a hybrid platform. Both brick and mortar and online. I.e. walmart and Barnes and Nobles

Which of the following is correct regarding the characteristics of decision making at the executive level of an organization? A) it is often supported by Executive Information Systems (EIS) B) It is highly unstructured and often ad hoc. C) All choices are correct. D) The objective is to predict future developments by evaluating trends E) It is concerned with high-level, long term decisions

C) All choices are correct

Positive feedback refers to what? A) An economic condition where nothing changes B) An economic condition where the weaker gets stronger and the stronger get weaker. C) An economic condition where the stronger gets stronger and the weaker get weaker D) An economic condition that is completely unpredictable.

C) An economic condition where the stronger gets stronger and the weaker get weaker

A market is likely to tip when there are: A) Weak economies of scale and low need for product variety B) Strong economies of scale and high need for product variety C) Strong economies of scale and low need for product variety D) Entering a period of recession in the dot-com industry as a whole E) Weak economies of scale and high need for product variety

C) Strong economies of scale and low need for product variety

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 evidence could you use to convince him that he is wrong? A) The top 5 publicly traded companies are all energy companies, because the world's natural resources are scarce. B) The top 5 publicly traded companies are all technology companies, because everyone wants an iPhone. C) The top 5 publicly traded companies are all technology companies, because software is now a key driver of business success. D) The top 5 publicly traded companies are all technology companies, because everyone now has access to the Internet.

C) The top 5 publicly traded companies are all technology companies, because software is now a key driver of business success.

We identified four main eras of data processing in business, what characterizes the 'batch era'? A) The use of new technologies and management practices to leverage the increasing amounts of collected data. B) Transactions were batched and processed by a mainframe as they occurred. C) Transactions were batched and processed by a mainframe at periodic intervals. D) Transactions were stored in large mainframe databases called 'batch'

C) Transactions were batched and processed by a mainframe at periodic intervals.

Content Providers

Content providers are organizations that develop and publish content. The content offered ranges from news (e.g., Reuters.com), to gossip (e.g., Eonline.com), to historical and reference information (e.g., Britannica.com), to travel information and tips (e.g., TripAdvisor.com).

What is Context Awareness?

Context awareness is enabled by the fact that mobile devices can be geolocated. In other words, modern smartphones that incorporate a GPS receiver can communicate their position to any software application running on them.

What is cost structure?

Cost structure is the equivalent of the revenue stream building block. Rather than focusing on inflow of funds from downstream customers, it focuses on outflows of cash to upstream partners and providers of resources.

What are customer relationships?

Customer relationships are tangible and emotional connections the firm establishes with the customer.

What are customer segments?

Customer segments are all the people (i.e., consumers) or organizations for whom your firm is creating value.

What is the top-level position in the IT function? A) Analyst B) Developer C) Architect D) Chief information office (CIO)

D) Chief information office (CIO)

What is the difference between data warehouse and a data mart? A) a data warehouse is designed for analytics, while a data mart is designed for transaction processing. B) A data warehouse enables data integration, while a data mart does not. C) A data warehouse is designed to focus on specific business functions for a specific community within an organization, while a data mart is not. D) Compared to a data warehouse, a data mart is smaller and easier to build.

D) Compared to a data warehouse, a data mart is smaller and easier to build.

In the context of digital technology we have defined 'intelligence' as the ability of a digital computer to: A) digitize and miniaturize B) Store data in digital format C) Improve Moore's law D) Perform computations to process information

D) Perform computations to process information

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: Select one: A.Reintermediation B.The long-tail C.Self-service D.Disintermediation

Disintermediation

Which of the following are not one of the levels of an organization according to the hierarchical perspective? A) Strategic B) Managerial C) Operational D) None of the above E) Transactional

E) Transactional

Modularity

ERP are modular in nature, thus enabling the organization that purchases one to decide which functionalities to enable and which ones not to use.

Define eCommerce

Electronic Commerce is the process of distributing, buying, selling, marketing, and servicing products and services over computer networks such as the Internet.

What is electronic business?

Electronic business is the use of Internet technologies and other advanced IT to enable business processes and operations.

Define eGovernment

Electronic government, or eGovernment, refers to all transactions involving legislative and administrative institutions (i.e. electronic filling on taxes and electronic voting)

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. Select one: True False

False

three levels of organizational change:

First order: Automate Second order: Informate Third order: Transform

Managing First-Order Change

General and functional managers understand how the new technology impacts the firm's operations, and the project is straightforward to justify because the financial benefits of the change, in terms of the return on investment, can be estimated with some precision. Thus first-order change requires little executive sponsorship and involvement.

What are key activities?

Key activities are the actions that characterize the business model. They represent those activities that the firm must be able to perform well in order to offer its value proposition.

What are key partnerships?

Key partnerships complete that section of the business model that focuses on how the value proposition is created and delivered.

What are key resources?

Key resources pertain to that section of the business model that focuses on the tasks and assets that the firm needs to bring to bear to create and deliver its value proposition to customers. Specifically, in the language of the business model canvas, resources are the assets at the epicenter of the business model, those tangible and intangible things within the control of the firm, without which the value proposition could not exist in the current (or planned) form.

the external environment

Organizations themselves don't exist in a vacuum but instead are embedded in the external environment that encompasses regulation, the competitive landscape, and general business and social trends (e.g., outsourcing, customer self-service).

advertisement-supported revenue model

Perhaps the most used (and abused) revenue model of the network economy is the advertisement-supported model. The firm's content or services are made available for free in an effort to attract a large audience. The firm then "sells access to its audience" to interested advertisers, much like radio stations do.

When categorizing eCommerce initiatives by company structure, which category does Spotify fall into? Select one: A.Brick and Mortar B.Pure Play C.Bricks and Clicks D.Affiliation

Pure Play

What is second order change?

Second-order change has major implications for the "people" component of the information systems as well as IT and processes. With second-order change, the manner in which the process is performed changes and those individuals who perform it are affected by the change—either their role is modified or a different set of people is now involved. Moreover, the manner in which people interact with the technology also undergoes modification. This level of change typically occurs when the information intensity of the process being performed changes substantially due to the introduction of new IT

What is the revenue model of Netflix.com? Select one: A.B2C B.B2B C.Advertisement support D.Subscription

Subscription

What agreed upon set of rules do network nodes follow?

TCP/IP protocol

Online Retailing

The defining characteristic of online retailers is the fact that they take control of inventory that they then resell at a profit. Fulfillment is a critical capability for these organizations. The revenue model is pay for service.

Channel Conflict

The emergence of the online channel created a conundrum for many organizations that had an established distribution chain. Should they disintermediate, following the promise of reduced distribution costs and a direct relationship with customers, or should they work with the channel in an effort to identify mutually beneficial Internet-enabled initiatives?

Infrastructure

The existing IT infrastructure, defined as the set of shared IT resources and services of the firm, constrains and enables opportunities for future information systems implementations.

Descriptive Analytics

The focus of descriptive analytics is to give an account of what has occurred. Descriptive analytics is substantiated in reports and visualization of data through executive dashboards, OLAP tools, or scorecards (see below).

Predictive Analytics

The focus of predictive analytics is to estimate what will occur. Predictive analytics is substantiated in statistical modeling and machine learning algorithms that extrapolate current trends. Political polling is an example of predictive analytics.

Prescriptive Analytics

The focus of prescriptive analytics is to state what should occur. Prescriptive analytics is substantiated in optimization algorithms that seek to identify targets to guide decisions or monitor current operations. Revenue management is an example of prescriptive analytics.

pay-for-service revenue model

The pay-for-service model is the most straightforward revenue model. The firm offers a product (e.g., books) or a service (e.g., insurance) for sale, and it is compensated much like a traditional store or service provider. When adopted by marketplaces such as Airbnb or eBay, this revenue model entails charging for the service of enabling transactions.

Managing Second-Order Change

The primary impact of second-order change is on the "people" dimension of the sociotechnical system, so second-order change provides much more of a challenge to managers. Those affected may include employees as well as customers. Thus providing appropriate training and overcoming the human tendency to resist change are key challenges. Informate-level change often seeks to take advantage of available market opportunities. Thus justifying this level of change is more difficult and requires a more speculative analysis.

subscription revenue model

The subscription revenue model is similar in nature to the pay-for-service model in that customers pay for the service they receive, which in this case is content (e.g., news, sports highlights). Unlike pay for service, though, subscription models are typically based on access rather than usage. In other words, customers pay for the right to access the content and then are able to use as much of the service (i.e., content) as they need.

disintermediation

The term disintermediation refers to the process by which a firm's distribution chain is shortened through the elimination of one or more intermediaries. Disintermediation has a direct impact on those organizations that find themselves being . . . well, disintermediated—such as travel agents and car dealers.

Managing Third-Order Change

Third-order change requires significant managerial and executive involvement. Championship by the top management team is necessary both for signaling purposes and to provide the political impetus to complete the transition. Changes in organizational structure are, in fact, likely to engender political battles and resistance by those whose authority and political influence is diminished.

Distributed human intelligence tasking

This approach is used for tasks where human intelligence is required to process data or information instead of computers. Generally consisting of simple repetitive tasks, it is ideal for processing large batches of data that only humans can handle (e.g., tag images, filter image content, verify catalogs, fill surveys, edit transcripts, write reviews).

Peer-vetted creative production

This is adapted for ideation problems where an organization resorts to the crowd for supporting the creative phase and receives multiple design proposals. This approach is ideal for design, aesthetics, or policy problems where contributors have direct interests or are potential customers.

strategic information systems

Those used to support or shape the competitive strategy of an organization; those that enable the creation and appropriation of value.

What does a firm need to maintain added value?

To be unique.

Durability

Transactions are durable when they can be recovered in the face of system failure. In other words, once the system has successfully processed the transaction, it will no longer lose it. For example, once the agent has changed your seat, the change is recorded in a transaction log. If anything were to go wrong with the database, the current state could be re-created by reprocessing the transactions from the log.

Isolation

Transactions are nonconcurrent. If the system has yet to store the results of a transaction while writing the results of a second transaction, its database may end up holding invalid data. For example, if you are withdrawing money from an ATM while your sister is at home moving money electronically from the same account, the resulting balance may be invalid unless the system maintains isolation of the two transactions.

An IS has two subsystems, a social and technical one. True or False

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. Select one: True False

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. Select one: True False

True

Tippy markets are associated with strong positive feedback True or False

True

To create value you must increase customer willingness to pay more than supplier opportunity cost. Select one: True False

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 part of the consortium. Select one: True False

True

Define Ubiquity

Ubiquity represents the idea that users of the device can access needed resources from (in theory) anywhere.13 Mobile devices offer the highest level of potential ubiquity among commercially available information technology (IT) because they marry portability with connectivity