C724 - Information Systems Management (Unit 2 - Module 1)
synergies
A bank software company purchases another bank software company and begins utilizing employees from both development teams to create a new software product for their clients. The bank software company is benefiting from the ---------- created through the acquisition.
standardized business procedures.
A business benefit of enterprise resource planning systems is --------.
Improved processes
Joe and Mary work for a tax preparation company that is implementing new computer technology. What is a likely impact of this new technology to their jobs?
Store backup data in the cloud
Joe is responsible for managing the IT department for a local medical records company. His town is in a high risk area for tornadoes. How should Joe prepare for the possibility of a tornado hitting the company facilities?
Accounting and Finance Human Resources Production and Operations Sales and Marketing
Major business functions provided by information systems.
first level managers
Management information systems focus on technology, people, and organizations. They primarily serve _______.
Accounting and Finance
Managing financial assets and maintaining financial records
knowledge management
The process of sharing knowledge across business units and among employees of a business is called a(n) ----------.
Software
The programs comprised of pre-coded instructions written in a programming language which the end user typically uses to interact directly with the IS.
True
True or False. Even though information technology functions in the background, it is the backbone of most organizations.
Information technologies information systems
---------- have shown tremendous growth in the last few decades, leading to more sophisticated ----------. .
Enterprise resource planning (ERP) systems
---------- involve utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control.
Information
---------- is data that has been organized in a meaningful manner.
strategic information system
A ---------- is created to meet a specific business goal and to provide a competitive advantage.
growth
A business offers a marketing service that is offered by many other businesses in the local area. It is a highly competitive industry. The business finds an investor who gives the business enough money to expand the business into all 50 states in a short period of time. This business is using the strategy of ----------.
A customer relationship management (CRM) system
A business owner opens a new store and begins collecting customer information at the register. This information includes email addresses and other information that the customers are willing to share. The business owner also starts to create paper contracts for special orders that involve embroidery and personalization. These papers are stored in a folder in the store location. Which of the following systems will help the business owner manage this type of information?
A chain of three pizza restaurants utilizing a web-based software that keeps track of customer email addresses and uses that system to send out weekly coupons
A customer relationship management (CRM) system
integrate information about each client's likes and dislikes to be able to tailor conversations with them.
A customer relationship management system provides a business with the opportunity to:
DSS
A financial consultant can use a(n) ________ to help his/her clients select investment choices and make informed financial decisions.
TPS, MIS, DSS, EIS
A four-level pyramid depicts different types of information systems, as they relate to different hierarchical levels within an organization. Select the correct ascending ordered list of four systems (i.e., bottom to top of the pyramid), that relates to the end users' increasing hierarchical level within an organization.
A supply chain management (SCM) system
A grocery store has an extensive inventory control process. They carry thousands of products and shelf-space for those products is competitive. If the grocery store is out of a particular item, then they are losing money. They need to keep all of their products in stock to meet customer demand and make a profit. This grocery store should consider looking into which system to help manage this type of information?
Network
A group of two or more computers and other devices connected to each other.
A customer relationship management (CRM) system
A husband and wife open up a small winery on their personal property and become small-business owners. In setting up their new business, they purchase an iPad and a third-party cash register system that is designed for small-business owners. When new customers purchase bottles of wine at the winery, the customers are asked for their email addresses. The business owners would like to be able to market to these customers based on the type of wine that they like to purchase. Which of the following types of systems could be the first system that these small-business owners implement to assist with their marketing efforts?
3
A large part of IS management's main agenda changes every ---------- year(s) due to the constant evolvement of information systems, confirming the highly dynamic nature of the IS management function.
product differentiation
A restaurant develops a new ordering system that allows for online ordering both from desktop and mobile sites. No other restaurant in their local area is offering online ordering. This restaurant is using a business strategy of ----------.
supply chain management system
A system where businesses work together to create a product or service for a customer is called a ----------.
is not limited by physical location or geography
A virtual company ----------.
information system
A(n) ----------- consists of all the components that work together to process data into useful information.
Attain customer information
Businesses invest in information systems for a number of reasons. Of those listed, which one is NOT essential enough for a business to make the costly investment in an information system? Develop new products and services Achieve operational excellence Attain customer information Promote competitive advantage Improve decision making
Better internal communication
Customer relationship management (CRM) is a strategy that companies use to handle customer interactions. The business benefits of a CRM system include all except which of the following? Better customer experience Focused marketing effort Better internal communication Automated reporting
EIS
Different types of information systems are based on the different levels of hierarchy in an organization. Which of the following represents the highest level of responsibility in an organization?
database
Enterprise resource planning systems typically utilize one _______________.
The owner can have better communications with customers.
Frank works for a small landscaping company. He is trying to convince the owner to invest in information technology. Which of the following justifications should he use when he approaches his boss?
Production and Operations
Functions range from receiving raw material to shipping finished goods or from production itself to equipment maintenance
E-learning supports the health care demand by training workers more quickly.
How is information technology impacting the health care industry?
Globalization
IT has brought the world closer together and made the world's economy a single interdependent system.
Expensive to acquire, operate, and maintain an information system of this size Evolution of MIS from one or more organizations owning mainframes to multiple users and suppliers having access to the new combined system
Identify the critical issues of information systems management as described in the scenario. (Select all that apply.) Interconnection between the distributor, manufacturers, suppliers, and customers. Expensive to acquire, operate, and maintain an information system of this size Evolution of MIS from one or more organizations owning mainframes to multiple users and suppliers having access to the new combined system The core competency of the combined company would be their ability to deliver products quickly throughout North America
Finance and accounting Production and operations Sales and Marketing
If a customer of a distributor returned a product and was allowed to exchange it for a similar product of the same size and value, the information systems of which functions would be impacted by the exchange? Finance and accounting Human resources Production and operations Sales and Marketing
transaction
If a student decides to switch classes because she wants a different teacher, this would be considered a ----------- to the college's information system and would involve interaction with its accounting or human resource systems.
Strategic information system
If the company in the previous scenario decided to create a system to meet a specific business goal and to provide a competitive advantage, what would it be called?
Track inventory shrinkage Track customer sales history
Information System
Processes Structures
Information System components that are not standardized:
Hardware Software Data Users Networks
Information System components that are standardized:
Network connecting all locations Mainframe computers
Information Technology
data information
Information systems --------- as input and process it into ---------- as output.
Maintenance
Information systems are used in many functional business areas. Select the most common. (Select one that does NOT apply.) Human resources Accounting Maintenance Marketing
security
Information systems executives must make difficult hardware decisions regarding ---------- issues that pose possible outside threats to the system.
Removing controls to employee processes
Information systems simplify business processes and remove unnecessary activities. Select the choice that would NOT help a business. Removing controls to employee processes Project planning and implementation Increasing accuracy Eliminating repetitive tasks
Operations and management
Information systems support an organization's many functional business areas. These functional areas can be grouped into what two main categories?
1) IS 2) IT 3) IT 4) IT 5) IS 6) IS
Information technology (IT) is used throughout computer-based information systems (IS). It is important to know their different uses. Choose whether the following examples are IT or IS. 1) Online reservation booking? 2) Telephone and radio equipment? 3) Data, voice, and video equipment? 4) Computer peripherals? 5) Track customer activities? 6) Predicting future sales patterns?
Cost Effectiveness
Information technology has helped to computerize businesses to streamline processes that increases productivity and profits.
More time
Information technology helps eliminate repetitive tasks and increases accuracy, allowing employees to concentrate on more high-level functions.
Product Development
Information technology helps ensure quality new products reach the market faster and to more customers and suppliers.
Accounting and Finance
Investment management, budgetary control, auditing; economic forecasting; global stock exchanges; managing multiple currencies
All of the above
Managing information systems is a challenging role because of the constant changes and threats to computer based information systems. Which of the following can be a major threat to information systems? Floods Earthquakes Power outages All of the above
plan daily operations
One benefit of a supply chain management system is to ----------.
network-based strategy
One business owner specializes in Web design and graphic design. A second business owner specializes in email marketing and social media marketing. A third business owner focuses on Web programming. The three business owners work together with some clients and refer some clients to each other. These business owners have a created a ---------- among their businesses.
Managers need to understand the essential features of their organization to build and use information systems successfully.
Organizations are complex and have many similarities and differences. Having a motivated and knowledgeable team can make a business run smoothly and keep managers aware of what is happening at all levels and in all areas of the organization. Pick the most accurate statement below regarding managers.
best practices
Organizations gain many benefits with knowledge management systems, but one of the most important benefits is that the systems make ---------- available for employees at any time so they can learn the most effective and efficient ways of doing things.
Marketing and Sales
Planning, promoting, and selling of goods and services to satisfy customer needs and the objectives of the organization
Human Resources
Recruiting, training, and maintaining employees and their records
Human Resources
Recruitment; training; employee records; benefits; payroll and employees' records; benefits administration; employee relationship management
horizontal
The IS function is ---------- in structure and its success depends on its cooperation and relationship with the other functions in an organization.
Hardward
The computer and all of its peripherals
People
The information system professionals and users.
threat of substitute products or services
There is less demand for DVDs because of the creation and quick distribution on-demand video services, such as those supplied by Netflix and iTunes. In terms of Porter's five competitive forces, this is an example of ----------.
Transaction processing systems (TPS)
These systems collect, store, update, and retrieve transaction data within an organization.
Customer relationship management (CRM) system
These systems entail all aspects of interaction that a company has with its customers, including contacts, clients, contract wins and sales leads, and more.
Decision support systems (DSS)
These systems focus on unique problems that arise and procedures for arriving at a solution, using information from both the transaction processing systems and the management information system, along with external factors such as stockholders requirements, regulations, product pricing, and competition.
Executive information systems (EIS)
These systems help executives make strategic business decisions, incorporating summarized information from decision support systems and management information systems, along with external factors to forecast and analyze trends.
Management information systems (MIS)
These systems provide performance reports based on the results from transaction processing systems, such as product cost data, sales data, and expense data.
Enterprise resource planning (ERP) system
These systems tightly integrate functional areas, such as accounting, finance, project management, inventory control, purchasing, human resources, customer retention, sales, and marketing into one single, comprehensive system.
CRM ERP SCM
This database would contain information about contacts, clients, contracts, and sales leads: ----------. This system provides communication between the various systems that are integral to the business, allowing standardization of business procedures across all business units: ----------
Knowledge management (KM) system
This system creates the process of sharing knowledge among people for the benefit of the business.
Supply chain management (SCM) system
This system is one in which businesses are interconnected and working to create a product or service for the customer.
Management information systems (MIS)
This system provides first level managers with reports on current performance and historical records to help keep an organization running smoothly.
Decision-support systems (DSS)
This system provides modeling and analytical tools that support middle to senior managers in all aspects of the decision-making process, when problems are unique, unstructured, and not easily specified in advance, to project potential future trends.
Executive information systems (EIS)
This system supports senior executives by providing important data in the form of graphs and charts to analyze and identify long-term trends.
Transaction processing systems (TPS)
This system tracks the flow of daily routine transactions that are necessary to conduct business, such as payroll or order processing.
E-learning has become very popular in the medical field to help support the healthcare demand and supply the field with the necessary workers more quickly through the use of information technology.
Thousands of fields use information technology to boost effectiveness. The need for healthcare is especially important to everyone, and technology has helped the medical field meet the demand. Of the items listed below, select the primary growing benefit of information technology to the healthcare industry.
True
True of False. One of the most important IS management issues facing businesses today is hiring skilled IS workers.
True
True or False. A core competency is an activity for which a business is a marketplace leader.
True
True or False. A real estate company has a website that is integrated with a software system that keeps track of all the realtor's sales leads and listing information. The system keeps track of each person's name and contact information. This software system is an example of a customer relationship management system.
False Cost effectiveness, globalization, and process improvement are positive impacts of information technology.
True or False. Cost effectiveness, globalization, and process improvement are negative impacts of information technology.
False Despite the dominant market position your company achieved through the new core competency, the failure to integrate the information technology of the separate companies resulted in limited synergy for the larger entity. Core competency is the combination of multiple resources and skills that distinguish a firm in the marketplace.
True or False. Despite the dominant market position your company has achieved through the new core competency, the failure to integrate the information technology of the separate companies did not produce synergy for the larger entity.
True
True or False. Enterprise resource planning involves utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control.
False This scattered IT system limited their opportunities to achieve a competitive advantage, make improvements to processes, reduce costs, or increase revenue.
True or False. Even though the companies operated separate information technology, they were still able to achieve a significant competitive advantage.
False Even though no money is exchanged, this simple transaction might impact student fees, faculty schedules, or classroom availability.
True or False. If a student decides to switch classes because she wants a different teacher, this would be considered a transaction to the college's information system but would not involve any interaction with its accounting or human resources systems.
True
True or False. Implementing information systems within an organization should be carefully considered. It can be quite costly, but the long-term benefits can be even greater.
True
True or False. Information is data that have been organized to provide value to an organization.
False Knowledge management is the efficient handling of information and resources within an organization, or the distribution of knowledge through a business. Knowledge is familiarity, awareness, or understanding gained through experience or study.
True or False. Knowledge management is the process of sharing knowledge among people for the benefit of the business and is built on the founding principle that employees and technology will only share knowledge across business units when required to do so.
False Implementing SCM systems helps businesses lower their costs by reducing waste, overhead costs, and shipping delays. The benefits of lowering those costs can help improve product quality and order turnaround times.
True or False. One benefit of a supply chain management system is for U.S. businesses to lower costs by relocating their operations to cheaper, overseas locations.
True
True or False. One benefit of a supply chain management system is to plan daily operations of the company.
True
True or False. One challenge of introducing knowledge management is that employees are often not willing to share information that they perceive gives them unique value to a business.
True
True or False. One of the advantages of information systems for businesses is to take raw data and turn them into valuable information, and then help transform that information into organizational knowledge.
False When several businesses combine their expertise, they can offer better products for lower costs and higher profits. Their combined effect is greater than if they worked independently.
True or False. Synergy is the cooperation between several businesses to produce a better product or service than would be possible if each business worked dependently.
False Information systems rely on current information technology.
True or False. The great advancement in information technology is due to the development in information systems.
False Instead of participating in a single industry, some of today's firms are participating in industry sets—collections of industries that provide related services and products.
True or False. The term business ecosystem describes the relationship between the various departments within a firm.
False Although technology provides support for all of these areas and is a component of information systems, it is not a functional area.
True or False. There are four major business functions: sales and marketing; production and operations; finance and accounting; and technology and systems.
False Although information technology is a subset of information systems, it is not an organizational dimension that would cause organizational resistance to information systems.
True or False. There is considerable organizational resistance to implementing new information systems because they change many important organizational dimensions, such as culture, structure, politics, and information technology.
False ERP systems are very complex, and many companies have difficulty adjusting to the system; ease of use is not a business benefit.
True or false. A business benefit of enterprise resource planning (ERP) systems is ease of use.
False Storage devices are used to store the data, but these devices do not process data.
True or false. A storage device consists of all the components that work together to process data into useful information.
True
True or false. A system where businesses work together to create a product or service for a customer is called a supply chain management system.
False A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.
True or false. A transaction processing system is created to meet a specific business goal and to provide a competitive advantage.
False A virtual company may offer virtual services, but that alone does not make a company a "virtual company." Many companies now offer virtual services in addition to their brick-and-mortar stores and physical services. A virtual company is not limited by physical location or geography due to the use information technology to extend their services globally.
True or false. A virtual company provides only virtual services.
False Accountants interact with an organization's information system on a daily basis. Accounts payable, accounts receivable, budgeting, general ledgers, payroll, cash flow and financial transactions are all typically contained with an information system.
True or false. Accountants have no need to interact with an organization's information system.
True
True or false. Businesses invest in information systems for a number of reasons, including to achieve operational excellence, develop new products and services, improve decision making, and promote competitive advantage.
False Hardware, software, data, and networks make up information technology. Information technology and information systems are two different things.
True or false. Hardware, software, data, and networks make up information systems.
False Incorrect. Hardware, software, data, and networks make up information technology. Information technology and information systems are two different things.
True or false. Hardware, software, data, and networks make up information systems.
True
True or false. Information systems help managers to perform long-range strategic planning, decision making, and to assess external threats and opportunities.
True
True or false. Major threats to information systems facilities vary by region and can include floods, hurricanes, terrorism, power outages, and earthquakes.
False It is critical that managers understand the essential features of their organization to build and use information systems successfully.
True or false. Managers only need to understand the basic features of their organization to build and use information systems successfully.
False Product development is not one of Michael Porter's five competitive forces. His forces include threat of new entrants, threat of substitute products or services, bargaining power of customers (buyers), bargaining power of suppliers, and intensity of competitive rivalry.
True or false. Michael Porter's five competitive forces include the following: threat of new entrants, threat of substitute products or services, bargaining power of customers (buyers), bargaining power of suppliers, and product development.
True
True or false. One positive impact of information technology is the increasing number of jobs that are becoming available for the disabled.
True
True or false. Organizations gain many benefits from knowledge management systems, but one of the most important benefits is that the systems make best practices available for employees at any time so they can learn the most effective and efficient ways of doing things.
True
True or false. The ATM (automated teller machine) at a bank is an example of an information system.
True
True or false. The ability to build a responsive IT infrastructure is one of the key issues facing information systems management.
False Information technology is a subset of information systems; they are not the same thing.
True or false. The terms information technology and information systems have the same definition and can be used interchangeably.
False Two types of business strategies include growth and product differentiation, not competition.
True or false. Two types of business strategies include growth and product competition.
growth and product differentiation
Two types of business strategies include ----------.
Production and Operations
Warehouse operations, inventory management, quality control, materials requirements planning; resource planning; in-house logistics and materials management; product lifecycle management
Ensure long-term survival Improve decision making Achieve operational excellence
Which of the following are reasons why the company in the scenario would want to make a large information systems investment? (Select all that apply.) Ensure long-term survival Develop new products and services Improve decision making Achieve operational excellence
Software and data
What are two of the six major components of a computer-based information system?
Employees of a business more readily share information across business units.
What is a benefit of introducing knowledge management?
The process of sharing knowledge across business units and amongst employees of a business
What is knowledge management?
EIS The companies were able to be centrally managed with one central executive information system (EIS) located at corporate headquarters, so no consolidation was necessary.
What type of computer-based information systems in the previous example was NOT required to be consolidated?
Production and operations
Which main business function is responsible for converting resources into goods or services as efficiently as possible?
Human resources
Which main business function is responsible for maintaining employee records?
Greater customer and supplier bargaining power
Which of Porter's five competitive forces impacted the information strategy of the company in the previous scenario?
Structure - Yes Incentives - No Environment - Yes Culture - Yes Politics - Yes
Which of the following are common organizational features that should be considered when building and using information systems? Organizational Feature Structure Incentives Environment Culture Politics
Mental Health Job Security Globalization
Which of the following are potential negative impacts of implementing the new information system?
Cost Globalization Processes
Which of the following are potential positive impacts of implementing the new information system?
Chic Computers is a business that sells laptops and tablets. The business works with various laptop and tablet manufacturers and also multiple cell phone carriers to offer a few products from each manufacturer and carrier. The result for consumers is that they can go to one store and learn about the laptop and tablet options available from multiple companies, including pricing.
Which of the following companies has created a network-based strategy with other businesses?
Savvy Smartphones is a business that sells smartphones and smartphone accessories. The business works with various cell phone carriers to offer a few products from each carrier. The result for consumers is that they can go to one store and learn about the options available from multiple companies, including pricing and available smartphones.
Which of the following companies has created a network-based strategy with other businesses?
Mary works for Happy Charities. She calls and emails potential donors each day. She is able to work from home because her entire job is based on using web and phone services.
Which of the following describes a virtual office?
Incentives
Which of the following is NOT an organizational feature that managers should consider when building and using information systems? Environment Structure Politics Incentives
Employees
Which of the following is NOT an organizational feature that should be considered when consolidating an information system? Environments Cultures Employees Structures
A network of servers is set up to share and manage client data across multiple satellite offices for a healthcare provider so the staff at any location can access the same data.
Which of the following is the best description of an information system?
Fred has worked for Selma's Training Services for 20 years and is ready to retire. The company will be hiring a new employee to take over Fred's responsibilities. It will take the new employee a while to learn the many new job responsibilities.
Which of the following scenarios would benefit the most from a knowledge-based system?
A large company with hundreds of employees creates a new department called Technical Writing. This new department will be responsible for collecting information from the employees and writing documentation to be shared with clients as well as internal documentation that will aid in employee training in the future.
Which of these choices best describes a knowledge management system?
A bookkeeper enters information into the bookkeeping system, which feeds the necessary information into the accounting system, where the accountant can perform his or her tasks and run financial reports for top management.
Which of these choices best describes an ERP system?
A large theme park company enters information about a potential employee into a system during the hiring process. The same system is used by the company's management team to enter information about the employee's assigned roles and about their work performance. Everyone on the management team can access information in the system, and some pieces of the system are secure allowing only top level administrators to have access. The system is also used by the Accounting team to determine hours worked each week for payroll purposes.
Which of these choices best describes an ERP system?
Threat of substitutes
Which one of Michael Porter's five competitive forces does this describe: Switching from one product or service to another similar product or service with little cost.
Big Bean Coffee shop implemented a new system to determine trends and identify new operational methods in order to improve customer service. (A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.)
Which one of the following scenarios describes a strategic information system?
We Be Fit gym implemented a new system to determine trends and identify new operational methods in order to improve customer service.
Which one of the following scenarios describes a strategic information system?
Superior Real Estate Company created a mobile application to allow prospective clients to view information about listed properties from their smartphone. No other real estate agents in their area currently offer such technology. (A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage.)
Which one of the following systems represents a strategic information system?
Communication
With the help of information technology, video conferencing has become cheaper, quicker, more collaborative, and more efficient.