Chapter 1 - 3 (T/F)

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

False

ESSs are designed primarily to solve specific problems

False

Enrolling employees in benefits plans is a business process handled by the finance and accounting function.

False

In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries.

False

In social business, firms use social networks for coordinating production tasks.

False

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

False

Intranets allow firms to work easily with 3rd party supplies and vendors

False

The term business ecosystem describes the interplay between the various organizational forces within a firm.

False

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

False

Transaction processing systems are most commonly used by the senior management level of an organization.

False

You would use an MIS to help decide whether to introduce a new product line.

False

The use of Internet technologies allows companies to more easily sustain competitive advantage.

False.

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

True

ESSs draw summarized information from internal MIS and DDS

True

Enterprise systems often include transactions with customers and vendors.

True

From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor.

True

Functional systems that support business processes within a single functional group, such as HR, are being phased out in favor of cross-functional system.

True

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

True

In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of software.

True

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

True

In the strategy of product differentiation, information systems are used to enable new products and services.

True

In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.

True

Internet advertising is growing at approximately 10% a year.

True

Investment in IT is over 50% of all invested capital.

True

MIS job growth is projected to be 50% greater than other jobs in the next 5 years.

True

Mass customization is a form of mass production.

True

Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information.

True

Research has shown that only 25% of firms are able to align their information technology with their business goals.

True

Shipping a product to a customer is an example of a business process.

True

Supply chain management systems are more externally oriented than enterprise systems.

True

A fully digital firm produces only digital goods or services.

False

A hotel reservation system is a typical example of a management information system.

False

A transparent marketplace means that there is high product differentiation.

False

An adhocracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.

False

A Skype conference call using VOIP and webcams is an example of a remote, synchronous collaboration tool.

True

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

True

A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors.

True

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

True

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

True

A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business.

True

All organizations have bedrock, unassailable assumptions that define their goals and products.

True

Business processes are collections of standard operating procedures.

True

Computers are only part of an information system

True

Customers are one of the competitive forces that affect an organization's ability to compete.

True

Decision-support systems help managers make decision that are unique, rapidly changing, and not easily specified in advance.

True

Decision-support systems use internal information as well as information from external sources.

True

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

False

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

False

Management information systems typically support nonroutine decision marking.

False

Most MISs use sophisticated mathematical models or statistical techniques.

False

Strong linkages to customers and suppliers decrease switching costs.

False

Studies have consistently shown that firms that invest greater amounts in formation technological benefits than firms that invest less.

False

Synchronous collaboration tools allow global firms to collaborate from different locations at the same time.

True

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

True

The competitive forces model can be used to analyze today's digital firm as well as traditional firms.

True

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

True

The effect of the Internet has been to raise bargaining power over suppliers.

True

The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.

True

The value chain model classifies all company activities as either primary or support.

True

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

True