Chapter 1-5

Use IT to achieve customer intimacy

Based on the examples in Chapter 1, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below? 1) Use IT to increase supplier loyalty. 2) Use IT to increase operational efficiency. 3) Use IT to create new products and business models. 4) Use IT to help survive government reporting requirements. 5) Use IT to achieve customer intimacy.

Processing

Converting raw data into a more meaningful form is called? 1) Capturing 2) Processing 3) Organizing 4) Feedback

Property rights and obligations

In the information age, the obligations that individuals and organizations have concerning rights to intellectual property fall within the moral dimension of? 1) Property rights and obligations. 2) System quality. 3) Accountability and control. 4) Information rights and obligations.

Intangible property created by individuals or corporations

Intellectual property can best be described as? 1) Intangible property created by individuals or corporations. 2) The expression of an intangible idea. 3) Unique creative work or ideas. 4) Tangible or intangible property created from a unique idea.

Raw input

Order data for baseball tickets and bar code data are examples of? 1) Raw input. 2) Raw output. 3) Customer and product data. 4) Sales information.

5, 4, 2, 3, 1

Place the following eras of IT infrastructure evolution in order, from earliest to most recent: (1) Cloud Computing Era (2) Client/Sever, (3) Enterprise Era, (4) Personal Computer, and (5) Mainframe and Minicomputer. 1) 4, 5, 3, 2, 1 2) 5, 4, 2, 3, 1 3) 4, 5, 2, 3, 1 4) 5, 4, 2, 1, 3

Web services

Sets of loosely coupled software components that exchange information with each other using standard Web communication standards and languages are referred to as? 1) Web services 2) EAI software 3) SOA 4) SOAP

Operating system software

Software that manages the resources of the computer is called? 1) Operating system software. 2) Application software. 3) Data management software. 4) Network software.

Making information available to everyone

The Internet raises the bargaining power of customers by? 1) Creating new opportunities for building loyal customer bases. 2) Making more products available. 3) Making information available to everyone. 4) Lowering transaction costs.

Competitive forces

The ______ model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete. 1) Network economics 2) Competitive forces 3) Competitive advantage 4) Demand control

Low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy

The four major types of competitive strategy are? 1) Low-cost leadership; substitute products and services; customers; and suppliers. 2) Low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy. 3) New market entrants; substitute products and services; customers; and suppliers. 4) Low-cost leadership; new market entrants; product differentiation; and focus on market niche.

Digital

The term "________ divide" refers to large disparities in access to computers and the Internet among different social groups and different locations? 1) Computer 2) Technology 3) Digital 4) Electronic

XML

What is the foundation technology for Web services? 1) XML 2) HTML 3) SOAP 4) UDDI

Restaurant

Which of the following industries has a low barrier to entry? 1) Automotive 2) Computer chip 3) Restaurant 4) Airline

External environment

Which of the following is NOT one of the competitive forces? 1) Suppliers 2) Other competitors 3) External environment 4) Customers

DSS

Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records? 1) ESS 2) TPS 3) MIS 4) DSS

TPS with MIS capabilities

You have been hired by a worldwide non-profit agency to implement a system to handle their donations. The system must be able to handle and record telephone, sms, and Internet donations, provide up-to-the-minute reports, and create highly customizable mailing lists. In addition, event fundraisers need to be able to quickly access a donor's information and history. Which of the following systems will best meet these needs? 1) TPS 2) TPS with DSS capabilities 3) TPS with MIS capabilities 4) TPS with ESS capabilities

Extranet

You manage the IT department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. Which type of system will most efficiently provide a solution? 1) CRM 2) Enterprise system 3) Extranet 4) Intranet

CRM

________ systems are designed to help firms manage their relationships with their customers. 1) CRM 2) MIS 3) CLE 4) CLU

Storage area

A SAN is a ________ network. 1) Server area 2) Storage area 3) Scalable architecture 4) Service-oriented architecture

SLA

A formal contract between customers and their service providers that outlines the specific responsibilities of the service provider and to the customer is called a(n)? 1) SOA. 2) SLA. 3) TCO. 4) RFQ.

A team room

An example of a collaboration tool that supports colocated, asynchronous collaboration is? 1) A team room. 2) E-mail. 3) A MUD. 4) A wall display.

School system

An example of a professional bureaucracy is a? 1) Small startup firm. 2) School system. 3) Mid-size manufacturing firm. 4) Consulting firm.

Senior management

ESS are specifically designed to serve which level of the organization? 1) Operational 2) End-user 3) Middle management 4) Senior management

Manufacturing and production

Producing bills of materials is a business process within the _____ function? 1) Finance and accounting 2) Human resources 3) Manufacturing and production 4) Sales and marketing

Survival

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective? 1) Customer and supplier intimacy 2) Survival 3) Competitive advantage 4) Improved decision-making

Middle management functions

The term "management information systems" designates a specific category of information systems serving? 1) Integrated data processing throughout the firm. 2) Transaction process reporting. 3) Employees with online access to historical records. 4) Middle management functions.

Substitute products or services

To what competitive force did the printed encyclopedia industry succumb? 1) Positioning and rivalry among competitors 2) Low cost of entry 3) Substitute products or services 4) Customer's bargaining power

Copyright law

What legal mechanism protects the owners of intellectual property from having their work copied by others? 1) Patent protection 2) Intellectual property law 3) Copyright law 4) Fair use doctrine

Operational excellence

Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case? 1) Operational excellence 2) New products and services 3) Competitive advantage 4) Customer support

Executive support systems

Which systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content? 1) Transaction processing system 2) Executive support systems 3) Management information systems 4) Decision-support systems

"Nexus of contracts" among self-interested individuals

According to agency theory, the firm is viewed as a(n)? 1) Unified, profit-maximizing entity. 2) Task force organization that must respond to rapidly changing environments. 3) Entrepreneurial endeavor. 4) "Nexus of contracts" among self-interested individuals.

Grid computing

Connecting geographically remote computers in a single network to create a "virtual supercomputer" is called? 1) Co-location. 2) Edge computing. 3) Grid computing. 4) Utility computing.

Knowledge workers

Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy? 1) Middle management 2) Production workers 3) Knowledge workers 4) Data workers

Enterprise resource planning

Enterprise systems are also known as ________ systems. 1) Resource planning 2) Enterprise resource planning 3) Enterprise support 4) Management information

It is so inexpensive and can reach so many people

The practice of spamming has been growing because? 1) Telephone solicitation is no longer legal 2) It is good advertising practice and brings in many new customers 3) It helps pay for the internet 4) It is so inexpensive and can reach so many people

Cloud computing

The process of presenting a set of computing resources (such as computing power or data storage) so that they can all be accessed in ways that are not restricted by physical configuration or geographic location is called? 1) Cloud computing 2) Autonomic computing 3) Virtualization 4) Multicore processing

Improved decision making

The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and? 1) Improved flexibility. 2) Improved decision making. 3) Improved business practices. 4) Improved efficiency.

Input, processing, and output

The three main activities in an information system are? 1) Information retrieval, research, and analysis. 2) Input, output, and feedback. 3) Input, processing, and output. 4) Data analysis, processing, and feedback.

Open source

Which type of software is created and updated by a worldwide community of programmers and available for free? 1) Software packages 2) Mashups 3) Outsourced 4) Open source

MIS

Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time? 1) ESS 2) TPS 3) MIS 4) DSS

CIO

A ________ is a senior manager who oversees the use of IT in the firm. 1) CEO 2) CFO 3) CIO 4) CTO

Two-tiered client/server architecture

A client computer networked to a server computer, with processing split between the two types of machines, is called a(n)? 1) Service-oriented architecture. 2) On-demand architecture. 3) Multi-tiered client/server architecture. 4) Two-tiered client/server architecture.

Management information systems

A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of? 1) Knowledge management systems. 2) Transaction processing systems. 3) Executive support systems. 4) Management information systems.

Customer intimacy

A rival of your company, AutoTown, is going to implement analytic software that mines customer data with a goal of enabling the building of automobiles that customers actually want. This can be categorized as using information systems for which competitive strategy? 1) Low-cost leadership 2) Product differentiation 3) Focus on market niche 4) Customer intimacy

Opt-out

A(n) ________ model of informed consent permits the collection of personal information until the consumer specifically requests that the data not be collected. 1) Opt-in 2) Opt-out 3) P3P 4) PGP

Inbound logistics, operations, outbound logistics, sales and marketing, and service

According to the value chain model, the primary activities of a firm include? 1) Inbound logistics, operations, outbound logistics, sales and marketing, and service. 2) Inbound logistics, operations, outbound logistics, technology, and service. 3) Procurement, inbound logistics, operations, technology, and outbound logistics. 4) Procurement, operations, technology, sales and marketing, and services.

Low-cost leadership

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for? 1) Low-cost leadership. 2) Marketing effectiveness. 3) Focusing on market niche. 4) Strengthening supplier intimacy.

Using the appropriate business model

An example of an organizational complementary asset is? 1) Using the appropriate business model. 2) A collaborative work environment. 3) Laws and regulations. 4) All of the above.

JP Morgan Chase's merger with Bank One Corporation, which provided JP Morgan with a network of retail branches in new regions

An example of synergy in business is? 1) Amazon's use of the Internet to sell books. 2) JP Morgan Chase's merger with Bank One Corporation, which provided JP Morgan with a network of retail branches in new regions. 3) Blockbuster combining traditional video rental with online video rental. 4) Wal-Mart's order entry and inventory management system to coordinate with suppliers.

Autonomic computing

An industry-wide effort to develop systems that can configure, optimize, tune, and heal themselves when broken, and protect themselves from outside intruders and self-destruction is called? 1) Grid computing. 2) Utility computing. 3) Virtualization. 4) Autonomic computing.

Operations research, management science, and computer science.

Disciplines that contribute to the technical approach to information systems are? 1) Computer science, engineering, and networking. 2) Operations research, management science, and computer science. 3) Engineering, utilization management, and computer science. 4) Management science, computer science, and engineering.

It sees the inputs and outputs, labor and capital, as being infinitely malleable

How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm? 1) It sees information systems as a way to rearrange the inputs and outputs of the organization. 2) It sees capital and labor as primary production factors. 3) It sees the inputs and outputs, labor and capital, as being infinitely malleable. 4) It sees the organization as a social structure similar to a machine.

Transfers processed information to the people who will use it or to the activities for which it will be used.

Output 1) Is feedback that has been processed to create meaningful information. 2) Is information that is returned to appropriate members of the organization to help them evaluate the input stage. 3) Transfers data to the people who will use it or to the activities for which it will be used. 4) Transfers processed information to the people who will use it or to the activities for which it will be used.

Hosting and managing access to software applications delivered over the internet to clients on a subscription basis

SaaS refers to? 1) Supplying online access over networks to storage devices and storage area network technology 2) Managing combinations of applications, networks, systems, storage, and security as well as providing Web site and systems performance monitoring to subscribers over the internet 3) Hosting and managing access to software applications delivered over the internet to clients on a subscription basis 4) None of the above

More difficult, because of the ease of copying and transmitting digitized media

The Internet has made the protection of intellectual property? 1) More difficult, because of the lack of enforceable regulations. 2) Easier, because of the proliferation of creative and professional software. 3) More difficult, because of the ease of copying and transmitting digitized media. 4) Easier, because of the ability to track user behavior and visits to Web sites and file-sharing services.

Survival

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective? 1) Improved efficiency 2) Customer and supplier intimacy 3) Survival 4) Competitive advantage

Unix

The multitasking, multi-user, operating system developed by Bell Laboratories that operates on a wide variety of computing platforms is? 1) Unix. 2) Linux. 3) OS X. 4) COBOL.

Ethernet

The network standard for connecting desktop computers into local area networks that enabled the widespread adoption of client/server computing and local area networks and further stimulated the adoption of personal computers is? 1) TCP/IP 2) COBOL 3) Ethernet 4) ASCII

Enabling business functions and departments to share information

What is the most important function of an enterprise application? 1) Increasing speed of communicating. 2) Enabling business functions and departments to share information. 3) Enabling a company to work collaboratively with customers and suppliers. 4) Enabling cost-effective e-business processes.

On the visitor's computer

When a cookie is created during a Web site visit, it is stored? 1) On the Web site computer. 2) On the visitor's computer. 3) On the ISP's computer. 4) In a Web directory.

Market niche

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. 1) Product differentiation 2) Market niche 3) Mass customization 4) Process efficiency

Management information systems

Which field of study focuses on both a behavioral and technical understanding of information systems? 1) Sociology 2) Operations research 3) Economics 4) Management information systems

Total cost of ownership

Which model can be used to analyze the direct and indirect costs to help firms determine the actual cost of specific technology implementations? 1) Total cost of ownership 2) Return on investment 3) Breakeven point 4) Cost benefit analysis

Quality of life

Which of the five moral dimensions of the information age does spamming raise? 1) Quality of life 2) System quality 3) Accountability and control 4) Information rights and obligations

HIPAA

Which of the following U.S. laws gives patients access to personal medical records and the right to authorize how this information can be used or disclosed? 1) HIPAA 2) Gramm-Leach-Bliley Act 3) Privacy Protection Act 4) Freedom of Information Act

Benchmarking

Which of the following activities would you perform to measure and compare your business processes to similar processes of other companies within your industry? 1) Benchmarking 2) Best practices 3) Value chain analysis 4) Strategic systems analysis

All of the above

Which of the following are environmental actors that interact with an organization and its information systems? 1) Customers 2) Suppliers 3) Regulatory agencies 4) All of the above

Transparent marketplace

Which of the following can force a business and its competitors to compete on price alone? 1) Transparent marketplace 2) High product differentiation 3) Poor process efficiency 4) Demand control

Assign responsibility

Which of the following is NOT one of the five steps discussed in the chapter as a process for analyzing an ethical issue? 1) Assign responsibility 2) Identify the stakeholders 3) Identify the options you can reasonably take 4) Identify and clearly describe the facts

Ajax

Which of the following is a technique used to allow users to interact with a Web page without having to wait for the Web server to reload the Web page? 1) UDDI 2) Widgets 3) Ajax 4) Java Ajax

Extranet

Which of the following types of system helps expedite the flow of information between the firm and its suppliers and customers? 1) Intranet 2) Extranet 3) KMS 4) TPS

Digital dashboard

Which of the following would NOT be used as an input for an information system? 1) Digital dashboard 2) Handheld computer 3) Bar-code scanner 4) Cell phone

Centralized hierarchical decision making

Which of the following would not be a complementary asset for a solar panel manufacturer? 1) International solar equipment certification standards 2) Government funding for green technology 3) Centralized hierarchical decision making 4) Innovation-driven management team

Supply-chain management

________ systems integrate supplier, manufacturer, distributor, and customer logistics processes. 1) Collaborative distribution 2) Supply-chain management 3) Reverse logistics 4) Enterprise planning