ISM Ch. 1 & 3

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Explain the four nonroutine cognitive skills that are key to a successful career today.

(1) Abstract reasoning-the ability to make and manipulate models. (2) Systems thinking-the ability to model the components of a system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed. (3) Collaboration-the activity of two or more people working together to achieve a common goal, result, or work product. (4) Ability to experiment-making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources you have.

What are the five characteristics of good data?

1) Accurate-Good information is based on correct and complete data, and it has been processed correctly as expected. (2) Timely-Good data is produced in time for its intended use. (3) Relevant-Good data is relevant both to the context and to the subject. (4) Just barely sufficient-Good data is sufficient for the purpose for which it is generated, but just barely so. (5) Worth its cost-For good data to be worth its cost, there must be an appropriate relationship between the cost of data and its value.

What is a business process? How do you determine the cost and margin of a business process?

A business process is a network of activities that generate value by transforming inputs into outputs. Each activity is a business function that receives inputs and produces outputs. An activity can be performed by a human, by a computer system, or by both. The cost of the business process is the cost of the inputs plus the cost of the activities. The margin of the business process is the value of the outputs minus the cost.

Define the terms system, information system, and management information system.

A system is a group of components that interact to achieve some purpose. An information system (IS) is a group of components that interact to produce information. A management information system is defined as a system that helps organizations achieve their strategies.

State Nielsen's Law. What is the implication of Nielsen's Law for managers?

According to Nielsen's Law, "network connection speeds for high-end users will increase by 50 percent per year." Because of this law, the types of services and applications that can be provided over networks (i.e. the Internet) have changed radically. Therefore, it is important for managers to realize that, because of Nielsen's Law, networks will become faster, new companies, new products, and new platforms will emerge.

Sandra is a production manager at a soda manufacturing and bottling plant. One of her duties is to create a monthly inventory report based on the list of material received from the supplier on delivery. Sandra's report for the previous month, however, turned out to be invalid as the supplier provided an erroneous list. In this scenario, her report cannot be considered good information as it was lacking in ________.

Accuracy

Which of the following is a critical characteristic of good information?

Accuracy

Which of the following is the least critical aspect of good information?

Additional data

In the context of information systems, which of the following statements is TRUE of data characteristics?

An appropriate relationship should exist between the cost of data and its value.

According to Porter's four competitive strategy model, what are the four competitive strategies from which firms can choose?

An organization responds to the structure of its industry by choosing a competitive strategy. According to Porter's competitive strategy model, firms engage in one of these four strategies. An organization can focus on being the cost leader, or it can focus on differentiating its products or services from those of the competition. Further, the organization can employ the cost or differentiation strategy across an industry or it can focus its strategy on a particular industry segment.

Explain the relation between competitive strategies and information systems

An organization's goals and objectives are determined by its competitive strategy. Thus, ultimately, competitive strategy determines the structure, features, and functions of every information system. In short, organizations examine the structure of their industry and determine a competitive strategy. That strategy determines value chains, which, in turn, determine business processes. The structure of business processes determines the design of supporting information systems.

Give an example of a technology that is likely to have a major effect on competitive strategies in the years to come.

Augmented reality (AR) and virtual reality devices (VR) are just now being released to consumers. Drones are currently used by hobbyists and some small companies, but large-scale commercial use is still in the experimental stage. Self-driving cars are in the late development to early adoption phases and are getting a lot of attention from manufacturers and consumers. By 2027, new 3D applications, games, and user interfaces will be developed. Consequently, companies may need to redesign their business processes. Drones and self-driving cars will see widespread use and have a major effect on competitive strategies. For many products, transportation is a major cost. Entire value chains will be disrupted as transportation and delivery costs plummet. Robotics will likely be the next big area of technological expansion.

________ skills determine the ability to conceive information from data.

Cognitive

After making minor changes to a team report, Jeff felt like he had done enough work on the project. When he was asked to contribute more, he got offended and quit responding to requests from some team members. Jeff's inability to receive critical feedback indicates a lack of ________ skills.

Collaboration

________ is the activity of two or more people working together to achieve a common goal, result, or work product.

Collaboration

A furniture manufacturer keeps details of its current inventory including weight, quantity, and price. These details can be called ________.

Data

Noel creates a table listing the number of students in his biology class, their names, age, and phone numbers. His table is an example of the ________ component of an information system

Data

The ________ component in the five-component model of information systems is considered a bridge that connects the computer side and the human side.

Data

Explain the concept of "just barely sufficient" data.

Data needs to be sufficient for the purpose for which it is generated, but just barely so. We are inundated with data; one of the critical decisions that each of us has to make each day is what data to ignore. The higher one rises into management, the more data one will be given, and because there is only so much time, the more data one will need to ignore. So, data should be sufficient, but just barely.

________ is a means through which an organization can gain a competitive advantage through process implementations.

Establishing alliances

A manager will essentially require ________ skills to test ideas clearly on a small scale, before taking bigger risks or committing significant resources to a larger project.

Experimentation

Cami is the marketing manager for a regional furniture maker. She closely monitors the impact of each marketing campaign on overall sales. She routinely tries novel promotional offers to reach first-time customers. Which of the following skills does Cami exhibit?

Experimentation

________ is defined as making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources one has.

Experimentation

A major drawback of Porter's five forces model is that it ignores the rivalry among firms in the industry.

FALSE

A good information system is one that provides the users with more information than what is required.

False

A linkage is a network of activities that generate value by transforming inputs into outputs.

False

A person's strong abstract reasoning skills won't be able to easily construct models.

False

According to the five-component model of an information system, software is the most important component of an information system.

False

According to the five-component model of information systems, the data and software components of information systems are capable of performing actions

False

Bryce, a floor manager at an industrial plant, works well with all of his line employees. Bryce's ability to collaborate is a routine skill.

False

Changing the structure of existing databases causes more organizational disruption than changing working procedures.

False

Despite the rapid growth of technology, digital devices fail to impact the industry.

False

Gordon Moore was the inventor of Ethernet

False

In the five-component model of an information system, hardware and software are part of the human side.

False

In the value chain, customer service is concerned with inducing buyers to purchase the product and providing a means for them to do so.

False

Information systems create competitive advantage by providing support to a product rather than by becoming a part of the product.

False

Organizations cannot gain a competitive advantage by enhancing existing products or services.

False

The collective technical capability of an organization determines its competitive strategy.

False

The cost of the business process is the cost of the inputs plus the cost of the outputs.

False

The lower the amount of work to be moved from the human side to the computer side of an information system, the higher is the complexity of that system.

False

The primary activity of sales and marketing is the collection, storage, and physical distribution of the products to the buyers.

False

Explain why data accuracy is crucial to the success of an information system.

Good information is conceived from accurate, correct, and complete data that has been processed correctly as expected. The IS function can develop a bad reputation in the organization if a system is known to produce inaccurate data. In such a case, the information system becomes a waste of time and money as users develop work-arounds to avoid the inaccurate data.

Which of the following statements is TRUE of good information?

Good information should be based on correct and complete data.

In 1972, computer scientist ______ recognized that digital devices would change the world as they evolved and became widely used

Gordon Bell

In the five-component model of information systems, which of the following components is considered an actor?

Hardware

The storage controllers in a computer are an example of the ________ component of information systems.

Hardware

Which of the following components of an information system is the easiest to change and results in the least amount of organizational disruption?

Hardware

What kind of technological changes can be expected in the next ten years?

In the next 10 years, business models, strategies, and competitive advantages are unlikely to change. Their relationships to business processes and IS are also unlikely to change. They may evolve and new models may rise to the surface, but those new models will likely be extensions of existing models within existing paradigms. What is likely to change, however, is pace. The speed of business is continuing to accelerate because of faster Internet speeds, new networked devices, and improved hardware. The Web and other social sites (e.g., Twitter, Facebook, etc.) enable the rapid spread of new ideas and innovations. They also require businesses to constantly be on alert for changes that may affect their strategy in the near future.

Porter's five forces model is used to assess ________.

Industry structure

Robert is a strategic planner for a consulting firm. He receives countless reports for daily analysis, but he avoids being inundated with information by selecting only the few reports that actually serve his purpose. Which principle of data characterization is Robert following?

Information should be just barely sufficient for its purpose.

What job prospects are available for professionals who know how to use information systems (ISs)?

Information systems and computer technology provide job and wage benefits beyond just IS professionals. As the price of computer technology plummets, the value of jobs that benefit from it increases dramatically. For example, plentiful, high-paying jobs are available to business professionals who know how to use information systems to improve business process quality, or those who know how to interpret data mining results for improved marketing, or those who know how to use emerging technology like 3D printing to create new products and address new markets.

Why do businesses develop information systems? Also, point out some of the wrong reasons businesses sometimes cite for developing information systems.

Information systems exist to help people who work in an organization achieve the strategies of the organization. Information systems are not created for the sheer joy of exploring technology. They are not created so that the company can be "modern" or so that the company can show it has a social networking presence on the Web. They are not created because the information systems department thinks it needs to be created, because the company is "falling behind the technology curve."

John Carter, the CEO of Carter Steels, is concerned about the sudden rise in employee attrition in his organization. He asks Walter, the human resources manager, to provide him with the last quarter's report showing the rate of attrition. Walter, however, sends the salary details of the new hires for the last quarter. This report is of no use to Carter as it is ________.

Irrelevant

____ states the value of a network is equal to the square of the number of users connected to it

Metcalfe's Law

Which of the following is an example of computer hardware?

Monitor

__ states that the number of transistors per square inch on an integated chip doubles every 18 months

Moore's law

Which of the following statements is TRUE of business process designs?

Most process designs require people to work in new ways.

Which of the following employees performs a support activity in the value chain?

Nathaniel is in charge of setting up contractual agreements with vendors

__ states that network connection speeds for high-end users will increase by 50% per year

Nielsen's Law

The CEO of a large company asks the sales manager to report the sales figures of the previous quarter. The manager immediately sends her the list of products sold in the previous quarter. These details do NOT qualify as good information because they are ________.

Not relevant

Briefly explain process implementation in competitive strategies.

Organizations can use various process implementation competitive strategies to gain competitive advantage. Organizations can lock in customers by making it difficult or expensive for customers to switch to another product. This strategy is sometimes called establishing high switching costs. Organizations can lock in suppliers by making it difficult to switch to another organization, or, stated positively, by making it easy to connect to and work with the organization. Competitive advantage can also be gained by creating entry barriers that make it difficult and expensive for new competition to enter the market. Another means to gain competitive advantage is to establish alliances with other organizations. Finally, organizations can gain competitive advantage by reducing costs.

Briefly explain product implementation in competitive strategies.

Organizations gain a competitive advantage by creating new products or services, by enhancing existing products or services, and by differentiating their products and services from those of their competitors. Information systems create competitive advantages either as part of a product or by providing support to a product.

Which of the following statements is consistent with the central idea of business process design?

Organizations should create new business processes instead of improving existing systems.

The ________ component of the five-component framework of an information system includes individuals who maintain the data and support the networks of computers.

People

Which is the most important component of an information system? Why?

People are part of every information system that they use. The user's mind and thinking are not merely a component of the information systems they use; they are the most important component. This is so because, even if users have the perfect information system, if they do not know what to do with the data that it produces, they are wasting both their time and money. The quality of users' thinking is what determines the quality of the information that is produced

Briefly describe the concepts of value, margin, and value chain as defined by Porter

Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service. The difference between the value that an activity generates and the cost of the activity is called the margin. A value chain is a network of value-creating activities. That generic chain consists of five primary activities and four support activities.

Briefly explain Porter's five forces model.

Porter's five forces model is used to assess an industry structure. According to this model, five competitive forces determine industry profitability: bargaining power of customers, threat of substitutions, bargaining power of suppliers, threat of new entrants, and rivalry among existing firms. The intensity of each of the five forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be.

Explain linkages with an example.

Porter's model of business activities includes linkages, which are interactions across value activities. For example, manufacturing systems use linkages to reduce inventory costs. Such a system uses sales forecasts to plan production; it then uses the production plan to determine raw material needs and then uses the material needs to schedule purchases. The end result is just-in-time inventory, which reduces inventory sizes and costs.

Distinguish between the primary and support activities of a value chain.

Primary activities directly add value to the value chain of an organization. Examples are operations and marketing. The support activities in the generic value chain contribute indirectly to the production, sale, and service of the product. They include procurement, which consists of the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

According to the five-component model of information systems, the ________ component provides instructions for the people who use information systems.

Procedure

Zach follows the instructions that show him how to create a custom Web site in his school's learning management system. These steps that he follows are examples of the ________ component of an information system.

Procedure

It is generally more difficult to make changes to the ________ of an information system than to the database itself.

Procedures

__ is most likely to be outsourced to the lowest bidder

Routine skill

An operating system like Windows or Linux is an example of the ________ component of an information system.

Software

Skype is an application that provides users with video chat and voice call capabilities. This is an example of ________.

Software

Lindsay is an analyst at a large power company. She creates a custom spreadsheet showing how cold weather might affect the company's profitability. This shows her ________ skills.

Systems thinking

________ is the ability to model the components of a system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed.

Systems thinking

Discuss the Digital Revolution

The Digital Revolution was the conversion from mechanical and analog devices to digital devices. This shift to digital devices meant monumental changes for companies, individuals, and the society as a whole. The problem was, people couldn't really understand how, or even why, this shift was going to affect them. Much like people today, they based their future projections on past events. They knew factories, bureaucracies, mass production, and operational efficiency. But this knowledge didn't prepare them for the changes that were coming. The Digital Revolution didn't just mean that new "digital" equipment was replacing old mechanical, or analog, equipment. These new digital devices could now be connected to other digital devices and share data among themselves. They could also work faster as processor speed increased.

Explain the concept of business process design.

The central idea of business process design is that organizations should not automate or improve existing functional systems. Rather, they should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.

List and briefly explain the five-component model of an information system with examples.

The five components described in the model are: computer hardware, software, data, procedures, and people. These five components are present in every information system, from the simplest to the most complex. For example, when one uses a computer to write a class report, he/she is using hardware (the computer, storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other word-processing program), data (the words, sentences, and paragraphs in the report), procedures (the methods used to start the program, enter the report, print it, and save and back up the file), and people (the user).

Explain how the five components of an information system are arranged in terms of ease of change and organizational disruption

The five components of the information systems framework are: computer hardware, software, data, procedures, and people. The five components are arranged in order of ease of change and the amount of organizational disruption. It is usually a simple matter to order new hardware and install it. Obtaining or developing new programs is more difficult. Creating new databases or changing the structure of existing databases is still more difficult. Changing procedures, requiring people to work in new ways, is even more difficult. Finally, changing personnel responsibilities and reporting relationships and hiring and terminating employees are both very difficult and very disruptive to an organization.

In the five-component model, the process of automation is a process of moving work from ________.

The human side to the computer side

Caroline asks her secretary to send information on the meetings that she needs to attend next month. Her secretary, Joanne, provides her with the details immediately, but leaves out certain additional details that are irrelevant to Caroline's requirements. Which of the following statements is TRUE about this scenario?

The information that Joanne gave was accurate and sufficient for Caroline's purpose.

Discuss the common definitions of information.

The most common definition of information is that information is knowledge derived from data, whereas data is defined as recorded facts or figures. Another common definition is that information is data presented in a meaningful context. A third definition of information that one often hears is that information is processed data, or sometimes, information is data processed by summing, ordering, averaging, grouping, comparing, or other similar operations. The fundamental idea of this definition is that individuals do something to data to produce information.

Define the primary activities in a generic value chain.

The primary activities in a generic value chain are as follows: (1) Inbound logistics-It is the receiving, storing, and disseminating of inputs to the products. (2) Operations/manufacturing-It is the transforming of inputs into the final products. (3) Outbound logistics-It is the collecting, storing, and physically distributing of the products to buyers. (4) Sales and marketing-It is defined as inducing buyers to purchase the products and providing a means for them to do so. (5) Customer service-It is defined as assisting customers' use of the products and thus maintaining and enhancing the products' value.

Explain the relation between data and information.

The relation between data and information can be understood with the help of a graph. The graph is data that humans perceive, and from that perception conceive information. In short, if it's on a piece of paper or on a digital screen, it's data. If it's in the mind of a human, it's information. The quality of thinking, or ability to conceive information from data, is determined by one's cognitive skills. The data is just the data; the information conceived from it is the value that one adds to the information system. People have different perceptions and points of view, not surprisingly, then, they will conceive different information from the same data.

What are some of the key speculations about the nature of workplaces and schools in the future?

The social implications of advancements in technology and information systems could change workplaces and schools in the future. Since information systems do not depend on physical proximity, employees may band together in temporary teams, work together, and then band together in another way. They may not need organizations in the future. The same concept can be applied to classrooms. The prospect of obtaining education without going to a classroom seems highly plausible with the increased use of information systems. Further, this system would also reduce the cost of education but allow students to obtain the same degree.

What are the various support activities in a value chain?

The support activities in the generic value chain contribute indirectly to the production, sale, and service of the product. They include procurement, which consists of the processes of finding vendors, setting up contractual arrangements, and negotiating prices. Supporting functions add value, albeit indirectly, and they also have costs. It is difficult to calculate the margin for such activities because it is difficult to know the specific value added by a support activity.

Which of the following statements is TRUE of business users who administer the development of information systems?

They should take an active role in the system's development.

Will decides to gift his wife a house for their 10th wedding anniversary. He contacts his real estate agent about a specific house that he wants to buy. The realtor assures him that he will contact the owners immediately to find out the asking price. The agent, however, informs Will about the price two months after the anniversary. The information provided by the agent is most likely to be useless because it lacked ________.

Timeliness

Which of the following statements is TRUE about the changes and developments foreseen by the year 2027?

Traditional classrooms will be replaced by classrooms in a box.

According to the five-component framework, the five components of an information system are present in every information system.

True

An automobile manufacturer focusing on low-end buyers is following an industry-wide differentiation strategy.

True

An inventory of raw materials is an example of a repository.

True

An organization responds to the structure of its industry by choosing a competitive strategy.

True

An organization's goals and objectives are determined by its competitive strategy

True

Bell's Law states that a new computer class forms roughly each decade establishing a new industry.

True

By 2027, huge networks of computers would be required to process image data in real time.

True

Changing personnel responsibilities to suit an information system is more disruptive to an organization than ordering additional hardware for the information system.

True

Creating a new product to increase margin is an example of using product implementations to achieve competitive advantage

True

Data becomes information when it is presented in a meaningful context.

True

Data is worth its cost when an appropriate relationship exists between the cost of data and its value.

True

Each activity in a business process is a business function that receives inputs and produces outputs.

True

In a manufacturing business, the materials ordering process transforms cash into a raw materials inventory.

True

In the five-component model of an information system, data is the bridge between the computer and the human sides.

True

In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to a product.

True

Information systems exist to help people who work in an organization to achieve the strategies of that business.

True

Kryder's Law states that the storage density on magnetic disks is increasing at an exponential rate.

True

Obtaining or developing new programs is more difficult than ordering additional hardware.

True

Ordering additional hardware creates the least amount of organizational disruption compared to changes in the four components of an information system.

True

Organizations can lock in customers by making it difficult or expensive for them to move to another product

True

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices

True

The Digital Revolution was the conversion from mechanical and analog devices to digital devices.

True

The Information Age is a period in history where the production, distribution, and control of information is the primary driver of the economy.

True

The competitive strategy of locking in customers by making it difficult for them to move to another product is called establishing high switching costs.

True

The five-component framework applies to simple and complex information systems.

True

The sales process involves sales and marketing as well as outbound logistics activities

True

The statement that the average computer network architect makes $98,430, is information.

True

The streamlining of business processes to increase margin is key to obtaining competitive advantage.

True

The total margin of the value chain is the difference between the total value added and the total costs incurred.

True

What changes will the pace of change bring about in the future?

We can reasonably assume that the pace of change and the pace at which new technology is integrated will be fast and increasing, possibly accelerating, in the next 10 years. We need to view this increased pace as rapidly creating opportunities in which you can excel. You know it's coming. You know that, if not self-driving vehicles, then some other new technology-based product that is being constructed in someone's garage today will change the competitive landscape for the company for which you will work.

Which of the following defines a repository?

a collection of something, such as data or raw materials

According to Porter's five forces model, in which of the following situations would the supplier have the highest bargaining power?

a dealer of a patented material for smartphone manufacturers

Which of the following is an example of a low-tech information system?

a file of email addresses stored in an email program

According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?

a firm that sells the only drug for a disease

Dallas is an analyst at an online retailer. He is great at creating representative diagrams showing the relationships between customer purchases, billing, and shipment. This indicates that he has ________ skills.

abstract reasoning

The hardware components of an information system will act as a(n) ________.

actor on the computer side

Porter defined value as the ________.

amount of money that a customer is willing to pay for an offering

According to Porter's five forces model, an oil producer will have increased ________ if the supply of oil drops sharply.

bargaining power

Focused differentiation occurs when ________.

better service is provided within an industry segment

Google's Project Loon is a major effort to ________.

bring internet access to everyone using a network of inflated balloons

A(n) ________ is a network of activities that generate worth by transforming inputs into outputs.

business process

The ________ created by Porter states that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.

business process design

Drudgen Fitness Inc. is a fitness equipment provider that markets its products through a chain of retail outlets in four states. As part of its expansion strategy, the company decides to open outlets in four more states and decides to revise its existing business processes. According to the five-component model of information systems, which of the following processes will be the least disruptive to the organization?

buying and installing new computers in the new outlets

Which of the following would be the most disruptive to an organization when implementing an information system?

changing reporting relationships

Which of the following factors determines the structure, features, and functions of an information system used in a company?

competitive strategy

The cost of the business process is the sum of the cost of the inputs and the ________.

cost of the activities

Which of the following value chain activities involves assisting users with handling of the products after sale, thus maintaining and enhancing the products' value?

customer service

A customer relationship management (CRM) system contains the names and phone numbers of customers. Such details stored in a CRM system are part of the ________ component.

data

Silway Travels organizes tours to a number of cities in Illinois. The manager of the company examines a spreadsheet which is an annual record of airfares to different cities from Chicago. The contents of the spreadsheet will be used to determine the difference in peak season and off-season airfares. The spreadsheet, in this case, represents ________.

data

Which of the following principles of competitive advantage is associated with product implementations?

differentiating service offerings

A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. This is an example of obtaining competitive advantage by ________.

establishing alliances

Which of the following pairs of components constitutes the computer side of information systems?

hardware and software

LNG is a large multinational appliance manufacturer. The company gets raw materials from many vendors. In this case, LNG is characterized by ________.

high bargaining power over its suppliers

The automobile industry is characterized by many manufacturers and intense competition among them. According to Porter's five forces model, this statement illustrates ________.

high levels of rivalry

A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of ________.

inbound logistics

As the purchasing manager of a company that designs costumes, Natalie orders yards of fabric in preparation for Halloween. Natalie's duties can be classified under the ________ category of a business process.

inbound logistics

Identify the activity in the value chain that involves receiving and handling of raw materials and other inputs to the product.

inbound logistics

Kai runs a local auto parts store. A customer comes in and asks for special supercharger. Kai orders it from the factory. This activity can be classified under ________.

inbound logistics

Reduction in production cost results in ________.

increased profitability

Bargaining power of customers is likely to be the highest for markets involving ________.

industrial products

An automobile company decides to improve the quality of its products and bring more variety into its entire product line. The company has decided to adopt ________.

industry-wide differentiation

BigBank uses a custom customer management system to manage all of its interactions with retail clients. This system is an ________ of the company's information system.

instruction on the computer side

Streamtech, a manufacturer of automobiles, recently received a patent for an unmanned search boat. By doing this, Streamtech has ________.

introduced product differentiation

Information is considered inefficient if ________.

it is out of context

Which of the following is a common description of information?

knowledge derived from data

Madison, the project manager of a sports apparel company, estimates that the demand for jogging shoes is likely to decline in the coming months. He advises the procurement department to order raw material accordingly to ensure minimum wastage. This intercommunication that facilitates smooth operations is called ________.

linkages

Which of the following paved the way for the creation of a business process design?

linkages

Jason's Burgers, a famous diner, recently started taking orders online to reduce the customer wait time. This arrangement was perfect for busy office workers who frequented the place, and the sales went up considerably. Jason's Burgers attempted to ________.

lock in customers

Identify the principle of competitive advantage that is associated with product implementations.

lock in suppliers

FunText is a company that owns an app used for text messaging. It recently offered a six month membership extension to its existing customers without any additional charges. Which competitive strategy is FunText trying to implement in this scenario?

locking in customers

The International Zoological club publishes a monthly magazine for zoology enthusiasts. Members are required to pay an initial fee to cover the first two years of the subscription when registering with the club. In this scenario, the International Zoological club is ________.

locking in customers

A mining company develops a new processing technique using only light and patents the process. This situation is characterized by ________.

low threat of substitutions

Abstract reasoning is the ability to ________.

make and manipulate models

Organizations can lock in suppliers either by making it difficult to switch to another organization or by ________.

making it easy to work with the organization

The difference between the value that an activity generates and the cost of the activity is called the ________.

margin

According to Moore's Law

number of transistors per square inch on an integrated chip doubles every 18 months

Lynn, the manager of a transportation company, goes through the product delivery schedule. She assigns territories to each executive of the delivery team, and also contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn

outbound logistics

Which of the following value chain activities involves collecting, storing, and physically distributing the product to buyers?

outbound logistics

Which of the following is most likely to change in the next ten years?

pace of integration of new technology

Which of the following pairs of components constitutes the human side of information systems?

people and procedures

Which of the following ratios have fallen as a result of Moore's law

price/performance

-scream-4 Ice Cream recently faced competition against their flagship brand of "Orange peel ice cream." A competitor made significant in-roads into the market by offering three varieties of "Orange peel ice cream." I-scream-4 Ice Cream decided to counter this threat by introducing five new varieties of ice creams. Which competitive strategy is I-scream-4 Ice Cream implementing?

product differentiation

Hueblue Software, an application provider to the gaming industry, decided to enhance its portfolio by developing motion-control-enabled games for the mobile gaming industry. In this scenario, which competitive strategy is Hueblue Software implementing?

product differentiation

Launch Cars, a car manufacturing company, has patented its breakthrough technology that reduces pollutant emissions by half. The company is now an active supporter of anti-pollution laws that are likely to diminish the profitability of many other auto makers. Launch Cars is attempting to ________.

raise barriers to market entry

Which of the following is a primary activity in the value chain?

receiving and handling of raw materials and other inputs

Which of the following best describes data?

recorded facts or figures

Which of the following principles of competitive advantage is related to process implementations?

reduce costs & lock in buyers & raise the barriers to market entry

Cooper, the owner of a small bicycle manufacturing company, is striving to keep his organization running smoothly while remaining profitable in a highly competitive market. Cooper chooses process implementation to give his company a competitive edge over others. Which of the following principles is he most likely to implement?

reducing costs

PL Inc. implements an information system to improve its supply chain. The system helps the organization to reduce wastes and optimally utilize its resources. In this scenario, implementing the information system has helped PL Inc. to gain a competitive advantage by ________.

reducing its costs

Which of the following terms is described as processed data or data presented in a meaningful context?

reports

Neil creates an application which facilitates the easy storage and access of employee information like name, age, experience, and qualification for his organization. The application is an example of a(n) ________.

repository

Which of the following value chain activities involves inducing buyers to purchase a product and providing a means for them to do so

sales and marketing

In a manufacturing business, which of the following transforms finished goods into cash?

sales process

According to Porter's five forces model, in which of the following examples would rivalry be considered as a weak force affecting the market?

search engine designers

RAC Associates is a car rental company that rents cars to tourists in the United States. The company uses tracking devices and magnetic locks to prevent car theft. These procedures are examples of ________.

supporting business processes

Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.

switching costs

A large software manufacturer attempts to lock in customers by making it difficult for them to substitute their software with one from another company. The strategy used by the company is referred to as ________.

switching costs strategy

Which of the following is categorized as a nonroutine cognitive skill?

systems thinking

Which of the following is considered as information rather than mere data?

the return of investment on an advertising campaign

According to Porter's five forces model, a student's choice of lunch options at a large food court would be an example of a strong force for ________.

threat of substitutions

The difference between the total value added and the total costs incurred is called the ________ of the value chain

total margin

A large retailer loses millions of customer records in a major data breach. They must develop and implement a new system which includes new hardware, applications, and storage. Which of the following actions will be most difficult to perform when implementing the new information system?

training the employees to use and manage the new system

Which of the following statements best describes the role of operations in a value chain?

transforming inputs into the final products

A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.

true

Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service.

true

The difference between the value that an activity generates and the cost of the activity is called margin.

true

Focused cost leadership is observed when a product has the lowest cost ________.

within an industry segment


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