module one Management Information Systems and Business Functions

True or false. A transaction processing system is created to meet a specific business goal and to provide a competitive advantage.

False

True or false. Accountants have no need to interact with an organization's information system.

False

True or false. Managers only need to understand the basic features of their organization to build and use information systems successfully.

False

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?

improved processes

Which of the following is NOT an organizational feature that managers should consider when building and using information systems?

incentives not Politics

The process of sharing knowledge across business units and among employees of a business is called a(n)

knowledge management

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?

The owner can have better communications with customers.

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.

True

Customer relationship management (CRM) is a strategy that companies use to handle customer interactions. One business benefit of a CRM system is _____________.

automated reporting

Which main business function is responsible for converting resources into goods or services as efficiently as possible?

Production and operations

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?

A customer relationship management (CRM) system

Which of these choices best describes a knowledge management 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 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 the following is the best description of an information system?

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 companies has created a network-based strategy with other businesses?

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.

How is information technology impacting the health care industry?

E-learning supports the health care demand by training workers more quickly.

A digital dashboard displays charts and graphs with up-to-the-minute performance indicators on sales, profit, expenses and inventory. This is an example of a(n) ___________________________.

EIS(Executive Information System)

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?

EIS(Executive Information System)

involve utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control.

Enterprise resource planning (ERP) system

True or false. A business benefit of enterprise resource planning (ERP) systems is ease of use.

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. Two types of business strategies include growth and product competition.

False (two types are growth and product differentiation, not competition)

True or false. A storage device consists of all the components that work together to process data into useful information.

False: An information system is a system that accepts input data and processes it into information as output.

True or false. A customer relationship management system provides a business with an opportunity to allow customers to know which products are currently available by displaying them on a website.

False: CRM systems integrate information about each client's likes and dislikes to be able to tailor conversations with them. CRM systems market to each customer individually based on that customer's likes, dislikes, and previous purchasing history.

True or false. The terms information technology and information systems have the same definition and can be used interchangeably.

False: Information technology is a subset of information systems; they are not the same thing.

True or false. Hardware, software, data, and networks make up information systems.

False: That is Information Technology that is included along with people and processes in information systems

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.

False: not product development but lastly intensity of competitive rivalry

True or false. A virtual company provides only virtual services.

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.

A payroll spreadsheet is an example of___________.

Information

______________is the meaningful organization of data.

Information

Which of the following is NOT a benefit of information technology?

Lower implementation costs

A financial consultant can use a(n) ________ to help his/her clients select investment choices and make informed financial decisions.

Managment Information Systems(MIS) not TPS(transaction processing system)

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?

Store backup data in the cloud

_____________ can have a negative impact on employees' interpersonal skills and ability to build business relationships.

Texting not Telecommuting

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.

Threat of substitutes

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.

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.

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: An ATM has input, process, and output; it is an integrated network of components working together to dispatch cash to customers.

True or false. The ability to build a responsive IT infrastructure is one of the key issues facing information systems management.

True: keeping IT infrastructure current and up to date is one of those factors

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.

A ____________ is an activity for which a business is a marketplace leader.

core competency

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 ________.

growth

One benefit of a supply chain management system is to ___________ of the company.

not automate office functions

An IT services company, a digital marketing company, and a photographer recognize that each party brings a unique skillset to the small and medium-size businesses that they service, so they decide to work together. These three companies work together to make it easy for a business to hire all three of these companies to do work for their business. This is an example of a __________.

not network economics

There is often considerable organizational __________ when implementing new information systems.

resistance

Palm Beach Real Estate Company created a mobile application to allow prospective clients to view information about beachfront properties from their smartphone. No other local real estate agents currently offer such technology. This mobile app is an example of a(n)_____________.

strategic information system

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 ___________.

threat of substitute products or services

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.

transaction