WGU C724 Information Systems Management Unit 2 Module 1

Plan daily operations-Although moving operations overseas may help businesses lower costs, it is not a benefit of SCM. Supply chain management systems help lower costs by providing for quality assurance, inventory buffers, alternate shipping options, and risk mitigation.

One benefit of a supply chain management system is to WHAT of the company? a.) Outsource technical functions b.) Automate office functions c.) Plan daily operations

Growth-The business is working to be the first to market in multiple states by growing more quickly than their competitors.

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 WHAT? a.) Product differentiataion b.) Synergy c.) Growth

Information-information is data that has been organized to provide value to an organization-An information system is an integrated network of components working together to convert data into useful information

A payroll spreadsheet is an example of WHAT? a.) Process b.) Data c.) Information d.) Information system

EIS-A digital dashboard is an example of an executive information system (EIS). These systems incorporate summarized information with external factors to forecast and analyze trends for top level executives.

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) WHAT? a.) EIS b.) DSS c.) MIS d.) TPS

DSS-MIS is often used to support middle-level managers in their operational functions.

A financial consultant can use a(n) WHAT to help his/her clients select investment choices and make informed financial decisions? a.) MIS b.) TPS c.) EIS d.) DSS

A customer relationship management (CRM) system-Even though this business might be small, a CRM system is exactly what they need to organize customer information. It would be helpful to keep track of customer email addresses and purchase habits. This will allow them to target their marketing to those customers when they offer promotions on the wines they like to purchase.

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.) A customer relationship management (CRM) system b.) An enterprise resource planning (ERP) system c.) Management information system (MIS)

Business ecosystem-Network economics is when the value of something increases because more people are buying the product and businesses benefit from the positive feedback.

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 WHAT? a.) Virtual company b.) Business ecosystem c.) Network economics

Automated reporting-CRM benefits include personalized communication to customers, not internal communication. Personalized communications are used to target customers with special promotions and maintain customer loyalty.

Customer relationship management (CRM) is a strategy that companies use to handle customer interactions. One business benefit of a CRM system is WHAT? a.) Manage flow of goods b.) Automated reporting c.) Better internal communication

EIS-EIS is used by top executives in an organization. EIS organizes and presents summarized data and information using internal (MIS and TPS) and external data sources to support strategic decision making.

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? a.) DSS b.) EIS c.) MIS d.) TPS

The owner can have better communications with customers-Information technology improves business communication with customers and suppliers. Improved communication improves a company's competitive advantage.

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? a.) The owner can better protect the privacy of his customer data. b.) The owner can have better communications with customers. c.) The owner will immediately begin saving money.

E-learning supports the health care demand by training workers more quickly--E-learning is one of the latest growing benefits to train and educate new health care professionals as well as current ones so they can advance in their careers and stay up to date with the many tools and systems involved in the medical field.

How is information technology impacting the health care industry? a.) Information technology eliminates data entry errors. b.) E-learning supports the health care demand by training workers more quickly. c.) Records are maintained electronically and allow easy access to anyone who needs them.

Transaction-Even though no money may be exchanged, this simple transaction might impact student fees, faculty schedules, or classroom availability.

If a student decides to switch classes because she wants a different teacher, this would be considered a WHAT to the college's information system and would involve interaction with its accounting or human resource systems? a.) Credit b.) Payment c.) Transaction

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? a.) Improved processes b.) Reduced stress c.) More job security

Store backup data in the cloud-Even if the facility, along with all of the installed hardware was destroyed, having backup data in the cloud or in another state would ensure that medical records were still available and protected.

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? a.) Store daily data backup data on a server in a warehouse located in his community b.) Store backup data in the cloud c.) Watch weather forecasts daily d.) Install weather tracking devices at the facility

Strategic information system-A strategic information system is one that is created to meet a specific business objective and to provide a competitive advantage. This mobile app is providing the real estate company with a competitive advantage

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) WHAT? a.) Executive information system b.) Decision support system c.) Strategic information system

Knowledge management-The process of sharing knowledge across business units and among employees of a business is called knowledge management.

The process of sharing knowledge across business units and among employees of a business is called a(n) WHAT? a.) Customer relationship management b.) Information management c.) Knowledge management

Threat of substitute products or services-Netflix and on-demand movie services are a substitute for DVDs, and therefore could be categorized as a 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 WHAT? a.) Intensity of competitive rivalry b.) Threat of substitute products or services c.) Threat of new entrants

Resistance-Organization members are often not as compliant and agreeable regarding new changes. It takes time for employees to accept new systems.

There is often considerable organizational WHAT when implementing new information systems? a.) Compliance b.) Resistance c.) Acceptance

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. a.) True b.) False

False-This system would likely be handled by an enterprise resource planning system, not a customer relationship management system. This system allows for sharing of information between departments, such as supply chain management and production management. ERP and CRM are both important to a business, and these two systems often share information to manage both inventory and customer satisfaction information.

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. a.) True b.) False

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

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

True-A supply chain management system is one in which businesses are interconnected and work together to create a product or service for the customer.

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. a.) True b.) False

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. a.) True b.) False

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. a.) True b.) False

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. a.) True b.) False

True-IT helps improve processes by helping to identify, analyze, and improve upon existing business practices within an organization.

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. a.) True b.) False

False-. Hardware, software, data, and networks make up information technology--not information systems. People, processes, machines, and information technology make up information systems.

True or false. Hardware, software, data, and networks make up information systems. a.) True b.) False

True-Information systems help managers to perform numerous business roles including long-range strategic planning, decision making, and assessing external threats and opportunities.

True or false. Information systems help managers to perform long-range strategic planning, decision making, and to assess external threats and opportunities. a.) True b.) False

True-The type of threat will vary by region and can include any of the following: floods, hurricanes, terrorism, power outages, and earthquakes.

True or false. Major threats to information systems facilities vary by region and can include floods, hurricanes, terrorism, power outages, and earthquakes. a.) True b.) False

False-. Managers MUST understand the essential features of their organization to build and use information systems successfully. Having a knowledgeable and supportive staff would also be helpful so that they have someone who can answer questions or to consult with when problems arise

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

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. a.) True b.) False

True-Information technology is having a positive impact on the availability of jobs for the disabled because it easier for disabled employees to take advantage of opportunities such as telecommuting, online shopping and banking, entertainment, relationships, and e-learning.

True or false. One positive impact of information technology is the increasing number of jobs that are becoming available for the disabled. a.) True b.) False

True-Knowledge management systems are most effective when best practices are maintained and readily available to employees and managers whenever needed. This will help improve the organization's overall performance.

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. a.) True b.) False

True-The ATM is an information system because it has an input (customer bank card), a process (conduct banking transaction), and an output (dispatch cash, receipts, etc).

True or false. The ATM (automated teller machine) at a bank is an example of an information system. a.) True b.) False

True-Building a responsive IT infrastructure is one of the key issues facing information systems management.

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

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. a.) True b.) False

False-Two types of business strategies include growth and product differentiation.

True or false. Two types of business strategies include growth and product competition. a.) True b.) False

Texting-Texting reduces face-to-face interactions and verbal communication skills.-Telecommuting simply means working from home or away from the main office. Telecommuters use of the Internet, email, and the telephone to communicate and use interpersonal skills to build relationships

WHAT can have a negative impact on employees' interpersonal skills and ability to build business relationships? a.) Social networking b.) Telecommuting c.) Texting

Enterprise resource planning (ERP) systems-ERP systems involve utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control

WHAT involve utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control? a.) Supply chain management (SCM) systems b.) Enterprise systems c.) Enterprise resource planning (ERP) systems

Core competency-A core competency is an activity for which a business is a marketplace leader

WHAT is an activity for which a business is a marketplace leader? a.) Synergy b.) Growth c.) Core competency

Information-Information is the meaningful organization of data so that statements can be made about them. Knowledge is the practical application of that information

WHAT is the meaningful organization of data? a.) Information b.) Knowledge

Production and operations-Production and operations are responsible for converting resources into goods or services as efficiently as possible.

Which main business function is responsible for converting resources into goods or services as efficiently as possible? a.) Production and operations b.) Sales and marketing c.) Finance and accounting d.) Human resources

b-Chic Computers has created a network-based strategy with each of the laptop and tablet manufacturers and cell phone carriers.

Which of the following companies has created a network-based strategy with other businesses? a.) Happy Hair is a hair salon catering to young teenagers. The business works hard to keep up with the current trends that teenagers are following for their hair styles, such as current TV shows and pop musicians. The business has been so successful that the owner is considering opening a new location. b.) 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.

Lower implementation costs-Implementing new technology is very expensive. In addition to the hardware and software purchase costs, information technology systems are expensive to maintain.

Which of the following is NOT a benefit of information technology? a.) Lower implementation costs b.) New product development c.) Faster communication d.) Increased globalization

Incentives-Incentives are not an organizational feature manager use to build information systems. They are something a business uses to encourage employees to reach goals.

Which of the following is NOT an organizational feature that managers should consider when building and using information systems? a.) Politics b.) Structure c.) Environment d.) Incentives

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-Even if the facility, along with all of the installed hardware was destroyed, having backup data in the cloud or in another state would ensure that medical records were still available and protected.

Which of the following is the best description of an information system? a.) 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. b.) A restaurant's important recipes are stored in a database on their desktop computer. c.) A program is written to create mailing labels for marketing company.

b-This company is working to implement a new knowledge management system and is utilizing a new technical writing team to assist with capturing and writing the documentation. Capturing experiences into a knowledge-based system can replicate expertise. Sharing this knowledge can help a business avoid repeating mistakes.

Which of these choices best describes a knowledge management system? a.) A ski resort collects customer information when a new reservation is made. That customer information is sent to the children's ski school that is on property so that they can market the ski school to customers with young children. b.) 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.

a-The recruiting company is not currently using an ERP system, but they would benefit from an ERP system where data entry is done through a single interface that feeds to all the necessary departments, reducing the time spent on data entry and compiling information.

Which of these choices best describes an ERP system? a.) 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. b.) A receptionist at a recruiting company enters information about a potential candidate into a spreadsheet and emails key pieces of information to the recruiter responsible for that area. Only the receptionist has access to the spreadsheet.

Threat of substitutes-If switching to a similar product or service costs little or nothing for the buyer, the threat of a competitor's substitute is great.

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? a.) Threat of substitutes b.) Threat of new entrants c.) Bargaining power of suppliers

b-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? a.) Papa Jack's Pizza restaurant implemented a new system to help manage employee schedules and help with routine questions about inventory. b.) We Be Fit gym implemented a new system to determine trends and identify new operational methods in order to improve customer service.