Chapter 1 - Multiple Choice
An example of an organizational complementary asset is
using the appropriate business model
Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time?
1,2, and 3
Order data for baseball tickets and bar code data are examples of
A raw input
Which of the following would not be a complementary asset for a solar panel manufacturer?
centralized hierarchical decision making
Which of the following would NOT be used as an input for an information system?
digital dashboard
Which of the following are key corporate assets?
intellectual property, core competencies, and financial and human assets
Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy?
knowledge workers
In a hierarchical organization, the upper levels consist of
managerial, professional, and technical employees
The average number of tickets sold daily online is an example of
meaningful information
Disciplines that contribute to the technical approach to information systems are
operations research, management science, and computer science.
Converting raw data into a more meaningful form is called
processing
A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?
survival
Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having
inadequate information.
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?
survival
An example of a social complementary asset is
technology and service firms in adjacent markets
A managerial element in the UPS tracking system described in the chapter is
the decision to use automation
Output
transfers processed information to the people who will use it or to the activities for which it will be used
The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called
management information systems
Which field of study focuses on both a behavioral and technical understanding of information systems?
management information systems
The hardware and software used to transfer data in an organization is called
networking and telecommunications technology
Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium?
new products and services
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?
operational excellence
In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is
operational management.
The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is
operations research.
The three principal levels within a business organization hierarchy are
senior management, middle management, and operational management.
A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?
social
Data management technology consists of the
software governing the organization of data on physical storage media
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?
survival
The use of information systems because of necessity describes the business objective of
survival
Thomas Friedman's declaration that the world was now "flat" meant that
the Internet has reduced the economic advantages of developed countries
The costs for firms operating on a global scale have been drastically reduced by
the Internet.
From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called
the information value chain
Which of the following constitutes an organizational element in the UPS tracking system described in the chapter?
the specification of procedures for identifying packages with sender and recipient information
An example of a business using information systems for customer and supplier intimacy is
) the Mandarin Oriental hotel's customer-preference tracking system
An example of raw data from a national chain of automobile stores would be
1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky
Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's
IT infrastructure
Based on the examples in the chapter, 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?
Use IT to achieve customer intimacy.
An example of a business using information systems to attain operational excellence is
Wal-Mart's RetailLink system
Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to
adopt a new business model
Which of the following are environmental actors that interact with an organization and its information systems?
all of the above
The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its
culture
Psychologists study information systems with an eye to understanding
how human decision makers perceive and use formal information.
Sociologists study information systems with an eye to understanding
how systems affect individuals, groups, and organizations.
Which main business function is responsible for maintaining employee records?
human resources
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
improved decision making
Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of
improved decision making
The three activities in an information system that produce the information organizations use to control operations are
input, processing, and output
An example of a business using information systems to create new products and services is
Apple Inc.'s iPod
Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective?
competitive advantage
Maintaining the organization's financial records is a central purpose of which main business function?
finance and accounting