Chapter 1
The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of which of the following? Operational excellence Improved decision making Improved efficiency Customer intimacy Improved flexibility
Customer intimacy
In ________, raw data is systematically acquired and transformed during various stages that add value to that information. the firm value chain the feedback process the dissemination process an information value chain information processing
an information value chain
All of the following are new technology-related trends in MIS except: IoT. big data. the mobile digital platform. cloud computing. co-creation of business value.
co-creation of business value.
How much did American businesses spend on information systems hardware, software, and telecommunications equipment in 2017? About $100 million About $1 billion About $1 trillion About $10 trillion About $100 billion
About $1 trillion
Approximately how much revenue was generated by e-commerce in 2017? About $229 billion About $180 billion About $2 trillion About $1 trillion About $700 billion
About $700 billion
Personnel who design new products or services for a firm belong to which level of a business hierarchy? Data workers Knowledge workers Middle management Production workers Service workers
Knowledge workers
Which field of study focuses on both a behavioral and technical understanding of information systems? Computer science Sociology Operations research Economics Management information systems
Management information systems
Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following? New products and services Customer intimacy Operational efficiency Survival Competitive advantage
Operational efficiency
To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? Operational excellence Improved decision making Customer intimacy Survival New products and services
Operational excellence
In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business? Operational management Middle management Knowledge workers Service workers Production management
Operational management
Which of the following is an example of a social complementary asset? Technology and service firms in adjacent markets Incentives for management innovation Distributed decision-making rights Training programs A strong IS development team
Technology and service firms in adjacent markets
Which of the following is a global network that uses universal standards to connect millions of different networks around the world? An intranet The World Wide Web An extranet The Internet Verizon
The Internet
Which of the following is an example of a business using information systems to improve customer and supplier intimacy? Apple's creation of the iPad The Mandarin Oriental's use of computers to keep track of guest preferences Walmart's RetailLink system PCL Construction's use of cloud computing Verizon's use of a web-based digital dashboard to provide real-time company information for managers
The Mandarin Oriental's use of computers to keep track of guest preferences
Which of the following is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format? The World Wide Web FTP An extranet E-mail HTML
The World Wide Web
Data collected at checkout counters in a grocery store is an example of: information systems. feedback. input. output. processing.
input.
Disciplines that contribute to the technical approach to information systems include: operations research, management science, and computer science. computer science, engineering, and networking. economics, sociology, and psychology. management science, computer science, and engineering. engineering, utilization management, and computer science.
operations research, management science, and computer science.
Converting raw data into a more meaningful form is called: analysis. capturing. processing. feedback. organizing.
processing.
In a hierarchical organization, the upper level consists of: scientists. knowledge workers. professional employees. data workers. senior management.
senior management.
Thomas Friedman's description of the world as "flat" refers to: the growth of globalization. the increased use of global currencies. the use of the Internet and technology for instantaneous communication. the reduction in travel times and the ubiquity of global exchange and travel. the flattening of economic and cultural advantages of developed countries.
the flattening of economic and cultural advantages of developed countries.
Output: transfers data to the people who will use it or to the activities for which it will be used. is information that is returned to appropriate members of the organization to help them evaluate the input stage. is the result of processing raw input data into meaningful information. is feedback that has been processed to create meaningful information that can be used by others. converts raw input into a meaningful form.
transfers data to the people who will use it or to the activities for which it will be used.
In 2017, what percent of the U.S. economy resulted from foreign trade? 50 percent 30 percent 25 percent 66 percent 10 percent
30 percent
How many service jobs move offshore to lower-wage countries in a typical year? 3,000 300,000 30,000 30 million 3 million
300,000
Which of the following 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 and 3 2 and 3 1 only 1 and 2 1, 2, and 3
1, 2, and 3
Approximately how many Americans access the Internet using a smartphone or tablet? 230 million 258 million 194 million 172 million 118 million
230 million
Approximately how much revenue was generated by e-commerce in 2017? About $700 billion About $229 billion About $180 billion About $1 trillion About $2 trillion
About $700 billion
Which of the following is a private corporate network extended to authorized users outside the organization? The Internet An intranet FTP An extranet The World Wide Web
An extranet
Which of the following would not be a complementary asset for a solar panel manufacturer? Subsidies for adoption of solar energy International solar equipment certification standards Centralized hierarchical decision making Innovation-driven management team Government funding for green technology
Centralized hierarchical decision making
Which of the following is an example of an organizational complementary asset? A collaborative work environment Choosing the appropriate business model Strong senior management The Internet and telecommunications infrastructure Laws and regulations
Choosing the appropriate business model
Which of the following is not one of the IT innovations changing the world of business today? The mobile digital platform Business intelligence Big data Cloud computing IoT
Cloud computing
A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? Customer intimacy Survival Improved decision making Operational excellence Competitive advantage
Survival
Maintaining the organization's financial records is a central purpose of which main business function? Manufacturing and accounting Finance and accounting Human resources Sales and manufacturing Finance and sales
Finance and accounting
Which of the following is not one of the current changes taking place in information systems technology? Emerging mobile digital platform Growing business use of big data Growth in cloud computing Growth in the PC platform Increased usage of data generated by the Internet of Things
Growth in the PC platform
Which main business function is responsible for maintaining employee records? Human resources Manufacturing and production Middle management Finance and accounting Sales and marketing
Human resources
Which of the following is not one of the six strategic business objectives of information systems? Competitive advantage New products and services Improved decision making Survival Improved community relations
Improved community relations
Which of the following statements is not true? Most of the business value of IT investment derives from organizational, management, and cultural changes inside firms. Much of the money spent by American businesses on business and management consulting involves redesigning firms' business operations to take advantage of new technologies. In 2017, American businesses invested about $1 trillion in information systems hardware, software, and telecommunications equipment. In 2017, American businesses spent $500 billion on business and management consulting and information technology services. Private business investment in information technology has grown from 21 percent of total invested capital in 1999 to 33 percent of all invested capital in 2017.
In 2017, American businesses spent $500 billion on business and management consulting and information technology services.
Data management technology consists of which of the following? Two or more computers to share data or resources Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system Software governing the organization of data on physical storage media Physical hardware and media used by an organization for storing data Hardware and software used to transfer data
Software governing the organization of data on physical storage media
Which of the following statements best describes organizational culture? It allows a company to achieve greater operational efficiency. It encompasses the sum of beliefs and assumptions by all members. It enables the organization to transcend the different levels and specialties of its employees. It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization. It reflects the senior management's perspective on the organization and goals.
It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.
Which of the following 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? Information systems architecture Information technology infrastructure Business processes Information systems literacy Management information systems
Management information systems
A corporation that funds an employee training program to build computer skills could be seen as investing in which main category of complementary assets? Auxiliary Organizational Governmental Managerial Social
Managerial
Verizon's use of a web-based digital dashboard to provide managers with precise real-time information enabled it to improve which of the following? Compliance with regulations Intimacy with its suppliers Managerial decision making Efficiency in creation of new products Employee morale
Managerial decision making
The total number of food items with storage temperature problems is an example of which of the following? Feedback Processing Raw data Input Meaningful information
Meaningful information
Which of the following statements is not true? In 2017, 60 percent of Apple's revenue was generated outside of the United States. Technology companies are particularly dependent on offshore revenue. Eighty percent of the toys sold in the United States are manufactured in China. Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. Most PCs manufactured in China use microprocessor chips manufactured in Korea.
Most PCs manufactured in China use microprocessor chips manufactured in Korea.
Which of the following is an example of raw data from an automobile manufacturer? 1,200 Subaru Outbacks sold during the first quarter 2017 in New York An average sale price of $25,500 for all Subaru Outbacks sold during July 2017 in Mohegan Lake, New York Annual sales of Subaru Outbacks increased 5.3 percent One Subaru Outback sold July 27, 20176 in Mohegan Lake, New York for $24,000 An average of 120 Subarus sold daily in New York in 2017
One Subaru Outback sold July 27, 20176 in Mohegan Lake, New York for $24,000
Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following? Customer intimacy Competitive advantage New products and services Survival Operational efficiency
Operational efficiency
Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control? Management science Utilization management MIS Computer science Operations research
Operations research
Which of the following would be used as an input for an information system? Sales for stores in a region Sales by region report Year to date sales of products Marketing costs report for each product Product ID, and price
Product ID, and price
Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems? Sales executives Senior executives Knowledge workers Operational managers Production workers
Production workers
Which of the following is the key business objective behind the technologies implemented by PCL Construction, as discussed in the chapter-opening case? Higher customer satisfaction levels Reduced cost of supplies Reduced delays in document management Improved employee morale Survival
Reduced delays in document management
Data management technology consists of which of the following? Hardware and software used to transfer data Software governing the organization of data on physical storage media Two or more computers to share data or resources Physical hardware and media used by an organization for storing data Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system
Software governing the organization of data on physical storage media
Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? Monitoring service levels Promoting the company strategy of low-cost, superior service The use of handheld computers and networks for managing package delivery The specification of procedures for identifying packages with sender and recipient information A web-based Post Sales Order Management System
The specification of procedures for identifying packages with sender and recipient information
Which of the following best describes the primary reason for implementing a new information system, from a business perspective? The system will automate key business processes. The system integrates well with the Web. The system will create new value for the firm, beyond its costs. The system enables the firm to create new products and services. The system is in use by our primary competitors.
The system will create new value for the firm, beyond its costs.
Which of the following statements about digital firms is not true? Digital firms offer extraordinary opportunities for flexible global organization and management. Digital firms sense and respond to their environments more rapidly than traditional firms. Today, most firms are fully digital. In digital firms, time shifting and space shifting are the norm. Digital firms have more flexibility to survive in turbulent times.
Today, most firms are fully digital.
Which of the following constitutes a managerial element in the UPS tracking system described in the chapter? Using information to creating plans to deal with competitors Ability to embed UPS functions in external sites In-house package tracking software Taking inventory Providing package status reports to customers
Using information to creating plans to deal with competitors
The Toxic Substances Control Act requires firms to retain records of employee exposure to toxic chemicals: for 10 years. for 5 years. for 30 years. for 1 year. forever.
for 30 years.
Psychologists study information systems with an eye to understanding: how systems affect individuals, groups, and organizations. mathematically based models and physical technology. the production of digital goods. how new information systems change the control and cost structures within the firm. how human decision makers perceive and use formal information.
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. how human decision makers perceive and use formal information. mathematically based models and physical technology. the production of digital goods. how new information systems change the control and cost structures within the firm.
how systems affect individuals, groups, and organizations.
All of the following describe the effects of globalization except: significant decreases in operating costs. ability to find low-cost suppliers. increases in transaction costs. replication of business models in multiple countries. reduction of labor costs through outsourcing.
increases in transaction costs.
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: networked environment. culture. information technology (IT) infrastructure. information system. data management environment.
information technology (IT) infrastructure.
The three activities in an information system that produce the information organizations use to control operations are: information, research, and analysis. input, processing, and output. data, information, and analysis. input, output, and feedback. data analysis, processing, and feedback.
input, processing, and output.
All of the following are examples of environmental actors in an information system except: sales force. suppliers. customers. regulatory agencies. competitors.
sales force.
The three principal levels within a business organization hierarchy are: senior management, operational management, and information systems. senior management, data workers, and service workers. senior management, middle management, and operational management. senior management, middle management, and service workers. senior management, operational management, and service workers.
senior management, middle management, and operational management.
