Information Systems Management WGU
A _____ is an activity for which a business is a marketplace leader.
Core competency
_____ have shown tremendous growth in the last few decades, leading to more sophisticated _____.
Information Technologies Information Systems
Information systems executives must make difficult hardware decisions regarding _____ issues that pose possible outside threats to the system.
Security
The programs comprised of pre-coded instructions written in a programming language which the end user typically uses to interact directly with the IS
Software
A bank software company purchases another bank software company and begins utilizing employees from both development teams to create a new software product for their clients. The bank software company is benefiting from the _____ created through the acquisition.
Synergies
True or False. A core competency is an activity for which a business is a marketplace leader. True False
True
The computer and all of its peripherals
Hardware
Information systems accept _____ as input and process it into _____ as output
Data Information
What is the difference between data and information
Data is the raw material of observations, facts or ideas. Information is the meaningful organization of data so statements can be made about them
This system provides modeling and analytical tools that support middle to senior managers in all aspects of the decision-making process, when problems are unique, unstructured, and not easily specified in advance, to project potential future trends.
Decision Support Systems (DSS)
Business function of marketing and sales
Planning, promoting, and selling of goods and services to satisfy customer needs and the objectives of the organization
A restaurant develops a new ordering system that allows for online ordering both from desktop and mobile sites. No other restaurant in their local area is offering online ordering. This restaurant is using a business strategy of:
Product Differentiation
A large part of IS management's main agenda changes every _____ year(s) due to the constant evolvement of information systems, confirming the highly dynamic nature of the IS management function.
3 - (About one third of the IS management agenda is expected to change every three years, confirming the highly dynamic nature of the IS management function)
Which of these choices best describes an ERP system? A foreman conducts a warehouse inventory using a mobile barcode scanner, which compiles product quantities and types in a mobile database. He then takes the mobile scanner to management where the barcode data are uploaded into an inventory database. A bookkeeper enters information into the bookkeeping system, which feeds the necessary information into the accounting system, where the accountant can perform his or her tasks and run financial reports for top management. A receptionist and a secretary at a law firm both input and access client information in separate databases, related to legal issues, in order to complete their specific tasks.
A bookkeeper enters information into the bookkeeping system, which feeds the necessary information into the accounting system, where the accountant can perform his or her tasks and run financial reports for top management. (Integrating the bookkeeping and accounting systems is a benefit of ERP. By tightly integrating functional business areas in a single database, businesses improve efficiencies and reduce costs. ERP systems also provide a place to integrate reporting from various systems so that executives have all information at their fingertips.)
Which of the following is an example of a business or entrepreneur utilizing a customer relationship management (CRM) system? A doctor's office utilizing file folders with physical papers to keep track of patient information A hair salon keeping track of appointments and customer phone numbers in the salon owner's cell phone An author using a spreadsheet to keep track of fans' email addresses A chain of three pizza restaurants utilizing a web-based software that keeps track of customer email addresses and uses that system to send out weekly coupons
A chain of three pizza restaurants utilizing a web-based software that keeps track of customer email addresses and uses that system to send out weekly coupons
What is a system
A collection of related parts working together to achieve a specific purpose or task
A business owner opens a new store and begins collecting customer information at the register. This information includes email addresses and other information that the customers are willing to share. The business owner also starts to create paper contracts for special orders that involve embroidery and personalization. These papers are stored in a folder in the store location. Which of the following systems will help the business owner manage this type of information? Management information systems (MIS) An enterprise resource planning (ERP) system A customer relationship management (CRM) system
A customer relationship management (CRM) system
A grocery store has an extensive inventory control process. They carry thousands of products and shelf-space for those products is competitive. If the grocery store is out of a particular item, then they are losing money. They need to keep all of their products in stock to meet customer demand and make a profit. This grocery store should consider looking into which system to help manage this type of information? A supply chain management (SCM) system An enterprise resource planning (ERP) system A knowledge management system A customer relationship management (CRM) system
A supply chain management (SCM) system (A supply chain management system will help ensure the right amount of products are delivered to the store to meet customer demand)
Information systems are used in many functional business areas. Select the most common. (Select all that apply.) Maintenance Accounting Human resources Marketing
Accounting Human resources Marketing
Managing information systems is a challenging role because of the constant changes and threats to computer based information systems. Which of the following can be a major threat to information systems? Floods Earthquakes Power outages All of the above
All of the above
Businesses invest in information systems for a number of reasons. Of those listed, which one is NOT essential enough for a business to make the costly investment in an information system? Attain customer information Develop new products and services Achieve operational excellence Improve decision making Promote competitive advantage
Attain customer information (This information can easily be attained with the Internet and a database; it is not significant enough to invest in an information system)
Many credit card companies offer loyalty programs and reward points that can be used to purchase extra items. Airline points can be a big draw in the credit card industry. In terms of Porter's five competitive forces, this is an example of:
Bargaining power of customers
Organizations gain many benefits with knowledge management systems, but one of the most important benefits is that the systems make _____ available for employees at any time so they can learn the most effective and efficient ways of doing things.
Best Practices
Customer relationship management (CRM) is a strategy that companies use to handle customer interactions. The business benefits of a CRM system include all except which of the following? Better internal communication Automated reporting Better customer experience Focused marketing effort
Better internal communication (CRM benefits include personalized communication to customers, not better internal communication. Personalized communications are used to target customers with special promotions and maintain customer loyalty.)
Which one of the following scenarios describes a strategic information system? Starfish Seafood Restaurant implemented a new system to help track transactions, manage employee hours, and help with routine questions about inventory. Big Bean Coffee shop implemented a new system to determine trends and identify new operational methods in order to improve customer service.
Big Bean Coffee shop implemented a new system to determine trends and identify new operational methods in order to improve customer service.
These systems entail all aspects of interaction that a company has with its customers, including contacts, clients, contract wins and sales leads, and more.
Customer Relationship Management (CRM) System
The input the system accepts to produce useful information
Data
Thousands of fields use information technology to boost effectiveness. The need for healthcare is especially important to everyone, and technology has helped the medical field meet the demand. Of the items listed below, select the primary growing benefit of information technology to the healthcare industry. Information technology helps reduce human error in medicine and gives healthcare workers the tools they need to diagnose and treat patients with new devices and methods. E-learning has become very popular in the medical field to help support the healthcare demand and supply the field with the necessary workers more quickly through the use of information technology. Communication plays a huge role in healthcare and information technology is able to provide the communication tools to reach patients and staff more easily through the Internet. Information technology helps to ensure the safety and privacy of a patient's records and then use that information to treat them properly.
E-learning has become very popular in the medical field to help support the healthcare demand and supply the field with the necessary workers more quickly through the use of information technology.
How is information technology impacting the health care industry? Information technology eliminates data entry errors. E-learning supports the health care demand by training workers more quickly. Records are maintained electronically and allow easy access to anyone who needs them.
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.)
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) ___________________________. MIS EIS TPS DSS
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.)
What is a benefit of introducing knowledge management? Employees of a business more readily share information across business units. Employees develop more of a personal role and feel empowered to be the only ones with their particular expertise.
Employees of a business more readily share information across business units.
These systems tightly integrate functional areas, such as accounting, finance, project management, inventory control, purchasing, human resources, customer retention, sales, and marketing into one single, comprehensive system.
Enterprise Resource Planning (ERP) System
_____ involve utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control.
Enterprise Resource Planning (ERP) System
This system supports senior executives by providing important data in the form of graphs and charts to analyze and identify long-term trends.
Executive Info Systems (EIS)
True or false. A transaction processing system is created to meet a specific business goal and to provide a competitive advantage. True False
False - A transaction processing system tracks daily business operations. A strategic information system is created to meet a specific business goal and provide a competitive advantage.
True or false. A virtual company provides only virtual services. True 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. There is considerable organizational resistance to implementing new information systems because they change many important organizational dimensions, such as culture, structure, politics, and information technology. True False
False - Although information technology is a subset of information systems, it is not an organizational dimension that would cause organizational resistance to information systems.
True or false. A storage device consists of all the components that work together to process data into useful information. True False
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. True False
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.
Learn by Doing True or False. If a student decides to switch classes because she wants a different teacher, this would be considered a transaction to the college's information system but would not involve any interaction with its accounting or human resources systems. True False
False - Even though no money is exchanged, this simple transaction might impact student fees, faculty schedules, or classroom availability
True or False. Information technology and the systems they serve impact every facet of our lives. However, to use information technology efficiently and benefit from all its features, you must have a degree in the subject area and work in the IT field. True False
False - Everyone is impacted by IT in some way every day and can learn it easily on the job or by taking a few courses, without having a degree in the field. Technology is getting easier to use, and training is readily available for those who want it.
True or False. One benefit of a supply chain management system is for U.S. businesses to lower costs by relocating their operations to cheaper, overseas locations. True False
False - Implementing SCM systems helps businesses lower their costs by reducing waste, overhead costs, and shipping delays. The benefits of lowering those costs can help improve product quality and order turnaround times.
True or False. The great advancement in information technology is due to the development in information systems. True False
False - Information systems rely on current information technology
True or false. The terms information technology and information systems have the same definition and can be used interchangeably. True False
False - Information technology is a subset of information systems; they are not the same thing.
True or False. The term business ecosystem describes the relationship between the various departments within a firm. True False
False - Instead of participating in a single industry, some of today's firms are participating in industry sets - collections of industries that provide related services and products.
True or False. Synergy is the cooperation between several businesses to produce a better product or service than would be possible if each business worked dependently. True False
False - Synergy is the cooperation between several businesses to produce a better product or service than would be possible if each business worked independently, not dependently.
True or False. There are four major business functions: sales and marketing; production and operations; finance and accounting; and technology and systems. True False
False - The fourth major business function is human resources, not technology.
Which of the following scenarios would benefit the most from a knowledge-based system? John has a lawn maintenance company and when he gets very busy, he hires extra workers to help with mowing, blowing, and trimming people's yards. It is not unusual for him to have a new helper each week during the busy season. Fred has worked for Selma's Training Services for 20 years and is ready to retire. The company will be hiring a new employee to take over Fred's responsibilities. It will take the new employee a while to learn the many new job responsibilities.
Fred has worked for Selma's Training Services for 20 years and is ready to retire. The company will be hiring a new employee to take over Fred's responsibilities. It will take the new employee a while to learn the many new job responsibilities. (Capturing experiences into a knowledge-based system can replicate expertise. Sharing this knowledge can help a business avoid repeating mistakes.)
Business function of production and operations
Functions range from receiving raw material to shipping finished goods or from production itself to equipment maintenance
Two types of business strategies include:
Growth Product Differntiation
The IS function is _____ in structure and its success depends on its cooperation and relationship with the other functions in an organization.
Horizontal (Because information systems encompass many different business functions in an organization, the IS function is horizontal in nature and cannot work alone in a vertical structure)
Which main business function is responsible for maintaining employee records? Finance and accounting Human resources Sales and marketing Production and operations
Human Resources (HR responsibilities include payroll, benefits, hiring, firing, and maintaining employee records)
IT benefits of globalization
IT has brought the world closer together and made the world's economy a single interdependent system.
What is the difference between IT and IS
IT is the hardware part of a system IS is the activity/function being performed by the hardware
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? Reduced stress More job security Improved processes
Improved processes (IT helps improve processes by helping to identify, analyze, and improve upon existing business practices within an organization.)
Which of the following is NOT an organizational feature that managers should consider when building and using information systems? Politics Structure Environment Incentives
Incentives (Incentives are not an organizational feature managers use to build information systems. They are something a business uses to encourage employees to reach goals.)
A _____ consists of all the components that work together to process data into useful information
Information System
IT benefits of cost effectiveness
Information technology has helped to computerize businesses to streamline processes that increases productivity and profits.
IT benefits of more time
Information technology helps eliminate repetitive tasks and increases accuracy, allowing employees to concentrate on more high-level functions.
IT benefits of product development
Information technology helps ensure quality new products reach the market faster and to more customers and suppliers.
The process of sharing knowledge across business units and among employees of a business is called a(n)
Knowledge Management
This system creates the process of sharing knowledge among people for the benefit of the business.
Knowledge Management (KM) System
A virtual company is not:
Limited by physical location or geography
This system provides first level managers with reports on current performance and historical records to help keep an organization running smoothly.
Management Information Systems (MIS)
Organizations are complex and have many similarities and differences. Having a motivated and knowledgeable team can make a business run smoothly and keep managers aware of what is happening at all levels and in all areas of the organization. Pick the most accurate statement below regarding managers. Managers need an MBA to understand organizational features to build and use information systems successfully. Managers need to undergo human resource training to understand organizational features to build and use information systems successfully. Managers need to understand the essential features of their organization to build and use information systems successfully.
Managers need to 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.)
Business function of accounting and finance
Managing financial assets and maintaining financial records
Which of the following describes a virtual office? Jane works for Living Well Vitamins. Her store is located in Miami. She has a 30 minute commute each day to get to her job. Mary works for Happy Charities. She calls and emails potential donors each day. She is able to work from home because her entire job is based on using web and phone services.
Mary works for Happy Charities. She calls and emails potential donors each day. She is able to work from home because her entire job is based on using web and phone services.
A strategic information system is one that is created to:
Meet a specific business objective and to provide a competitive advantage
A group of two or more computers and other devices connected to each other
Network
One business owner specializes in Web design and graphic design. A second business owner specializes in email marketing and social media marketing. A third business owner focuses on Web programming. The three business owners work together with some clients and refer some clients to each other. These business owners have a created a _____ among their businesses.
Network-based strategy
Information systems support an organization's many functional business areas. These functional areas can be grouped into what two main categories? Finance and accounting Operations and management Marketing and sales
Operations and management (Operations and management use information systems to support a company's business functions. Business management involves working with people and creating an environment to effectively achieve organizational objectives. Business operations involve all the daily activities conducted for the purpose of generating profits.)
The information system professionals and users
People
Business function of human resources
Recruiting, training, and maintaining employees and their records
Information systems simplify business processes and remove unnecessary activities. Select the choice that would NOT help a business. Eliminating repetitive tasks Increasing accuracy Removing controls to employee processes Project planning and implementation
Removing controls to employee processes (Information systems add controls to employee processes, ensuring that only users with the applicable rights can perform certain tasks)
Which of the following companies has created a network-based strategy with other businesses? Furry Grooming is a mobile dog grooming business. The business goes to the client's home to groom their pets. For an extra charge, the business is happy to exercise the dog before grooming. The business has been so successful that the owner is considering buying another van to grow the business. Savvy Smartphones is a business that sells smartphones and smartphone accessories. The business works with various cell phone carriers to offer a few products from each carrier. The result for consumers is that they can go to one store and learn about the options available from multiple companies, including pricing and available smartphones. Jamie's Jewels, Inc., is an upscale jewelry store. Jamie and her husband search for rare gemstones and then design and create original jewelry pieces. Due to their artistic abilities in jewelry design, Jamie's Jewels, Inc., has been recognized worldwide. Their clients always give them five star reviews on the Jamie's Jewels website.
Savvy Smartphones is a business that sells smartphones and smartphone accessories. The business works with various cell phone carriers to offer a few products from each carrier. The result for consumers is that they can go to one store and learn about the options available from multiple companies, including pricing and available smartphones.
What are two of the six major components of a computer-based information system? Software and data Telecommunication and hardware Data and external influences Software and telecommunications
Software and data
A business benefit of enterprise resource planning systems is higher salaries for executives. standardized business procedures. ease of use. ease of implementation.
Standardized business procedures - One of the key business benefits of enterprise resource planning is the foundation that it provides for a business to standardize its business procedures across all business units.
A _____ is created to meet a specific business goal and to provide a competitive advantage.
Strategic Information System
Which one of the following systems represents a strategic information system? Superior Real Estate Company created a mobile application to allow prospective clients to view information about listed properties from their smartphone. No other real estate agents in their area currently offer such technology. Superior Real Estate Company created a mobile application to allow its realtors to track their annual sales. This application will also calculate the realtor's commission on each sale.
Superior Real Estate Company created a mobile application to allow prospective clients to view information about listed properties from their smartphone. No other real estate agents in their area currently offer such technology.
This system is one in which businesses are interconnected and working to create a product or service for the customer.
Supply Chain Management (SCM) System
A system where businesses work together to create a product or service for a customer is called a
Supply chain management system
A four-level pyramid depicts different types of information systems, as they relate to different hierarchical levels within an organization. Select the correct ascending ordered list of four systems (i.e., bottom to top of the pyramid), that relates to the end users' increasing hierarchical level within an organization. TPS, DSS, MIS, EIS EIS, MIS, TPS, DSS EIS, DSS, MIS, TPS TPS, MIS, DSS, EIS
TPS, MIS, DSS, EIS
What is knowledge management? The process of combining customer data into one system The process of sharing knowledge across business units and among employees of a business
The process of sharing knowledge across business units and among employees of a business
In the beachwear clothing market, a number of key brands have been in the industry for a long time. An entrepreneur decides to start a new clothing line that is targeted at individuals who like the beach and who like dolphins. In terms of Porter's five competitive forces, the new clothing line is an example of
Threat of new entrants
Hardback textbooks are no longer as in demand because of the creation and quick distribution of e-books. In terms of Porter's five competitive forces, e-books are an example of
Threat of substitute products or services
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 Threat of new entrants Bargaining power of suppliers
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.)
What is the purpose of information systems
To get useful information to the right people within an organization to support decision making and operations.
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 (Even though no money may be exchanged, this simple transaction might impact student fees, faculty schedules, or classroom availability.)
This system tracks the flow of daily routine transactions that are necessary to conduct business, such as payroll or order processing.
Transaction Processing Systems (TPS)
True or False. A real estate company has a website that is integrated with a software system that keeps track of all the realtor's sales leads and listing information. The system keeps track of each person's name and contact information. This software system is an example of a customer relationship management system. True False
True - A CRM system is a system that contains all information related to a business's 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. True 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. One benefit of a supply chain management system is to plan daily operations of the company. True False
True - Although most people know supply chain management as the systems used to manage the flow of products or information into consumer's hands, it also helps with planning daily operations, improving sales forecasting, predicting transportation requirements, building partnerships, and improving business strategies, among other things.
True or false. The ability to build a responsive IT infrastructure is one of the key issues facing information systems management. True False
True - Building a responsive IT infrastructure is one of the key issues facing information systems management.
True or False. Implementing information systems within an organization should be carefully considered. It can be quite costly, but the long-term benefits can be even greater. True False
True - Costs include installation of the systems, as well as employee training, but long-term benefits should be greater
True or False. Information is data that have been organized to provide value to an organization. True False
True - Data that are organized are significant and can become useful information.
True or False. Enterprise resource planning involves utilizing computer technology to link various aspects of a business, including human resources, accounting, and inventory control. True False
True - ERP assists with information sharing and decision making across an entire company.
True or False. Even though information technology functions in the background, it is the backbone of most organizations. True False
True - If any piece of the IT system fails, an organization loses its effectiveness
True or False. One challenge of introducing knowledge management is that employees are often not willing to share information that they perceive gives them unique value to a business. True False
True - Many employees believe that their knowledge should be kept a secret to avoid too many people knowing how to do their job. This is a challenge for any business looking to implement knowledge management into the company culture.
True or False. One of the advantages of information systems for businesses is to take raw data and turn them into valuable information, and then help transform that information into organizational knowledge. True False
True - Organizational knowledge is the result of people using systems to generate, manage, and use information to achieve organizational goals
True of False. One of the most important IS management issues facing businesses today is hiring skilled IS workers. True False
True - The modern IS management function is extremely complex and changes regularly. Finding qualified employees is critical to maintaining an effective IS.
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 False
True - These are some of the major reasons why firms invest in information technology: achieve operational excellence, develop new products and services, attain customer intimacy and service, improve decision making, promote competitive advantage, ensure long-term survival, and develop strong relationships with suppliers.
IT benefits of communication
With the help of information technology, video conferencing has become cheaper, quicker, more collaborative, and more efficient.
Enterprise resource planning systems typically utilize one _______________. employee database computer manager
database - Enterprise resource planning systems typically utilize one database to store all the information needed by the various business units. This allows for consistency within the business.
Management information systems focus on technology, people, and organizations. They primarily serve _______. first level managers consumers executives front-line staff
first level managers - Management information systems represent a category of information systems that serve low level managers. MIS are usually focused on short- to medium-term business decisions.
A customer relationship management system provides a business with the opportunity to: analyze common contract elements to streamline the contracting process. integrate information about each client's likes and dislikes to be able to tailor conversations with them. allow customers to know which products are currently available by displaying them on a website.
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.)
