MIS Chapter 1

An example of a business using information systems to create new products and services is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod. E) the San Francisco Giants play tracking system.

Apple Inc's iPod

An example of a business using information systems to attain operational excellence is A) Wal-Mart's Retail Link system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod. E) Citibank's ATMs.

Wal-Mart's Retail Link system

The ____________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format.

World Wide Web/Web/WWW

Maintaining the organization's financial records is a central purpose of which main business function? A) manufacturing and accounting B) finance and accounting C) sales and manufacturing D) finance and sales E) human resources

finance and accounting

Which of the following is not one of the current changes taking place in information systems technology? A) growing business use of "big data" B) growth in cloud computing C) growth in the PC platform D) emerging mobile platform E) increased usage of social networking by business

growth in the PC platform

From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called A) the information value chain. B) the IT value chain. C) information processing. D) feedback. E) dissemination.

the information value chain

Converting raw data into a more meaningful form is called A) capturing. B) processing. C) organizing. D) feedback. E) analysis.

processing

Which of the following roles in a firm would be least affected by using mobile devices to access information systems? A) senior executives B) sales executives C) production workers D) operational managers E) knowledge workers

production workers

Order data for baseball tickets and bar code data are examples of A) raw input. B) raw output. C) customer and product data. D) sales information. E) information systems.

raw input

Detailed, programmed instructions that control computer hardware components in an information system are known as computer ______________.

software

An example of an organizational complementary asset is A) using the appropriate business model. B) a collaborative work environment. C) laws and regulations. D) the Internet. E) strong senior management.

using the appropriate business model

A fully digital firm produces only digital goods or services. True or False

False

____________ is known as the enormous volume of data generated by Internet activity, such as Web traffic and e-mail.

Big Data

All business processes are formally documented by an organization. True/False

False

Computers make up the entirety of an information system. True/False

False

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 A) data management environment. B) networked environment. C) IT infrastructure. D) information system. E) culture.

IT infrastructure

Which of the following statements best describes organizational culture? A) It encompasses the sum of beliefs and assumptions by all members. B) It enables the organization to transcend the different levels and specialties of its employees. C) It reflects the senior management's perspective on the organization and goals. D) It allows a company to achieve greater operational efficiency. E) It is a set of assumptions and values accepted by most members.

It is a set of assumptions and values accepted by most members.

___________ makes long-range strategic decisions about the firm's products and services.

Senior management

A business model describes how a company produces, delivers, and sells a product or service to create wealth. True or False

True

A firm that invest in a strong IS development team is making an investment in organizational complementary assets. True/False

True

Developing a new product, hiring a new employee, and fulfilling an order are examples of business processes. True or False

True

An example of raw data from a national chain of automobile stores would be A) an average of 13 Toyotas are sold daily in Kentucky. B) 30-percent increase in Toyota RAV4 sales during September in Kentucky. C) 1 Toyota RAV4 sold March 3, 2013, in Louisville, Kentucky. D) 10-percent improvement in sales projections for Toyota sales next year. E) a demographic breakdown of all Toyota buyers in the past year.

1 Toyota RAV4 sold March 3, 2013, in Louisville, KY

_____________ is a global network that uses universal standards to connect millions of different networks around the world.

The Internet

Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system enables the firm to create new products and services B) The system will create new value for the firm, beyond its cost. C) The system will automate key business processes. D) The system is in use by our primary competitors. E) The system integrates well with the Web.

The system will create new value for the firm, beyond its cost

Creative work driven by new knowledge and information is an insignificant part of management responsibility. True/False

False

Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the sociotechnical approach. True/False

False

Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed. True/False

False

Knowledge workers make long-range strategic decisions about products and services. True/False

False

There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology. True/False

False

There is little variation in returns on IT investment across firms. True/False

False

____________ is output returned to appropriate members of the organization to help them evaluate or correct the input stage.

Feedback

Internet advertising is growing at approximately 15% a year True or False

True

Intranets link different systems and networks within a firm. True/False

True

Investment in IT is 33% of all invested capital. True or False

True

Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments. True/False

True

The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems. True/False

True

The three main dimensions of information systems are management, organizations, and information technology. True/False

True

UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy. True/False

True

You need to know something about the hierarchy and culture of the company in order to understand how a specific business firm uses information systems. True/False

True

Which of the following would not be used as an input for an information system? A) digital dashboard B) handheld computer C) barcode scanner D) cell phone E) RFID reading

digital dashboard

Psychologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.

how human decision makers perceive and use formal information

______ are private corporate networks extended to authorized users outside the organization.

Extranets

______________ is data that has been shaped into a form that is meaningful to human beings.

Information

All of the following are advantages for a firm of cloud computing except A) ability to support mobile computing. B) ability to support remote work. C) ability to improve communication. D) ability to rely on markets to build value. E) ability to reduce data storage costs.

ability to improve communications

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to A) invest in technology. B) assemble accurate data. C) invest in complementary assets. D) modernize their information value chain. E) adopt a new business model.

adopt a new business model

Which of the following would not be a complementary asset for a solar panel manufacturer?A) international solar equipment certification standards B) government funding for green technology C) centralized hierarchical decision making D) innovation-driven management team E) subsidies for adoption of solar energy

centralized hierarchical decision making

Which of the following objectives best describes the business strategy behind the technologies implemented by the San Francisco Giants, as discussed in the chapter case? A) customer and supplier intimacy B) survival C) competitive advantage D) customer support E) operational excellence

competitive advantage

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 A) culture. B) environment. C) atmosphere. D) values. E) ethos.

culture

The Mandarin Oriental hotel's use of computer systems to keep track of guests' preferences is an example of A) improved flexibility. B) improved decision making. C) improved efficiency. D) customer and supplier intimacy. E) operational excellence.

customer and supplier intimacy

Sociologist study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.

how systems affect individuals, groups, and organizations.

Which main business function is responsible for maintaining employee records? A) sales and marketing B) human resources C) finance and accounting D) manufacturing and production E) middle management

human resources

The six important objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and A) improved flexibility. B) improved decision making. C) improved business practices. D) improved efficiency. E) improved business value.

improved decision making

Verizon Corporation's use of a Web-based digital dashboard to provide managers with precise real-time information illustrates which business objective? A) improved flexibility B) improved decision making C) competitive advantage D) survival E) customer and supplier intimacy

improved decision making

The three activities in an information system that produce the information organizations use to control operations are A) information retrieval, research, and analysis. B) input, output, and feedback. C) data, information, and analysis. D) data analysis, processing, and feedback. E) input, processing, and output.

input, processing, and output

Which of the following are key corporate assets? A) intellectual property, core competencies, and financial and human assets B) production technologies and business process for sales, marketing, and finance C) knowledge and the firm's tangible assets, such as goods or services D) time and knowledge E) significant business relationships

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? A) middle management B) production workers C) knowledge workers D) data workers E) service workers

knowledge workers

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 A) information systems literacy. B) information systems architecture. C) business processes. D) information technology infrastructure. E) management information systems.

management information systems

Which field of study focuses on both a behavioral and technical understanding of information systems? A) sociology B) operations research C) economics D) behavioral computing E) management information systems

management information systems

In a hierarchical organization, the upper levels consist of A) managerial and professional employees. B) managerial, professional, and technical employees. C) professional and operational employees. D) managerial, professional, and operational employees. E) knowledge workers.

managerial, professional, and technical employees

The average number of tickets sold daily online is an example of A) input. B) raw data. C) meaningful information. D) feedback. E) processing.

meaningful information

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 A) 1 only B) 1 and 2 C) 2 and 3 D) 1 and 3 E) 1, 2, and 3

new products, services, and business models; responding to customers in real time

In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is A) middle management. B) service workers. C) production management. D) operational management. E) knowledge workers.

operational management

The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is A) management science. B) MIS. C) computer science. D) utilization management. E) operations research.

operations research

Disciplines that contribute to the technical approach to information systems are A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering. E) economics, sociology, and psychology.

operations research, management science, and computer science.

The key elements of an organization are its structure, business processes, politics, culture, and ________________.

people

Which of the following is not one of the primary environmental actors that interacts with an organization and its information systems? A) competitors B) regulatory agencies C) customers D) suppliers E) sales force

sales force

The three principal levels within a business organization hierarchy are A) senior management, operational management, and service workers. B) senior management, middle management, and operational management. C) senior management, operational management, and information systems. D) senior management, middle management, and service workers. E) senior management, data workers, and service workers.

senior management, middle management, operational management

A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the value of that corporation, could be seen as investing in which main category of complementary assets? A) managerial B) governmental C) social D) organizational E) auxiliary

social

In a(n) _____ perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained.

sociotechnical

Data management technology consist of the A) physical hardware and media used by an organization for storing data. B) detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. C) two or more computers to share data or resources. D) hardware and software used to transfer data. E) software governing the organization of data on physical storage media.

software governing the organization of data on physical storage media

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? A) customer intimacy B) operational excellence C) survival D) improved reporting E) improved decision making

survival

The move of retail banking to use ATM's after Citibank unveiled its firs ATMs illustrates the use of information systems to achieve which business objective? A) improved efficiency B) customer and supplier intimacy C) survival D) competitive advantage E) improved decision making

survival

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? A) customer and supplier intimacy B) survival C) operational excellence D) improved decision making E) new products and services

survival

The use of information systems because of necessity describes the business objective of A) operational excellence. B) improved business practices. C) competitive advantage. D) improved flexibility. E) survival.

survival

An example of a social complementary asset is A) technology and service firms in adjacent markets. B) training programs. C) distributed decision-making rights. D) incentives for management innovation. E) a strong IS development team.

technology and service firms in adjacent markets

Thomas Friedman's declaration that the world was now "flat" meant that A) the Internet has reduced the economic advantages of developed countries. B) globalization is starting to offer less advantage to large corporations. C) the global economy is increasingly commanded by fewer and larger corporations. D) global capitalism is homogenizing culture and business practices throughout the world. E) global shipping rates have reached historic lows.

the Internet has reduced the economic advantages of developed countries

An example of a business using information systems for customer and supplier intimacy is A) Wal-Mart's Retail Link system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod. E) Citibank's ATMs.

the Mandarin Oriental hotel's customer-preference tracking system

A managerial element in the UPS tracking system described in the chapter is A) taking inventory. B) providing package status reports to customers. C) the decision to use automation. D) in-house package tracking software. E) ability to embed UPS functions in external sites.

the decision to use automation

Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) the specification of procedures for identifying packages with sender and recipient information B) monitoring service levels C) promoting the company strategy of low-cost, superior service D) the use of handheld computers and networks for managing package delivery E) a Web-based Post Sales Order Management System

the specification of procedures for identifying packages with sender and recipient information

Output A) is feedback that has been processed to create meaningful information. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transfers data to the people who will use it or to the activities for which it will be used. D) transfers processed information to the people who will use it or to the activities for which it will be used. E) 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