MIS Chapter 2
A
A new technology, product, or service that eventually surpasses the existing dominant technology, product, or service in the market is termed a ________. A. disruptive innovation B. distinctive innovation C. stationary innovation D. resource-intensive innovation E. transitory innovation
E
At the tactical level of the organization, managers focus on using organizational resources to increase ______________. A. speed B. accuracy C. utilization D. efficiency E. effectiveness
E
The activity of analyzing an organization to determine where value is added to products or services is called ________. A. cost-benefit analysis B. value stage analysis C. entity relationship analysis D. training needs analysis E. value chain analysis
C
The ________ component of a business model outlines the utility that the product or service has to offer the customer. A. customer relationships B. key resources C. value proposition D. channels E. revenue streams
C
Which type of organizational strategy is used by Walmart? A. Best-cost provider B. Cost maximization C. Low-cost leadership D. Broad differentiation E. Focused differentiation
C
______ is(are) the activity(ies) organizations perform in order to reach their business goals. A. Making decisions B. Business principles C. Business processes D. Automating work E. Estimation
A
________ can be used to identify opportunities to apply information systems to support activities performed throughout the business and thereby gain a competitive advantage. A. Value chain analysis B. Market research C. Competitive studies D. Financial forecasts E. Focus groups
E
A surprising recommendation from the disruptive innovation cycle is: A. put marketing ahead of strategy. B. put marketing ahead of technology. C. always put strategy first. D. innovate once and forget it. E. put technology ahead of strategy.
A
A(n) _______ refers to anything that occurs as a part of an organization's daily business for which a record must be kept. A. transaction B. information system C. event D. business process E. activity
C
An e-business revenue model that involves paying businesses that bring or refer customers to another business is called ________. A. licensing B. subscription C. affiliate marketing D. traditional sales E. brokerage
E
An e-business revenue model that involves users paying a fee for using protected intellectual property is called ________. A. subscription B. brokerage C. affiliate marketing D. traditional sales E. licensing
A
Establishing electronic connections with suppliers and customers is one way organizations enhance their _______ with information systems. A. value chains B. financial forecasts C. focus groups D. competitive studies E. market research
E
Having the human capital needed to deploy innovative information systems is associated with ________________ requirements. A. strategic B. process C. operational D. risk tolerance E. resource
E
Organizations can more effectively respond to disruptive innovations in their industry by following the _______________ process. A. risk avoidance B. integrity C. participation D. innovator's dilemma E. disruptive growth engine
C
Organizations offering a free basic subscription that can be upgraded to a fee-based, premium subscription offering more features is applying the ________ subscription business model. A. traditional sales B. affiliate marketing C. freemium D. licensing E. brokerage
C
Using information systems to develop extensive knowledge of your customers, thereby providing high-quality customer service, ________. A. improves brand awareness B. adds uniqueness to your products C. increases customer switching costs D. decreases customer switching costs E. makes your products commodities
D
Which of the following challenges of innovative information systems is illustrated by the "format wars" of Blu-ray versus HD-DVD? A. Innovation is often fleeting. B. Innovation is often easy. C. Innovation is not worthwhile. D. Innovation is often risky. E. Innovation is a process.
A
Which of the following is NOT a valid approach to use in assessing the value of an organization's IS infrastructure. A. Predictive value B. Architectural value C. Economic value D. Operational value E. Regulatory and compliance value
D
Which of the following is NOT one of Porter's five primary competitive forces? A. Industry rivalry B. Threat of new entrants C. Substitute goods D. Information E. Customer bargaining power
B
Which of the following perspectives focuses on using information systems to improve business processes based on the analysis of past behavior? A. Strategic planning B. Organizational learning C. Automation D. Strategic redesign E. Organizational redesign
C
Which of the following statements about using information systems as a strategic innovation is true? A. Using information systems to lower operating costs will produce lasting, sustainable competitive advantages. B. Information systems cannot be used to make a product or service unique. C. Using information systems to gain competitive advantage in operating efficiencies will be readily imitated by rivals and is not easily sustained. D. Using information systems as a strategic innovation is impossible. E. Information systems are considered more important than people to an organization.
C
Which type of innovation encourages employees to use their talents in innovative ways? A. Product system B. Product performance C. Structure D. Customer engagement E. Process
D
Which type of innovation is illustrated by Toyota implementing lean production principles? A. Product system B. Product performance C. Structure D. Process E. Customer engagement
E
Which type of organizational strategy is used by Porsche? A. Low-cost leadership B. Value creation C. Best-cost provider D. Cost maximization E. Differentiation
D
_____________ decisions are relatively straightforward and usually can be programmed directly into ____________ information systems. A. Strategic; operational B. Semi-structured; executive C. Unstructured; managerial D. Structured; operational E. Executive; strategic
