MIS Exam 2

  1. Which of the following statements is consistent with the central idea of business process design?
    A business process is a network of activities that generate value by transforming inputs into outputs. increase margin
  2. Which of the following can be considered a support activity in the value chain?
    Procurement, Technology, Human Resources, Firm Infrastructure
  3. Lynn is going through this week's delivery schedule. She calls her team and assigns territories for each executive. She contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing?
    outbound logistics
  4. Which of the following cannot be considered a part of the sales process?
    Inducing buyers to purchase the product and providing a means for them to do so
  5. Which of the following activities of a computer manufacturer cannot be considered a part of inbound logistics?
    inbound logistics ARE the receiving, storing and disseminating inputs into the product
  6. Which of the following statements is true of business process designs?
    Most process designs require people to work in new ways network of activities that generate value by transforming inputs into outputs - increase margin
  7. Which of the following principles of competitive advantage is related to PRODUCT implementations?
    • 1. Create a new product or service
    • 2. enhance products or services
    • 3. differentiate products or services
  8. Which of the following principles of competitive advantage is related to PROCESS implementations?
    • lock in customers and buyers
    • lock in suppliers
    • raise barriers to market entry
    • establish alliances
    • reduce costs
  9. An organization wants to achieve competitive advantage through process implementations. Which of the following actions would help them do that?
    • lock in customers and buyers
    • lock in suppliers
    • raise barriers to market entry
    • establish alliances
    • reduce costs
  10. Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.
    switching costs
  11. Organizations can lock in suppliers by making it difficult to switch to another organization or by ________.
    by making it easy to connect and to work with the organizations
  12. A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. Identify the strategy used here.
    establishing high switching costs A: Lock in customers (process implementation), industry-wide differentiation
  13. How Does Competitive Strategy Determine Value Chain Structure?
    • VALUE: is amount of money a customer is wiling to pay for a resource, product, or service.
    • Difference between value an activity generates and its cost is called MARGIN Primary Activity + Description
    • -Inbound Logistics: Receiving, storing, and disseminating inputs to the product
    • -Operations/Manufacturing: Transforming inputs into the final product -Outbound Logistics: Collecting, storing, and physically distributing the product to buyers -Sales and Marketing: inducing buyers to purchase the produce and providing a means for them to do so
    • -Customer Service: Assisting customer's use of the product and thus maintaining and enhancing the product's value
  14. Support Activities in the Value Chain
    • Support Activity + Description:
    • -Technology: R & D, New Techniques, methods, procedures
    • -Procurement: Raw Materials
    • -Human Resources: Training, recruiting, compensation
    • -Firm Infrastructure: General Management, Finance, Accounting, Legal, Gov Affairs
  15. Value Chain Linkages
    • -Interactions across value activities readily supported by information systems
    • -Manufacturing systems use linkages to reduce costs

    Sales forecasts to plan production > Production plan used to determine raw materials needs > Material needs used to schedule purchases > Just-in-time inventory > Reduced inventory sizes and costs
  16. How do Business Processes Generate Value?
    Business process Cost of a business process Margin of a business process Activity Resources Facilities store resources
  17. Improved Ordering Process
    Purchase Bicycle Parts activity queries both raw materials inventory database and finished goods inventory database
  18. Bits are used for computer data because
    They are easy to represent electronically.
  19. Bits are grouped into 8-bit chunks called
  20. To run a program or process data, the computer first transfers the program or data from disk to the
    Main memory
  21. Which of the following is nonvolatile in nature?
    Magnetic and optical disks are nonvolatile, meaning their contents survive when power is off
  22. Server farms are used when the ________.
    • 1.Used for large clients
    • 2.To accomplish server needs far beyond the capability of one machine.
    • 3.Server farms: large collection of coordinated servers
    • 4.Amazon can process 110 items per second
  23. Which of the following is an example of cloud computing?
    • Examples: IBM, Google docs and Spreadsheets, Oracle, Facebook, your university for class registration
    • Require trust in technology working because don't know physically where file is and neither does Google
    • Planet wide storage systems
  24. Cloud computing
    a form of hardware or software leasing in which organizations obtain server resources from vendors that specialize in server processing
  25. ________ are commands that the CPU can process that may be specific for each processor type.
    instruction set
  26. When you buy an operating system for your personal computer, you are actually buying a software ________.
    • 1. License
    • 1. Right to use specified number of copies of a program
    • 2. Limits vendor's liability
  27. Ronald runs both Windows 7 and Linux on his desktop computer. This process is called ________.
    PC Virtualization
  28. Three types of virtualization
    • PC Virtualization
    • Server virtualization
    • Desktop virtualization
  29. Desktop Virtualization
    • can be accessed from any computer to which user has access
    • Allows access from any computer a user has authorization to use
    • Thus, you could be at an airport computer and access what appears to be your own personal computer
  30. PC Virtualization
    a personal computer, such as a desktop or portable computer, hosts several different operating systems
  31. Server Virtualization
    • a server computer hosts one or more, other server computers 
    • Server virtualization makes cloud computing feasible
  32. Virtualization
    • Very easy to set up a virtual machine and configure it in a specific way
    • Cloud vendors can add and remove instances of servers very quickly and cheaply
    • Make your computer behave like a different computer
    • Creates a virtual computer
  33. Two types of activities of Value Chain
    • Primary Activity - major activity to perform
    • Support Activity
  34. Primary Activity of Value Chain
    • Inbound Logistics
    • Operations/ Manufacturing
    • Outbound Logistics
    • Sales and Marketing
    • Customer Service
  35. Inbound Logistics
    Receiving, storing, and disseminating inputs to the products
  36. Operations/ Manufacturing
    Transforming inputs into the final products
  37. Outbound Logistics
    Collecting, storing, and physically distributing the products to buyers
  38. Sales and Marketing
    Inducing buyers to purchase the products and providing them a means for them to do so
  39. Customer Service
    Assisting customers' use of the products and thus maintaining and enhancing the products' value
  40. Differences b/w Service Industry and Product Development Industry
    Service Industry dose not have outbound logistics
  41. Support Activities in the Value Chain
    • Technology
    • Procurement
    • Human Resources
    • Firm Infrastructure
  42. Technology
    • R&D
    • New Techniques, Methods, and Procedures
  43. Procurement
    Raw Materials

    • From suppliers to acquire raw materials
    • How to deal with suppliers
  44. Human Resources
    • Training 
    • Recruiting
    • Compensation
  45. Firm Infrastructure
    • General Management
    • Finance
    • Accounting
    • Legal
    • Government Affairs
  46. Company all over the world try to be innovative, creative, and modern in their business areas in the way they deliver business process
  47. Business Process
    Network of activities that generate value by transforming inputs into outputs across the entire value chain
  48. Cost of a Business Process
    Cost of inputs plus cost of activities
  49. Margin of a Business Process
    Value of the outputs minus cost
  50. Activity
    Transforms input resources into output resources
  51. Resources
    Flow b/w or among activities
  52. Facilities Store Resources
    Inventories, store physical items

    • warehouse
    • electronic data base
    • IS help to store information
  53. How do Business  Processes Generate Vlaue
    • Materials ordering process transforms cash into raw materials inventory
    • Manufacturing process transforms raw materials into finished goods
    • Sales process transforms finished goods into cash
  54. While there are activities connected together, then there is business process link b/w activities, the link help to deliver business process
  55. Product Implementation
    • Differentiate products or services
    • Enhance products or services
    • Create a new product or service
  56. Process Implementation
    • Lock in customers and buyers
    • Lock in suppliers
    • Raise barriers to market entry
    • Reduce costs
    • Establish alliances
  57. How to lock in customers
    Create high switching cost
  58. Lock in suppliers
    Make it easy to connect to and work with your organization
  59. Create entry barriers
    Make it difficult and expensive for new competition
  60. Create better business processes to establish alliances
    integrate and collaborate with others
  61. How does the system create a Competitive Advantage
    • Increases profit margins by decreasing errors and decreasing costs
    • Differentiates products
    • Locks in Customers
    • Enhance Existing Products
    • Raises barriers to market entry
  62. Hardware
    it includes electronic components and related gadgetry that input, process, output, and store data according to instructions encoded in computer programs or software
  63. keyboard
  64. Mouse
  65. Scanner
  66. UPC reader
  67. Microphone
  68. Still camera
  69. Video camera
  70. Storage
    • Magnetic Disk
    • Optical Disk
    • Magnetic Tape
  71. Process
    • CPU - central processing unit
    • Main Memory
  72. Display
  73. Printer
  74. Speaker
  75. Screen Projector
  76. Plotter
  77. Computer Hardware Type
    • Personal Computer (desktop, laptop ex. Apple Mac Pro)
    • Tablet (e-book reader ex. iPad, Microsoft Surface, Google Nexus 7, Kindle Fire)
    • (Smart) Phone (ex. Motorola (Google) Droid
    • Server (ex. Dell PowerEdge T110II Server)
    • Server Farm (Racks of servers) - Large collection of coordinated servers
  78. Computer saves date by
    Bernoulli  - "1" or "0"
  79. Byte
    Number of bits to represent one character
  80. Storage-Capacity Terminology
    • B-K-M-G-T-P-E
    • Byte (1 Byte = 8 Bits)
    • Kilobyte
    • Megabyte
    • Gigabyte
    • Terabyte
    • Petabyte
    • Exabyte
  81. Main Memory contains
    • Operating system instructions
    • Program instructions
  82. Operating System (OS)
    • Program that controls computer's resources and blocks of data
    • Provides services to application programs and users
  83. Memory Swapping
    • Lease memory to other programs to run
    • When RAM too small to hold all open programs and data
    • CPU loads program segments into free memory
    •  - if none available, O/S swaps out existing segment, to a disk and copies requested segment to freed space
    • Swapping slows down computer
  84. Cache and main memory are volatile
  85. Cache
    • CPU has cache memory to keep a copy of frequently  used instructions
    • Having a large cache makes computer faster, but more expensive
  86. Basic Categories of Computer Software
    • Operating System 
    • Application Programs
  87. CPU Speed is expressed in
    hertz - number of cycles that process data
  88. CPU slow
    1.5 GHz
  89. CPU fast
    3+ GHz
  90. 64-bit need at least
    4+GB memory
  91. the operating system for client is different from server's
  92. Cache and main memory are volatile meaning their contents are lost when power is off
    Magnetic and optical disks are nonvolatile, meaning their contents survive when power is off
  93. Client Computers
    Computers used by an individual for word processing, spreadsheets, database access, and so forth

    Most client computers have software that enables connecting to a private network at work or school, or public Internet
  94. Server Computer
    Provide service ( such as email; serving pages on a website; processing large, shared databases; or other functions) to multiple users
  95. Client
    Thin and Thick
  96. Thin Client
    • Requires nothing more than browser
    • Does not require installation and administration of client software
  97. Thick Client
    • Also known as fat client or fat computer
    • Has more code to run on it
    • More features and more functions
    • More expense and administration
  98. If extra applications or specific services are needed
    Thick Clients are needed
  99. Major Operating System
    • Windows - Personal Computer Clients (business)
    • Mac OS - Macintosh Clients (art)
    • Unix - Workstation Clients (engineering)
    • Linux - just about anything (open sourced)
  100. Major operating system for mobile clients
    • Symbian
    • Blackberry OS
    • IOS
    • Android ( Linux-based)
    • Windows RT (mostly tablet)
  101. Major operating system for servers
    • Windows server (Microsoft)
    • Unix (replaced by Linux)
    • Linux (popular)
  102. Virtualization
    The process by which one computer hosts the appearance of many computers

    Installation of a secondary operating system 
  103. Host operating system
    runs one or more operating systems as applications
  104. Guest operating system
    • Virtual Machine
    • it is the hosted operating
    • secondary operating system
  105. Facebook can be handled in Android, Windows, Linux
  106. Types of Applications
    • Horizontal applications
    • Vertical applications
    • One-of-a-kind applications
  107. Horizontal-market applications
    word processors, graphic programs, spreadsheets, and presentation programs
  108. Vertical-market application
    • Software serves specific industry, usually customized
    • ex. applications used by dental offices to schedule appointments and bill patients
    • specific, purposely software
  109. Off-the-shelf-with-alterations software
    • involves modifying packaged software to meet a specific need
    • buy and change
  110. Off-the-shelf
    buy it directly from the market
  111. Custom-developed software
    • last-choice alternative because of risk and expense
    • used only when no other option
    • no way to buy
  112. Organizations obtain horizontal applications by
    Off-the-shelf (buy it directly from the market)
  113. Organizations obtain vertical applications by
    • Off-the-shelf
    • Off-the-shelf and then customized
    • (buy and change)
  114. Organizations obtain One-of-a-kind applications by
    custom-developed (no way to buy)
  115. License
    • Right to use specified number of copies 
    • Limit vendor's liability
  116. Site License
    Flat fee to install software product on all company computers or all computers at a specific site
  117. Open source software
    Free usage license ( free of charge)
  118. Firmware
    • Computer software installed on read-only memory
    • - printers, print servers, communication devices
    • - coded like other software
    • - can be changed and upgraded
    • Specifically to control functions of the electronics
  119. Open Source
    Source available to public
  120. Source Code
    computer code written by humans and understandable by humans
  121. Machine Code
    • 11010010100...
    • Bernoulli with "0" and "1" 
  122. Closed Source Code
    Highly protected and only available to trusted employees and carefully vetted contractors
  123. Why do programmers volunteer their services
    • Fun
    • Freedom to choose projects
    • Exercise creativity on interesting and fulfilling projects
    • Exhibit one's skill to get a job
    • Start a business selling services
  124. Is open source viable?
    • Depends on requirements and constraints of situation
    • "Free" open source software require support and operational costs, could cost more than licensing fee
  125. Thick or Thin?
    • Depends on 
    • Strategy, goals, application requirements, budgets, schedule, tolerance for managing technical projects, need for application revenue, etc.
    • Thin-client applications cheaper to develop and maintain, but may lack wow factor
    • Thick-client needs more resources, time, and budget
  126. Primary characteristics of quality mobile applications
    • Feature content and support direct interaction
    • Provide animation and lively behavior
    • Design to scale and share (display and data)
    • Use the cloud
    • Use context-sensitive chrome when needed
  127. Cloud Computing
    A form of hardware or software leasing in which organization obtain server resources from vendors that specialize in server processing
  128. Advantages of Personal Mobile Devices
    • Cost savings
    • Greater employee satisfaction
    • Reduced need for training
    • Reduced support costs
    • Higher productivity
  129. Disadvantages of Personal Mobile Devices
    • Data loss or damage
    • Loss of control
    • Compatibility problems
    • Risk of infection
    • Greater support costs
  130. Sources of System Costs
    • Developement and Operational
    • Hardware - purchases - maintenance fees
    • Software - licenses, project costs for custom software - maintenance and support fees and costs
    • Data - conversion costs - acquisition costs
    • Procedures - design, development, and documentation - maintenance
    • People - initial training - labor cost of using system
Card Set
MIS Exam 2