Purchase of information systems and telecommunications equipment constituted more than half of all capital investment in the United States in 2013.
TRUE
A business model describes how a company produces, delivers, and sells a product or service to create wealth.
TRUE
Information systems consists of all the hardware and software that a firm needs to use in order to achieve its business objectives.
FALSE
An extranet is a private intranet extended to authorized users outside the organization.
TRUE
Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.
FALSE
The dimensions of information systems are people, organizations, and information technology.
TRUE
In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.
TRUE
Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.
TRUE
Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization.
FALSE
Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.
TRUE
A network requires at least three computers and a shared resource.
FALSE
An IT infrastructure provides the platform on which the firm can build its information systems.
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
Identifying a problem includes agreeing that a problem exists.
TRUE
Political conflict is an example of the people dimension of business problems.
FALSE
As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.
TRUE
IT managerial jobs are outsourced easily because of the universal standards used by the Internet.
FALSE
An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.
TRUE
Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.
FALSE
There are two types of outsourcing: offshore outsourcing and foreign outsourcing.
FALSE
As discussed in the chapter opening case, the Giants' new ticketing information systems is an effort to achieve which of the primary business objectives?
Improved decision making
Journalist Thomas Friedman's description of the world as "flat" referred to:
the flattening of economic and cultural advantages of developed countries.
The six important business objectives of information system investment include all of the following except:
employee morale.
The use of information systems because of necessity describes the business objective of:
survival.
All of the following choices describe ways for a company to achieve a competitive advantage, except:
implementing information systems to support better management decision making.
Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information, such as customer complaints, is an example of:
improved decision making.
The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:
survival.
An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:
decision making and control in an organization.
The three activities in an information system that produce the information organizations use to control operations are:
input, processing, and output.
All of the following describe the effects of globalization except:
increases in transaction costs.
The average number of tickets sold daily online is an example of:
meaningful information.
Output:
transfers processed information to the people who will use it or to the activities for which it will be used.
Senior management is responsible for directing the day-to-day activities of the business.
FALSE
Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant.
FALSE
Transaction processing systems are most commonly encountered at the senior management level of an organization.
FALSE
TPS help managers monitor the firm's relations with the external environment.
TRUE
A hotel reservation system is a typical example of a management information system.
FALSE
The decision to grant credit to a customer is normally made by a senior manager.
FALSE
Transaction processing systems are the basic business systems that serve the operational level of the organization
TRUE
Management information systems primarily support nonroutine decision making.
FALSE
Most MISs use sophisticated mathematical models or statistical techniques.
FALSE
Deciding whether to introduce a new product line is the responsibility of an operational manager.
FALSE
Decision-support systems often use information from external sources.
TRUE
ESSs are designed to serve the middle management of the organization.
FALSE
ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.
TRUE
ESSs are designed primarily to solve specific problems.
FALSE
Information supplied by an enterprise system is structured around cross-functional business processes.
TRUE
Supply chain management systems are more externally oriented than enterprise systems.
TRUE
A business is a formal or informal organization created to sell services or products.
FALSE
Enterprise systems do not utilize order transaction data.
FALSE
Teams are formal business groups that are created to accomplish a specific task.
TRUE
A business process is a single step taken in a set of logically related activities that accomplish a specific business task.
FALSE
The five basic entities that make up any business are suppliers, customers, employees, products and services, and:
invoices and payments.
Promoting the organization's products or services is a responsibility of the ________ function
sales and marketing
Checking for product quality is an activity associated with the ________ function.
manufacturing and production
Which of the following is a cross-functional business process?
Fulfilling a customer order
Employees that assist with paperwork at all levels of the firm are called:
data workers.
The three principal levels of hierarchies within a business organization are:
senior management, middle management, and operational management.
Key forces in a business's immediate environment include:
regulations.
Engineers and architects are examples of:
knowledge workers
Which of the following is an example of a key force in a firm's broader, less immediate environment?
Economic trends
A computerized system that performs and records the daily dealings necessary to conduct business is classified as a(n):
transaction-processing system.
Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?
TPS
A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of:
management information systems.
The term "management information systems" designates a specific category of information systems serving:
middle management functions.
These systems are designed to summarize and report on the company's basic operations.
Management information systems
________ support making decisions that are unique, rapidly changing, and not easily specified in advance.
Decision support systems
Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?
MIS
These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance.
Decision support systems
Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?
DSS
DSS and MIS are also referred to as ________ systems.
business intelligence
Executive support systems are information systems that support the:
long-range planning activities of senior management.
A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
TRUE
A primary challenge in BPM is employee resistance.
TRUE
Customers are one of the competitive forces that affect an organization's ability to compete.
TRUE
A transparent marketplace means that there is high product differentiation.
FALSE
Studies show that about half of a business firm's profits can be explained by alignment of IT with business.
TRUE
The greatest barrier to changing business processes is, ironically, management itself.
FALSE
In the strategy of product differentiation, information systems are used to enable new products and services
TRUE
BPM is considered concluded when the new processes are both implemented and accepted.
FALSE
Strong linkages to customers and suppliers increase switching costs.
TRUE
The effect of the Internet has been to raise bargaining power over suppliers.
TRUE
In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
TRUE
In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.
TRUE
The value chain model classifies all company activities as either primary or support.
TRUE
The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.
TRUE
The law of diminishing returns always applies to digital, as well as traditional products.
FALSE
The more people that use Microsoft Office software and related products, the lower its value.
FALSE
The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
FALSE
Probably the best single way to reduce quality problems is to reduce cycle time.
TRUE
Business process reengineering is the radical redesign of business processes.
TRUE
Benchmarks are specific standards for business processes set by industry leaders.
FALSE
Which of the following is not one of the competitive forces of Porter's model?
External environment
A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?
New market entrants
Which of the following industries has the lowest barrier to entry?
Restaurant
A substitute product of most concern for a cable TV distributor is:
satellite TV.
Which of the following can force a business and its competitors to compete on price alone?
Transparent marketplace
A firm can exercise greater control over its suppliers by having:
