Netflix has 100 million subscribers. Which of the following trends is most responsible for their success?
D. Ubiquitous network access
Which of the following is an example of a managerial staff position in the IT function?
C. Analyst
You own a company and you realize that your firm has very weak IT strategy. Who should you replace?
D. Chief Information Officer (CIO)
In the context of digital technology we have defined 'intelligence' as the ability of a digital computer to:
C. Perform computations to process information
One of your friends who is enrolled in the college of business tells you: 'it's not important for me to understand IT and information systems.' What would be a good argument to prove him wrong?
Moore's law will continue to make computers more powerful and pervasive, but it is general and functional managers who must figure out how to use them to create value for organizations.
Siri, Alexa, Cortana, Google Assistant are examples of voice user interfaces. Which of the following trend is most closely related to the fact that these interfaces are now widely available?
A. Computers have become easier to use
One of your friends who is enrolled in the college of business tells you: 'it's not important for me to understand IT and information systems.' What evidence could you use to convince him that he is wrong?
The top 5 publicly traded companies are all technology companies, because software is now a key driver of business success.
If you hear the statistic: 'There are almost 3 billion smartphones in use in the world today.' Which of the following trend is it most closely related to?
A. Ubiquitous network access
What is the top-level position in the IT function?
B. Chief Information Officer (CIO)
A company is looking for a person with a business degree, a strong background in finance and leadership experience. What is the company most likely looking for?
B. A functional manager
When designing an information system you must optimize the IS as a whole, not each individual component. This is because the components of an IS interact with one another. We have termed this phenomenon:
A. Systemic effects
Napoleon's army would NOT need an information system. Is this statement correct?
No, they would need an information system to run their operations like keeping track of supplies and soldiers’ assignments.
An IS has two subsystems, a social and technical one.
True or False
True
The ATMs of your bank still run the Windows XP operating system. In 2018 Microsoft decided to stop supporting Windows XP. As a consequence, no more security update will be released for it. Because of systemic effects, you could intervene on any one of the four components of the information systems to address this problem. Which intervention would be most appropriate for the bank in this case?
Technology. You should upgrade all ATMs to a newer version of the operating system.
Is an information system a sociotechnical system?
C. Yes, because it includes a social subsystem and a technical subsystem.
Which of the following is not part of the organizational context of an Information System?
C. Structure
Which of the following is NOT an element of an information system?
C. Subsystem
Which of the following is an example of the process element of an information system?
A. The procedure for enforcing security at airports using body scanners.
Are the terms Information System and Information Technology synonymous?
C. No because information technology is a component of modern information systems.
The owner of a large car dealership in your hometown, just told you he is thinking about using virtual reality to reduce the number of test drives by customers. He is all excited about the initiative because he thinks it will increase efficiency. You think this initiative will be very disruptive to the structure component of the existing car dealership information system. Why?
Virtual reality will significantly change the relationships between customers and sales associates, reducing their chance to earn commissions.
What is the difference between a data warehouse and a data mart?
B. Compared to a data warehouse, a data mart is smaller and easier to build
What is the focus of 'predictive analytics'?
C. To better understand what will occur
Enterprise systems are built around which concept?
C. Integration
Which of the following is correct regarding the characteristics of decision making at the executive level of an organization?
C. All choices are correct
“A system mainly concerned with automating recurring activities and structuring day-to-day activities to ensure that they are performed with speed and accuracy” is:
A TPS
Which of the following are not one of the levels of an organization according to the hierarchical perspective?
A. Transactional
Which kind of analytics make use of statistical modeling and machine learning algorithms?
D. Predictive analytics
In chapter #3 the book briefly introduced the notion of Business Process Reengineering (BPR) to refer to:
C. The fundamental rethinking and radical redesign of a firm’s existing business processes
We identified four main eras of data processing in business, what characterizes the 'batch era'?
C. Transactions were batched and processed by a mainframe at periodic intervals
Which one of the following is not one of the three main phases of the IS cycle?
A. Integrating transaction processing systems
Information goods are not:
A. Easy to produce
A market is likely to tip when there are:
Strong economies of scale and low need for product variety
Which of the following is not an economic characteristic of information?
B. Low production costs
Network effects are associated with:
Demand-side economies of scale
Which of the following is a simple definition of the Internet?
E. A network of networks
Who owns the Internet?
The Internet is owned by millions of entities
Positive feedback refers to what?
C. An economic condition where the stronger gets stronger and the weaker get weaker
Tippy markets are associated with strong positive feedback.
True or False
True
What is a two-sided network?
D. A network that has two types of members
How is value created in networks?
Value is a function of the number of connected nodes
What is the revenue model of a firm that initially gives away its product or service for free and later attempts to charges for premium services?
B. Freemium
When categorizing eCommerce initiatives by transaction type, which category does an Online Travel Agency such as Expedia fall into?
Business-to-Consumer (B2C)
When categorizing eCommerce initiatives by transaction type, which category does electronic filing of income taxes with the federal government fall into?
A. eGovernment
What is the revenue model of Netflix.com?
Subscription
What have we defined as: “an online exchange of value”?
C. Electronic commerce
When categorizing eCommerce initiatives by company structure, which category does Walmart fall into?
C. Bricks and Clicks
When discussing the impacts of the Internet, we observed that marketplaces like Amazon or Alibaba are edging out the middlemen. We referred to this opportunity of digitalization as:
Disintermediation
With the term Web 2.0, we refer to the second coming of the services provided over the Internet. More specifically, Web 2.0 is mostly based on mobility and mobile applications.
True or False
False
What is the revenue model of Google?
B. Advertisement support
When categorizing eCommerce initiatives by company structure, which category does Spotify fall into?
C. Pure Play
The following statement: “We will store data centrally for all mission critical applications” is an example of:
A. Information Systems Guideline
Which of the following is not an advantage offered by the information system planning process?
C. The information systems plan is an informal contract that specifies the objective of information systems deployment and the responsibilities of the parties involved.
A long-term proposal that identifies new systems, new projects, or new directions for the IS organization is an example of:
D. A strategic initiative
There are six key questions that senior executives should answer when getting involved in information systems management. The first question is “How much should we spend on IT?” This question is intended to:
B. Decide what the role of information systems and technology should be in the organization.
Delta Airlines is a major United States airline which, along with subsidiaries and regional affiliates, operates over 5,400 flights daily. Its infrastructure enables Delta to operate with the needed degree of efficiency and effectiveness. Even small disruptions can endanger Delta's wellbeing and future viability as an airline carrier. Which quadrant of the strategic impact grid do you think Delta can be placed in?
C. Factory
In September 2018, Facebook suffered the biggest data breach in its 14-year history as a social media platform. An attack on Facebook's computer network exposed the personal information of nearly 50 million users. Going forward, one of the critical success factors of Facebook would be to:
A. Increase user confidence and trust in Facebook by ensuring improved security measures within the platform
As part of its’ IS strategic business planning process, a multinational large bank is conducting a SWOT analysis to review how well equipped it is to achieve its vision in accordance with the newly developed IS guidelines. The bank is globally recognized as one of the most innovative institutions in the industry that tends to keep up with the latest technology trends. In this context, blockchain, the distributed ledger technology, is likely to be perceived by the bank as:
D. An opportunity
The four quadrants of the strategic impact grid are the factory, strategic, support, and turnaround.
True or False
True
An information system vision defines the role that information systems should play in the organization. For what kind of organizations do information systems play a more strategic role?
'D. All of the above as information systems should always play a strategic role
E. None of the answers are correct
B. The organizations whose success in the marketplace depends heavily on their ability to introduce IT innovations
Why do we need to create an Information System Vision during the strategic IS planning process?
C. It defines the role that information systems should play in the organization.
We defined the concept of value appropriation as:
C. The process by which the total value created in the transaction is split among all the entities who contributed to creating it.
Which of the following is an entity that does NOT share the total value created by a transformation made in your firm?
B. Competitor
A customer's willingness to pay is the same as the price they pay.
True or False
False
Supplier opportunity cost is:
D. The minimum amount of money suppliers are willing to accept to provide the firm with the needed resources.
In Abraham's coffee shop customers are willing to buy medium coffee for 3 dollars. He says it creates 2 dollars' worth of value on each cup. How much is the supplier opportunity cost?
B. 1$
You invented the iPet, an app that lets pet owners track their animals. There is only one competitor, iDog, and it produces a similar product. Your analysis shows that SOC for iPet and iDog is the same: $20. But CWP for iPet is $25 and for iDog it is $23. Do you have a competitive advantage?
A. Yes. Because iPet is the only firm in the market able to create $5 worth of value
B. Yes. Because iPet is the only firm in the market able to increase
CWPC. No. Because iPet and iDog have the same SOC
D. No. Because iPet and iDog create the same amount of new value
A. Yes. Because iPet is the only firm in the market able to create $5 worth of value
Competitive advantage is:
A. The condition where a firm engages in a unique transformation process and has been able to distinguish its offerings from those of competitors.
Added value is:
D. That portion of the total value created that would be lost if the firm did not partake in the exchange.
To create value you must increase customer willingness to pay more than supplier opportunity cost.
True or False
True
A brand name is a driver of value creation:
C. Yes, as long as the brand increases customer willingness to pay.
The pharmaceutical industry is characterized by a substantial need for capital investments in research and development, strong economies of scale, well-known brand names with multiple issues on patents and government regulations. Threat of new entrants can be characterized as one of the following options:
D. Low
Which of the following is a primary activity?
E. Inbound logistics
The virtual value chain (VVC) model is designed to map the set of sequential activities that enable a firm to transform data in input into some output information that, once distributed to the appropriate user, has higher value than the original data.
True or False
True
Of the five forces, rivalry amongst competitors is the most important because it represents the best determinant of profitability for an average company within an industry.
True or False
False
Which of the following is NOT a part of the support activities carried out in a typical value chain?
B. Marketing and sales
The iPod's entrance into the music player-industry caused the increased threat of which of the following:
C. Threat of substitutes or services for other music players
The CSLC should be viewed from which viewpoint?
B. Customers
Which of the following is an example of mirroring capabilities?
D. Your university library electronic reservation system
The CSLC is broken down into thirteen stages. One of these involves making sure that the goods or services that have been purchased actually meet the applicable specifications. Which stage is this?
E. Evaluate and Accept
A small local coffee shop has two suppliers, A and B. Supplier A went bankrupt and had to close its business. Assuming that both suppliers are able to provide the coffee shop with all its needs in term of suppliers, which of the following is likely to happen:
A. The bargaining power of supplier B will increase
The process by which a firm accrues or builds up a resource over time is important for you to recognize as it is often the basis for rejuvenating barriers to erosion. Such process is called:
D. Asset-stock accumulation
Response lag is:
C. A measure of the delay of competitive response to an IT-dependent strategic initiative
The process by which an organization is able to improve its performance over time by developing its ability to use available resources for maximum effectiveness is known as:
A. Capability development
The sustainability of a competitive advantage grounded in an IT-dependent strategic initiative is measured by:
D. An estimate of the likely time delay competitors will face in replicating the leader's initiative
After evaluating an IT-dependent strategic initiative using the sustainability framework, managers are left with three possible decisions. Which of the following is NOT one of these three decisions?
A. analyze the IT-dependent strategic initiative independently
When an IT initiative is being developed as part of a consortium, the leader shares the risks and costs associated with the initiative with competitors that are part of the consortium.
True or False
True
Which of the following are the two main dynamics for rejuvenation and strengthening of barriers of erosion?
A. capability development, asset-stock accumulation
The two major components of the IT resources barrier are:
A. IT assets and IT capabilities
Which of the following is NOT a barrier to erosion of advantage?
B. IT team barrier
Is IT an indistinct commodity?
C. No, because IT ranges from extremely complex technology (e.g., large data warehouses, infrastructure projects), to small applications (e.g., a personal web site)
Which of the following is an advantage of custom development?
D. flexibility and control
Your book describes the systems selection process in-depth. Which of the following is not a step in the system selection process?
B. Visit vendor sites
Which of the following is not one of the advantages related to making your own systems?
D. Faster Roll-Out
Technical feasibility is concerned with taking the system requirements document and producing a robust, secure, and efficient application.
True or False
True
Which of the following statements is not a part of the “agile manifesto” for software development:
A. processes and tools over individuals and interactions
We have identified three general approaches to the acquisition of information processing functionalities and the introduction of IT-based information systems. Which of the following is not one of them?
D. Open source development
A business school has developed a new leave portal for all its employees and decides to immediately switch from the old platform to the new one. This migration is considered a low risk endeavor for the school and its employees. This type of migration approach is considered as:
A. direct
Nike decided to implement Oracle. Oracle is a database management system produced by the multinational software corporation Oracle, Inc. Which approach does Nike’s decision fall into?
D. system selection and acquisition
Why is the Systems development Life Cycle methodology typically referred to as “the waterfall model”?
D. To stress the fact that phases are sequential and iteration (or going back) should be
What are the three steps that occur during the implementation phase of the SDLC?
