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MIS Chapter 1

1) ________ is data that has been shaped into a form that is meaningful to human beings.
Information
2) ________ is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
Feedback
3) The world’s largest and most widely used network is ________.
the Internet
4) ________ consists of the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
Computer software/software
5) 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
6) ________ are private corporate networks extended to authorized users outside the organization.
Extranets
7) In business problem solving, the three major categories of factors are organization, technology, and ________.
people
8) Having inadequate resources is a business problem that falls into the ________ dimension.
organizational
9) Encouraging employees to adapt to new business processes is one factor of ________.
change management
10) Being aware of organizational and personal limitations is one of the four elements of ________.
critical thinking.
11) Define operational excellence. How can information systems help achieve it?
Operational excellence is the achievement of higher levels of productivity and efficiency. Information systems can help achieve operational excellence by improving communications to supplier and optimizing the supply chain. Information systems could help managers communicate with workers more efficiently, enable technological innovation in products, minimize warehouse overhead, streamline distribution.
12) You work for an auto manufacturer and distributor. How could you use information systems to achieve greater customer intimacy?
You could create a web site that allows customers to customize cars, communicate with support personnel and other car owners. You could create an automated e-mail service reminding car owners to take their car in for periodic check ups. You could have an information system that tracks customer preferences in local areas, so you can provide cars that reflect local customer needs and desires.
13) What important managerial function is impaired by not having access to timely and accurate information? What is the effect of this lack of data?
The managerial function is decision-making. Without access to timely and accurate information business managers rely on forecasts, best guesses, and luck. The result is over- or underproduction of goods and services, misallocation of resources, and poor response times. These poor outcomes raise costs and lose customers.
14) What is the difference between information technology and information systems? Describe some of the functions of information systems.
Information technology (IT) consists of all the hardware and software that a firm needs to use in order to achieve its business objectives. Information systems are more complex. 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 functions of an information system are to support decision making, coordination, and control; help employees analyze problems; help employees visualize complex subjects; and help create new products.
15) You are a marketing manager for a national movie theater chain. Give an example of data that your department could use for creating meaningful information. What type of information could that data produce?
Movie ticket sales from individual theaters would be an example of raw data. Meaningful information from this would be: average number of tickets sold to seniors on certain days of the week.
16) Define business process. What might be a business process used at a hospital?
A business process is a set of logically related tasks and behaviors for accomplishing work. Hiring a new employee, customer intake, and filing medical records are examples of business processes at a hospital.
17) Describe the four steps taken in solving a business problem.
The four steps are problem identification, solution design, choice of a solution, and implementation. In the problem identification step, relevant people in an organization must agree that a problem exists, about what the problem is and what its causes are, and what can be done about the problem given the organization’s resources. In the solution design step, as many possible solutions should be determined. In the choice step, you choose the best solution from the list of options determined in the previous step. It is important to match a choice to existing resources, skills, and feasibility. In the last step, implementation, the solution is put in place. In information systems solutions, this may include purchasing hardware or software and testing it. Implementation also includes employee training, change management, and using a method to measure the outcome.
18) What are the three dimensions to business problems? Give an example of each.
The three dimensions to business problems are:
(1) Organizational: This may include outdated business processes, unsupportive culture and attitudes, political conflict, turbulent business environment and change, complexity of task, inadequate resources.
(2) Technology: This may include insufficient or aging hardware, outdated software, inadequate data management, insufficient telecommunications capacity, incompatibility of old systems with new technology, and rapid technological change.
(3) People: This may include lack of employee training, difficulties in evaluation performance, legal and regulatory compliance, work environment, lack of employee support and participation, indecisive management, or poor management.
19) The department chain you work for has had numerous complaints about slow customer service. Your colleague, a sales manager, informs you that this happened at a previous store she worked for, and it was cleared up by hiring more sales representatives. Should you take her advice? Why not? What techniques can you use in evaluating the problem?
The advice should not be taken, as it is a rush to judgment, which could mean that the wrong solution is used, wasting time and resources. You should ask the colleague to employ critical thinking. Critical thinking is sustained suspension of judgment with an awareness of multiple perspectives and alternatives. It involves at least four elements:
• Maintaining doubt and suspending judgment
• Being aware of different perspectives
• Testing alternatives and letting experience guide
• Being aware of organizational and personal limitations
20) Describe at least three of the general information skills essential for all business careers.
General information skills essential for all business careers include (1) understanding how information systems and technologies can help firms achieve business objectives such as operational efficiency, developing new products and services, and maintaining customer intimacy. Also essential is (2) an understanding the central role of databases in a modern firm as well as (3) developing skills in the analysis of information in order to help firms understand and make sense out of their environments. (4) All business majors need to be able to work with specialists and system designers who build and implement information systems. This is necessary to ensure that the systems that are built actually service business purposes and provide the information and understanding required by managers and employees. In addition, students need to (5) understand how information systems work in relation to social and community issues, including ethical issues and how systems must meet requirements for reporting to government regulators and the public.
Journalist Thomas Friedman’s description of the world as “flat” referred to:
A) the flattening of economic and cultural advantages of developed countries.
An information skill important for an accounting major would be:
A) an understanding of system and network security issues.
The six important business objectives of information technology are: new products, services, and business models; customer and supplier intimacy; improved decision-making; competitive advantage; operational excellence, and:
B) survival
The hardware and software used to transfer data in an organization is called:
D) networking and telecommunications technology.
One of the most frequent errors in problem solving is:
A) rushing to judgment.
Which of the following statements is not true?
D) The impact of domestic IT outsourcing has been very disruptive to some regional areas of the U.S.
In a hierarchical organization, the upper levels consist of:
B) managerial, professional, and technical workers.
Which of the following would not be considered part of the implementation phase of problem solving?
D) evaluating a selection of software packages for implementing a new business process – Given
Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the:
C) organizational dimension.
Business processes:
A) include informal work practices.
Verizon’s implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of:
B) improved decision-making.
Poor business processes and unsupportive culture are examples of the ________ dimension of business problems.
B) organizational
Aging hardware and outdated software are examples of the ________ dimension of business problems.
A) technology
The final step in the four-step model of business problem solving is:
B) implementation.
The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:
C) survival.
Legal and regulatory compliance is an example of the ________ dimension of business problems.
C) people
As discussed in the chapter opening case, the Yankees’ use of information systems in their new stadium can be seen as an effort to achieve which of the primary business objectives?
A) Operational excellence
Data management technology consists of:
C) the software governing the organization of data on physical storage media.
The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once they have left the office. This is a business problem that falls into the:
B) people dimension.
An example of a business using information systems to attain competitive advantage is:
C) Toyota`s legendary TPS that has created superlative efficiencies and enabled Toyota to become the world`s largest auto maker.
A hierarchy:
C) is a pyramid structure of rising authority and responsibility.
Assume you work for a package delivery service in a major metropolitan area, and that the business has been losing customers for several years. You have been asked to find a solution to this problem, perhaps one which uses modern information technologies. What is the correct way to proceed?
C) Identify the problem, design alternative solutions, choose the best solution, and then implement the solution.
The use of information systems because of necessity describes the business objective of:
A) survival.
Output:
D) transfers processed information to the people who will use it or to the activities for which it will be used.
Inadequate database capacity is an example of the ________ dimension of business problems.
A) technology
The culture of UPS places service to the customer among the company’s highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages. Based on your reading of Chapter 1, why is “culture” an important factor to consider when building information system solutions to business problems?
B) The business culture provides the vision and inspiration for information system solutions.
Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals.
B) senior managers
The average number of tickets sold daily online is an example of:
C) meaningful information.
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.
An intranet uses:
D) Internet technology within the boundaries of the firm.
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:
C) management information systems.
The first step in the four-step model of business problem solving is:
B) identifying the problem.
Converting raw data into a more meaningful form is called:
B) processing.
The three activities in an information system that produce the information organizations use to control operations are:
C) input, processing, and output.
Order data for baseball tickets and bar code data are examples of:
A) raw input.
In choosing the best solution for a business problem, one of the most important considerations is:
B) existing resources and skills.
An information skill important for a marketing major would be:
B) an understanding of product management enterprise systems.
To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. This is an example of using information systems to support a business strategy of:
C) customer and supplier intimacy.
D) improved decision making.
An example of a business using information systems for customer and supplier intimacy is:
B) JC Penney`s information system that allows its contract manufacturers to see what garments have been sold and need to be replaced.
Maintaining the organization’s financial records is a business function of:
A) accounting.
A major criterion in deciding the most important perspectives of a business problem is:
C) usefulness.
Branding products is a business function of:
D) marketing.
Based on your reading of the case discussing mobile handhelds, Doylestown Hospital’s use of iPhones is an example of using information systems to enhance which of the following generic business objectives?
C) Improved decision making
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?
D) 1, 2, and 3
Electronic computers and related software programs are the technical foundation, the tools and materials, of:
C) modern information systems.
The failure of NASA’s initial solution to preventing the space shuttle shedding foam illustrates:
C) the continuous nature of problem solving.
An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:
A) decision making and control in an organization.
Operations management as a discipline is directly relevant to three occupational categories:
A) industrial production managers, operations analysts, and administrative service managers.
An example of raw data from a national chain of automobile stores would be:
C) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky – $28000
Which of the following is an example of a business using information systems to create new products and services?
A) Apple`s creation of the iPod
As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.
True
Identifying a problem includes agreeing that a problem exists.
True
An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.
True
There are two types of outsourcing: offshore outsourcing and foreign outsourcing.
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 hardware and software needed.
False
Political conflict is an example of the people dimension of business problems.
False
Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.
False
A network requires at least three computers and a shared resource.
False
The dimensions of information systems are people, organizations, and information technology.
True
Forensic accounting is used to investigate bankruptcies and contract disputes.
True
Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization.
False
An IT infrastructure provides the platform on which the firm can build its information systems.
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
A business model describes how a company produces, delivers, and sells a product or service to create wealth.
True
Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.
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
Internet advertising is growing at a rate of more than 30 percent a year.
False
Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.
False
Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.
True
Computers are only part of an information system.
True

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