1.Management Information Systems: Managing the Digital Firm - Flashcards

A detailed set of flashcards covering key concepts, objectives, and definitions relevant to Management Information Systems and their impact on business.

What is not one of the six strategic business objectives of information systems?

Improved community relations

What enabled Verizon to improve managerial decision making?

Use of a web-based digital dashboard for precise real-time information

What may lead to competitive advantage?

New products, services, and business models; charging less for superior products; responding to customers in real time

A firm invests in an information system to achieve which business objective?

Survival

What does the Mandarin Oriental use to enhance customer intimacy?

Computer systems to track guests' preferences.

For how long must records of employee exposure to toxic chemicals be retained?

30 years.

What business objective is linked to PCL Construction's use of information technologies?

Reduced delays in document management.

What system exemplifies using information systems for customer and supplier intimacy?

The Mandarin Oriental's computer systems tracking guest preferences.

What advantage does Walmart achieve through information systems?

Operational efficiency.

How much did American businesses spend on information systems equipment in 2017?

About $1 trillion.

What business objective does analyzing spending levels and clothing styles support?

Operational excellence.

Approximately how much revenue was generated by e-commerce in 2017?

About $700 billion.

Which of the following is not a new technology-related trend in MIS?

Co-creation of business value.

Which statement about digital firms is not true?

Today, most firms are fully digital.

A firm must invest in information systems to comply with legislation. This is to achieve which objective?

Survival.

Which statement about IT innovations is not true?

Business intelligence is not an IT innovation.

What does Thomas Friedman's description of a 'flat' world refer to?

The flattening of economic and cultural advantages of developed countries.

In 2017, what percent of the U.S. economy resulted from foreign trade?

30 percent.

What effect of globalization is not described?

Increases in transaction costs.

How many service jobs move offshore to lower-wage countries each year?

300,000.

In 2017, what statement is not true about American businesses?

They spent $500 billion on consulting and IT services.

How many Americans accessed the Internet with a smartphone or tablet in 2017?

230 million.

What is not true about Fortune 500 U.S. firms?

Most PCs manufactured in China use microprocessor chips manufactured in Korea.

Is Internet advertising growing at approximately 5 percent a year?

FALSE

Is creating a marketing plan a business process?

FALSE

For a firm to be considered a digital firm, must all its significant business relationships be digitally enabled?

FALSE

What defines a business model?

How a company produces, delivers, and sells a product or service to create wealth.

Did private investment in information technology constituted 55 percent of all invested capital in 2017?

FALSE

Can a small bike messenger company be a digital firm?

Yes, if its relationships with customers and suppliers are digitally enabled.

What major changes are happening in organizational use of information systems?

Businesses using social networking, mobile device use by employees, and co-creation of value.

Define a business process with an example from a hospital.

A business process is a set of tasks for accomplishing work; e.g., customer intake.

What are the three activities in an information system producing information?

Input, processing, and output.

What does checkout counter data in a grocery store represent?

Input.

What is the total number of food items with storage temperature problems?

Meaningful information.

What is output in an information system?

The result of processing raw input data into meaningful information.

What is the term for converting raw data into a more meaningful form?

Processing.

What is an example of raw data from an automobile manufacturer?

One Subaru Outback sold for $24,000.

Who monitors the daily activities in a business hierarchy?

Operational management.

What is the fundamental set of assumptions accepted by a company's members called?

Culture.

What does data management technology consist of?

Software governing the organization of data.

Which best describes organizational culture?

A fundamental set of assumptions accepted by most members of the organization.

What constitutes an organization's IT infrastructure?

Networking and telecommunications technologies along with required hardware and software.

What business function maintains employee records?

Human resources.

What is not an environmental actor in an information system?

Sales force.

What is the primary reason for implementing a new information system?

The system will create new value for the firm.

What would not be a complementary asset for a solar panel manufacturer?

Centralized hierarchical decision making.

In a business hierarchy, who is responsible for daily activities?

Operational management.

What involves acquiring raw data and transforming it during various stages?

An information value chain.

Investing in training programs is an investment in which category of complementary assets?

Social.

Which roles would be least affected by mobile devices for accessing information systems?

Production workers.

What is an example of input for an information system?

Product ID and price.

The three principal levels in a business organization hierarchy are?

Senior management, middle management, and operational management.

Which level designs new products or services?

Knowledge workers.

Which business function maintains financial records?

Finance and accounting.

What best describes a managerial element in the UPS tracking system?

Providing package status reports to customers.

What global network connects millions of different networks?

The Internet.

Which service provided by the Internet uses widely accepted standards?

The World Wide Web.

What is a private corporate network extended to external users?

An extranet.

What deals with behavioral and technical issues surrounding information systems?

Management information systems.

What focuses on both a behavioral and technical understanding of information systems?

Management information systems.

Is IT the only thing needed to produce information for organizations?

FALSE.

Does information systems literacy focus primarily on knowledge of IT?

FALSE.

What are the three main dimensions of information systems?

Management, organizations, and information technology.

Do knowledge workers make long-range strategic decisions?

FALSE.

What are the four major business functions?

HR; manufacturing; finance; and marketing.

Must knowledge of hierarchy and culture be understood to see how firms use information systems?

TRUE.

Are all business processes formally documented?

FALSE.

Is creative work driven by knowledge significant in management responsibility?

TRUE.

Do intranets link different systems and networks within a firm?

TRUE.

Is UPS's web-based customer tools an information system solution for customer intimacy?

TRUE.

Is there little variation in returns on IT investments across firms?

FALSE.

Are laws creating fair market environments examples of complementary assets?

TRUE.

Is investing in a strong IS development team investing in organizational assets?

TRUE.

Is data interpreted as meaningful for humans?

FALSE.

What characterizes feedback in an information system?

Output returned to evaluate or correct input.

What are the key elements of an organization?

Structure, business processes, politics, culture, people.

Do middle managers make long-range decisions?

FALSE.

Are programmed instructions controlling hardware known as computer software?

TRUE.

How can operational excellence be achieved?

By improving communication and optimizing supply chains.

How can information systems achieve customer intimacy for an auto manufacturer?

By allowing customization and automated customer communication.

What is the difference between information technology and information systems?

IT is hardware/software; IS is a set of interrelated components that process information.

What directorate roles exist at a national movie theater chain?

Marketing could analyze ticket sales for meaningful insights.

What shared values might exist at a law firm?

The legal system is fair, assisting clients effectively.

What does the information value chain involve for a movie theater chain?

Transforming data from sales into insights for decision making.

How does a company's use of information systems affect corporate strategies?

Strategy execution depends on technology capability.

Why is building a house a good analogy for information systems?

Construction requires architecture and design, just like effective systems need comprehensive planning.

What is the book's main theme?

Managers must consider both organizational and management dimensions to optimize IT investments.

What are complementary assets?

Assets needed to realize value from primary investments in technology.

Which disciplines contribute to technical understanding of information systems?

Operations research, management science, and computer science.

What discipline focuses on optimizing organizational parameters?

Operations research.

What do sociologists study about information systems?

How systems affect individuals, groups, and organizations.

What insight do psychologists have into information systems?

How decision makers use formal information.

Does the behavioral approach to information systems ignore technical aspects?

TRUE.

What is the sociotechnical view of information systems?

Optimal organization performance from jointly optimizing social and technical systems.

Which disciplines shape management information systems' behavioral approach?

Sociologists, psychologists, and economists.