ICT2642 - Business Informatics II

To manage relationships with your customers, you would use a(n) ________ system
A) CRM
B) MIS
C) CLE
D) CLU
E) KMS

A) CRM

To consolidate the relevant knowledge and experience in the firm & make it available to improve business processes and management decision making, you would use a(n)
A) TPS
B) Extranet
C) KMS
D) CRM
E) MIS

C) KMS

Which of the following choices may lead to competitive advantage? 1 New products, services & business models 2 Charging less for superior products 3 Responding to customers in real time
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3

B) 1 and 2

An information systems manager
A) Writes software instructions for computers
B) Acts as liason between the information systems group and the rest of the organization
C) Translates business problems into information requirements
D) Manages data entry staff
E) Oversees the company's security policy

B) Acts as liason between the information systems group and the rest of the organization

Business processes are collections of
A) informal practices and behaviors.
B) formalized and documented practices.
C) routines.
D) rights and privileges

B) formalized and documented practices.

A field identified in a table as holding the unique identifier of the table's records is called the
A) primary key.
B) key field.
C) primary field.
D) unique ID.
E) primary entity

A) primary key.

The type of logical database model that treats data as if they were stored in two-dimensional tables is the
A) Non-relational DBMS
B) Mobile DBMS
C) Relational DBMS
D) Hierarchical DBMS

C) Relational DBMS

Output
A) is feedback that has been processed to create meaningful information.
B) is information that is returned to appropriate members of the organization to help them evaluate the input stage
C) transfers data to the people who will use it or to the activities for which it will be used.
D) transfers processed information to the people who will use it or to the activities for which it will be used.

D) transfers processed information to the people who will use it or to the activities for which it will be used.

A virtual company
A) uses the capabilities of other companies without being physically tied to those companies.
B) uses Internet technology to maintain a virtual storefront.
C) uses Internet technology to maintain a networked community of users.
D) provides entirely Internet-driven services, or virtual products.

A) uses the capabilities of other companies without being physically tied to those companies.

The most successful solutions or methods for achieving a business objective are called
A) value activities.
B) best processes.
C) core competencies.
D) best practices.

D) best practices.

The decisions involved in creating and producing a corporate Intranet can be classified as ________ decisions.
A) Procedural
B) Unstructured
C) Structured
D) Semi-structured

B) Unstructured

Which of the following is NOT an IT infrastructure service component?
A) operating system software
B) computing platforms to provide a coherent digital environment
C) physical facility management to manage the facilities housing physical components
D) IT management services to plan and develop the infrastructure and provide project management

A) operating system software

Which systems are typically a major source of data for other systems?
A) transaction processing systems
B) management information systems
C) executive support systems
D) decision-support systems

A) transaction processing systems

Changes in hardware, software, documentation, or production to a production system to correct errors, meet new requirements, or improve processing efficiencies are termed
A) compliance.
B) production.
C) maintenance.
D) acceptance

C

Which of the following is not one of the five main variables affecting project success?
A) Risk
B) Vendors
C) Time
D) Quality

B

Which of the following project management variables indicates how well the project satisfies management objectives
A) Goals
B) Risk
C) Quality
D) Scope

C

Business processes are analyzed, simplified, and redesigned in
A) Business process redesign
B) Rationalization of procedures
C) Automation
D) Systems analysis and design

B

All of the following are intangible benefits of information systems except
A) improved asset utilization.
B) increased organizational learning.
C) improved operations.
D) reduced workforce.

D

The idea that the achievement of quality control is an end in itself describes the main concept of
A) BPM
B) BPR
C) Six Sigma
D) TQM

C

Converting raw data into a more meaningful form is called
A) capturing.
B) processing.
C) organizing.
D) feedback.

B

1. Purchase of information systems and telecommunications equipment constituted more than
half of all capital investment in the United States in 2013.

TRUE

2. A business model describes how a company produces, delivers, and sells a product or service to
create wealth.

TRUE

3. Information systems consists of all the hardware and software that a firm needs to use in order to
achieve its business objectives.

FALSE

4. An extranet is a private intranet extended to authorized users outside the organization.

TRUE

5. Information systems literacy describes the behavioral approach to information systems, while
computer literacy describes the technical approach.

FALSE

6. The dimensions of information systems are people, organizations, and information technology.

TRUE

7. 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

8. Developing a new product, fulfilling an order, or hiring a new employee are all examples of business
processes.

TRUE

9. Business processes are those logically related tasks for accomplishing tasks that have been formally
encoded by an organization.

FALSE

10. Employee attitudes about their jobs, employers, or technology can have a powerful effect on their
abilities to use information systems productively.

TRUE

11. A network requires at least three computers and a shared resource.

FALSE

12. An IT infrastructure provides the platform on which the firm can build its information systems.

TRUE

13. 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

14. Identifying a problem includes agreeing that a problem exists.

TRUE

15. Political conflict is an example of the people dimension of business problems.

FALSE

16. As a result of new public laws, accountants are beginning to perform more technical duties, such as
auditing systems and networks.

TRUE

17. IT managerial jobs are outsourced easily because of the universal standards used by the Internet.

FALSE

18. An understanding of enterprise-wide systems for customer relationship management is one of the
skills relevant to careers in marketing.

TRUE

19. Whereas marketing and financial careers have been transformed by the growth in information
systems, management has-so far-remained relatively unaffected.

FALSE

20. There are two types of outsourcing: offshore outsourcing and foreign outsourcing.

FALSE

21. 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

22. Journalist Thomas Friedman's description of the world as "flat" referred to:

the flattening of economic and cultural advantages of developed countries.

23. The six important business objectives of information system investment include all of the following except:

employee morale.

24. The use of information systems because of necessity describes the business objective of:

survival.

25. 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.

26. 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.

27. The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the
information system business objective of:

survival.

28. 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.

29. The three activities in an information system that produce the information organizations use to
control operations are:

input, processing, and output.

30. All of the following describe the effects of globalization except:

increases in transaction costs.

31. The average number of tickets sold daily online is an example of:

meaningful information.

32. Output:

transfers processed information to the people who will use it or to the activities for which it will be used.

33. Senior management is responsible for directing the day-to-day activities of the business.

FALSE

34. Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as
where to locate a new plant.

FALSE

35. Transaction processing systems are most commonly encountered at the senior management level of
an organization.

FALSE

36. TPS help managers monitor the firm's relations with the external environment.

TRUE

37. A hotel reservation system is a typical example of a management information system.

FALSE

38. The decision to grant credit to a customer is normally made by a senior manager.

FALSE

39. Transaction processing systems are the basic business systems that serve the operational level of the
organization

TRUE

40. Management information systems primarily support nonroutine decision making.

FALSE

41. Most MISs use sophisticated mathematical models or statistical techniques.

FALSE

42. Deciding whether to introduce a new product line is the responsibility of an operational manager.

FALSE

43. Decision-support systems often use information from external sources.

TRUE

44. ESSs are designed to serve the middle management of the organization.

FALSE

45. ESSs are designed to incorporate data about external events, but they also draw summarized
information from internal MIS and DSS.

TRUE

46. ESSs are designed primarily to solve specific problems.

FALSE

47. Information supplied by an enterprise system is structured around cross-functional business
processes.

TRUE

48. Supply chain management systems are more externally oriented than enterprise systems.

TRUE

49. A business is a formal or informal organization created to sell services or products.

FALSE

50. Enterprise systems do not utilize order transaction data.

FALSE

51. Teams are formal business groups that are created to accomplish a specific task.

TRUE

52. A business process is a single step taken in a set of logically related activities that accomplish a
specific business task.

FALSE

53. The five basic entities that make up any business are suppliers, customers, employees, products and
services, and:

invoices and payments.

54. Promoting the organization's products or services is a responsibility of the ________ function

sales and marketing

55. Checking for product quality is an activity associated with the ________ function.

manufacturing and production

56. Which of the following is a cross-functional business process?

Fulfilling a customer order

57. Employees that assist with paperwork at all levels of the firm are called:

data workers.

58. The three principal levels of hierarchies within a business organization are:

senior management, middle management, and operational management.

59. Key forces in a business's immediate environment include:

regulations.

60. Engineers and architects are examples of:

knowledge workers

61. Which of the following is an example of a key force in a firm's broader, less immediate environment?

Economic trends

62. A computerized system that performs and records the daily dealings necessary to conduct business
is classified as a(n):

transaction-processing system.

63. Which type of system would you use to change a production schedule if a key supplier was late in
delivering goods?

TPS

64. 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.

65. The term "management information systems" designates a specific category of information systems
serving:

middle management functions.

66. These systems are designed to summarize and report on the company's basic operations.

Management information systems

67. ________ support making decisions that are unique, rapidly changing, and not easily specified in
advance.

Decision support systems

68. Which type of system would you use to determine the five suppliers with the worst record in
delivering goods on time?

MIS

69. 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

70. Which type of system would you use to forecast the return on investment if you used new suppliers
with better delivery track records?

DSS

71. DSS and MIS are also referred to as ________ systems.

business intelligence

72. Executive support systems are information systems that support the:

long-range planning activities of senior management.

73. A firm can be said to have competitive advantage when it has higher stock market valuations than its
competitors.

TRUE

74. A primary challenge in BPM is employee resistance.

TRUE

75. Customers are one of the competitive forces that affect an organization's ability to compete.

TRUE

76. A transparent marketplace means that there is high product differentiation.

FALSE

77. Studies show that about half of a business firm's profits can be explained by alignment of IT with
business.

TRUE

78. The greatest barrier to changing business processes is, ironically, management itself.

FALSE

79. In the strategy of product differentiation, information systems are used to enable new products and
services

TRUE

80. BPM is considered concluded when the new processes are both implemented and accepted.

FALSE