Management information systems managing the digital firm sixth canadian edition 6th edition laudon test bank

Management Information Systems, Cdn 6e (Laudon et al.) Chapter How Businesses Use Information Systems 1) Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information Answer: TRUE Diff: Type: TF Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 2) Deciding whether to introduce a new product line is the responsibility of an operational manager Answer: FALSE Diff: Type: TF Page Ref: 36 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management 3) Business processes refer to the manner in which work is organized, coordinated, and focused to produce a valuable product or service Answer: TRUE Diff: Type: TF Page Ref: 33 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 4) The performance of a business firm depends on how well its business processes are designed and coordinated Answer: TRUE Diff: Type: TF Page Ref: 33 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 5) Information systems automate many steps in business processes that were already automated Answer: FALSE Diff: Type: TF Page Ref: 35 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 6) Ordering a book online from Chapters.Indigo.ca or downloading a music track from iTunes are entirely new business processes based on old business models Answer: FALSE Diff: Type: TF Page Ref: 35 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems © 2013 Pearson Canada Inc 7) Functional systems that operate independently of each other are becoming a thing of the future because they cannot easily share information to support cross-functional business processes Answer: FALSE Diff: Type: TF Page Ref: 35 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 8) Operational management, middle management, and senior management each use a specific type of system to support the decisions they must make to run the company Answer: TRUE Diff: Type: TF Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 9) At the operational level, tasks, resources, and goals are predefined and highly unstructured Answer: FALSE Diff: Type: TF Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 10) Managers need TPS to monitor the status of internal operations and the firm's relations with the external environment Answer: TRUE Diff: Type: TF Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 11) Transaction processing systems are often so central to a business that TPS failure for a few hours can lead to a firm's demise and perhaps that of other firms linked to it Answer: TRUE Diff: Type: TF Page Ref: 37 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 12) Middle management needs systems to help with monitoring, controlling, decision making, and administrative activities Answer: TRUE Diff: Type: TF Page Ref: 37 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management © 2013 Pearson Canada Inc 13) Sometimes you will hear TPS referred to as business intelligence systems because they focus on helping users make better business decisions Answer: FALSE Diff: Type: TF Page Ref: 37 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 14) Digital dashboards are becoming an increasingly popular feature of DSS Answer: FALSE Diff: Type: TF Page Ref: 38 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 15) Information that was previously fragmented in different systems can be easily shared across the firm to help different parts of the business work more closely together Answer: TRUE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 16) Enterprise systems integrate the key business processes of an entire firm into a single software system that enables information to flow seamlessly throughout the organization Answer: TRUE Diff: Type: TF Page Ref: 42 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 17) Supply chain management (SCM) systems help businesses manage relationships with their customers Answer: FALSE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 18) Customer relationship management (CRM) systems help firms manage their relationships with their customers Answer: TRUE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management © 2013 Pearson Canada Inc 19) SCM systems consolidate and integrate customer information from multiple communication channels Answer: FALSE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 20) Transaction processing systems (TPS) enable organizations to better manage processes for capturing and applying knowledge and expertise Answer: FALSE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 21) Knowledge management systems (KMS) also link the firm to external sources of knowledge Answer: TRUE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 22) KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as processes for creating new knowledge and integrating it into the organization Answer: TRUE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 23) DSS applications create deep-seated changes in the way the firm conducts its business, and they are often costly to implement Answer: FALSE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 24) Intranets and extranets are really more technology platforms than specific applications Answer: TRUE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management © 2013 Pearson Canada Inc 25) An intranet typically centres on a portal that provides a single point of access to information from several different systems and to documents using a Web interface Answer: TRUE Diff: Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 26) End users are representatives of departments outside the information systems group for whom applications are developed Answer: TRUE Diff: Type: TF Page Ref: 55 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 27) Transaction processing systems are most commonly used by the senior management level of an organization Answer: FALSE Diff: Type: TF Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 28) A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business Answer: TRUE Diff: Type: TF Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 29) A hotel reservation system is a typical example of a management information system Answer: FALSE Diff: Type: TF Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 30) Management information systems typically support non-routine decision making Answer: FALSE Diff: Type: TF Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management © 2013 Pearson Canada Inc 31) Enrolling employees in benefits plans is a business process handled by the finance and accounting function Answer: FALSE Diff: Type: TF Page Ref: 34 AACSB: Use of information technology CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 32) Functional systems that support business processes within a single functional group, such as human resources, are being phased out in favour of cross-functional systems Answer: TRUE Diff: Type: TF Page Ref: 35 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 33) Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment Answer: TRUE Diff: Type: TF Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 34) Most MISs use sophisticated mathematical models or statistical techniques Answer: FALSE Diff: Type: TF Page Ref: 37 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 35) Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance Answer: TRUE Diff: Type: TF Page Ref: 38 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 36) Decision-support systems use internal information as well as information from external sources Answer: TRUE Diff: Type: TF Page Ref: 38 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management © 2013 Pearson Canada Inc 37) ESSs are designed to serve the middle management of the organization Answer: FALSE Diff: Type: TF Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 38) ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS Answer: TRUE Diff: Type: TF Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 39) ESSs are designed primarily to solve specific problems Answer: FALSE Diff: Type: TF Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 40) Information supplied by an enterprise system is structured around cross-functional business processes Answer: TRUE Diff: Type: TF Page Ref: 42 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 41) Enterprise systems often include transactions with customers and vendors Answer: TRUE Diff: Type: TF Page Ref: 42 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 42) Supply chain management systems are more externally oriented than enterprise systems Answer: TRUE Diff: Type: TF Page Ref: 42 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management © 2013 Pearson Canada Inc 43) Maintaining online directories of employees with special areas of expertise is one application of knowledge management systems Answer: TRUE Diff: Type: TF Page Ref: 45 AACSB: Use of information technology CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 44) CN reduced costs and improved customer service significantly because it had learned how to apply new technology to improve the processes involved in intermodal transfers Answer: TRUE Diff: Type: TF Page Ref: 32 AACSB: Use of information technology CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 45) The sales and marketing function is responsible for selling the product Answer: TRUE Diff: Type: TF Page Ref: 34 AACSB: Use of information technology CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 46) The sales and marketing function is responsible for assembling the product Answer: FALSE Diff: Type: TF Page Ref: 34 AACSB: Use of information technology CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 47) System outputs not include online and hard-copy reports for management and employee paycheques Answer: FALSE Diff: Type: TF Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 48) Toronto-based Dundas Data Visualization's digital dashboard delivers comprehensive and accurate information for decision making Answer: TRUE Diff: Type: TF Page Ref: 40 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management © 2013 Pearson Canada Inc 49) A point-of-sale system captures purchase and payment data at a physical location where goods or services are bought and sold using computers, automated cash registers, scanners, or other digital devices Answer: TRUE Diff: Type: TF Page Ref: 41 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 50) Enterprise applications automate processes that not span multiple business functions and organizational levels and may extend outside the organization Answer: FALSE Diff: Type: TF Page Ref: 42 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 51) Canadian Tire uses an extranet to communicate between the home office and its associate dealerships to broadcast information, saving the company potentially millions of pieces of paper formerly used for this type of communication Answer: TRUE Diff: Type: TF Page Ref: 44 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 52) The Internet has become a powerful tool for instantly mobilizing interest groups for political action and fundraising Answer: TRUE Diff: Type: TF Page Ref: 44 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 53) "Interaction" jobs tend to be professional jobs in the service sector that require close coordination and collaboration Answer: TRUE Diff: Type: TF Page Ref: 45 AACSB: Reflective thinking skills CASE: Content A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage 54) People working together can complete a complex task faster than the same number of people working in isolation from one another Answer: TRUE Diff: Type: TF Page Ref: 47 AACSB: Reflective thinking skills CASE: Content A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage © 2013 Pearson Canada Inc 55) People working collaboratively in groups can come up with less innovative ideas for products, services, and administration than the same number working in isolation from one another Answer: FALSE Diff: Type: TF Page Ref: 47 AACSB: Reflective thinking skills CASE: Content A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage 56) Identifying customers is a responsibility of the function A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing Answer: D Diff: Type: MC Page Ref: 34 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 57) Producing bills of materials is a business process within the function A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing Answer: C Diff: Type: MC Page Ref: 34 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 58) Which of the following is an example of a cross-functional business process? A) identifying customers B) creating a new product C) assembling a product D) paying creditors Answer: B Diff: Type: MC Page Ref: 35 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.1 Business Processes and Information Systems 10 © 2013 Pearson Canada Inc 130) A Web interface used to present integrated personalized business content to users is called a(n) Answer: portal Diff: Type: SA Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 131) applications span the entire firm, integrating information from multiple functions and business processes to enhance the performance of the organization as a whole Answer: Enterprise Diff: Type: SA Page Ref: 42 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 132) systems are used by middle management to combine data and sophisticated analytical models or data analysis tools to support nonroutine decision making Answer: Decision-support Diff: Type: SA Page Ref: 38 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 133) IT includes the strategy and policies for using information technology within an organization Answer: governance Diff: Type: SA Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 134) The function is responsible for attracting, developing, and maintaining the firm's workforce Answer: human resources Diff: Type: SA Page Ref: 34 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 135) A state Web site that allows citizens to pay parking fines online is a form of Answer: e-government Diff: Type: SA Page Ref: 44 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management 30 © 2013 Pearson Canada Inc 136) Supply chain management systems are one type of system because they automate the flow of information across organizational boundaries Answer: interorganizational Diff: Type: SA Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 137) are highly trained technical specialists who write the software instructions for computers Answer: Programmers Diff: Type: SA Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 138) Business refer to the manner in which work is organized, coordinated, and focused to produce a valuable product or service Answer: processes Diff: Type: SA Page Ref: 33 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 139) To a large extent, the of a business firm depends on how well its business processes are designed and coordinated Answer: performance Diff: Type: SA Page Ref: 33 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 140) Information systems automate many steps in business processes that were formerly performed Answer: manually Diff: Type: SA Page Ref: 35 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 141) systems that operate independently of each other are becoming a thing of the past because they cannot easily share information to support cross-functional business processes Answer: Functional Diff: Type: SA Page Ref: 35 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 31 © 2013 Pearson Canada Inc 142) Operational management, middle management, and management each use a specific type of system to support the decisions they must make to run the company Answer: senior Diff: Type: SA Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 143) At the level, tasks, resources, and goals are predefined and highly structured Answer: operational Diff: Type: SA Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 144) Managers need TPS to monitor the status of operations and the firm's relations with the external environment Answer: internal Diff: Type: SA Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 145) management needs systems to help with monitoring, controlling, decision-making, and administrative activities Answer: Middle Diff: Type: SA Page Ref: 37 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 146) are often so central to a business that failure for a few hours can lead to a firm's demise and perhaps that of other firms linked to it Answer: Transaction processing systems; TPS Diff: Type: SA Page Ref: 37 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 147) Sometimes you will hear referred to as business intelligence systems because they focus on helping users make better business decisions Answer: DSS Diff: Type: SA Page Ref: 38 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 32 © 2013 Pearson Canada Inc 148) Digital dashboards are becoming an increasingly popular feature of Answer: ESS Diff: Type: SA Page Ref: 39 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 149) This of data in hundreds of separate systems ("silos of information") degrades organizational efficiency and business performance Answer: fragmentation Diff: Type: SA Page Ref: 45 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 150) systems integrate the key business processes of an entire firm into a single software system that enables information to flow seamlessly throughout the organization Answer: Enterprise Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 151) systems help businesses manage relationships with their suppliers Answer: Supply chain management (SCM) Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 152) Supply chain management systems are one type of because they automate the flow of information across organizational boundaries Answer: interorganizational system Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 153) systems help firms manage their relationships with their customers Answer: Customer relationship management (CRM) Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 33 © 2013 Pearson Canada Inc 154) enable organizations to better manage processes for capturing and applying knowledge and expertise Answer: Knowledge management systems (KMS) Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 155) KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as processes for creating new and integrating it into the organization Answer: knowledge Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 156) applications create deep-seated changes in the way the firm conducts its business, and they are often costly to implement Answer: Enterprise Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 157) Intranets and extranets are really more technology than specific applications Answer: platforms Diff: Type: SA Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 158) An intranet typically centres on a that provides a single point of access to information from several different systems and to documents using a Web interface Answer: portal Diff: Type: SA Page Ref: 44 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 159) Companies can connect their intranets to internal company systems, enabling employees to take actions central to a company's operations Answer: transaction Diff: Type: SA Page Ref: 44 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 34 © 2013 Pearson Canada Inc 160) expedite the flow of information between the firm and its suppliers and customers Answer: Extranets Diff: Type: SA Page Ref: 44 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 161) Teams of employees who work together from many different locations around the world need tools to support collaboration Answer: workgroup Diff: Type: SA Page Ref: 47 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 162) LinkedIn.com provides services to business professionals Answer: networking Diff: Type: SA Page Ref: 48 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 163) The most well-known wiki is Answer: Wikipedia Diff: Type: SA Page Ref: 48 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 164) are ideal tools for storing and sharing company knowledge and insights Answer: Wikis Diff: Type: SA Page Ref: 48 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 165) constitute the principal liaisons between the information systems groups and the rest of the organization Answer: Systems analysts Diff: Type: SA Page Ref: 55 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 166) The is a senior manager who oversees the use of information technology in the firm Answer: CIO Diff: Type: SA Page Ref: 55 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 35 © 2013 Pearson Canada Inc 167) are representatives of departments outside the information systems group for whom applications are developed Answer: End users Diff: Type: SA Page Ref: 55 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 168) includes the strategy and policies for using information technology within an organization Answer: IT governance Diff: Type: SA Page Ref: 55 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 169) Very large firms with divisions and product lines might allow each division to have its own information systems group Answer: multiple Diff: Type: SA Page Ref: 55 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 170) are representatives of departments outside of the information systems group for whom applications are developed Answer: End users Diff: Type: SA Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business 171) The function is responsible for selling the product Answer: sales and marketing Diff: Type: SA Page Ref: 34 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 172) The function is responsible for assembling the product Answer: manufacturing and production Diff: Type: SA Page Ref: 34 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems 36 © 2013 Pearson Canada Inc 173) include online and hard-copy reports for management and employee paycheques Answer: System outputs Diff: Type: SA Page Ref: 36 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 174) Toronto-based Dundas Data Visualization's digital delivers comprehensive and accurate information for decision making Answer: dashboard Diff: Type: SA Page Ref: 40 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 175) A system captures purchase and payment data at a physical location where goods or services are bought and sold using computers, automated cash registers, scanners, or other digital devices Answer: point-of-sale Diff: Type: SA Page Ref: 41 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 176) automate processes that span multiple business functions and organizational levels and may extend outside the organization Answer: Enterprise applications Diff: Type: SA Page Ref: 42 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 177) Canadian Tire operates its inTirenet so that its employees can access information and share problem solutions Answer: intranet portal Diff: Type: SA Page Ref: 44 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management 178) such as Second Life are online 3-D environments populated by "residents" who have built graphical representations of themselves known as "avatars." Answer: Virtual worlds Diff: Type: SA Page Ref: 49 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 37 © 2013 Pearson Canada Inc 179) A allows individuals at two or more locations to communicate simultaneously through two-way video and audio transmissions Answer: videoconference Diff: Type: SA Page Ref: 49 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 180) Microsoft SharePoint is the most widely adopted a system for small and medium-sized firms that use Microsoft server and networking products Answer: collaboration Diff: Type: SA Page Ref: 49 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise 181) Identify and discuss the major types of information systems that serve the main management groups within a business What are the relationships among these systems? Answer: The four major categories of information systems are: Transaction processing systems, such as payroll or order processing, track the flow of the daily routine transactions that are necessary to conduct business Management-information systems (MIS) provide the management control level with reports and access to the organization's current performance and historical records Most MIS reports condense information from TPS and are not highly analytical Decision-support systems (DSS) support management decisions when these decisions are unique, rapidly changing, and not specified easily in advance They have more advanced analytical models and data analysis capabilities than MIS and often draw on information from external as well as internal sources Executive-support systems (ESS) support senior management by providing data of greatest importance to senior management decision makers, often in the form of graphs and charts delivered via portals They have limited analytical capabilities but can draw on sophisticated graphics software and many sources of internal and external information The various types of systems in the organization exchange data with one another TPS are a major source of data for other systems, especially MIS and DSS ESSs primarily receive data from lower-level systems Diff: Type: ES Page Ref: 36-40 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management 38 © 2013 Pearson Canada Inc 182) You have been hired to work with 10 salespeople from different branches of a national business in creating an online training site for new sales employees Identify six collaboration tools that are available to help the team work together Which single tool would be the most helpful for the project, in your opinion, and why? Answer: Collaboration tools include (1) Internet-based collaboration environment; (2) e-mail and instant messaging; (3) cell phones and smart phones; (4) social networking; (5) Wikis; and (6) virtual worlds The most helpful of these might be the Internet-based collaboration environment, because it would enable people to have discussions, calendars, conferences, and share documents Diff: Type: ES Page Ref: 48 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise 183) Your aunt has asked you for your suggestions to make her business, a local sandwich shop, more efficient Describe at least three types of business processes that a sandwich shop have Can any be better coordinated through the use of information systems? Answer: The business processes of a sandwich shop would include: Taking orders, making sandwiches, selling to the customer, ordering supplies, opening the store, closing the store, cleaning the store, paying employees, hiring employees, paying creditors and vendors, creating financial statements, paying taxes, managing cash Many of these processes could be helped by better information systems, specifically those that require recorded data, such as any financial processes (payments, cash management, taxes, salaries) and information gathered from and distributed to employees Diff: Type: ES Page Ref: 33-34 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.1 Business Processes and Information Systems 184) Describe the role of IT governance within the firm Answer: IT governance is the management of how the information systems function is organized and handled within the firm IT governance includes the strategy and policies for using information technology within an organization It specifies the decision rights and framework for accountability to ensure that the use of information technology supports the organization's strategies and objectives For example, IT governance decides how decisions implementing and evaluating new systems are made, whether the IT function should be decentralized or centralized, who has power to create and manage systems, and what kind of ROI is expected from systems Diff: Type: ES Page Ref: 55 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.4 The Information Systems Function in Business 39 © 2013 Pearson Canada Inc 185) Apex Vacuum, a family-owned manufacturer of budget vacuums, has grown exponentially over the last few years However, the company is having difficulty preparing for future growth The only information system used at Apex is an antiquated accounting system The company has one manufacturing plant located in Arkansas; and three warehouses, in Arkansas, Delaware, and California The Apex sales force is national, and Apex purchases about a third of its vacuum parts and materials from a single overseas supplier You have been hired to recommend the information systems Apex should implement in order to maintain their competitive edge However, there is not enough money for a full-blown, cross-functional enterprise application, and you will need to limit the first step to a single functional area or constituency What will you choose, and why? Answer: Student answers will vary For example: a TPS focusing on production and manufacturing to keep production costs low while maintaining quality, and for communicating with other possible vendors The TPS would later be used to feed MIS and other higher level systems Diff: Type: ES Page Ref: 36-38 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.2 How Information Systems Serve Management 186) Describe at least two benefits of using enterprise systems Answer: Enterprise systems integrate the firm's key business processes in sales, production, finance, logistics, and human resources into a single software system so that information can flow throughout the organization, improving coordination, efficiency, and decision making These systems help create a more uniform organization in which everyone uses similar processes and information, and measures their work in terms of organization-wide performance standards The coordination of the firm's key business processes allows the firm to respond more rapidly to customer demands Diff: Type: ES Page Ref: 42 AACSB: Analytic skills CASE: Evaluation A-level Heading: 2.2 How Information Systems Serve Management 187) How can a good CRM system increase profits for a company? Answer: Customer relationship management uses information systems to coordinate all of the business processes surrounding the firm's interactions with its customers The systems consolidate customer information from multiple sources—telephone, e-mail, wireless devices, traditional sales and marketing systems, and the Web—so that the firm can obtain a unified view of a customer This allows the firm to identify its most profitable customers and make special efforts to please them Diff: Type: ES Page Ref: 43 AACSB: Analytic skills CASE: Evaluation A-level Heading: 2.2 How Information Systems Serve Management 40 © 2013 Pearson Canada Inc 188) What is the connection between organizations, information systems, and business processes? Answer: Business processes refer to the manner in which work activities are organized, coordinated, and focused to produce a specific business result They also represent unique ways in which organizations coordinate work, information, and knowledge and the ways in which management chooses to coordinate work Managers need to pay attention to business processes because they determine how well the organization can execute, and thus are a potential source for strategic success or failures Although each of the major business functions has its own set of business processes, many other business processes are cross-functional Information systems can help organizations achieve great efficiencies by automating parts of these processes or by helping organizations rethink and streamline them Firms can become more flexible and efficient by coordinating and integrating their business processes to improve management of resources and customer service Diff: Type: ES Page Ref: 33-35 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.1 Business Processes and Information Systems 189) What are cross-functional business processes? Give an example Answer: Cross-functional processes are those that require input, cooperation, or coordination between the major business functions in an organization For instance, when a salesman takes an order, the major business functions of planning, production, inventory control, shipping, accounting, and customer relations will all be involved before the order is completed Diff: Type: ES Page Ref: 34 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.1 Business Processes and Information Systems 190) The retail home improvement chain you work for, DIY Discount, has noticed that one of its brands of faucets is not selling nearly as well as anticipated What information systems of the business will you use to determine the reason for the poor sales? Discuss what information you will retrieve from which system Which of the information systems will be most important for your analysis? Which of the systems will be least important? Answer: You might query operational level TPS to make sure that the product is actually getting to the stores and being restocked You could query MIS to see average sales levels according to geography, location, and other factors to see if there are any specific factors affecting the sales You might query ESS to see if the same faucets are being sold by competitors and what these prices are You might use DSS to see what factors could increase sales Assuming that the faucets are being properly stocked at the stores, the most important systems to query are the managerial-level systems: MIS for summaries of sales records to help pinpoint any other factors; ESS to check competition, and DSS for higher-level analysis to forecast possible solutions Diff: Type: ES Page Ref: 36-38 AACSB: Analytic skills CASE: Evaluation A-level Heading: 2.2 How Information Systems Serve Management 41 © 2013 Pearson Canada Inc 191) A retail sporting goods chain has been expanding rapidly for the last years This growth has exposed some problems in their old stand alone legacy computer systems They are always stocking out of popular items What type of system would you suggest they look at implementing and why? Answer: This sporting goods chain might look at implementing a supply chain management system Supply chain management (SCM) systems help businesses manage relationships with their suppliers These systems help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products and services so that they can make better decisions about how to organize and schedule sourcing, production, and distribution The ultimate objective is to get the right amount of their products from their source to their point of consumption with the least amount of time and with the lowest cost Supply chain management systems are one type of interorganizational system because they automate the flow of information across organizational boundaries Diff: Type: ES Page Ref: 43 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management 192) An Internet-based company that retails concert tickets on the Web has found a niche market selling second-tier band concerts They would like to involve their customer in helping them with their business by creating a viral marketing atmosphere and getting feed back and participation from these customers who are passionate about their music What tools would help them create this type of customer collaboration? Answer: Some of the systems they should be using include: e-mail and instant messaging (IM), social networking, wikis, and perhaps virtual worlds Using a multiple tools and media would give a variety to their customers who would appreciate this interaction about a service which they are passionate about Diff: Type: ES Page Ref: 48-49 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.3 Systems That Span The Enterprise 42 © 2013 Pearson Canada Inc 193) You work for a national consulting firm with offices in every province across Canada The Calgary office has developed a new technique for costing out natural resource extraction This took the Calgary office about three months to develop The Toronto office is also consulting with resource-based companies in Ontario What system would aid the sharing of information that might be useful in various provinces and why? Answer: This firm would be a prime candidate for a KMS Knowledge management systems (KMS) enable organizations to better manage processes for capturing and applying knowledge and expertise These systems collect all relevant knowledge and experience in the firm and make it available wherever and whenever it is needed to improve business processes and management decisions They also link the firm to external sources of knowledge KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as processes for creating new knowledge and integrating it into the organization They include enterprise-wide systems for managing and distributing documents, graphics, and other digital knowledge objects; systems for creating corporate knowledge directories of employees with special areas of expertise; office systems for distributing knowledge and information; and knowledge work systems to facilitate knowledge creation Other knowledge management applications use intelligent techniques that codify knowledge for use by other members of the organization and tools for knowledge discovery that recognize patterns and important relationships in large pools of data Diff: Type: ES Page Ref: 43 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.3 Systems That Span The Enterprise 194) The organization you work for has over 200 employees Cost for IT support of this many people is getting expensive and this service is not part of the core business Describe what Google services are out there that might benefit your firm in this regard? Answer: One of the most widely used "free" online services for collaboration is Google Apps/Google Sites Google Sites allows users to quickly create online, group-editable Web sites Google Sites is one part of the larger Google Apps suite of tools Google Sites users can design and populate Web sites in minutes and, without any advanced technical skills, post a variety of files including calendars, text, spreadsheets, and videos for private, group, or public viewing and editing Google Apps works with Google Sites and includes the typical desktop productivity office software tools (word processing, spreadsheets, presentation, contact management, messaging, and mail) A Premier edition charging businesses $50 per year for each user offers 25 gigabytes of mail storage, a 99.9-percent uptime guarantee for e-mail, tools to integrate with the firm's existing infrastructure, and 24/7 phone support Diff: Type: ES Page Ref: 51 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.3 Systems That Span The Enterprise 43 © 2013 Pearson Canada Inc 195) Our firm understands the advantage of improving collaboration among its 200 employees Our firm wants to know how to make the best decision in adopting collaboration technology in order to benefit the most from this technology Present a decision-making matrix to make this purchasing decision Answer: Here's a to-do list to get started If you follow these six steps, you should be led to investing in the correct collaboration software for your firm at a price you can afford, and within your risk tolerance What are the collaboration challenges facing the firm in terms of time and space? Locate your firm in the time/space matrix Your firm can occupy more than one cell in the matrix Different collaboration tools will be needed for each situation Within each cell of the matrix where your firm faces challenges, exactly what kinds of solutions are available? Make a list of vendor products Analyze each of the products in terms of their cost and benefits to your firm Be sure to include the costs of training in your cost estimates and the costs of involving the information systems department if needed Identify the risks to security and vulnerability involved with each of the products Is your firm willing to put proprietary information into the hands of external service providers over the Internet? Is your firm willing to risk its important operations to systems controlled by other firms? What are the financial risks facing your vendors? Will they be here in three to five years? What would be the cost of making a switch to another vendor in the event the vendor firm fails? Seek the help of potential users to identify implementation and training issues Some of these tools are easier to use than others Make your selection of candidate tools, and invite the vendors to make presentations Diff: Type: ES Page Ref: 55 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.3 Systems That Span The Enterprise 44 © 2013 Pearson Canada Inc