An example of a business using information systems to create new products and services is
Wal-Mart's RetailLink system.
the Mandarin Oriental hotel's customer-preference tracking system.
Verizon's Web-based digital dashboard.
Netflix
Definition
Netflix
Term
Which of the following business strategies and activities may lead to a competitive advantage:
creating new products, services, and business models;
charging less for superior products;
responding to customers in real time?
Definition
1, 2 and 3
Term
The dimensions (or "domains") of information systems are management, organizations, and technology. True or False?
Definition
True
Term
The costs for firms operating on a global scale have been drastically reduced by:
self-service technologies
investments in organizational complementary assets
networking and the Internet
the rise of digital content
Definition
networking and the Internet
Term
Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for:
low-cost leadership.
marketing effectiveness.
focusing on market niche.
strengthening supplier intimacy.
Definition
low-cost leadership.
Term
The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as:
transaction costs.
Definition
transaction costs.
Term
Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability illustrates which business objective?
improved flexibility
improved business practices
competitive advantage
survival
Definition
competitive advantage
Term
The four major types of competitive strategy are
Definition
low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy
Term
Operational management is responsible for directing the day-to-day work of the business. In order to make the most effective decisions, operational management would likely need transaction-level information provided by a TPS. True or False?
Definition
True
Term
Which of the following are environmental factors that interact with an organization and its information systems?
customers
suppliers
products
all of the above
Definition
All of the above
Term
Which systems are typically a major source of data for other systems:
decision-support systems
Definition
transaction processing systems
Term
Complex business processes often require input from multiple sources across an organization. Which of the following is an example of a business process that would required input and coordination from multiple business functions:
identifying customers
creating a new product
assembling a product
paying creditors
Definition
creating a new product
Term
A firm that must invest in new information system capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?
customer intimacy
operational excellence
survival
improved reporting
Definition
survival
Term
Wal-Mart's continuous replenishment system allows it to:
Definition
provide an efficient customer response system.
Term
Information systems take in data from a variety of sources, process it in some meaningful way, and return information by which an organization can make responsible decisions. Which of the following would NOT be used as an INPUT for an information system?
digital dashboard showing results of a business process
portable computer for capturing real-time data
list of transactions from order entry system
smartphone camera for resolving barcodes from individual products
Definition
digital dashboard showing results of a business process
Term
The practice of spamming has been growing because:
it is good advertising practice and brings in many new customers.
Definition
it is so inexpensive and can reach so many people.
Term
Apple Computer dominated the online legal music sales industry primarily because of a failure of recording label companies to
invest in technology
adopt a new business model
invest in complementary assets
modernize their information business processes
Definition
adopt a new business model
Term
Studies have consistently shown that firms who invest greater amounts in information technology receive greater value than firms that invest less. True or false?
Definition
False
Term
Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having:
poor relationships with suppliers
poor relationships with customers
inadequate information
a surplus of information
Definition
inadequate information
Term
In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company. True or false?
Definition
True
Term
Which of the following adjusts copyright laws to the Internet age by making it illegal to circumvent technology-based protections of copyrighted materials?
Definition
Digital Millennium Copyright Act
Term
What legal mechanism protects the owners of intellectual property from having their work copied by others?
Definition
copyright law
Term
Re-designing and automating business processes can be seen as a double-edged sword because:
increases in efficiency may be accompanied by job losses.
increases in efficency may be accompanied by poor data quality.
support for middle-management decision making make be offset by poor data quality
reliance on technology results in the loss of hands-on knowledge.
Definition
increases in efficiency may be accompanied by job losses.
Term
Which of the following statements is NOT true about information technology's impacts on business firms?
Definition
It helps firms expand in size.
Term
Which of the following U.S. laws gives patients access to personal medical records and the right to authorize how this information can be used or disclosed?
Definition
HIPAA
Term
The logical view of data presented by a database management system like Oracle or SQL:
shows how data are organized and structured on the storage media
presents an entry screen to the user
allows the creation of supplementary reports
presents data as they would be perceived by end users
Definition
presents data as they would be perceived by end users
Term
Software that manages the resources of the computer is called:
operating system
application software
data management software
network software
Definition
operating system
Term
Which of the following network connection types offers the greatest bandwidth?
DS3
56K Modem
10Mb Ethernet
T1
Definition
DS3
Term
SaaS refers to:
supplying online access over networks to storage devices and storage area network technology
managing combinations of applications, networks, systems, storage, and security as well as providing Web site and systems performance monitoring to subscribers over the Internet
hosting and managing access to software applications delivered over the Internet to clients on a subscription basis
none of the above
Definition
hosting and managing access to software applications delivered over the Internet to clients on a subscription basis
Term
A SAN is a ________ network
Definition
storage area
Term
Which model can be used to analyze the direct and indirect costs to help firms determine the actual cost of specific technology implementations?
Definition
total cost of ownership
Term
An acceptable use policy defines the acceptable level of access to information assets for different users. True or false?
Definition
False
Term
Which of the following would you be most likely to use RFID technology for?
Definition
tracking inventory
Term
A data warehouse is composed of:
Definition
historical and current internal data
Term
Which type of software is created and updated by a worldwide community of programmers and available for free?
Definition
open source
Term
Which of the following is not a characteristic of network packets?
Packets travel independently of each other
Packets are routed through many different paths
Packet switching requires point-to-point circuits
Packets include data for checking for errors in transmission
Definition
Packet switching requires point-to-point circuits
Term
IT infrastructure technology is purely a set of physical devices and software applications that are required to operate the entire enterprise. True or false?
Definition
False
Term
________ refers to all of the methods, policies and organizational procedures that ensure the safety of the organization's assets, the accuracy and reliability of its accounting records, and operational adherence to management standards.
SSID standards
Controls
Definition
Controls
Term
A(n) ___________ system is used to identify and authorize different categorizes of system users and specify which portions of the organization's systems each user can access.
identity management
authentication
firewall
Definition
identity management
Term
In the domain name "http://myspace.blogging.com", what are the root, top-level, second-level, and third-level domains, respectively?
http://, myspace, blogging, com
http://, com, blogging, myspace
".", com, blogging, myspace
".", myspace, blogging, com
Definition
".", com, blogging, myspace
Term
Place the following eras of IT infrastructure evolution in order, from earliest to most recent: (1) Cloud Computing Era (2) Client/Server, (3) Enterprise Era, (4) Personal Computer, and (5) Mainframe and Minicomputer.
Definition
(5) Mainframe and Minicomputer; (4) Personal Computer; (2) Client/Server; (3) Enterprise Era; (1) Cloud Computing Era
Term
The device that acts as a connection point between computers and can filter and forward networked data to a specified destination is called a(n)
hub
switch
server
NIC
Definition
switch
Term
Central mainframe computing has replaced client/server computing in most multi-national companies. True or false?
Definition
False
Term
________ allows a single computing resource, such as a server, to appear to the user as multiple logical resources
Definition
Virtualization
Term
Together, a protocol prefix, a domain name, a directory path, and a document name, are called a(n)
uniform resource locator
IP address
3rd-level domain
root domain
Definition
uniform resource locator
Term
Secure Socket Layer (SSL) is a protocol used to establish a secure connection between two computers. True or false?
Definition
True
Term
Duplicate data in multiple data files is called data ________.
Definition
redundancy
Term
Which of the following refers to the ability of a computer, product, or system to expand to serve a larger number of users without breaking down
modality
scalability
expandability
disintermediation
Definition
scalability
Term
Data mining is a tool for allowing users to
quickly compare transaction data gathered over many years
find hidden relationships in data
obtain online answers to ad hoc questions in a rapid amount of time
summarize massive amounts of data into much smaller, traditional reports
Definition
find hidden relationships in data
Term
The four kinds of structural organizational change enabled by IT, in order from least to most risky, are:
Definition
automation, rationalization, redesign, and paradigm shift.
Term
The oldest, most widespread method for building information systems (i.e., writing software packages) is:
component-based development
prototyping
object-oriented development
the systems development lifecycle (SDLC)
Definition
the systems development lifecycle (SDLC)
Term
After a service goes through Design, Transition & Operations phases, IT monitors and evaluates the service in a phase called
reconsideration
ongoing operations
continuous service improvement
service management
Definition
continuous service improvement
Term
________ development focuses on rapid delivery of working software by breaking a large project into a series of small sub-projects that are completed in short periods of time using iteration and continuous feedback.
Definition
Term
The ITIL framework consists of 5 lifecycle phases including
Definition
design, transition, & operations
Term
When a customer experiences or uses an IT service, that service is in the
operations phase
service pipeline
Service portfolio management process
ITIL library
Definition
operations phase
Term
A new IT service is converted from a plan to a live service in the
Definition
Transition phase
Term
All of the following statements about enterprise applications are true except for:
Once you have purchased and implemented a vendor's enterprise system, it is much less expensive to switch vendors.
Enterprise applications are more successfully implemented when an organization has prepared for organizational change.
The total implementation cost of a large system runs into millions of dollars.
Enterprise applications are based on organization-wide definitions of data.
Definition
Once you have purchased and implemented a vendor's enterprise system, it is much less expensive to switch vendors.
Term
Consumers selling goods and services electronically to other consumers best describes:
C2C e-commerce.
Definition
Term
"ITIL" originally stood for "Information Technology Infrastructure Library" but now serves as a stand-alone term
True or False
Definition
True
Term
The part of the service portfolio that contains live services that are available to users is called the:
Service Catalog
menu of operation
Definition
Service Catalog
Term
The primary objective of IT service management is to
ensure that the IT services are aligned to the business needs
Definition
ensure that the IT services are aligned to the business needs
Term
According to ITIL, a service is a
means of delivering value
combination of hardware & software
only available to other business units within an organization
something a company does for a specific cost
Definition
means of delivering value
Term
Which of the following is not one of the unique features of e-commerce technology?
Definition
transparency
Term
In automation
business processes are simplified.
business processes are reorganized to cut waste and eliminate repetitive, paper-intensive tasks.
standard operating procedures are streamlined to remove bottlenecks.
employees are enabled to perform their tasks more efficiently.
Definition
employees are enabled to perform their tasks more efficiently.
Term
Which of the following events signified the beginning of e-commerce?
Definition
Term
The ITIL framework was originally developed by the British government - true or false?
Definition
True
Term
The documentation that results from the ITIL Service Design lifecycle is called the:
Definition
Term
An upscale organic foods grocery chain is implementing an information system that will enable it to add same-day home delivery of groceries to its customers. This is an example of
rationalization of procedures.
Definition
Term
The most common form of IT-enabled organizational change is automation.
True or False?
Definition
True
Term
Business processes are analyzed, simplified, and reconstructed in
business process redesign.
rationalization of procedures.
automation.
paradigm shifts.
Definition
business process redesign.
Term
One foundational principle of ITIL states that___________ is the most important strategic resource that any organization has to manage.
Definition
Term
A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes
SCM software
ERP systems
ERM software
CRM modules
Definition
ERP systems
Term
Implementing an enterprise application typically requires organizational change as well as adjustments to existing business processes
