Management Information Systems, Cdn. 6E (Laudon Et Al.)

Management Information Systems, Cdn. 6e (Laudon et al.) Chapter 2 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: 1 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: 2 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: 2 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: 2 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: 2 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: 2 Type: TF Page Ref: 35 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems

1 © 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 Type: TF Page Ref: 37 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

2 © 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

3 © 2013 Pearson Canada Inc. 19) SCM systems consolidate and integrate customer information from multiple communication channels. Answer: FALSE Diff: 2 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: 2 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: 2 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: 2 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: 2 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: 2 Type: TF Page Ref: 43 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

4 © 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: 2 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: 2 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: 2 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: 1 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: 2 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: 2 Type: TF Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

5 © 2013 Pearson Canada Inc. 31) Enrolling employees in benefits plans is a business process handled by the finance and accounting function. Answer: FALSE Diff: 2 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: 2 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: 2 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: 2 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: 1 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: 2 Type: TF Page Ref: 38 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

6 © 2013 Pearson Canada Inc. 37) ESSs are designed to serve the middle management of the organization. Answer: FALSE Diff: 2 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: 2 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: 2 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: 2 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: 2 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: 3 Type: TF Page Ref: 42 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

7 © 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: 2 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: 2 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: 2 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: 2 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 do not include online and hard-copy reports for management and employee paycheques. Answer: FALSE Diff: 2 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: 2 Type: TF Page Ref: 40 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

8 © 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: 2 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 do not span multiple business functions and organizational levels and may extend outside the organization. Answer: FALSE Diff: 2 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: 2 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: 2 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: 2 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: 2 Type: TF Page Ref: 47 AACSB: Reflective thinking skills CASE: Content A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage

9 © 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: 2 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: 1 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: 1 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: 2 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. 59) Which type of system would you use to change a production schedule if a key supplier was late in delivering goods? A) ESS B) TPS C) MIS D) DSS Answer: B Diff: 2 Type: MC Page Ref: 36 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

60) To monitor the status of internal operations and the firm's relations with the external environment, managers need ______systems. A) decision-support B) knowledge C) transaction processing D) management information Answer: C Diff: 2 Type: MC Page Ref: 36 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

61) Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time? A) ESS B) TPS C) MIS D) DSS Answer: C Diff: 2 Type: MC Page Ref: 37 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

62) 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 A) knowledge management systems. B) transaction processing systems. C) executive-support systems. D) management information systems. Answer: D Diff: 3 Type: MC Page Ref: 37 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

11 © 2013 Pearson Canada Inc. 63) The term "management information systems" designates a specific category of information systems serving: A) integrated data processing throughout the firm. B) transaction process reporting. C) employees with online access to historical records. D) middle management functions. Answer: D Diff: 1 Type: MC Page Ref: 37 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

64) Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to which type of system? A) MIS B) TPS C) ESS D) DSS Answer: D Diff: 2 Type: MC Page Ref: 38 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

65) John has worked in the marketing department of a computer supplier for five years. He obtains information on marketing decisions from a system that handles only marketing data for the firm. John is using which kind of system? A) MIS B) DSS C) cross-functional D) functional Answer: D Diff: 2 Type: MC Page Ref: 35 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

66) Mary has some decisions to make in regards to pricing her candy products. She is wondering what the effect will be on sales if she raises the price by 10 percent and reduces the amount of grams in the candy bags by 2 percent. Mary should use what kind of information system to help her make this decision? A) MIS B) DSS C) cross-functional D) functional Answer: B Diff: 2 Type: MC Page Ref: 38 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management 12 © 2013 Pearson Canada Inc. 67) Richard has started a new food business. He will have about 300 customers per day and receive supplies from 50 suppliers per month. In order to keep track of all of these various business transactions, he needs a system. What kind of system should Richard install? A) MIS B) DSS C) cross-functional D) TPS Answer: D Diff: 2 Type: MC Page Ref: 36 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

68) Donna works for a national pizza company in Calgary. They have over 100 stores across Canada. Every week they receive all the sales and cost data from all their stores. This data is processed and aggregated on a weekly basis. Then reports are given to Donna so that she can analyze the performance of the business. What kind of system is Donna using? A) MIS B) DSS C) cross-functional D) TPS Answer: A Diff: 2 Type: MC Page Ref: 37 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

69) Helen is the head of a cosmetic distributor. They have over 300 accounts across Canada. Helen is tasked with scanning both the internal and external environment of the business. Helen then helps to determine overall strategies the company will pursue. What type of information system will Helen use to help her with her task? A) MIS B) DSS C) ESS D) TPS Answer: C Diff: 2 Type: MC Page Ref: 39 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

13 © 2013 Pearson Canada Inc. 70) Bill works for a firm that manufactures doors for commercial businesses. He is the accountant for the firm. To do his job he must collect data about raw inventory levels, goods in production, finished goods, and all the costs of the inputs of those processes. Bill would most likely benefit by using what kind of system to perform his job at a high level? A) CRM B) SCM C) ERP D) TPS Answer: C Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

71) Eddy is feeling a lot stress in his work life right now. He is a purchasing manager for a large retail store and the holiday season is fast approaching. He needs to make sure that the store is well stocked so that they have enough inventory from all their suppliers to cover this busy time of year. Eddy would most likely benefit by using what kind of system to perform his job at a high level? A) CRM B) SCM C) ERP D) TPS Answer: B Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

72) Susan is employed by a new car dealership. The dealership knows that it is less expensive to retain current customers than it is to get new customers. Her dealership likes to follow up with current customers every four months for up to two years to make sure that they are satisfied with their purchase. Susan would be well served to use what kind of system in her duties? A) CRM B) SCM C) ERP D) TPS Answer: A Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

14 © 2013 Pearson Canada Inc. 73) Bill works for Nike in Edmonton. Nike gives Bill access to internal company data such as inventory levels, pricing, product availability as well as training on new products. Nike is most likely using which system to help motivate and train their own employees? A) CRM B) SCM C) intranet D) extranet Answer: C Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

74) Glen manufactures shoes for Nike in Hong Kong. His firm receives the plans for the shoes from Nike eight month before Nike needs the shoes. Glen needs a constant flow of information with Nike in Canada. Glen needs to know colour, sizes, and number of models needed. Glen also gives Nike reports through the system as to the status and cost of production of Nike's order. Nike is most likely using which system to keep in contact and manage their shoe production? A) CRM B) SCM C) intranet D) extranet Answer: D Diff: 3 Type: MC Page Ref: 44 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

75) ______are a type of Web site that makes it easy for users to contribute and edit text content and graphics without any knowledge of Web page development or programming techniques. A) Wikis B) Virtual worlds C) Social networking D) E-mail Answer: A Diff: 1 Type: MC Page Ref: 48 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise

15 © 2013 Pearson Canada Inc. 76) ______are computer-based simulated environment intended for its users to inhabit and interact via graphical representations called avatars. A) Wikis B) Virtual worlds C) Social networking D) E-mail Answer: B Diff: 1 Type: MC Page Ref: 49 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise

77) ______are online communities for expanding users' business or social contacts by making connections through their mutual business or personal connections. A) Wikis B) Virtual worlds C) Social networking D) E-mail Answer: C Diff: 1 Type: MC Page Ref: 48 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise

78) ______are the computer-to-computer exchange of messages. A) Wikis B) Virtual worlds C) Social Networking D) E-mail Answer: D Diff: 1 Type: MC Page Ref: 48 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.3 Systems That Span The Enterprise

79) Systems analysts are A) highly trained technical specialists who write computer software instructions. B) specialists who translate business problems and requirements into information requirements and systems C) employees who heads the formal security function for an organization D) senior managers in charge of the information systems function in a firm. Answer: B Diff: 2 Type: MC Page Ref: 55 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

16 © 2013 Pearson Canada Inc. 80) ______systems are especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance. A) Management information B) Transaction processing C) Decision-support D) Knowledge management Answer: C Diff: 2 Type: MC Page Ref: 38 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

81) Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records? A) ESS B) TPS C) MIS D) DSS Answer: D Diff: 2 Type: MC Page Ref: 38 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

82) Decision-support systems are often referred to as business ______systems. A) information B) intelligence C) analysis D) modeling Answer: B Diff: 2 Type: MC Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

83) ESS are specifically designed to serve which level of the organization? A) operational B) end-user C) middle management D) senior management Answer: D Diff: 1 Type: MC Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

17 © 2013 Pearson Canada Inc. 84) Executive support systems are information systems that support the A) long-range planning activities of senior management. B) knowledge and data workers in an organization. C) decision-making and administrative activities of middle managers. D) day-to-day processes of production. Answer: A Diff: 1 Type: MC Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

85) Which systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content? A) transaction processing systems B) executive support systems C) management information systems D) decision-support systems Answer: B Diff: 2 Type: MC Page Ref: 39 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

86) Which type of system would you use to determine what trends in your supplier's industry will affect your firm the most in five years? A) ESS B) TPS C) MIS D) DSS Answer: A Diff: 1 Type: MC Page Ref: 39 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

87) What is the most important function of an enterprise application? A) increasing speed of communicating B) enabling business functions and departments to share information C) enabling a company to work collaboratively with customers and suppliers D) enabling cost-effective e-business processes Answer: B Diff: 3 Type: MC Page Ref: 42 AACSB: Analytic skills CASE: Evaluation A-level Heading: 2.2 How Information Systems Serve Management

18 © 2013 Pearson Canada Inc. 88) ______are designed to support organization-wide process coordination and integration. A) Decision-support systems B) Management information systems C) CRM systems D) Enterprise applications Answer: D Diff: 1 Type: MC Page Ref: 42 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

89) A(n) ______system collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business. A) transaction B) enterprise C) automatic reporting D) management information Answer: B Diff: 2 Type: MC Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

90) You manage the IT department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. Which type of system will most efficiently provide a solution? A) CRM B) enterprise system C) extranet D) intranet Answer: C Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Evaluation A-level Heading: 2.2 How Information Systems Serve Management

91) The four major enterprise applications are A) SCMs, CRMs, DSSs, and KMSs. B) SCMs, CRMs, ESSs, and KMSs. C) enterprise systems, SCMs, DSSs, and CRMs. D) enterprise systems, SCMs, CRMs, and KMSs. Answer: D Diff: 1 Type: MC Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

19 © 2013 Pearson Canada Inc. 92) Enterprise systems are also known as ______systems. A) resource planning B) enterprise resource planning C) enterprise support D) management information Answer: B Diff: 1 Type: MC Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

93) Enabling management to make better decisions regarding organizing and scheduling sourcing, production, and distribution is a central feature of A) SCMs B) TPSs C) KMSs D) ERPs Answer: A Diff: 2 Type: MC Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

94) ______systems integrate supplier, manufacturer, distributor, and customer logistics processes. A) Collaborative distribution B) Supply-chain management C) Reverse logistics D) Enterprise planning Answer: B Diff: 2 Type: MC Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

95) ______uses a set of integrated applications to address all aspects of the customer relationship. A) CRM B) MIS C) CLE D) CLU Answer: A Diff: 1 Type: MC Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

20 © 2013 Pearson Canada Inc. 96) Which types of systems consolidate the relevant knowledge and experience in the firm to make it available to improve business processes and management decision making? A) TPS B) Extranets C) KMS D) CRM Answer: C Diff: 2 Type: MC Page Ref: 43 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

97) An information system for ______would NOT be categorized as a KMS. A) distributing documents B) documenting the expertise of company specialists C) enabling the discovery of new product applications D) discovering new sales channels for a product Answer: D Diff: 1 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.2 How Information Systems Serve Management

98) Which type of information system is an intranet most easily adapted to? A) CRM B) MIS C) TPS D) KMS Answer: D Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.2 How Information Systems Serve Management

99) Which of the following types of system helps expedite the flow of information between the firm and its suppliers and customers? A) intranet B) extranet C) KMS D) TPS Answer: B Diff: 1 Type: MC Page Ref: 44 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

21 © 2013 Pearson Canada Inc. 100) Which of the following occupations would NOT be categorized as an "interaction" job? A) sales representative B) business manager C) engineer D) operations manager Answer: C Diff: 1 Type: MC Page Ref: 48 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.3 Systems That Span The Enterprise

101) Which of the following decisions requires knowledge based on collaboration and interaction? A) How long will it take to manufacture this product? B) Should we collaborate with outside vendors on new products and services? C) In which geographical locations are our products garnering the most sales? D) Which product design is the most efficient for the user in terms of energy use? Answer: B Diff: 2 Type: MC Page Ref: 45 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.3 Systems That Span The Enterprise

102) E-government refers to the application of ______to digitally enable government and public- sector agencies relationships with citizens, businesses, and other arms of government. A) the Internet and networking technologies B) e-commerce C) e-business D) any computerized technology Answer: A Diff: 1 Type: MC Page Ref: 44 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

103) Buying or selling goods over the Internet is called A) e-commerce. B) e-business. C) an intranet. D) an extranet. Answer: A Diff: 1 Type: MC Page Ref: 44 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

22 © 2013 Pearson Canada Inc. 104) The use of digital technology and the Internet to execute the major business processes in the enterprise is called A) e-commerce. B) e-business. C) enterprise applications. D) MIS. Answer: B Diff: 1 Type: MC Page Ref: 44 AACSB: Use of information technology CASE: Content A-level Heading: 2.2 How Information Systems Serve Management

105) The principal liaison between the information systems groups and the rest of the organization is a(n) A) programmer. B) information systems manager. C) systems analyst. D) CTO. Answer: C Diff: 1 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

106) A ______is a senior manager who oversees the use of IT in the firm. A) CEO B) CFO C) CIO D) CTO Answer: C Diff: 1 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

107) The ______helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes. A) CTO B) CSO C) CKO D) CPO Answer: C Diff: 1 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

23 © 2013 Pearson Canada Inc. 108) The CPO is responsible for A) ensuring that the company complies with existing data privacy laws. B) making better use of existing knowledge in organizational and management processes. C) enforcing the firm's information security policy. D) overseeing the use of information technology in the firm. Answer: A Diff: 1 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

109) The advantage of a having a centralized information services department that operates as a separate department similar to other departments is that A) this is more likely to produce more compatible systems and more coherent long-term systems development plans. B) this lowers costs of technology purchases. C) systems are built that directly address that function's business needs. D) systems are built that can function independently and more efficiently. Answer: A Diff: 3 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

110) Which of the following roles falls into the duties of an information systems manager? A) writing software instructions for computers B) acting as liaison between the information systems group and the rest of the organization C) translating business problems into information requirements D) managing data entry staff Answer: D Diff: 3 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

111) Which of the following types of organizing the information systems function would you be most likely to find in a small company with 20 employees? A) as departments within each functional area B) as a separate, centralized department C) represented within each major division of the company D) none of the above Answer: D Diff: 2 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

24 © 2013 Pearson Canada Inc. 112) Which of the following types of organizing the information systems function would you be most likely to find in a very large, multinational corporation? A) as departments within each functional area B) as a separate, centralized department C) represented within each major division of the company D) none of the above Answer: C Diff: 2 Type: MC Page Ref: 55 AACSB: Use of information technology CASE: Content A-level Heading: 2.4 The Information Systems Function in Business

113) You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance will be finding a way to store and disseminate their clients continually updated branding guides, which include multiple image files and text documents, to all of the firm's branches. What system will best serve these needs? A) an intranet with KMS capabilities B) an extranet with KMS capabilities C) a TPS with KMS capabilities D) a CRM Answer: B Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.2 How Information Systems Serve Management

114) You have been hired by a non-profit agency to implement a system to handle their donations. Event fundraisers need to be able to quickly access a donor's information and history. The marketing department needs to be able to create customized mailing lists, in order to send different messages to different types of donors. What system will best meet these needs? A) TPS B) TPS with DSS capabilities C) TPS with MIS capabilities D) TPS with ESS capabilities Answer: C Diff: 3 Type: MC Page Ref: 36-38 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.2 How Information Systems Serve Management

25 © 2013 Pearson Canada Inc. 115) You have been hired by Inspiration Inc. to help improve their profit margin. Inspiration Inc. is a business communications consultancy that services many clients in different industries throughout the United States. The end products of the company are customized recommendations for the best use of a clients existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 100 consultants, all of whom are located in their central headquarters in Chicago. What system do you recommend to improve the company's business processes and increase their profit margin? A) Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed B) CRM, to maintain easily accessible customer records to minimize the time spent looking for client data C) KMS, for minimizing redundant work on similar clients D) marketing system, for improving sales levels Answer: A Diff: 3 Type: MC Page Ref: 43 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.2 How Information Systems Serve Management

116) Fulfilling a customer order involves a complex set of steps that requires the close coordination of the ______functions. A) sales, accounting, and manufacturing B) production, accounting, and manufacturing C) sales, production, and manufacturing D) sales, accounting, and production Answer: A Diff: 3 Type: MC Page Ref: 34 AACSB: Analytic skills CASE: Synthesis A-level Heading: 2.1 Business Processes and Information Systems

117) A ______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. A) Wiki B) TPS C) ESS D) point-of-sale system Answer: D Diff: 3 Type: MC Page Ref: 41 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.2 How Information Systems Serve Management

26 © 2013 Pearson Canada Inc. 118) A ______allows individuals at two or more locations to communicate simultaneously through two-way video and audio transmissions. A) videotape B) wiki C) blog D) videoconference Answer: D Diff: 3 Type: MC Page Ref: 49 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

119) ______is a private and shared calendars service. A) Google Talk B) Google Docs C) Google Gmail D) Google Calendar Answer: D Diff: 3 Type: MC Page Ref: 51 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

120) ______is a free online e-mail service, with mobile access capabilities. A) Google Talk B) Google Docs C) Google Gmail D) Google Calendar Answer: C Diff: 3 Type: MC Page Ref: 51 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

121) ______is an instant messaging and text and voice chat service. A) Google Talk B) Google Docs C) Google Gmail D) Google Calendar Answer: A Diff: 3 Type: MC Page Ref: 51 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

27 © 2013 Pearson Canada Inc. 122) ______is an online word processing, presentation, spreadsheet, and drawing software; online editing and sharing. A) Google Talk B) Google Docs C) Google Gmail D) Google Calendar Answer: B Diff: 3 Type: MC Page Ref: 51 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

123) Microsoft SharePoint is the most widely adopted ______for small and medium-sized firms that use Microsoft server and networking products. A) process system B) collaboration system C) ERP system D) decision system Answer: B Diff: 3 Type: MC Page Ref: 51 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

124) Which service is an enterprise server-based collaboration environment that provides social networking, Twitter-like micro-blogging, wiki workspaces with integrated weblogs, distributed spreadsheets, and a personal home page for every user. A) Socialtext B) Zoho C) BlueTie D) Basecamp Answer: A Diff: 3 Type: MC Page Ref: 52 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

125) Which service performs collecting and collaborating on text, line drawings, images, Web pages, video, RSS feeds, and project management for free or monthly charge for premium service. A) Socialtext B) Zoho C) BlueTie D) Basecamp Answer: B Diff: 3 Type: MC Page Ref: 52 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

28 © 2013 Pearson Canada Inc. 126) Which service performs online collaboration with e-mail, scheduling, to-do lists, contact management, file sharing, and a monthly user fee. A) Socialtext B) Zoho C) BlueTie D) Basecamp Answer: C Diff: 3 Type: MC Page Ref: 52 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

127) Which service allows sharing to-do lists, files, message boards, milestone tracking and is free for a single project, with a monthly fee for 15 projects with 5 gigabytes of storage. A) Socialtext B) Zoho C) BlueTie D) Basecamp Answer: D Diff: 3 Type: MC Page Ref: 52 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

128) ______, an integrated audio and visual environment that allows a person to give the appearance of being present at a location other than his or her true physical location. A) Telecommuting technology B) Advanced technology C) VOIP technology D) Telepresence technology Answer: D Diff: 3 Type: MC Page Ref: 49 AACSB: Reflective thinking skills CASE: Synthesis A-level Heading: 2.3 Systems That Span The Enterprise

129) A(n) ______is a set of logically related activities for accomplishing a specific business result. Answer: business process Diff: 1 Type: SA Page Ref: 33 AACSB: Reflective thinking skills CASE: Content A-level Heading: 2.1 Business Processes and Information Systems

29 © 2013 Pearson Canada Inc. 130) A Web interface used to present integrated personalized business content to users is called a(n) ______. Answer: portal Diff: 2 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: 2 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: 1 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: 3 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: 1 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: 3 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: 2 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: 1 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 2 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: 1 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: 1 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: 1 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: 1 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: 1 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: 1 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: 1 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: 1 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: 1 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: 1 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: 1 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: 1. Transaction processing systems, such as payroll or order processing, track the flow of the daily routine transactions that are necessary to conduct business. 2. 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. 3. 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. 4. 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: 2 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: 2 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: 2 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: 2 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: 2 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: 1 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: 2 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: 2 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: 1 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: 3 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 4 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: 3 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: 3 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: 3 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: 3 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. 1. 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. 2. Within each cell of the matrix where your firm faces challenges, exactly what kinds of solutions are available? Make a list of vendor products. 3. 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. 4. 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? 5. Seek the help of potential users to identify implementation and training issues. Some of these tools are easier to use than others. 6. Make your selection of candidate tools, and invite the vendors to make presentations. Diff: 3 Type: ES Page Ref: 55 AACSB: Analytic skills CASE: Analysis A-level Heading: 2.3 Systems That Span The Enterprise