Chapter 21 - UPM EduTrain Interactive Learning · Web viewChapter 20 Information Technology and...

Chapter 20Information Technology and E-Business

True/False Questions

1. A key aspect in the success of Wal-Mart is updating the information technology infrastructure.

Answer: True Level: 2 Page: 742 Type: F

2. By providing managers with more information more quickly than ever before, modern information technology has deteriorated efficiency and effectiveness of the strategic decision-making process.

Answer: False Level: 1 Page: 742 Type: F

3. Data are facts that are raw, unsummarized, and unanalyzed.


4. Data that are converted into meaningful and useful context for the receiver are called information.


5. The chief technology officer (CTO) is responsible for implementing new information technology and for managing organizational databases.


6. The conciseness characteristic of high-quality information is present when all types of information are provided.


7. Operations information systems typically support the strategic decision-making needs of higher-level managers.


Chapter Twenty * Information Technology and E-BusinessTest Bank * Page 554

8. Transaction-processing systems, process control systems, and information-reporting systems are types of operations information systems.


9. Software developed for banking organizations to enable them to process the great volume of checks and debit transactions in today's business world is the transaction processing system (TPS).


10. Process control systems is a type of management information systems.


11. Office automation systems are used to transform manual accounting procedures to electronic media.


12. Systems such as word processors, desktop publishing, and E-mail, which transform manual procedures to electronic media, are known as information reporting systems.


13. A management information system is a computer-based system that provides information and support for effective managerial decision making.


14. An executive information system is a management information system to support the information needs of senior managers dealing with the highest level of strategic decisions.


15. A software that displays documents on more than one users screen and allows all users to see changes or comments as they are made by one person is called groupware.


16. A collaborative work system is a computer-based information system that enables a novice computer user to more easily access complex and powerful computer software.


17. The WWW is a global collection of computer networks linked together for the exchange of


data and information.


18. Most commonly today, e-business refers to electronic linkages over the Internet with customers, partners, suppliers, employees or other key constituents.


19. An extranet is an internal communications system that uses the technology and standards of the Internet but is accessible only to people within the company.


20. One reason extranet are growing in popularity is that they enable users at a variety of locations to participate with whatever computers and operating systems they have.


21. Bricks and clicks refers to blending traditional operations with an Internet initiative.


22. A potential problem with a spin-off company strategy for integrating bricks and clicks is that the new operation does not have the flexibility and autonomy needed to move quickly in the Internet world.


23. Potential disadvantages of a spin-off strategy are the loss of brand recognition, higher start-up costs, and loss of leverage with suppliers.


24. The biggest boom in e-commerce is in C2C transactions.


25. Reliable Tools, Inc. should top $500 million in annual gross sales using E-Bay.


26. An ERP system blurs the line dividing operations information systems from management information systems.



27. When carefully implemented, ERP can cut costs, increase cycle time, and reduce productivity.


28. It is expected that, in a few years, knowledge resources will be the primary way in which businesses will compete.


29. Customer relationship management systems are the use of a huge database that combines all of a company's data and allows users to access the data directly, create reports and obtain answers to what-if questions.


30. The greatest value of intranets for knowledge management is increasing the transfer of tacit knowledge.


31. Organizations change the locus of knowledge by providing information to people who would not otherwise receive it through implementing IT.


32. Information overload is one of the problems associated with advances in technology.


33. One disadvantage of IT is that it beats down the team spirit that is essential for learning, change, and growth.


34. Although information technology enhances collaborations within the organization, it has yet to be successful in enhancing collaborations between the organizations and external constituencies such as customers and suppliers.


35. Peer to peer software allows individual computers to talk directly with other PC’s without an intermediary.



Multiple Choice Questions

1. Wal-Mart managers use information systems, for example __________, to keep close tabs on inventory.

a. IT Tablesb. caluculatorsc. technology planningd. hand held scannerse. strategic IT

Answer: d Level: 2 Page: 742 Type: F

2. ______ consists of hardware, software, telecommunications, database management, and other technologies.

a. Microsoft Office Suitb. Information technologyc. Executive Information managementd. Process controlse. Data

Answer: b Level: 1 Page: 742 Type: F

3. Which of these refers to raw facts and figures that in and of themselves may not be useful?

a. Informationb. Technologyc. Datad. E-commercee. EDI

Answer: c Level: 1 Page: 743 Type: F

4. One of your supervisors gives you a report that analyzes the latest production counts. This supervisor is giving you

a. data.b. timely updates.c. information.d. work that the supervisor should be doing.e. none of the above.


Answer: c Level: 2 Page: 743 Type: A

5. Dana’s supervisor gives her a report with the latest details for her meeting with the executives. Unfortunately, the report has so much details that there is no way for her to pick out the information she needs. This report lacks

a. content.b. quality.c. completeness.d. timeliness.e. detail.

Answer: a Level: 2 Page: 743 Type: A

6. Which of the following characteristics are important for management information?

a. Clarityb. Timelinessc. Completenessd. Accuracye. All of these

Answer: e Level: 1 Page: 744 Type: F

7. ______ is NOT a content dimension characteristic of high-quality information.

a. Accuracyb. Relevancec. Concisenessd. Claritye. All of the above are content dimension characteristics of high-quality information


8. ______ is a form dimension characteristic of high-quality information.

a. Accuracyb. Clarityc. Relevanced. Concisenesse. All of these


9. Which of these is NOT a form dimension characteristic of high-quality information?


a. Clarityb. Detailc. Orderd. Presentatione. Scope


10. A type of information system that supervisors routinely use to help with their record keeping is called a(n)

a. management information system.b. transaction processing system.c. executive information system.d. record keeping system.e. GDSS.


11. Tom wants to design an information system for the operations of Brothers, Inc. What type of system should Tom look into?

a. A decision support systemb. An executive information systemc. A transaction processing systemd. A GDSSe. A GIS

Answer: c Level: 2 Page: 744 Type: A

12. A(n) ______ system is classified as an operations information system.

a. information reporting b. transaction processing c. executive information d. decision support e. geographic information


13. Jeffrey is a new recruit at We-Compute, Inc. He is totally confused about what transaction-processing system (TPS) does. Which of these definitions should you give him about TPS?

a. A system that records and processes data resulting from routine business transactions.


b. A computer system that monitors and controls ongoing physical processes such as temperature.

c. A system that combines modern hardware and software to handle the tasks of publishing and distributing information.

d. A system that organizes information in the form of pre-specified reports.e. An interactive computer-based system that uses decision models and specialized

databases to support organization decision makers.

Answer: a Level: 2 Page: 744 Type: A

14. Which of these is NOT a time dimension characteristic of high quality information?

a. Relevanceb. Timelinessc. Currencyd. Frequencye. Time period

Answer: a Level: 1 Page: 744 Type: F

15. A computer system that monitors and controls ongoing physical processes, such as temperature or pressure changes, is called a(n)

a. transaction processing system.b. executive information system.c. process control system.d. process change system.e. management information system.


16. Susan was just asked to install a process control system at 123 Manufacturing, Inc. Susan should be looking to install which of these?

a. A system that records and processes data resulting from routine business transactions.

b. A computer system that monitors and controls ongoing physical processes such as temperature.

c. A system that combines modern hardware and software to handle the tasks of publishing and distributing information.

d. A system that organizes information in the form of prespecified reports.e. An interactive computer-based system that uses decision models and specialized

databases to support organization decision makers.

Answer: b Level: 2 Page: 745 Type: A


17. Which of these is NOT an operations information system?

a. Transaction-processing systemb. Process control systemc. Office automation systemd. Information-reporting systeme. All of these are operations information systems


18. Which of these is NOT a management information system?

a. Groupwareb. Information-reporting systemc. Executive information systemd. Decision support systeme. Process control system


19. Which of the following systems is classified as a management information system?

a. A transaction processing systemb. A process control systemc. An office automation systemd. An information reporting systeme. All of the above


20. systems typically support the strategic decision-making needs of higher-level managers.

a. Management informationb. Geographic informationc. Expert d. Operations informatione. Process control


21. Charles is a production manager at a local potato chip company. He needs data on the anticipated number of orders and the current inventory. He is using a computer-based information system to help him make production decisions. What type of system is he using?


a. A transaction processing systemb. An executive information systemc. A production information systemd. A management information systeme. None of the above

Answer: d Level: 2 Page: 746 Type: A

22. A(n) ______ is a system that organizes information in the form of pre-specified reports that managers use in day-to-day decision making.

a. office automation systemb. executive information systemc. group decision support systemd. information reporting systeme. transaction processing system


23. A(n) ______ is the most common form of MIS.

a. office automation systemb. executive information systemc. group decision support systemd. information reporting systeme. transaction processing system


24. An interactive computer-based system that uses decision models and specialized databases to support organization decision makers is known as a(n)

a. expert system.b. office automation system.c. decision support system.d. transaction processing system.e. GIS.


25. Systems that combine modern hardware and software such as word processors, desktop publishing, and E-mail that transform manual procedures to electronic media are referred to as

a. transaction processing systems.b. executive information systems.


c. production information systems.d. management information systems.e. none of these.


26. Which of these displays a document on more than one user's screen and allows all the users to see changes or comments as they are made by one person?

a. Intranetb. Groupwarec. Extranetd. Middlewaree. Hardware


27. ______ is an Effort to systematically gather knowledge, make it widely available in the organization, and foster a culture of learning.

a. An ERPb. Knowledge managementc. Data miningd. Empowermente. Data warehousing


28. ______ are management information systems to facilitate strategic decision making at the highest level of management.

a. DSSsb. EISsc. IRSsd. TPSse. PCSs


29. A(n) ______ is also known as a group decision support system.

a. expert systemb. collaborative work systemc. total organizational systemd. geographic information systeme. GIS



30. A computer-based information technology that is helpful for contributing diverse information to team decision making is called a(n)

a. artificial intelligence.b. expert system.c. electronic data interchange.d. collaborative work system.e. none of these.


31. The ______ is a global collection of computer networks linked together for the exchange of data and information.

a. EISb. WWWc. Internetd. TPSse. information-reporting system


32. A(n) ______ is a computer network that uses Internet technology but limits access to all or some of the organization's employees.

a. extranetb. middlewarec. groupwared. intranete. GDSS


33. Business exchanges that occur electronically refers to

a. Internet.b. WWW.c. EDI.d. e-commerce.e. C2B.



34. A network that links the computer systems of buyers and sellers to allow the transmission of structural data primarily for ordering, distribution, and payables and receivables is called a(n)

a. EDI.b. DSS.c. EIS.d. TPS.e. WWW.


35. A(n) ______ is a computer network that uses Internet technology but links authorized users inside the company with certain outsiders such as customers or vendors.

a. GISb. middlewarec. intranetd. groupwaree. extranet


36. Which of these is NOT an e-business strategy for integrating bricks and clicks?

a. Market experienceb. In-house internet divisionc. Cost-efficiencyd. Spin-offe. All of these are e-business strategies for integrating bricks and clicks


37. All of these are advantages of a spin-off strategy for integrating bricks and clicks EXCEPT

a. Direct links to customers.b. Flexibility.c. Customization.d. Productivity.e. Distribution efficiency.

Answer: d Level: 2 Page: 750-751 Type: F

38. The biggest boom in e-commerce is in ______ transactions.

a. C2C


b. C2Bc. B2Bd. B2Ce. C2G


39. A(n) system collects, processes, and provides information about an organization's entire enterprise, including orders, product design, production, purchasing, inventory, distribution, HR, receipt of payments, and forecasting of future demands.

a. GISb. GDSSc. ERPd. EISe. DSS


40. Which of the following is the use of a huge database that combines all of a company's data and allows users to access the data directly, create reports, and obtain answers to what if questions?

a. Data warehousingb. Networkingc. Knowledge managementd. Data mininge. None of the above


41. Software that uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant is called

a. data warehousing.b. networking.c. knowledge management.d. data mining.e. none of the above.


42. Which of these is NOT an implication of information technology, according to your text?

a. Empowered employeesb. Increased employee turnover


c. Information overloadd. Enhanced collaborationse. Improved employee effectiveness


43. Which of these is a problem associated with advances in technology?

a. Information overloadb. Decreased collaborationsc. Poor employee effectivenessd. Authoritarian employeese. Reduced efficiency


44. ______ is/are one problem associated with advances in technology.

a. Organizational efficiencyb. Information overloadc. High level of coordinationd. Flexibilitye. All of these


45. ______ file sharing allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, and Web pages.

a. B2Bb. C2Cc. P2Pd. C2Be. B2C


Scenario Questions

Scenario—B.J. Patel

B.J. Patel is an executive with Technocraft Productions. This morning, B.J. has been attending a top management meeting exploring the potential value of using a new computer system at Technocraft. The executive team has reached a consensus opinion that the new system should be able to increase the effectiveness and the efficiency of operations and services. B.J. has been


assigned to work directly with computer system vendors and to develop the best system for Technocraft.

1. B.J. is negotiating with a computer software firm to develop an interactive CBIS that facilitates group communication and decision making. This software is normally classified as

a. artificial intelligence.b. a collaborative work system.c. an expert system.d. an electronic data exchange.e. none of the above.

Answer: b Type: A

2. If B.J. needs to record and process data resulting form business operations, he should consider a(n)

a. TPS.b. EIS.c. DSS.d. IRS.e. PCS.

Answer: a Type: A

3. As B.J. has reviewed the development of computer technology, he recognizes that, of the following, the most complex hardware/software combination is

a. a Transaction Processing System.b. an Executive Information System.c. an Office Automation System.d. a Production Information System.e. none of the above.

Answer: b Type: A

Short-Answer Questions

1. An organization's consists of the hardware, software, telecommunications, database management, and other technologies it uses to store data and make them available in the form of information for organizational decision making.

Answer: information technology Page: 742


2. _______ are unsummarized and unanalyzed facts and figures. Answer: Data Page: 743

3. Data that have been converted into a meaningful and useful context for the receiver is called .

Answer: information Page: 743

4. A computer-based information system that supports a company's day-to-day operations is known as a(n) _______.

Answer: operations information system Page: 744

5. A type of operations information system that records and processes data resulting from routine business transactions such as sales, purchases, and payroll is called a(n) .

Answer: transaction-processing system Page: 744

6. List three types of operations information systems. Answer: The three types of operations information systems are (1) transaction-processing systems,

(2) process control systems, and (3) office automation systems. Page: 744

7. The three operations information systems are TPS, ______, and ______.

Answer: process control systems; office automations systems

Page: 745

8. A(n) _______ is a computer system that monitors and controls ongoing physical processes, such as temperature or pressure changes.

Answer: process control system Page: 745

9. combine modern hardware and software such as word processors, desktop publishers, E-mail, and teleconferencing to handle the tasks of publishing and distributing information.

Answer: Office automation systems Page: 745


10. List the four types of management information systems.

Answer: (1) Information-reporting systems, (2) decision support systems, (3) executive information systems, and (4) groupware.

Page: 746-747

11. A(n) is a computer-based system that provides information and support for effective managerial decision making.

Answer: management information system (MIS) Page: 746

12. A system that organizes information in the form of pre-specified reports that managers use in day-to-day decision making is called a(n) .

Answer: information reporting system Page: 746

13. are interactive, computer-based information systems that rely on decision models and specialized databases to support decision makers.

Answer: Decision support systems (DSSs) Page: 746

14. are management information systems to facilitate strategic decision making at the highest level of management.

Answer: Executive information systems (EIS) Page: 747

15. An interactive computer-based system that facilitates group communication and decision making is known as a(n) _______.

Answer: groupware Page: 747

16. is software that displays documents on more than one user's screen and allows all users to see changes or comments as they are made by one person.

Answer: Groupware Page: 747

17. The ______ is a global collection of computer networks linked together for the exchange of data and information.

Answer: Internet Page: 748

18. The ______ is a collection of central servers of accessing information on the Internet.

Answer: World Wide Web (WWW) Page: 748


19. Any business that takes place by digital processes over a computer network rather than in physical space refers to ______.

Answer: e-business Page: 748

20. ______ refers to business exchanges that occur electronically.

Answer: E-commerce Page: 748

21. A computer network that uses internet technology but limits access to all or some of the organization's employees is referred to as a(n) .

Answer: intranet Page: 748

22. A computer network that uses internet technology but links authorized users inside the company with certain outsiders such as customers or vendors is called a(n) .

Answer: extranet Page: 750

23. List the two strategies for integrating bricks and clicks.

Answer: The two strategies are (1) market expansion, and (2) increase productivity.

Page: 751

24. An electronic marketplace setup by an intermediary where buyers and sellers meet is called a(n) ______.

Answer: B2B marketplace Page: 752

25. A networked information system that collects, processes, and provides information about an organization's entire enterprise, from identification of customer needs and receipt of orders to distribution of products and receipt of payments is called a(n) .

Answer: enterprise resource planning (ERP) System Page: 753

26. Efforts to systematically gather knowledge, make it widely available in the organization, and foster a culture of learning is called .

Answer: knowledge management Page: 757

27. is the use of a huge database that combines all of a company's data and allows users to access the data directly, create reports, and obtain answers to what-if questions.

Answer: Data warehousing Page: 757


28. Software that uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant is called .

Answer: data mining Page: 757

29. A single point of access for employees to multiple sources of information that provides personalized acces on the corporate intranet is called __________.

Answer: Knowledge management portal Page: 758

30. ______ file sharing allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, control points, and Web pages.

Answer: Peer-to-peer (P2P) Page: 762

Essay Questions 1. Differentiate between data and information. ANSWER: The primary difference between data and information is the level of value. Data has a

lower value because it is raw, unsummarized, and unanalyzed facts. By comparison, information consists of data that are meaningful and can alter the receiver's understanding.

Level: 1 Page: 743

2. Briefly describe the characteristics of high-quality information along the three broad categories.

ANSWER:The characteristics of useful information fall into three broad categories: time, content, and form. Please refer to exhibit 20.1 in the text.

Level: 2 Page: 743-744

3. Distinguish between management information systems and operations information systems.

ANSWER: The essential differences between these two types of information systems are the


functions they perform and the organizational client they serve. A management information system typically supports the strategic decision-making needs of top management. Examples would include executive information systems, decision support systems, and information reporting systems. An operations information system is a computer-based information system that supports a company's day-to-day operations, including office automation systems, transaction processing systems, and process control systems.


4. Differentiate between intranet and extranet.

ANSWER:Intranet is a computer network that uses Internet technology but limits access to all or some of the organization's employees. An extranet also uses Internet technology but links authorized users inside the company with certain outsiders such as customers or vendors.


5. Describe the benefits and implementation of the different strategies for integrating bricks and clicks.

ANSWER:The strategies are: (1) market expansion, and (2) increased productivity. Please refer to Exhibit 20.6 for more details.

Level: 2 Page: 741

6. Briefly explain the management implications of information technology.

ANSWER:Some specific implications include improved employee effectiveness, increased efficiency, empowered employees, information overload, enhanced collaborations, and organizational learning.



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Chapter 21 - UPM EduTrain Interactive Learning · Web viewChapter 20 Information Technology and...

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