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MGMT Chapter 17: Managing Information

Terms in this set (72)

Acquisition costs
is the cost of obtaining data that you don't have
Association or affinity patterns
when two or more database elements tend to occur together in a significant way
Bar codes
a visual pattern that represents numerical data by varying th thickness and pattern of vertical bars
Communication costs
is the cost of transmitting info. form one place to another
Corporate portal
a hybrid of EIS and intranets that allows managers and employees to use a web browser to gain access to customized company info. and t complete specialized transactions
Data clusters
when three or more database elements occur together (i.e., cluster) in a significant way
Data encryption
the transformation of data into complex scrambled digital codes that can be decrypted only by authorized users who possess unique decryption keys
Data mining
the process of discovering unknown patterns and relationships in large amounts of data
Data warehouse
which stores huge amount of data that have been prepared for data mining analysis by being cleaned of errors
Decision support systems (DSS)
an info. system that helps managers understand specific kinds of problems and potential solutions
Electronic data interchange (EDI)
2 companies convert purchase and order info. to a standardized format to enable direct electronic transmission from one companies computer to the other company's system
Electronic scanners
converts printed text and pictures into digital images
Executive information systems (EIS)
uses internal and external sources of data to provide managers and execs. the info. they need to monitor an analyze organizational performance. the GOAL for EIS is to provide accurate complete and relevant and timely info. to managers
Expert systems
are created by capturing the specialized knowledge and decision rules used by experts and experienced decision makers
Extranets
networks that allow companies to exchange info. and conduct transactions with outsiders by providing them direct , web base accessed to authorized parts of a companys intranet or info. systems
Firewall
a protective hardware or software device that sits between the computers in an internal organizational network and outside network
First-mover advantage
is the strategic advantage that companies earn by being the first to use new information technology to substantially lower costs or to make a product different from that of competitors
Information
useful data that can influence people's choices and behaviors
Intranets
are private company networks that allow employees to easily access share and publish info. using internet software r
Knowledge
the understanding tone gains form info
Moores law
the prediction that about every two years, computer processing power would double and its cost would drop by 50 percent
Optical character recognition
th ability of software to convert digitalized documents into text that can be searched rad and edited by word processing and other kinds of software
Predictive patterns
help identify database elements that are different
Processing costs
is the cost of turning raw data into usable info.
Processing information
transforming raw data into meaningful information
Protecting information
is the process of ensuring that data are reliably and consistently retrievable in a usable format for authorized users but now one else
Storage costs
is the cost of physically and electronically archiving information
Raw data
facts and figures
Retrieval costs
is the cost of accessing already stored and processed information.
Sequence patterns
appear when two or more database elements occur together in a significant pattern in which one of th elements precedes the other
Radio frequency identification tags (rfid)
tags containing minuscule microchips that transmit info. via radio waves and can me used to track the number and location of the object
Supervised data mining
begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set
Two-factor authentication
authentication based on what users know such as a password and what they have in their possession such as a ID
Unsupervised data mining
the process when the user simply tells data mining software to uncover whatever patterns and relationships it can find in a data set. unsupervised data mining is good a identifying ASSOCIATION OR AFFINITY PATTERENS, SEQUENCE PATTERNS, AND PRDICTIVE PATTERNS
Virtual private networks (VPNs)
software that securely encrypts data sent by employees outside the company network decrypts the data when they arrive within the company computer network and does the same when data are sent back to employees outside the network
Virus
a program that without your knowledge attaches itself to other programs on your computer an can trigger anything f
What are the three kinds of information technology used to access and share info?
EIS, intranets and corporate portals
What are the two basic methods of capturing information?
manual and electronic
What is the key to sustaining a competitive advantage?
the key is using info. technology to continuously improve and support the core function of a business
What two critical steps are required to make sure that data can be accessed by authorized users and no one else
authentication- making sure users are who they claim to be
authorization- grating authenticated users approved access
When is information useful?
when its is accurate, complete, relevant, and timely
Web services
use standardized protocols to describe and transfer data from one company in such a way that those can automatically be read by different computers
47, $500, and 1.22 are examples of raw data.
True
Raw data has context, whereas information lacks context.
False
When using information technology to create a first-mover advantage, the first question a company needs to ask is if it is difficult for another company to create or buy the information technology used by the firm.
False
Processing cost is the cost of turning raw data into usable information.
True
Retrieval cost is the cost of transmitting information from one place to another.
False
Electronic scanners convert printed text and pictures into digital images.
True
Data mining is the process of collecting large amounts of raw data from different sources.
False
Unsupervised data mining begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set.
False
Sequence patterns occur when two or more database elements occur together in a significant pattern in which one of the elements precedes the other.
True
Association patterns help identify database elements that are different.
False
A firewall is a program or piece of code that attaches itself to other programs on your computer without your knowledge and can perform unwanted—and possibly destructive—actions.
False
Data encryption transforms data into complex, scrambled digital codes that can be decrypted only by authorized users who possess unique decryption keys.
True
The goal of executive information system is to provide accurate, complete, relevant, and timely information to managers.
True
Intranets use standardized protocols to describe and transfer data from one company in such a way that those data can automatically be read, understood, transcribed, and processed by different computer systems in another company.
False
Most expert systems work by using a collection of "if-then" rules to sort through information and recommend a course of action.
True
Which of the following is a difference between raw data and information?
a. Data are useful even without meaning, whereas information is meaningless on its own.
b. Data are facts that lack context, whereas information is useful data that has context.
c. Data do not contain facts and figures, whereas information contains facts and figures.
d. Data are organized and processed facts, whereas information are facts that need to be processed and organized.
e. Data can influence people's choices and behavior, whereas information cannot.
b. Data are facts that lack context, whereas information is useful data that has context.
According to the resource-based view of information technology, which of the following helps companies build a sustainable competitive advantage?

a. Adopting the information technology that is most popular in the industry
b. Increasing overhead costs of the company
c. Developing an information technology similar to the ones used by competitors
d. Using basic, non-advanced information technology
e. Developing an information technology that is difficult to buy or create for others
e. Developing an information technology that is difficult to buy or create for others
Alba Financial Services has spent several dollars to gather information about customer preferences regarding credit cards. Alba Financial Services is buying this information from another company that collects such information. The dollars that the company spent on getting the information represents a(n) _____ cost.

a. processing
b. storage
c. communication
d. acquisition
e. retrieval
d. acquisition
_____ is the cost of physically or electronically archiving information for later retrieval and use.
a. Acquisition cost
b. Retrieval cost
c. Processing cost
d. Communication cost
e. Storage cost
e. Storage cost
_____ is the cost of accessing already-stored and processed information.
a. Acquisition cost
b. Retrieval cost
c. Processing cost
d. Communication cost
e. Storing cost
b. Retrieval cost
Northeast Communications recently spent $5000 to install high speed internet in all its branches across the country. This was done to enable timely transmission of information among the various branches regarding several of the company's ongoing projects. This cost is an example of a(n) _____ cost.

a. retrieval
b. processing
c. storage
d. acquisition
e. communication
e. communication
_____ software can scan and convert original or digitized documents into American Standard Code for Information Interchange (ASCII) text or adobe PDF documents.

a. Flat file
b. Biometrics
c. Digital date spreadsheet
d. Data mining
e. Optical character recognition
e. Optical character recognition
Which of the following statements is true of radio frequency identification tags?

a. They convert printed texts into digital images.
b. They can determine the number or location of products.
c. They transform data into complex, scrambled digital codes.
d. They represent numerical data by varying the thickness and pattern of vertical bars.
e. They require a line-of-sight scanning.
b. They can determine the number or location of products.
_____ is the process of discovering patterns and relationships in large amounts of data.

a. Data mining
b. Data warehousing
c. Authentication
d. Database management
e. Biometrics
a. Data mining
Which of the following statements is true about supervised data mining?

a. It is particularly good at identifying association or affinity patterns, sequence patterns, and predictive patterns.
b. The data mining algorithm searches for patterns and structure among all the variables.
c. The user tells the data mining software to uncover whatever patterns and relationships it can find in a data set.
d. The user tells the data mining software to look and test for specific patterns and relationships in a data set.
e. It does not use "what if?" statements to identify patterns.
d. The user tells the data mining software to look and test for specific patterns and relationships in a data set.
During a data mining process at MotorBug Inc., an executive identified a pattern indicating that customers who got their car serviced regularly are less likely to miss installment payments than those who didn't get their cars serviced regularly. This is an example of a(n) _____.

a. sequence pattern
b. predictive pattern
c. descriptive pattern
d. cluster pattern
e. association or affinity pattern
b. predictive pattern
_____ are hardware or software devices that sit between the computers in an internal organizational network and outside networks such as the Internet.

a. Firewalls
b. Passwords
c. Data clusters
d. Data warehouses
e. Viruses
a. Firewalls
_____ are private company networks that allow employees to easily access, share, and publish information using Internet software.

a. Web services
b. Wide area networks
c. Virtual private networks
d. Executive information system
e. Intranets
e. Intranets
A(n) _____ is a network that allows companies to exchange information and conduct transactions with outsiders by providing them direct, web-based access to authorized parts of a company's information system.

a. decision support system
b. corporate portal
c. executive information system
d. virtual private network
e. extranet
e. extranet
Which of the following statements is true about decision support systems?

a. They are targeted toward helping managers solve specific kinds of problems.
b. They convert original or digitized documents into American Standard Code for Information Interchange text.
c. They are broad in scope and permit managers to retrieve all kinds of information about a company.
d. These are used most extensively by medical professionals and physicists.
e. These programs replace managerial decision making in most organizations.
a. They are targeted toward helping managers solve specific kinds of problems.
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