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Developing a new product, fulfilling an order, and hiring a new employee are examples of business


The dimensions of information systems are management, organizations and information technology.


Six important business objectives of info technology are new products, services, and business models;
customer and supplier intimacy; survival; competitive advantage; operational excellence; and

b.) improved decision making

Studies have consistently shown that firms who invest greater amounts in information technology
receive greater benefits than firms that invest less.

FALSE Generally speaking it's true

The use of information systems because of necessity describes the business objective of

a.) survival

Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time?

c.) 2 and 3 (maybe 1 as well)

7. Order data for baseball tickets and bar code data are examples of

a.) raw input

Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information.


You would use an MIS to help decide whether to introduce a new product line.


Online collaboration tools eliminate the need for global firms to have synchronous collaboration.


Transaction processing systems are most commonly used by the senior management level of an organization.


A transaction processing system is a computerized system that performs and records daily routine transactions necessary to conduct business.


A hotel reservation system is a typical example of a management information system


Management information systems typical support non-routine decision making.

FALSE (Decision support systems)

Enrolling employees in benefits plans is a business process handled by the finance and accounting function


Functional systems that support business processes within a single functional group. Such as human resources, are being phased out in favor of cross-functional systems.


A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors.


The competitive forces model was created for today's digital firm.


Research has shown that only 25% of firms are able to align their info technology with their business goals.


Customers are one of the competitive forces that affect an organization's ability to compete.


A transparent marketplace means that there is high product differentiation.


The effect of the Internet has been to raise bargaining power over suppliers.


Strong linkages to customers and suppliers decrease switching costs.


The value chain model classifies all company activities as either primary or support.


From the point of view of economics: I.T. changes:

The relative costs of capital and costs of information

Information technology results an increase in the number of middle managers and clerical workers as info technology demands additional labor.


As the cost of info tech decreases, it also substitutes for other forms of capital such as buildings and machinery (which remain relatively expensive.


Vertical integration has proven to be effective in controlling transaction costs and are commonly used in today's businesses.


Professionals take on special rights and obligations because of their special claims to knowledge wisdom and respect.


Privacy is the right to be left alone when you want o be, without surveillance or interference from other individuals or organizations.


A cookie is a small file containing information about you and your Web activities that is deposited on your hard disk by a Web Site.


Spyware software that comes hidden in downloaded applications and can track your online movements


Most internet businesses do very little to protect the privacy of their customers.


IT infrastructure technology is purely a set of physical devices and software applications that are required to operate the entire enterprise.


Client server computing is a widely used form of centralized processing.


In green computing, reducing computer power consumption is a top priority


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