IST 305 EXAM 1 CH. 1-4 QUESTIONS AND VERIFIED
ANSWERS
CH. 1 INFORMATION SYSTEMS IN BUSINESS TODAY
What are the six strategic business objectives firms invest in IST to achieve? - Answers
- 1. Operational Excellence
2. New Products, Services, and Business models
3. Customer and Supplier Intimacy
4. Improved Decision Making
5. Competitive Advantage
6. Survival
The interdependence between organizations and Information technology - Answers -
Business Firms -> information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - Answers - -Improvement of efficiency to attain higher
profitability
- Information systems, technology an important
tool in achieving greater efficiency and
productivity
- Walmart's Retail Link system links suppliers to
stores for superior replenishment system
New Products, Services, and Business Models - Answers - - Business model: describes
how company
produces, delivers, and sells product or service to
create wealth
- Information systems and technology a major
enabling tool for new products, services,
business models
• Examples: Apple's iPad, Google's Android OS,
and Netflix
Customer and Supplier Intimacy - Answers - - Serving customers well leads to
customers returning,
which raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and
customize environment
- Intimacy with suppliers allows them to provide vital
,inputs, which lowers costs.
• Example: JCPenney's information system which links
sales records to contract manufacturer
Improved Decision Making - Answers - - Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
- Overproduction, underproduction
- Misallocation of resources
- Poor response times
• Poor outcomes raise costs, lose customers
- Example: Verizon's Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, and
so on
Competitive Advantage - Answers - Delivering better performance
- Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - Answers - - Information technologies as necessity of business
- Industry-level changes
• Example: Citibank's introduction of ATMs
- Governmental regulations requiring record keeping
• Examples: Toxic Substances Control Act,
Sarbanes-Oxley Act
• Dodd-Frank Act
Information System - Answers - Set of interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
Information vs Data - Answers - Data are streams of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - Answers - - Input: Captures raw data from
organization or
external environment
- Processing: Converts raw data into meaningful
form
- Output: Transfers processed information to
, people or activities that use it
Levels in a firm - Answers - TOP -Senior Management
MIDDLE - Middle management (Scientists and knowledge workers)
BOTTOM - Operational Management (Production and service workers/Data workers)
How IST is shaped - Answers - Using information systems
effectively requires an
understanding of the
organization, management, and
information technology
shaping the systems.
Organizational dimension of Information Systems - Answers - Hierarchy of authority,
responsibility
• Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production or service workers
Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
- Unique business processes
- Unique business culture
- Organizational politics
Management dimension of information
systems - Answers - - Managers set organizational strategy for
responding to business challenges
- In addition, managers must act creatively:
• Creation of new products and services
• Occasionally re-creating the organization
Technology dimension of information
systems - Answers - -Computer hardware and software
-Data management technology
-Networking and telecommunications technology
-Networks, the Internet, intranets and extranets, World Wide Web
-IT infrastructure: provides platform that system is built on
Dimensions of UPS tracking system - Answers - - Organizational:
• Procedures for tracking packages and managing
ANSWERS
CH. 1 INFORMATION SYSTEMS IN BUSINESS TODAY
What are the six strategic business objectives firms invest in IST to achieve? - Answers
- 1. Operational Excellence
2. New Products, Services, and Business models
3. Customer and Supplier Intimacy
4. Improved Decision Making
5. Competitive Advantage
6. Survival
The interdependence between organizations and Information technology - Answers -
Business Firms -> information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - Answers - -Improvement of efficiency to attain higher
profitability
- Information systems, technology an important
tool in achieving greater efficiency and
productivity
- Walmart's Retail Link system links suppliers to
stores for superior replenishment system
New Products, Services, and Business Models - Answers - - Business model: describes
how company
produces, delivers, and sells product or service to
create wealth
- Information systems and technology a major
enabling tool for new products, services,
business models
• Examples: Apple's iPad, Google's Android OS,
and Netflix
Customer and Supplier Intimacy - Answers - - Serving customers well leads to
customers returning,
which raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and
customize environment
- Intimacy with suppliers allows them to provide vital
,inputs, which lowers costs.
• Example: JCPenney's information system which links
sales records to contract manufacturer
Improved Decision Making - Answers - - Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
- Overproduction, underproduction
- Misallocation of resources
- Poor response times
• Poor outcomes raise costs, lose customers
- Example: Verizon's Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, and
so on
Competitive Advantage - Answers - Delivering better performance
- Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - Answers - - Information technologies as necessity of business
- Industry-level changes
• Example: Citibank's introduction of ATMs
- Governmental regulations requiring record keeping
• Examples: Toxic Substances Control Act,
Sarbanes-Oxley Act
• Dodd-Frank Act
Information System - Answers - Set of interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
Information vs Data - Answers - Data are streams of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - Answers - - Input: Captures raw data from
organization or
external environment
- Processing: Converts raw data into meaningful
form
- Output: Transfers processed information to
, people or activities that use it
Levels in a firm - Answers - TOP -Senior Management
MIDDLE - Middle management (Scientists and knowledge workers)
BOTTOM - Operational Management (Production and service workers/Data workers)
How IST is shaped - Answers - Using information systems
effectively requires an
understanding of the
organization, management, and
information technology
shaping the systems.
Organizational dimension of Information Systems - Answers - Hierarchy of authority,
responsibility
• Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production or service workers
Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
- Unique business processes
- Unique business culture
- Organizational politics
Management dimension of information
systems - Answers - - Managers set organizational strategy for
responding to business challenges
- In addition, managers must act creatively:
• Creation of new products and services
• Occasionally re-creating the organization
Technology dimension of information
systems - Answers - -Computer hardware and software
-Data management technology
-Networking and telecommunications technology
-Networks, the Internet, intranets and extranets, World Wide Web
-IT infrastructure: provides platform that system is built on
Dimensions of UPS tracking system - Answers - - Organizational:
• Procedures for tracking packages and managing
