Solution and Answer Guide: Stair, Perew, and Vance, Principles of Information Systems, 15e 2025, 9798214000961; Chapter 01: Information Systems: People,
Technology, Processes, and Structure
Solution and Answer Guide
STAIR, PEREW, AND VANCE, PRINCIPLES OF INFORMATION SYSTEMS, 15E 2025, 9798214000961;
CHAPTER 01: INFORMATION SYSTEMS: PEOPLE, TECHNOLOGY , PROCESSES, AND STRUCTURE
TABLE OF CONTENTS
Critical Thinking Exercise............................................................................................1
Self-Assessment.............................................................................................................2
Case Study.....................................................................................................................4
Business-Driven Exercises............................................................................................5
Activity Rubric..............................................................................................................6
CRITICAL THINKING EXERCISE
ZARA SUPPLY CHAIN SYSTEM
Review Questions
1. How do Zara’s information systems impact their value chain?
Solution Guidance: The student should be able to describe the impact to the inbound and
outbound logistics components.
2. How has the Zara supply chain provided the firm with a competitive advantage?
Solution Guidance: The student should be able to identify the business value created by
information systems in each part of the supply chain.
Critical Thinking Questions
1. How can you ensure that sales assistants at each retail location use the information system as
intended? (Hint: Refer to Figure 1-3.)
Solution Guidance: The student should be able to identify the importance of training sales
assistants. The employees must understand their role in using the information system and how to
achieve the needed results from using the information system.
2. What issues might you encounter in using the information systems at Zara? How might these
issues be overcome? Whose responsibility is it to address these issues?
Solution Guidance: The student should be able to identify that poorly constructed procedures
will lead to resistance in using the information system and that well-designed procedures
accompanied by proper training will aid in overcoming that resistance. The student should also be
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
,Solution and Answer Guide: Stair, Perew, and Vance, Principles of Information Systems, 15e 2025, 9798214000961; Chapter 01: Information Systems: People,
Technology, Processes, and Structure
able to identify that the responsibility for addressing these issues lies with both business and
technology leadership.
SELF-ASSESSMENT
1. An information system is a combination of hardware and software components, along with data,
processes, and people, that function _________ to complete a task.
a. collaboratively
b. independently
c. separately
d. adequately
Answer: a
Analysis: The components must work together in an effective manner. The components are
interconnected, not isolated.
2. Leaders of the business functions most affected by a new information system have a key
responsibility to ensure that _______________.
a. only the most current and most advanced technology is employed
b. the people, processes, and human structure components are fully addressed
c. competitors cannot use a similar information system to gain a competitive advantage
d. resources are deployed only against enterprise and interorganizational information systems
Answer: b
Analysis: The section on Leavitt’s Diamond notes that the people, processes, and human
structure components must be fully addressed.
3. _______________ is a model used to introduce new systems into the workplace in a manner that
lowers stress, encourages teamwork, and increases the probability of a successful implementation.
a. Strategic planning
b. Value chain
c. Leavitt’s Diamond
d. Strategic competitive advantage
Answer: c
Analysis: Leavitt’s Diamond describes need for an overall IS approach that considers multiple
components.
4. The _________ view of information systems is that they are so intimately involved in an
organization’s value chain that they are part of the process itself.
a. historical
b. incorrect
c. modern
d. simplistic
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
,Solution and Answer Guide: Stair, Perew, and Vance, Principles of Information Systems, 15e 2025, 9798214000961; Chapter 01: Information Systems: People,
Technology, Processes, and Structure
Answer: c
Analysis: The contemporary and modern view is that information systems are an integral part
of the value chain.
5. A strategic plan must consider which of the following factors?
a. The constant nature of competitors in the marketplace
d. Popular trends in management techniques
c. The steady cost of raw materials and labor
d. Customers’ likes and dislikes
Answer: d
Analysis: The preferences of customers must always be part of the strategic plan.
6. Which of the following are the elements of the Five Component Model?
a. People, Structure, Data, Software, Hardware
b. People, Process, Data, Software, Hardware
c. Infrastructure, Data, People, Processes, Structure
d. Infrastructure, People, Data, Processes, Software
Answer: b
Analysis: People, Process, Data, Software, and Hardware is the correct set of components. The
other answers are incorrect because they include elements from Leavitt’s Diamond.
7. Information systems shift work away from _______ and to _______.
a. technology, people
b. people, processes
c. processes, data
d. people, technology
Answer: d
Analysis: Information systems move work away from people and into technology, as shown in
Figure 1-2.
8. According to the Five Component Model, which of the following is hardest to change?
a. Technology
b. Processes
c. People
d. Logistics
Answer: c
Analysis: See Figure 1-2. Processes can be changed through established methods. The other
answers are not part of the Five Component Model.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Solution and Answer Guide: Stair, Perew, and Vance, Principles of Information Systems, 15e 2025, 9798214000961; Chapter 01: Information Systems: People,
Technology, Processes, and Structure
CASE STUDY
CRITICAL THINKING QUESTIONS
1. How would you describe the CarMax customer vehicle sales process as viewed through the Five-
Component Model? Explain how work is shifted away from people and into technology using the
CarMax tools.
Solution Guidance: The student should be able to identify the five components as they are
described in the case study. They should also be able to show that work is shifted into technology
through the use of mobile devices and artificial intelligence.
2. The student should be able to identify the five components as they are described in the case study.
They should also be able to show that work is shifted into technology through the use of mobile
devices and artificial intelligence.
Solution Guidance: The key here is for students to describe modern expectations for
information systems and the convenience they are intended to bring. Challenges in moving
between the in-person and online modes would discourage at least some customers from
completing transactions with CarMax.
3. Review the list of information systems careers and their descriptions. How do each of these roles
play a part in the delivery of information systems for CarMax?
Solution Guidance: Students should see that all of the roles have a part in the delivery of
information systems. Assist the students in understanding that information systems require many
different specialized skill sets in order to be designed, developed, and deployed.
BUSINESS-DRIVEN EXERCISES
1. You are a member of the supply chain organization of a consumer products manufacturer whose
products are sold primarily through eight large retail chains. You have an idea to implement a
new sales forecasting information system to replace the existing system that relies on historical
sales data and marketing plans. The new system requires that the manufacturer’s eight large retail
customers enter their own weekly sales forecast of what they expect to order over the upcoming
six weeks. The individual retailers’ forecasts will then be aggregated to develop the demand
forecast for each six-week period. The supply chain organization will use this aggregate demand
forecast to manage its inventory and production. Retailers will receive a discount for submitting a
forecast that closely matches their actual orders. What other organizations within the company
must be sold on this idea? How will you deal with the natural reaction of others to resist this
change? How can you sell this idea to your company’s major retail customers? How might you
use Leavitt’s Diamond to help sell others on your idea?
Solution Guidance: The student should be able to identify multiple stakeholders such as
those shown in Figure 1.2. The student should be able to identify that this change will have
impacts (some positive and some negative) on each of those elements of the supply chain.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
Technology, Processes, and Structure
Solution and Answer Guide
STAIR, PEREW, AND VANCE, PRINCIPLES OF INFORMATION SYSTEMS, 15E 2025, 9798214000961;
CHAPTER 01: INFORMATION SYSTEMS: PEOPLE, TECHNOLOGY , PROCESSES, AND STRUCTURE
TABLE OF CONTENTS
Critical Thinking Exercise............................................................................................1
Self-Assessment.............................................................................................................2
Case Study.....................................................................................................................4
Business-Driven Exercises............................................................................................5
Activity Rubric..............................................................................................................6
CRITICAL THINKING EXERCISE
ZARA SUPPLY CHAIN SYSTEM
Review Questions
1. How do Zara’s information systems impact their value chain?
Solution Guidance: The student should be able to describe the impact to the inbound and
outbound logistics components.
2. How has the Zara supply chain provided the firm with a competitive advantage?
Solution Guidance: The student should be able to identify the business value created by
information systems in each part of the supply chain.
Critical Thinking Questions
1. How can you ensure that sales assistants at each retail location use the information system as
intended? (Hint: Refer to Figure 1-3.)
Solution Guidance: The student should be able to identify the importance of training sales
assistants. The employees must understand their role in using the information system and how to
achieve the needed results from using the information system.
2. What issues might you encounter in using the information systems at Zara? How might these
issues be overcome? Whose responsibility is it to address these issues?
Solution Guidance: The student should be able to identify that poorly constructed procedures
will lead to resistance in using the information system and that well-designed procedures
accompanied by proper training will aid in overcoming that resistance. The student should also be
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
,Solution and Answer Guide: Stair, Perew, and Vance, Principles of Information Systems, 15e 2025, 9798214000961; Chapter 01: Information Systems: People,
Technology, Processes, and Structure
able to identify that the responsibility for addressing these issues lies with both business and
technology leadership.
SELF-ASSESSMENT
1. An information system is a combination of hardware and software components, along with data,
processes, and people, that function _________ to complete a task.
a. collaboratively
b. independently
c. separately
d. adequately
Answer: a
Analysis: The components must work together in an effective manner. The components are
interconnected, not isolated.
2. Leaders of the business functions most affected by a new information system have a key
responsibility to ensure that _______________.
a. only the most current and most advanced technology is employed
b. the people, processes, and human structure components are fully addressed
c. competitors cannot use a similar information system to gain a competitive advantage
d. resources are deployed only against enterprise and interorganizational information systems
Answer: b
Analysis: The section on Leavitt’s Diamond notes that the people, processes, and human
structure components must be fully addressed.
3. _______________ is a model used to introduce new systems into the workplace in a manner that
lowers stress, encourages teamwork, and increases the probability of a successful implementation.
a. Strategic planning
b. Value chain
c. Leavitt’s Diamond
d. Strategic competitive advantage
Answer: c
Analysis: Leavitt’s Diamond describes need for an overall IS approach that considers multiple
components.
4. The _________ view of information systems is that they are so intimately involved in an
organization’s value chain that they are part of the process itself.
a. historical
b. incorrect
c. modern
d. simplistic
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
,Solution and Answer Guide: Stair, Perew, and Vance, Principles of Information Systems, 15e 2025, 9798214000961; Chapter 01: Information Systems: People,
Technology, Processes, and Structure
Answer: c
Analysis: The contemporary and modern view is that information systems are an integral part
of the value chain.
5. A strategic plan must consider which of the following factors?
a. The constant nature of competitors in the marketplace
d. Popular trends in management techniques
c. The steady cost of raw materials and labor
d. Customers’ likes and dislikes
Answer: d
Analysis: The preferences of customers must always be part of the strategic plan.
6. Which of the following are the elements of the Five Component Model?
a. People, Structure, Data, Software, Hardware
b. People, Process, Data, Software, Hardware
c. Infrastructure, Data, People, Processes, Structure
d. Infrastructure, People, Data, Processes, Software
Answer: b
Analysis: People, Process, Data, Software, and Hardware is the correct set of components. The
other answers are incorrect because they include elements from Leavitt’s Diamond.
7. Information systems shift work away from _______ and to _______.
a. technology, people
b. people, processes
c. processes, data
d. people, technology
Answer: d
Analysis: Information systems move work away from people and into technology, as shown in
Figure 1-2.
8. According to the Five Component Model, which of the following is hardest to change?
a. Technology
b. Processes
c. People
d. Logistics
Answer: c
Analysis: See Figure 1-2. Processes can be changed through established methods. The other
answers are not part of the Five Component Model.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Solution and Answer Guide: Stair, Perew, and Vance, Principles of Information Systems, 15e 2025, 9798214000961; Chapter 01: Information Systems: People,
Technology, Processes, and Structure
CASE STUDY
CRITICAL THINKING QUESTIONS
1. How would you describe the CarMax customer vehicle sales process as viewed through the Five-
Component Model? Explain how work is shifted away from people and into technology using the
CarMax tools.
Solution Guidance: The student should be able to identify the five components as they are
described in the case study. They should also be able to show that work is shifted into technology
through the use of mobile devices and artificial intelligence.
2. The student should be able to identify the five components as they are described in the case study.
They should also be able to show that work is shifted into technology through the use of mobile
devices and artificial intelligence.
Solution Guidance: The key here is for students to describe modern expectations for
information systems and the convenience they are intended to bring. Challenges in moving
between the in-person and online modes would discourage at least some customers from
completing transactions with CarMax.
3. Review the list of information systems careers and their descriptions. How do each of these roles
play a part in the delivery of information systems for CarMax?
Solution Guidance: Students should see that all of the roles have a part in the delivery of
information systems. Assist the students in understanding that information systems require many
different specialized skill sets in order to be designed, developed, and deployed.
BUSINESS-DRIVEN EXERCISES
1. You are a member of the supply chain organization of a consumer products manufacturer whose
products are sold primarily through eight large retail chains. You have an idea to implement a
new sales forecasting information system to replace the existing system that relies on historical
sales data and marketing plans. The new system requires that the manufacturer’s eight large retail
customers enter their own weekly sales forecast of what they expect to order over the upcoming
six weeks. The individual retailers’ forecasts will then be aggregated to develop the demand
forecast for each six-week period. The supply chain organization will use this aggregate demand
forecast to manage its inventory and production. Retailers will receive a discount for submitting a
forecast that closely matches their actual orders. What other organizations within the company
must be sold on this idea? How will you deal with the natural reaction of others to resist this
change? How can you sell this idea to your company’s major retail customers? How might you
use Leavitt’s Diamond to help sell others on your idea?
Solution Guidance: The student should be able to identify multiple stakeholders such as
those shown in Figure 1.2. The student should be able to identify that this change will have
impacts (some positive and some negative) on each of those elements of the supply chain.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
