ITSS 3300 EXAM 1 QUESTIONS AND ANSWERS
What is the purpose of an information system? - Answers- To automate/execute a
process that spans across multiple functional units in a seamless and integrated
fashion.
Information systems are used to make the functions within a business more efficient.
What is an enterprise system? - Answers- Large-scale applications that support
complex business processes, informational flows, data analytics, and reports in a
simplified manner
Benefits of an enterprise system: - Answers- - Integrated
- Data is always up to date
- Data is easy to access and easy to share
- Informational needs can be more effectively met
Downsides of an enterprise system: - Answers- - If the whole system crashes then
everyone is offline
- Initial implementation of the system would be difficult to introduce because it would
require people to change the way they work
Benefits of a functional system approach: - Answers- - Allows a functional department
to specialize in a system that best suits their own needs
Examples of organizational data: - Answers- Plant layout, organizational chart
Examples of master data: - Answers- Customer list, list of products
Transaction data: - Answers- Day-to-day transactions that occur as a result of the
business' operations; generates the most amount of data
Purpose of Porter's Five Forces: - Answers- You're trying to predict the intensity of
competitive rivalry in an industry
Highly competitive industry: - Answers- Has low profits
Low competitive industry: - Answers- Has high profits
What are the four forces that shape the intensity of the competitive rivalry (rivalry is the
fifth force)? - Answers- - Breadth of new entrance
- Bargaining power of buyers
- Breadth of substitutes
- Bargaining power of suppliers
Three core business processes: - Answers- - Procurement
, - Fullfillment
- Production
Threat of new entry: - Answers- - Time and cost of entry
- Specialist knowledge
- Economies of scale
- Cost advantages
- Technology
- Barriers to entry
Competitive rivalry: - Answers- - Number of competitors
- Quality of differences
- Switching costs
- Customer loyalty
- Costs of leaving market
Buyer power: - Answers- - Number of customers
- Size of each order
- Differences between customers
- Price sensitivity
- Ability to substitute
- Cost of changing
Threat of substitution: - Answers- - Substitute performance
- Cost of change
Supplier power: - Answers- - Number of suppliers
- Size of suppliers
- Uniqueness of service
- Your ability to substitute
- Cost of changing
Five-component framework: - Answers- Data, software, hardware, people, and
procedures
What is encryption? - Answers- Coding or scrambling of data so that only specific users
can interpert/use it
Which of the following is not always a component of a computer-based information
system?
a.) Data
b.) Software
c.) Hardware
d.) People
e.) Encryption - Answers- ANSW: E
What is the purpose of an information system? - Answers- To automate/execute a
process that spans across multiple functional units in a seamless and integrated
fashion.
Information systems are used to make the functions within a business more efficient.
What is an enterprise system? - Answers- Large-scale applications that support
complex business processes, informational flows, data analytics, and reports in a
simplified manner
Benefits of an enterprise system: - Answers- - Integrated
- Data is always up to date
- Data is easy to access and easy to share
- Informational needs can be more effectively met
Downsides of an enterprise system: - Answers- - If the whole system crashes then
everyone is offline
- Initial implementation of the system would be difficult to introduce because it would
require people to change the way they work
Benefits of a functional system approach: - Answers- - Allows a functional department
to specialize in a system that best suits their own needs
Examples of organizational data: - Answers- Plant layout, organizational chart
Examples of master data: - Answers- Customer list, list of products
Transaction data: - Answers- Day-to-day transactions that occur as a result of the
business' operations; generates the most amount of data
Purpose of Porter's Five Forces: - Answers- You're trying to predict the intensity of
competitive rivalry in an industry
Highly competitive industry: - Answers- Has low profits
Low competitive industry: - Answers- Has high profits
What are the four forces that shape the intensity of the competitive rivalry (rivalry is the
fifth force)? - Answers- - Breadth of new entrance
- Bargaining power of buyers
- Breadth of substitutes
- Bargaining power of suppliers
Three core business processes: - Answers- - Procurement
, - Fullfillment
- Production
Threat of new entry: - Answers- - Time and cost of entry
- Specialist knowledge
- Economies of scale
- Cost advantages
- Technology
- Barriers to entry
Competitive rivalry: - Answers- - Number of competitors
- Quality of differences
- Switching costs
- Customer loyalty
- Costs of leaving market
Buyer power: - Answers- - Number of customers
- Size of each order
- Differences between customers
- Price sensitivity
- Ability to substitute
- Cost of changing
Threat of substitution: - Answers- - Substitute performance
- Cost of change
Supplier power: - Answers- - Number of suppliers
- Size of suppliers
- Uniqueness of service
- Your ability to substitute
- Cost of changing
Five-component framework: - Answers- Data, software, hardware, people, and
procedures
What is encryption? - Answers- Coding or scrambling of data so that only specific users
can interpert/use it
Which of the following is not always a component of a computer-based information
system?
a.) Data
b.) Software
c.) Hardware
d.) People
e.) Encryption - Answers- ANSW: E
