MGMT 3300 Exam 1 ACTUAL Exam
Questions and CORRECT Answers
What are the 6 Major Roles of Information Systems? - CORRECT ANSWER - 1. Managing
Operations
2. Supporting Customer Interactions
3. Making Decisions
4. Collaborating on Teams
5. Gaining Competitive Advantage
6. Improving Individual Productivity
operations management - CORRECT ANSWER - management of systems and processes that
create goods and/or provide services
virtual team - CORRECT ANSWER - group of individuals who work together from different
geographic locations and rely on communication technology to collaborate
What are some tactics to reduce churn? - CORRECT ANSWER - call customers, measure
customer engagement, find what makes your product sticky, consider a longer term contract,
allocate best reps to saving canceling customers
What is churn? - CORRECT ANSWER - a way of expressing recurring customer attrition
absolute vs percentage churn - CORRECT ANSWER - a: helps understand churn's impact on
the business today
p: helps benchmark performance as your company grows
customer vs revenue churn - CORRECT ANSWER - c: indicates customer satisfaction with
product or service
r: indicates the impact on financials
,How do you calculate customer churn rate? - CORRECT ANSWER - # of customers lost in a
period / # of total customers at beginning of period
How do you calculate revenue churn rate? - CORRECT ANSWER - $ of recurring revenue
lost in period / $ of total customers at beginning of period
lifetime value - CORRECT ANSWER - average revenue per user / churn rate
How is customer lifetime value beneficial in relation to gaining new customers? - CORRECT
ANSWER - the higher your CLV, the more your marketing team can spend to acquire new
customers profitably
competitive advantage - CORRECT ANSWER - anything that gives a firm a lead over its
rivals
What should new companies always strive for? - CORRECT ANSWER - monopoly
What are the 3 important aspects of information that determine quality? - CORRECT
ANSWER - timeliness, accuracy, completeness
What is the progression of information when value and meaning increase? - CORRECT
ANSWER - data -> information -> knowledge
data - CORRECT ANSWER - individual facts or pieces of information
information - CORRECT ANSWER - data/facts that are assembled and analyzed to add
meaning and usefulness
knowledge - CORRECT ANSWER - taking action based on information
, What are the 4 Components of an Information System? - CORRECT ANSWER - people,
technology, processes, data
What makes up the people segment of an information system? - CORRECT ANSWER -
leaders, managers and staff, IT team, user-generated content
What makes up the technology segment of an information system? - CORRECT ANSWER -
hardware, software, communications
What is the role of data in information systems? - CORRECT ANSWER - raw ingredient for
every IS, converted into digital format, integrated and shared across systems
What is the role of processes in information systems? - CORRECT ANSWER - set of
activities to achieve a task; business process management
business process management (BPM) - CORRECT ANSWER - field that focuses on
designing, optimizing, and streamlining processes, taking into account the human elements
What are the efficiency IS metrics? - CORRECT ANSWER - throughput, transaction speed,
system availability, information accuracy, web traffic, response time
What are the effectiveness IS metrics? - CORRECT ANSWER - usability, customer
satisfaction, conversion rates, financial data
According to Peter Drucker, what is the difference between efficiency and effectiveness? -
CORRECT ANSWER - Efficiency is doing things right: effectiveness is doing the right things
Chief Information Officer - CORRECT ANSWER - responsible for the information
technology and computer systems that support enterprise goals; concerned with effectiveness
metrics; most senior executive
Questions and CORRECT Answers
What are the 6 Major Roles of Information Systems? - CORRECT ANSWER - 1. Managing
Operations
2. Supporting Customer Interactions
3. Making Decisions
4. Collaborating on Teams
5. Gaining Competitive Advantage
6. Improving Individual Productivity
operations management - CORRECT ANSWER - management of systems and processes that
create goods and/or provide services
virtual team - CORRECT ANSWER - group of individuals who work together from different
geographic locations and rely on communication technology to collaborate
What are some tactics to reduce churn? - CORRECT ANSWER - call customers, measure
customer engagement, find what makes your product sticky, consider a longer term contract,
allocate best reps to saving canceling customers
What is churn? - CORRECT ANSWER - a way of expressing recurring customer attrition
absolute vs percentage churn - CORRECT ANSWER - a: helps understand churn's impact on
the business today
p: helps benchmark performance as your company grows
customer vs revenue churn - CORRECT ANSWER - c: indicates customer satisfaction with
product or service
r: indicates the impact on financials
,How do you calculate customer churn rate? - CORRECT ANSWER - # of customers lost in a
period / # of total customers at beginning of period
How do you calculate revenue churn rate? - CORRECT ANSWER - $ of recurring revenue
lost in period / $ of total customers at beginning of period
lifetime value - CORRECT ANSWER - average revenue per user / churn rate
How is customer lifetime value beneficial in relation to gaining new customers? - CORRECT
ANSWER - the higher your CLV, the more your marketing team can spend to acquire new
customers profitably
competitive advantage - CORRECT ANSWER - anything that gives a firm a lead over its
rivals
What should new companies always strive for? - CORRECT ANSWER - monopoly
What are the 3 important aspects of information that determine quality? - CORRECT
ANSWER - timeliness, accuracy, completeness
What is the progression of information when value and meaning increase? - CORRECT
ANSWER - data -> information -> knowledge
data - CORRECT ANSWER - individual facts or pieces of information
information - CORRECT ANSWER - data/facts that are assembled and analyzed to add
meaning and usefulness
knowledge - CORRECT ANSWER - taking action based on information
, What are the 4 Components of an Information System? - CORRECT ANSWER - people,
technology, processes, data
What makes up the people segment of an information system? - CORRECT ANSWER -
leaders, managers and staff, IT team, user-generated content
What makes up the technology segment of an information system? - CORRECT ANSWER -
hardware, software, communications
What is the role of data in information systems? - CORRECT ANSWER - raw ingredient for
every IS, converted into digital format, integrated and shared across systems
What is the role of processes in information systems? - CORRECT ANSWER - set of
activities to achieve a task; business process management
business process management (BPM) - CORRECT ANSWER - field that focuses on
designing, optimizing, and streamlining processes, taking into account the human elements
What are the efficiency IS metrics? - CORRECT ANSWER - throughput, transaction speed,
system availability, information accuracy, web traffic, response time
What are the effectiveness IS metrics? - CORRECT ANSWER - usability, customer
satisfaction, conversion rates, financial data
According to Peter Drucker, what is the difference between efficiency and effectiveness? -
CORRECT ANSWER - Efficiency is doing things right: effectiveness is doing the right things
Chief Information Officer - CORRECT ANSWER - responsible for the information
technology and computer systems that support enterprise goals; concerned with effectiveness
metrics; most senior executive
