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Test Bank For Information Technology for Management: Driving Digital Transformation to Increase Local and Global Performance, Growth and Sustainability 12th Edition By Efraim Turban, Carol Pollard, Gregory Wood

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Test Bank For Information Technology for Management: Driving Digital Transformation to Increase Local and Global Performance, Growth and Sustainability 12th Edition By Efraim Turban, Carol Pollard, Gregory Wood Chapter 1: Digital Transformation Disrupts Companies, Competition, and Careers Locally and Globally Test Bank Multiple Choice 1. In the early stages of a startup like Uber, valuation is based heavily on the company’s ________. a. technology b. present value c. growth potential d. assets Answer: C Difficulty: Medium Section Reference: Opening Case Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 2. ________ is an easy-to-read, often single-page, real-time user interface, showing a graphical presentation of the current status and historical trends of an organization’s key performance indicators to enable instantaneous and informed decisions to be made. a. Predictions b. Dashboards c. Digital models d. Real-time reports Answer: B Difficulty: Easy Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 1 3. A top concern of well-established corporations, global financial institutions, born-on-theWeb retailers, and government agencies is how to design their digital business models in order to do all of the following, except: a. Deliver an incredible customer experience b. Improve profitability c. Implement cloud computing d. Increase market share Answer: C Difficulty: Medium Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Analytic skills 4. In the digital (online) space, there is a strong relationship between the quality of a firm's ________, which in turn increases revenue. a. mobile apps and business transactions b. IoT capabilities and KPIs c. business model and marketing efforts d. customer experience and loyalty Answer: D Difficulty: Hard Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 5. Market conditions and technological innovations that are propelling the explosion of ondemand and shared services include all the following except: a. smartphone-connected consumers b. private data centers c. simple and secure purchasing flows d. location-based services Answer: B Difficulty: Medium Section Reference: Doing Business in the On-Demand and Sharing Economy 2 Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 6. _____ is a company’s core strategy for making a profit. It defines the products and/or services it will sell, its target market, costs associated with doing business, and the company’s ongoing plans for achieving its goals. a. Business model b. Website c. Data analytics d. Technology stack Answer: A Difficulty: Easy Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 7. Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable real-time data ________. a. over short distances b. via radio signals c. using cloud services d. via databases Answer: B Difficulty: Hard Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Reflective thinking skills 8. An estimated ________ % of big data are unstructured. a. 25 to 30 b. 33 to 66 c. 50 to 75 d. 80 to 90 3 Answer: D Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Reflective thinking skills 9. All of the following are examples of the influence of social, mobile, analytics, and cloud technologies except ________. a. Connections and feedback via social networks have changed the balance of influence. b. Customers expect to use location-aware services, apps, alerts, social networks, and the latest digital capabilities at work and outside work. c. Customer loyalty and revenue growth depend on a business’ ability to offer unique customer experiences that wow customers more than competitors can. d. Consumers are less likely to trust tweets from ordinary people than recommendations made by celebrity endorsements. Answer: D Difficulty: Hard Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Reflective thinking skills 10. Which of the following guide the process of planning, acquiring, building, modifying, and interfacing with deployed IT resources in a single department within an organization? a. Legacy systems b. IT architectures c. Data analytics d. Technology stack Answer: B Difficulty: Hard Section Reference: Introduction Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 4 11. Which if the following is not an example of how the Internet of Things is being used by businesses? a. A network of ground sensors that allow agricultural operations to adjust the amount of fertilizer and water applied to specific field locations. b. Sensors in shoppers’ club cards that make it possible for retailers to offer discounts or promotions to consumers at the point of sale. c. Systems can detect imminent collisions and take evasive action, such as automatic braking systems d. Sensors on packages of cereal, pasta, soup or other food products made for children that allow companies to determine young consumer’s satisfaction with the nutritional value of the product. Answer: D Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Reflective thinking skills 12. Which of these is comprised of the activities that convert inputs into outputs by doing work? a. Strategic activities b. Business processes c. Planning activities d. Competitive advantages Answer: B Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 13. The goal of _________ is to eliminate unnecessary non–value added processes, then to simplify and automate the remaining processes to reduce cycle time, labor, and costs. a. Strategic planning b. Business process reengineering c. Real-time information systems d. Business Intelligence 5 Answer: B Difficulty: Easy Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 14. All functions and departments in the enterprise have tasks that they need to complete to produce outputs or ________ in order to meet their ________. a. deliverables; objectives b. business processes; budgets c. milestones; deliverables d. processes; business model Answer: A Difficulty: Medium Section Reference: Business Process Improvement and Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 15. What are the basic components of business processes? a. Inputs and outputs b. Data, knowledge, and activities c. People, technology, and outputs d. Inputs, activities, and deliverables Answer: D Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 16. Routine formal processes are referred to as ________. a. cross-functional processes b. standard operating procedures c. business tasks d. standardized transactions Answer: B 6 Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 17. Applying IT to a manual or outdated process will _________: a. maximize cycle time b. not optimize the process c. eliminate wasted steps d. improve the outputs Answer: B Difficulty: Hard Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 18. Which of the following is not a goal of business process reengineering? a. Eliminate unnecessary or non-value-added processes b. Simplify and automate remaining processes c. Reduce cycle time, labor, and costs d. Increase innovation Answer: D Difficulty: Medium Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 19. BPR is part of the larger discipline of ________, which consists of methods, tools, and technology to support and continuously improve business processes. a. business process management b. cycle time reduction c. business model optimization d. standard operating procedures Answer: A Difficulty: Medium 7 Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 20. In order to be successful, BPM requires all of the following except ________. a. buy-in from a broad cross section of the business b. software to map processes that are performed manually c. the right technology selection d. highly effective change management processes Answer: B Difficulty: Hard Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Reflective thinking skills 21. ________ is when an organization differentiates itself by charging less and creating and delivering better quality products or services than its competitors. a. Competitive advantage b. Flexibility c. Critical success factor d. IT consumerization Answer: A Difficulty: Medium Section Reference: Business Process Improvement and Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 22. Which of the following refer to older information systems? a. Legacy systems b. IT architectures c. Data analytics d. Technology stack Answer: A Difficulty: Medium Section Reference: Introduction 8 Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 23. ________ is the economic activity created by technology companies that fulfill consumer demand through the immediate provisioning of products and services. a. Sharing economy b. Legacy system c. On-demand economy d. IT consumerization Answer: C Difficulty: Easy Section Reference: Doing Business in the On-Demand and Sharing Economy Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 24. ________ describes the cumulative impact of multiple interactions over the course of a customer’s contact with an organization. a. IT consumerization b. Agility c. Data analytics d. Customer Experience Answer: D Difficulty: Easy Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 25. Influential industry leaders cite ____________ as their largest business challenge in sustaining a competitive edge. a. keeping up with technology b. employee performance c. economic climate d. new competition 9 Answer: D Difficulty: Hard Section Reference: Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Reflective thinking skills 26. Which of the following is number one IT management issue? a. Security, Cybersecurity and Privacy b. IT Cost Reduction & Controls c. Data Analytics d. IT Agility and Flexibility Answer: A Difficulty: Hard Section Reference: IT’s Role in the On-Demand and Sharing Economies (Table 1.1) Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 27. IT agility, flexibility, and mobility are tightly interrelated and primarily dependent on: a. An organization’s IT infrastructure and architecture b. The IT division’s strategic hiring and training practices c. IT’s integration with production and accounting units d. Strategic alignment between IT budget and company mission statement Answer: A Difficulty: Hard Section Reference: Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 28. Which of the following is NOT a technology mega trend? a. Connectivity b. Big data and analytics c. IT consumerization d. Artificial intelligence 10 Answer: C Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 29. Using a combination of mobile and database technology, Pizza House keeps records of the pizza preferences of all its customers. When Sam orders from Pizza House, he only says “send me the usual” when he calls in his order; and hangs up. Accessing the database, the Pizza House worker knows his address, his usual order, and what credit card to bill. The streamlined ordering and fulfillment efficiency give the Pizza House __________. a. A strategic plan b. A strategic model c. A competitive advantage d. A sustainably business edge Answer: C Difficulty: Hard Section Reference: Business Process Improvement and Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Reflective thinking skills 30. ______ is an Internet-based computing system consisting of many computers and other devices where computer infrastructure, access to applications, software, processing power, and so on are shared. a. IT consumerization b. Big data c. Data analytics d. Cloud computing Answer: D Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 31. _____ is typically text, although it may also contain some dates and numbers. 11 a. Cloud computing b. SMAC Model c. Unstructured data d. Artificial intelligence Answer: C Difficulty: Easy Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 32. IT job growth in the United States is estimated at ________ from 2018 to 2028, according to the U.S. Department of Labor. a. 12% b. 5% c. 33% d. Over 50% Answer: A Difficulty: Easy Section Reference: IT Adds Value to Your Performance and Career Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 33. _______ use tools and techniques to go beyond the numbers of big data and act based on the findings of the big data analyses. a. Project Managers b. Business intelligence analysts c. Chief Technology Officers d. Big data specialists Answer: B Difficulty: Medium Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 12 34. _____________ manage and package big data collections, analyze, and interpret trends and present their findings in easy- to-understand ways to “C”-level executives. a. Project Managers b. Business intelligence analysts c. Chief Technology Officers d. Big data specialists Answer: D Difficulty: Easy Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 35. ______ refers to a set of capabilities enabled when physical things are connected to the internet via sensors. a. Internet of Things b. Cloud computing c. Machine-to-machine technology d. Business models Answer: A Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Knowledge 36. _______ is any computing resource that is provided over the Internet on demand. a. Machine-to-machine technology b. Dashboard c. Cloud services d. BPM Answer: C Difficulty: Medium Section Reference: Lessons Learned 13 Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Knowledge 37. When a business process involves both Finance and Operations units in a company, they are called _____. a. strategic activities b. cross-functional c. planning activities d. competitive advantage process Answer: B Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills True/False 38. Gig economy refers to the rise in contracted work—or “gigs”—that aren’t traditional jobs. Answer: True Difficulty: Easy Section Reference: Opening Case Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 39. Technology stack refers to the older information systems that have been maintained over several decades because they fulfill critical needs. Answer: False Difficulty: Medium Section Reference: IT—Business Objectives Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 14 40. Dashboards provide static summary charts, that when clicked, drill down to the detailed data. Answer: False Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 41. Machine-to-machine (M2M) technologies are an easy-to-read, often single-page, real-time user interface, showing a graphical presentation of the current status and historical trends of an organization’s key performance indicators to enable instantaneous and informed decisions to be made. Answer: False Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 42. Customer experience describes the cumulative impact of multiple interactions over the course of a customer’s contact with an organization. Answer: True Difficulty: Easy Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 43. Dropbox and LinkedIn are examples of the subscription business model. Answer: False Difficulty: Medium Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. 15 AACSB: Reflective thinking skills 44. Digital business models refer to a set of capabilities enabled when physical things are connected to the Internet via sensors. Answer: False Difficulty: Medium Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 45. Cloud computing eliminates the need to invest in hardware up front, so companies can develop and deploy applications faster. Answer: True Difficulty: Hard Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Analytical skills 46. Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable real-time data via satellite or optics. Answer: False Difficulty: Hard Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 47. By adding bar codes to trucks, utility meters, heart monitors, vending machines, and other equipment they sell, companies can track and manage their products remotely. Answer: False Difficulty: Medium Section Reference: Technology Mega Trends 16 Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Reflective thinking skills 48. IT in the on-demand and sharing economies is all about safeguarding data and identifying and meeting customer needs. Answer: True Difficulty: Hard Section Reference: IT’s Role in the On-Demand and Sharing Economies Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 49. Big data are what high-volume, mostly text data are called. Answer: True Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 50. Big data tend to be unstructured and less time-sensitive than traditional (or small) data. Answer: False Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 51. By digitizing information-intensive processes, costs can be cut by up to 90% and turnaround times improved by several orders of magnitude. Answer: True Difficulty: Hard Section Reference: Technology Mega Trends 17 Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 52. Social–mobile–analytics–cloud (SMAC) is the concept that the convergence of four technologies is currently driving business innovation and digital transformation. Answer: True Difficulty: Easy Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Knowledge 53. From an IT perspective, the mobile devices form the core; the cloud forms the edge; and social networks create the connections between the cloud and mobiles. Answer: False Difficulty: Medium Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 54. Influential industry leaders cite “new competition” as their biggest business challenge. Answer: True Difficulty: Hard Section Reference: Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 55. The goal of technology stack is to eliminate unnecessary, non-value-added processes and simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs. Answer: False Difficulty: Medium 18 Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 56. In the simplest terms, a business process consists of activities that convert inputs into outputs by doing work. Answer: True Difficulty: Easy Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Knowledge 57. Designing an effective process can be complex because you need a deep understanding of the inputs and outputs, how things can go wrong, and how to prevent things from going wrong. Answer: True Difficulty: Medium Section Reference: Improving Business Processes Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytical Skills 58. Given that a company’s success depends on the efficiency of its business processes, to achieve significant payoff, improvements in key processes needs to be large and significant. Answer: False Difficulty: Medium Section Reference: Business Process Improvement and Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 59. Informal processes are needed for the situations involving safety, security, or compliance. Answer: False Difficulty: Hard Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 19 60. An effective informal business process documents who will perform the tasks; what materials to use; and where, how, and when the tasks are to be performed. Answer: False Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 61. Maximizing the use of inputs in order to carry out similar activities better than one’s competitors is a critical success factor (CSF). Answer: True Difficulty: Medium Section Reference: Improving Business Processes Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 62. Methods and efforts to simply automate existing processes are referred to a business process reengineering, or BPR. Answer: False Difficulty: Medium Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 63. IT agility, flexibility, and mobility are tightly interrelated and fully dependent on an organization’s IT infrastructure and architecture. Answer: True Difficulty: Medium Section Reference: Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 20 64. One of the many benefits of cloud is that it provides the flexibility to acquire or expand connectivity and computing power as needed for operations, business transactions, and communication. Answer: True Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 65. Mega trends are forces that shape or create the future of business, the economy, and society. Answer: True Difficulty: Easy Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Knowledge 66. In the pandemic and post-pandemic era, innovation through disruptive technology is necessary for any company to thrive in an on-demand and sharing economy where increased competition, expanded global markets and empowered customers define success. Answer: True Difficulty: Easy Section Reference: Lessons Learned Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Analytical Skills 67. The top reasons respondents gave for becoming gig workers in a recent survey was they wanted to be an independent contractor, freelancer, temporary worker or consultant (89%). Answer: False Difficulty: Hard Section Reference: On-Demand ‘Gig’ Workers Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 21 68. Regardless of their work status, most gig workers appear to be highly satisfied with their work environment. Answer: True Difficulty: Medium Section Reference: On-Demand ‘Gig’ Workers Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Analytical Skills 69. According to the U.S. Department of Labor, IT job growth in the United States is estimated at 32% from 2018 to 2028. Answer: False Difficulty: Hard Section Reference: IT Adds Value to Your Performance and Career Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Analytical Skills 70. BI analysts manage and package big data collections, analyze, and interpret trends and present their findings in easy- to-understand ways to “C”-level executives. Answer: False Difficulty: Medium Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Technology 71. According to a recent report by Tech Republic and ZDNet, other IT jobs that will be most in demand in 2020 include computer vision engineer and machine learning engineer. Answer: True Difficulty: Hard Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 22 72. According to the 2019 Global Knowledge survey, other than IT executives, cloud computing professionals had the highest paid positions, globally. Answer: True Difficulty: Medium Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 73. Workers with specialized technical knowledge and strong communications and business skills, as well as those with an MBA with a concentration in an IT area, will have the best prospects. Answer: True Difficulty: Easy Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Reflective thinking skills Short Answer 74. There is a strong relationship between the quality of a firm's customer experience and customer _________. Answer: loyalty Difficulty: Medium Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Analytic skills 75. _____________ is the process of examining data sets to draw conclusions about the information they contain, usually with the aid of specialized information systems. Answer: Data analytics Difficulty: Medium Section Reference: IT’s Role in the On-Demand and Sharing Economies Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. 23 AACSB: Technology 76. Zipcar and AirBnb are examples of ________ business model. Answer: Access-over-Ownership Difficulty: Medium Section Reference: Disruptive Digital Business Models Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 77. ________ refers to a set of capabilities enabled when physical things are connected to the Internet via sensors. Answer: Internet of Things (IoT) Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 78. Machine-to-machine technology uses ________ embedded in products to share reliable realtime data via radio signals. Answer: sensors Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 79. ________ is a process that is used when traditional data mining and handling techniques cannot uncover the insights and meaning of the underlying data that are usually unstructured (text), time sensitive, or extremely large. Answer: Big data Difficulty: Medium Section Reference: Technology Mega Trends 24 Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Knowledge 80. ________ is the process of transforming any kind of activity or information into a digital format that can be collected, stored, searched, and analyzed electronically and efficiently. Answer: Digitization Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 81. ________ are tangible or intangible goods or services produced in a project and intended to be delivered to a customer. Answer: Deliverables Difficulty: Medium Section Reference: Business Process Improvement and Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Knowledge 82. ________ is the period to complete one cycle of an operation or to complete a function, job, or task from start to finish. Answer: Cycle time Difficulty: Medium Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Technology 83. The three components of a ________ are inputs, activities, and deliverables. Answer: business process Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. 25 AACSB: Analytic skills 84. When human resources and the production units of an organization are involved in a business process, it is an example of _______ business process. Answer: cross-functional Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 85. Routine formal business processes are referred to as ________. Answer: standard operating procedures, or SOPs Difficulty: Medium Section Reference: What Is a Business Process? Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 86. The goal of ________ is to eliminate the unnecessary non-value-added processes, then to simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs. Answer: BPR or business process reengineering Difficulty: Medium Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 87. _______ consists of the methods, tools, and technology to support and continuously improve business processes. Answer: Business process management (BPM) Difficulty: Medium Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills 26 88. ______ is a person knowledgeable about information systems and IT. Answer: Informed user Difficulty: Medium Section Reference: Becoming an Informed IT User Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 89. _____________ manage and package big data collections, analyze, and interpret trends and present their findings in easy- to-understand ways to “C”-level executives. Answer: Big data specialists Difficulty: Easy Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 90. _______ use tools and techniques to go beyond the numbers of big data and act based on the findings of the big data analyses. Answer: Business intelligence analysts Difficulty: Easy Section Reference: Managing and Interpreting Big Data Are High Demand Skills Learning Objective: Discuss what it means to be an “informed user” of IT and the ways in which IT can add value to your career path and job performance. AACSB: Knowledge 91. ________ is the multiple layers of hardware, software, network connectivity, and data analytics capability that comprise a technology platform. Answer: Technology stack Difficulty: Medium Section Reference: IT—Business Objectives Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 92. __________ is the operating system and computer hardware used as a base upon which other applications, processes, or technologies are developed. 27 Answer: Technology platform Difficulty: Medium Section Reference: IT—Business Objectives Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 93. ___________ is when an organization differentiates itself by charging less and creating and delivering better quality products or services than its competitors. Answer: Competitive advantage Difficulty: Medium Section Reference: Business Process Improvement and Competition Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Analytic skills Essay Questions 94. Discuss the market conditions and technological innovations that have contributed to the development of the on-demand business model. Answer: Several factors have contributed to the growth of the on-demand and sharing economy model. Smartphone-connected consumers require quick access to information and services. The newest generation is not likely to pick up a phone and call to make a request, rather, they are looking to tap an app and make their purchase. Simple and secure purchase flows guarantee the reliability of the apps used, assuring consumer confidence in the safety of their credit information. Location-based services guarantee that the information available is personalize to the user, to further save time and personalize the customer experience. Difficulty: Medium Section Reference: Doing Business in the On-Demand and Sharing Economy Learning Objective: Define the differences between the on-demand and sharing economies and the six business objectives IT should focus on to enhance organizational performance, growth, and sustainability. AACSB: Technology 95. Explain the characteristics of big data. Describe two sources of big data collected by enterprises. 28 Answer: Big data are high-volume, high variety, and mostly unstructured or text data. Enterprises collect big data from multiple channels and sources, including:  mobile devices and sensors embedded in products and physical things  social content from texts, tweets, posts, blogs.  clickstream data from the Web and Internet searches.  videos and photos from retail and user-generated content.  financial, medical, research, and customer transactions. Difficulty: Medium Section Reference: Technology Mega Trends Learning Objective: Describe how IT is disrupting the way that companies operate, the IT megatrends that are driving organizational performance, growth, and sustainability and how COVID-19 is accelerating digital transformation. AACSB: Technology 96. What is the goal of business process reengineering (BPR)? Explain why simply applying IT to manual or outdated processes -- instead of reengineering those processes -- will not optimize them. Answer: Methods and efforts to eliminate wasted steps within a process are referred to a business process reengineering (BPR). The goal of BPR is to eliminate the unnecessary non-value-added processes, then to simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs. After unnecessary processes are identified and eliminated, the remaining ones are redesigned (or reengineered) in order to automate or streamline them. Simplifying processes naturally reduces the time needed to complete the process, which also cuts down on errors. Applying IT to a manual or outdated process will not optimize it because improving processes starts with determining whether or not they are still necessary. Difficulty: Medium Section Reference: Don’t Automate, Obliterate! Learning Objective: Explain the role of IT in improving business processes. Understand the concepts of business process reengineering and competitive advantage. AACSB: Reflective thinking skills 29 Chapter 2 Information Systems, IT Infrastructure, and the Cloud Test Bank Multiple Choice 1. New business models, strategies, and performance capabilities frequently result from: a. government subsidies. b. advances in technology. c. corporate greed. d. serendipity. Answer: B Difficulty: Easy Section Reference: Introduction Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Analytic skills 2. An IS processes _____ into meaningful _____ that is transformed into corporate _____ and ultimately creates ______ that fuels corporate strategy. a. data; information; knowledge; wisdom b. information; knowledge; data; wisdom c. data; wisdom; information; knowledge d. wisdom; knowledge; data; information Answer: A Difficulty: Hard Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Analytic skills 3. ________ describe products, customers, events, activities, and transactions that are recorded, classified, and stored. a. Information b. Data c. Strategy 1 d. Knowledge Answer: B Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 4. Which of these is considered an organization’s most important asset, second only to people? a. Data b. Equipment and machinery c. Information d. Financial resource Answer: C Difficulty: Medium Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Analytic skills 5. Which of these is data that have been processed, organized, or put into context so that they have meaning and value to the person receiving them? a. Explicit knowledge b. Strategy c. Tacit knowledge d. Information Answer: D Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 6. Which of the following adds understanding, experience, accumulated learning, and expertise to information, as they apply to a current problem or activity? 2 a. Information b. Data c. Strategy d. Knowledge Answer: D Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 7. ______ is the most basic form of knowledge and is easy to communicate, store, and distribute. a. Explicit knowledge b. Strategy c. Tacit knowledge d. Information Answer: A Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 8. Which of the following is difficult to transfer to others as it is personal, context-specific, and experiential? a. Explicit knowledge b. Strategy c. Tacit knowledge d. Information Answer: C Difficulty: Medium Section Reference: 2.1 IS Concepts and Classifications 3 Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Analytic skills 9. Which of these is a collection of values, ethics, moral codes, and prior experiences that form an evaluated understanding or commonsense judgment? a. Data b. Wisdom c. Information d. Knowledge Answer: B Difficulty: Medium Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Analytic skills 10. The terms “data”, “information”, “knowledge”, and “wisdom” have specific meanings. With regards to a customer satisfaction application used in the automobile industry, which of the following is an example of data? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Records containing numerical ratings from customer surveys completed online after each visit to a dealership. Answer: D Difficulty: Hard Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. 4 AACSB: Reflective Thinking 11. The terms “data”, “information”, “knowledge”, and “wisdom” have specific meanings. With regards to a customer satisfaction application used in the automobile industry, which of the following is an example of information? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Records containing numerical ratings from customer surveys completed online after each visit to a dealership. Answer: C Difficulty: Hard Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Reflective Thinking 12. The terms “data”, “information”, “knowledge”, and “wisdom” have specific meanings. With regards to a customer satisfaction application used in the automobile industry, which of the following is an example of knowledge? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Innovative policies developed by corporate strategists who analyzed the reasons for the sales drop in order to reverse the recent downward trend. Answer: A Difficulty: Hard 5 Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Reflective Thinking 13. The terms “data”, “information”, “knowledge”, and “wisdom” have specific meanings. With regards to a customer satisfaction application used in the automobile industry, which of the following is an example of wisdom? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Innovative policies developed by corporate strategists who analyzed the reasons for the sales drop in order to reverse the recent downward trend. Answer: D Difficulty: Hard Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Reflective Thinking 14. Which of the following is not a component of the Input-Processing-Output-Store (IPOS) model of an Information System? a. Application upgrades – financial, marketing, operations b. Storage – RAM, flash, cloud c. People – users, clients, customers d. Communication – Sending results, providing feedback Answer: A Difficulty: Medium Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. 6 AACSB: Technology 15. The component of an Information System which represents non-tangible code that directs a computer’s processor is ____________. a. Hardware b. Software c. Network d. Data Answer: B Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Analytical Skills 16. The component of an Information System which includes an organization’s intranet is ____________. a. Hardware b. Software c. Network d. Data Answer: C Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 17. The component of an Information System which includes a user manual is ____________. a. Data b. Procedures c. People d. Hardware Answer: B Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications 7 Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 18. Data from sales orders, payroll, accounting, financial, marketing, purchasing, inventory control, and so forth are processed by a combination of hardware and software called ____________ processing systems. a. financial b. enterprise c. transaction d. data Answer: C Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Technology 19. Transactions are typically processed either [A] all together for a defined time window (e.g. end of a day or week) or [B] processed as each transaction occurs. The first method [A] is called ________ processing. a. Batch b. Cluster c. Periodic d. Real-time Answer: A Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Technology 20. Transactions are typically processed either [A] all together for a defined time window (e.g. end of a day or week) or [B] processed as each transaction occurs. The second method [B] is called ________ processing. 8 a. Batch b. Cluster c. Periodic d. Real-time Answer: D Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Technology 21. A general-purpose Information System (IS) designed to provide reports to managers for tracking operations, monitoring and control is ________. a. DSS b. EIS c. MIS d. JIT Answer: C Difficulty: Easy Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Technology 22. What kind of reports are created and distributed according to a pre-set schedule, such as daily, weekly, or monthly? a. Exception reports b. Ad hoc reports c. Periodic reports d. Management reports Answer: C Difficulty: Medium Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 9 23. What kinds of reports are created only when something deviates from the norm? a. Exception reports b. Ad hoc reports c. Periodic reports d. Management reports Answer: A Difficulty: Medium Section Reference: 2.1 IS Concepts and Classifications Learning Objective: Name the six components of an information system, the various types of information systems to the level of support needed, and the difference between data, information, knowledge, and wisdom. AACSB: Knowledge 24. What kind of reports are unplanned reports and generated on request to learn more about a situation, problem, or opportunity? a. Exception reports b. Ad hoc reports c. Periodic reports d. Management report

Content preview

Test Bank


Chapter 1: Digital Transformation Disrupts Companies, Competition, and
Careers Locally and Globally

Multiple Choice

1. In the early stages of a startup like Uber, valuation is based heavily on the company’s
________.

a. technology
b. present value
c. growth potential
d. assets

Answer: C
Difficulty: Medium
Section Reference: Opening Case
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology


2. ________ is an easy-to-read, often single-page, real-time user interface, showing a graphical
presentation of the current status and historical trends of an organization’s key performance
indicators to enable instantaneous and informed decisions to be made.

a. Predictions
b. Dashboards
c. Digital models
d. Real-time reports

Answer: B
Difficulty: Easy
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Technology




1

,3. A top concern of well-established corporations, global financial institutions, born-on-the-
Web retailers, and government agencies is how to design their digital business models in
order to do all of the following, except:

a. Deliver an incredible customer experience
b. Improve profitability
c. Implement cloud computing
d. Increase market share

Answer: C
Difficulty: Medium
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Analytic skills


4. In the digital (online) space, there is a strong relationship between the quality of a firm's
________, which in turn increases revenue.

a. mobile apps and business transactions
b. IoT capabilities and KPIs
c. business model and marketing efforts
d. customer experience and loyalty

Answer: D
Difficulty: Hard
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology


5. Market conditions and technological innovations that are propelling the explosion of on-
demand and shared services include all the following except:
a. smartphone-connected consumers
b. private data centers
c. simple and secure purchasing flows
d. location-based services

Answer: B
Difficulty: Medium
Section Reference: Doing Business in the On-Demand and Sharing Economy



2

,Learning Objective: Define the differences between the on-demand and sharing economies and the
six business objectives IT should focus on to enhance organizational performance, growth, and
sustainability.
AACSB: Technology


6. _____ is a company’s core strategy for making a profit. It defines the products and/or
services it will sell, its target market, costs associated with doing business, and the
company’s ongoing plans for achieving its goals.

a. Business model
b. Website
c. Data analytics
d. Technology stack

Answer: A
Difficulty: Easy
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology


7. Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable
real-time data ________.

a. over short distances
b. via radio signals
c. using cloud services
d. via databases

Answer: B
Difficulty: Hard
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills


8. An estimated ________ % of big data are unstructured.

a. 25 to 30
b. 33 to 66
c. 50 to 75
d. 80 to 90
3

, Answer: D
Difficulty: Medium
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills


9. All of the following are examples of the influence of social, mobile, analytics, and cloud
technologies except ________.

a. Connections and feedback via social networks have changed the balance of
influence.
b. Customers expect to use location-aware services, apps, alerts, social networks,
and the latest digital capabilities at work and outside work.
c. Customer loyalty and revenue growth depend on a business’ ability to offer
unique customer experiences that wow customers more than competitors can.
d. Consumers are less likely to trust tweets from ordinary people than
recommendations made by celebrity endorsements.

Answer: D
Difficulty: Hard
Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills


10. Which of the following guide the process of planning, acquiring, building, modifying, and
interfacing with deployed IT resources in a single department within an organization?

a. Legacy systems
b. IT architectures
c. Data analytics
d. Technology stack

Answer: B
Difficulty: Hard
Section Reference: Introduction
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology

4

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Efraim Turban, Carol Pollard, Gregory Wood Information Technology for Management
Publisher: 2021 ISBN: 9781119702900 Edition: Unknown

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