IST 305 Exam 1 Ch. 1-4 ACTUAL
QUESTIONS AND CORRECT ANSWERS
- Ch. 1 Information Systems in Business Today - CORRECT
ANSWERS
What are the six strategic business objectives firms invest in IST to
achieve? - CORRECT ANSWERS 1. Operational Excellence
2. New Products, Services, and Business models
3. Customer and Supplier Intimacy
4. Improved Decision Making
5. Competitive Advantage
6. Survival
The interdependence between organizations and Information
technology - CORRECT ANSWERS Business Firms ->
information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - CORRECT ANSWERS -
Improvement of efficiency to attain higher
profitability
- Information systems, technology an important
tool in achieving greater efficiency and
productivity
,- Walmart's Retail Link system links suppliers to
stores for superior replenishment system
New Products, Services, and Business Models - CORRECT
ANSWERS - Business model: describes how company
produces, delivers, and sells product or service to
create wealth
- Information systems and technology a major
enabling tool for new products, services,
business models
• Examples: Apple's iPad, Google's Android OS,
and Netflix
Customer and Supplier Intimacy - CORRECT ANSWERS -
Serving customers well leads to customers returning,
which raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and
customize environment
- Intimacy with suppliers allows them to provide vital
inputs, which lowers costs.
• Example: JCPenney's information system which links
sales records to contract manufacturer
,Improved Decision Making - CORRECT ANSWERS -
Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
- Overproduction, underproduction
- Misallocation of resources
- Poor response times
• Poor outcomes raise costs, lose customers
- Example: Verizon's Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, and
so on
Competitive Advantage - CORRECT ANSWERS Delivering
better performance
- Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - CORRECT ANSWERS - Information technologies
as necessity of business
- Industry-level changes
• Example: Citibank's introduction of ATMs
- Governmental regulations requiring record keeping
, • Examples: Toxic Substances Control Act,
Sarbanes-Oxley Act
• Dodd-Frank Act
Information System - CORRECT ANSWERS Set of
interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
Information vs Data - CORRECT ANSWERS Data are streams
of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - CORRECT ANSWERS
- Input: Captures raw data from organization or
external environment
- Processing: Converts raw data into meaningful
form
- Output: Transfers processed information to
people or activities that use it
Levels in a firm - CORRECT ANSWERS TOP -Senior
Management
QUESTIONS AND CORRECT ANSWERS
- Ch. 1 Information Systems in Business Today - CORRECT
ANSWERS
What are the six strategic business objectives firms invest in IST to
achieve? - CORRECT ANSWERS 1. Operational Excellence
2. New Products, Services, and Business models
3. Customer and Supplier Intimacy
4. Improved Decision Making
5. Competitive Advantage
6. Survival
The interdependence between organizations and Information
technology - CORRECT ANSWERS Business Firms ->
information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - CORRECT ANSWERS -
Improvement of efficiency to attain higher
profitability
- Information systems, technology an important
tool in achieving greater efficiency and
productivity
,- Walmart's Retail Link system links suppliers to
stores for superior replenishment system
New Products, Services, and Business Models - CORRECT
ANSWERS - Business model: describes how company
produces, delivers, and sells product or service to
create wealth
- Information systems and technology a major
enabling tool for new products, services,
business models
• Examples: Apple's iPad, Google's Android OS,
and Netflix
Customer and Supplier Intimacy - CORRECT ANSWERS -
Serving customers well leads to customers returning,
which raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and
customize environment
- Intimacy with suppliers allows them to provide vital
inputs, which lowers costs.
• Example: JCPenney's information system which links
sales records to contract manufacturer
,Improved Decision Making - CORRECT ANSWERS -
Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
- Overproduction, underproduction
- Misallocation of resources
- Poor response times
• Poor outcomes raise costs, lose customers
- Example: Verizon's Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, and
so on
Competitive Advantage - CORRECT ANSWERS Delivering
better performance
- Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - CORRECT ANSWERS - Information technologies
as necessity of business
- Industry-level changes
• Example: Citibank's introduction of ATMs
- Governmental regulations requiring record keeping
, • Examples: Toxic Substances Control Act,
Sarbanes-Oxley Act
• Dodd-Frank Act
Information System - CORRECT ANSWERS Set of
interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
Information vs Data - CORRECT ANSWERS Data are streams
of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - CORRECT ANSWERS
- Input: Captures raw data from organization or
external environment
- Processing: Converts raw data into meaningful
form
- Output: Transfers processed information to
people or activities that use it
Levels in a firm - CORRECT ANSWERS TOP -Senior
Management
