IST 305 EXAM 1 CH. 1-4 UPDATED QUESTIONS AND ANSWERS
Ch. 1 Information Systems in Business Today - CORRECT ANSWER✅✅✅
What are the six strategic business objectives firms invest in IST to achieve? - CORRECT
ANSWER✅✅✅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
ANSWER✅✅✅Business Firms -> information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - CORRECT ANSWER✅✅✅-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 ANSWER✅✅✅- 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 ANSWER✅✅✅- 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 ANSWER✅✅✅- 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 ANSWER✅✅✅Delivering better performance
, - Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - CORRECT ANSWER✅✅✅- 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 ANSWER✅✅✅Set of interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
Information vs Data - CORRECT ANSWER✅✅✅Data are streams of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - CORRECT ANSWER✅✅✅- Input: Captures raw data from
organization or
external environment
- Processing: Converts raw data into meaningful
form
- Output: Transfers processed information to
Ch. 1 Information Systems in Business Today - CORRECT ANSWER✅✅✅
What are the six strategic business objectives firms invest in IST to achieve? - CORRECT
ANSWER✅✅✅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
ANSWER✅✅✅Business Firms -> information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - CORRECT ANSWER✅✅✅-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 ANSWER✅✅✅- 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 ANSWER✅✅✅- 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 ANSWER✅✅✅- 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 ANSWER✅✅✅Delivering better performance
, - Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - CORRECT ANSWER✅✅✅- 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 ANSWER✅✅✅Set of interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
Information vs Data - CORRECT ANSWER✅✅✅Data are streams of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - CORRECT ANSWER✅✅✅- Input: Captures raw data from
organization or
external environment
- Processing: Converts raw data into meaningful
form
- Output: Transfers processed information to
