IST 305 EXAM 1 CH. 1-4 2025 QUESTIONS
AND ANSWERS
Ch. 1 Information Systems in Business Today
What are the six strategic business objectives firms invest in IST to achieve? - ANS 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 - ANS Business
Firms -> information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - ANS -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
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,stores for superior replenishment system
New Products, Services, and Business Models - ANS - 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 - ANS - 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 - ANS - Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
- Overproduction, underproduction
- Misallocation of resources
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,- 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 - ANS Delivering better performance
- Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - ANS - 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 - ANS Set of interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
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, Information vs Data - ANS Data are streams of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - ANS - 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 - ANS TOP -Senior Management
MIDDLE - Middle management (Scientists and knowledge workers)
BOTTOM - Operational Management (Production and service workers/Data workers)
How IST is shaped - ANS Using information systems
effectively requires an
understanding of the
organization, management, and
information technology
shaping the systems.
Organizational dimension of Information Systems - ANS Hierarchy of authority, responsibility
• Senior management
• Middle management
• Operational management
4 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
AND ANSWERS
Ch. 1 Information Systems in Business Today
What are the six strategic business objectives firms invest in IST to achieve? - ANS 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 - ANS Business
Firms -> information systems -Hardware
- Data Management
- Telecommunications
Operational Excellence - ANS -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
1 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
,stores for superior replenishment system
New Products, Services, and Business Models - ANS - 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 - ANS - 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 - ANS - Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
- Overproduction, underproduction
- Misallocation of resources
2 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
,- 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 - ANS Delivering better performance
- Charging less for superior products
- Responding to customers and suppliers in
real time
- Examples: Apple, Walmart, UPS
Survival - ANS - 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 - ANS Set of interrelated components
- Collect, process, store, and distribute
information
- Support decision making, coordination, and
control
3 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
, Information vs Data - ANS Data are streams of raw facts
Information is data shaped into meaningful form
Three activities of information systems
produce information organizations need - ANS - 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 - ANS TOP -Senior Management
MIDDLE - Middle management (Scientists and knowledge workers)
BOTTOM - Operational Management (Production and service workers/Data workers)
How IST is shaped - ANS Using information systems
effectively requires an
understanding of the
organization, management, and
information technology
shaping the systems.
Organizational dimension of Information Systems - ANS Hierarchy of authority, responsibility
• Senior management
• Middle management
• Operational management
4 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
