End of Chapter Answers Answers to End of Chapter Questions Chapter 1 ......................................................................................................................................... 2 Chapter 2 ......................................................................................................................................... 4 Chapter 3 ......................................................................................................................................... 6 Chapter 4 ......................................................................................................................................... 8 Chapter 5 ....................................................................................................................................... 10 Chapter 6 ....................................................................................................................................... 12 Chapter 7 ....................................................................................................................................... 14 Chapter 8 ....................................................................................................................................... 16 Chapter 9 ....................................................................................................................................... 18 1 End of Chapter Answers Chapter 1 Question Number 1 C 2 D 3 E 4 C 5 Data 6 Information 7 Knowledge 8 True 9 False 10 False 11 B 12 A 13 C 14 B What are Data, Information and Knowledge What are Data, Information and Knowledge What are Data, Information and Knowledge – What is Ethics What are Data, Information and Knowledge What are Data, Information and Knowledge What are Data, Information and Knowledge What are Data, Information and Knowledge What are Data, Information and Knowledge What are Data, Information and Knowledge – Life Long Knowledge Creation What are Data, Information and Knowledge What are Data, Information and Knowledge What are Data, Information and Knowledge What is an Information System? 15 A What is an Information System? D 16 C What is an Information System? E 17 IS For a Telecom Billing Operation Input: Name of customer, Mailing address, number of calls made, Types of calls made( International /Local) Process: A billing system which can take into account business requirements (like free local calls from 9.00pm to 7.00am and weekends) and usage of a customer to produce a bill Output: Customized bills for all customers, based on their usage which can be emailed as well as mailed to their addresses. What is an Information System? M 2 Answer Level 1 Head Reference for Answer What is an Information System? Difficulty M E M E E E E E M M M D D M End of Chapter Answers 18 The two types of knowledge are Explicit knowledge and Tacit knowledge Explicit Knowledge: is readily available to us in the form of books, documents and web Example: Textbook in Accounting Tacit Knowledge: is knowledge gained through experience, practice and insight Example: To parallel park our car What are Data, Information and Knowledge M 19 Knowledge Work: Work that involves the discovery, transformation, analysis, synthesis, and communication of data, information, and knowledge. Knowledge Worker: It is a worker who requires formal learning, the ability to acquire and apply practical and theoretical knowledge and a habit of continuous knowledge. I believe that I will be knowledge worker after I graduate as I am undergoing formal training and my work will involve application of practical as well as theoretical knowledge in the knowledge based industry. What are Data, Information and Knowledge M 20 Input: Names of all employees, name of bank, bank account number, Salary Process: software Output: A automated system to transfer salary from companies account to account of employee This automated system will reduce human errors and redundancy of work in crediting salary into the employee’s account thus reducing expenditure to the company. What is an information system M 3 End of Chapter Answers Chapter 2 Question Number 1 b. RAM Level 1 Head Reference for Answer Hardware 2 a. cable modem Hardware E 3 b. operating system Software Gets the Job Done M 4 TCP/IP The Internet and the WWW M 5 Clock Hardware M 6 LCD Hardware M 7 Spreadsheet Software Gets the Job Done M 8 802.11 protocol Connecting Over Networks M 9 False Hardware E 10 False The Internet and the WWW M 11 B Hardware D 12 D Hardware M 13 C Hardware M 14 E Hardware D 15 A Hardware M 16 Accepting and storing data and information Performing mathematical calculation Applying logic to make decisions Retrieving, displaying, and sending data and information Consistently repeating the above actions many times The Components of IT E 17 Hardware – the electronic and mechanical components that you can see and touch Software – the set of instructions that directs the hardware Networking – allows knowledge workers to share resources including hardware, software and information, etc. The Components of IT M 18 Random Access Memory (RAM) is the primary memory that serves as a temporary storage area for data and instructions. In general, since the CPU first looks to RAM for the data and instructions it needs, and since accessing RAM is faster than accessing Hardware D 4 Answer Difficulty M End of Chapter Answers secondary storage (e.g., a hard drive), more RAM means more conveniently stored, quickly accessed data and instruction. This means that the computer (CPU) will seem faster to the user with more RAM to keep more data and instructions close at hand for the CPU 19 Yes. Thumb Drives (a.k.a. USB keys) offer more storage and quicker data access in a smaller, more convenient package. Most PC makers have stopped including diskette drives as standard PC equipment. Relative to the USB keys, a floppy diskette’s smaller storage, slower access, and decreasing support by PC makers all point to the demise of the once ubiquitous floppy disk. Hardware M 20 While no security is infallible, in general the smaller the network (in terms of geographic size) the more easily it can be secured. As network size increases it is difficult to include the network within a secure physical location. In addition, larger networks often require some use of public connection media which may be more easily accessed by unauthorized users than private communications media. Connecting Over Networks D 5 End of Chapter Answers Chapter 3 Question Number 1 Answer B. synthesis Level 1 Head Reference for Answer Knowledge Work Activities Difficulty E M M 2 D. Data, Information, and Knowledge 3 B. communication Decisions, Decisions –Making Decisions at the Individual Level Knowledge Work Activities 4 D Investigate Problem Solving E 5 Unorganized Knowledge Work Activities M 6 CARROTS M 7 complete 8 True Decisions, Decisions –Making Decisions at the Individual Level Decisions, Decisions –Making Decisions at the Individual Level Knowledge Work Activities 9 False D 10 False Decisions, Decisions –Making Decisions at the Individual Level l Problem Solving M 11 C Knowledge Work Activities D 12 B Knowledge Work Activities D 13 A Knowledge Work Activities D 14 B M 15 C 16 A 17 Investigate – I want to buy a car so I go to Consumer Reports and other sites to find the best cars for the environment and to Edmunds.com and other sites to research prices Analyze – I review the data I’ve collected generating possible choices and develop the criteria I will use to make my choice Decide – I pick the solar powered Ferrari. My second choice is a Honda Accord Hybrid Do – I contact Ferrari and ask them to make one since no such car is available to the general public. No luck so I buy the Honda Accord Hybrid. Decisions, Decisions –Making Decisions at the Individual Level Decisions, Decisions –Making Decisions at the Individual Level Decisions, Decisions –Making Decisions at the Individual Level Problem Solving 18 Unstructured – a problem characterized by high uncertainty and no well known method for solving the problem. Example: Choose a University or College to attend Decisions, Decisions –Making Decisions at the Individual Level M 6 E M M M D End of Chapter Answers Semi-Structured – A problem that is in-between the two extremes. Has some level of uncertainty in data and decision process. Example: Choose a major at the University or College you attend Structured – A problem situation which has the luxury of complete and certain information available and a well-known method for solving the problem. Example: Complete Major-Required Course I and major-Required Course II in order before taking any electives. 19 Investigate – Identify and research the two companies and the nature of both internships. Discover where you will be working and what you will be doing during your internship. Analyze – organize and think about the data and information you found – what does it mean? Which internship and/or which company appear to be the best fit with your immediate and future goals? Think about how what you will be doing in your internship may result in job offer at the end of the internship. Would you be willing to accept and work for this company? Develop criteria to help you choose between the two internships. Decide – Select the best internship for you using the criteria that you generated in the Analyze step. Do – Respond to the firm that offered you the internship you chose and send a note to the other firm thanking them and declining their internship offer. Move to new IADD cycle by investigating transportation to location of internship…etc. Problem Solving D 20 Yes. In order to solve problems, knowledge workers must make decisions. Consider the following problems and the decisions which solve the problems: (1) Undecided major – decide which major to major in (2) No transportation to and from school – decide to walk, to ride the bus, or to buy a car and drive to and from school and (3) Need a local checking account so local merchants will cash your check – decide which local bank offers the best deal on student checking and open an account there. Decisions, Decisions –Making Decisions at the Individual Level and Problem Solving D 7 End of Chapter Answers Chapter 4 Question Number 1 A – Feedback Level 1 Head Reference for Answer Business as Open Systems 2 B – Create processes to achieve goals Business as Open Systems 3 A – Automate M 4 Stakeholder Applying IT to create more business value Business as Open Systems 5 Transaction The Value Chain E 6 Complementary M 7 Competitive Advantage How Business organize to create value The Value Chain 8 True M 9 False 10 False 11 C 12 B 13 A 14 D 15 Functional: Ford Motors Product Line: Microsoft Geography: GE Matrix: University System Applying IT to create more business value Applying IT to create more business value Applying IT to create more business value Applying IT to create more business value Applying IT to create more business value Applying IT to create more business value Applying IT to create more business value How Business organize to create value 16 McDonalds Production of Hamburger Inbound Logistics: Raw Vegetables, meat, Cheese etc Operations: Preparation of Hamburger Outbound Logistics: Big Mac Marketing and Sales: Advertisements on Television, Discounts and promotional offers Services: Customer satisfaction surveys, Quality assurance The Value Chain M 17 Manufacture of Dell Computers Input Micro-Processors from Intel/AMD Knowledge Workers from Universities Capital from Investors and Creditors Operating system from Microsoft Technology from R&D teams Business as Open Systems M 8 Answer Difficulty M E E M M M E E M D End of Chapter Answers 18 19 20 9 Process Assembly line to manufacture Computers Output Laptops and Desktops Helpline services to aid customers Feedback from users and industry experts to help improve and innovate products It is essential to invest time and money in support activities of a company. For example by having active Human Resource (HR) policy and department can enhance employee output. Such activities add more business value to the organization An Enterprise Resource Planning (ERP) system helps an organization to effectively manage and automate its primary and secondary activities Managers in Matrix Organizations can Organize team building activities Have inter team meeting to discuss the work they are currently handling Have knowledge sharing session to provide a unified knowledge base The value Chain M The value Chain M How Business organize to create value M End of Chapter Answers Chapter 5 Question Number 1 Answer B – Mainframes Level 1 Head Reference for Answer The Technology Infrastructure of an Organization Information Systems that Support Business Activities Difficulty E 2 B – Atomicity 3 4 C – Simulation Modeling D – Periodic Business Intelligence Beyond Databases: Using Other Methods to Store Data, Information, and Knowledge M E 5 Embedded Processors E 6 Database 7 Foreign 8 Point of Sale (POS) The Technology Infrastructure of an Organization The Primary Data Storage for Organizations The Primary Data Storage for Organizations Information Systems that Support Business Activities 9 False 10 False 11 True 12 True 13 C Beyond Databases: Using Other Methods to Store Data, Information, and Knowledge E 14 B Beyond Databases: Using Other Methods to Store Data, Information, and Knowledge E 15 D Beyond Databases: Using Other Methods to Store Data, Information, and Knowledge E 16 A Beyond Databases: Using Other Methods to Store Data, Information, and Knowledge E 17 The file management system has the following disadvantages over Database system Data Redundancy: Some information needs to be stored in more than one place leading to inconstancy and redundancy Databases: the Primary Data Storage for Organizations M 10 The Technology Infrastructure of an Organization The Technology Infrastructure of an Organization The Primary Data Storage for Organizations Information Systems that Support Business Activities E E E M E M E E End of Chapter Answers 18 19 20 11 Data Dependence: As the files are designed for a particular system they may not be used by another application (System dependent) Data Inaccessibility: The data stored may not be accessible from other applications. Poor file management: The files are difficult to manage and change. It also has difficulties when multiple people are trying to modify the files at the same time. The different technologies are as follows: Middleware: is software that links applications that use dissimilar software and hardware platforms. A middleware application tracks and software modules and their status and then links them over network connection. Web Services: Processes data over from a sending application and then delivers the data over the network using standard data format called XML. Enterprise Resource Planning (ERP): In this approach the company runs all its applications from a single database. Each functional unit (like HR, R&D, and Finance) uses their own software but linked to a common database. Both systems can be useful. A strength of FIS is that they are typically created with a focus on a particular department. Thus an FIS may include comprehensive data and tools for a specific department. However, a workflow management system can incorporate the data from a specific department and integrate it with the work and data of other departments that take part in the workflow. Thus, a WMS may be ultimately more useful to that organization as a whole. Groupware can be of use for any organization by supporting communication between the members of the organization and by supporting group decision making. Groupware may be used by City and County governments to support meeting; to communicate information about important decisions both before and after decision making; and to even incorporate the view of the electorate through the use of voting systems. The IS integration Problem M Information Systems that Support Business Activities D Beyond Databases: Using Other Methods to Store Data, Information, and Knowledge D End of Chapter Answers Chapter 6 Question Number 1 Answer B – Elaboration Level 1 Head Reference for Answer The Stages and Activities of System Development Difficulty M 2 A – Inception The Stages and Activities of System Development E 3 B – Diamond Family IS Methodology M 4 D - Risk avoidance Managing the IS Project E 5 team composition The People Who Develop IS E 6 Unified Programming Language (UML) IS Methodology M 7 Integrated Development Environment (IDE). IT Tools for IS Development M 8 False The Stages and Activities of System Development M 9 False IS Methodology E 10 True The People Who Develop IS M 11 12 True A IT Tools for IS Development The Big IS Development Questions E E 13 D The Big IS Development Questions E 14 C The Big IS Development Questions E 15 B The Big IS Development Questions E 16 The stages of the Life cycle are: 1. Pre Inception: the stage in which the organization promotes or inhibits ideas for on Information system. 2. Inception: In this stage the focus in on understanding the problem and planning the project. 3. Elaboration: The project team finalizes the requirement and designs the system architecture. 4. Construction: The development team builds the core functionalities of the system. 5. Transtion: The development team finalizes the system and puts it in change. It also trains the users of the system and the management. 6. Production: In this stage the organization continuously monitors, maintain and evaluate the system. 7. Retirement: In this stage the old system is retired and usually leads to the inception of a new system, The Stages and Activities of System Development M 12 End of Chapter Answers 17 18 19 20 13 1. Entity-Relationship Diagram (ERD) 2. Logical Data Model 3. Data Flow Diagram (DFD) 4. Unified Modeling Language(UML) In the evolutionary model developers first investigate, specify and implement a core functionality with minimum functionality. Then the developers evaluate the functionality and add enhancements or changes to it. Prototyping is used to build the system with the inputs from the customers. In such a development model the customer can make changes and enhancements to the requirements and these can be incorporated in the system easily The waterfall model is rigid in structure and is difficult to make changes in the previous stage once the development reaches the next stage of the lifecycle. Parallel process of wok cannot take place in the waterfall model. Ideally, we would like to have an IS in place immediately (zero development time) and then use it forever (100% production) with no need for changes. Of course, we live in the real world so project managers must manage resources and risks while seeking to build an IS as quickly as possible and with the flexibility and quality to be useful in production for as long as possible. Managers should not only rely on financial analysis for their feasibility. Although by obtaining the ROI, NPV and IRR gives a good picture about the feasibility of the project using financial benefit there are other intangible factors which need to be considered. Project managers should also consider the strengths of the organization and the impact of the IS project on stakeholders. For example: Customer satisfaction is based on the speed at which customer is able make transactions of the company website. A satisfied customer may lead to increased business. IS Methodology E IS Methodology M The Stages And Activities Of System Development. D The Big IS Development Questions M End of Chapter Answers Chapter 7 Question Number 1 C Level 1 Head Reference for Answer E-Commerce: An Overview 2 A The E-Commerce Difference E 3 D The E-Commerce Difference E 4 A E-Commerce Between Organizations E 5 e-commerce E-Commerce: An Overview E 6 E-commerce strategy The E-Commerce Difference E 7 Infomediary The E-Commerce Difference M 8 Supply Chain E-Commerce Between Organizations E 9 False E-Commerce Between Organizations M 10 True E-Commerce: An Overview M 11 False The E-Commerce Difference 12 True The E-Commerce Difference E 13 B E-Commerce for Consumers E 14 D E-Commerce for Consumers E 15 C E-Commerce for Consumers E 16 A E-Commerce for Consumers E 17 A business model defines how a company will meet the needs of its customers while making a profit. Having a business model will enable them to focus on their customers and also make profits on a long term basis. The 3 broad categories are 1. Spot Buying 2. Strategic Sourcing 3. Exchange Benefits Lower Prices Shopping 24/7 Greater Searchability Shorter Delivery times for digital Products Sharing of information with other consumers E-Commerce for Consumers M E-Commerce Between Organizations M E-Commerce for Consumers M 18 19 14 Answer Difficulty M End of Chapter Answers Improved customer service Limitations Delay in receiving physical products Slow downloads in areas where high speed internet is limited Security and privacy concerns Inability to touch, feel and see product Unavailability of micropayments for purchase of small cost products 20 15 E-commerce is affecting business in the following ways: Reducing barriers to entry Preventing any company from “owning” the market Enhancing collaboration/alliances Multiplying market niches Changing marketplace drivers e-commerce is also leading to Information density: Increasing the quality and the quantity of information to the customer. Mass Customization: The method in which customized products or services can be provided on demand Personalization of Marketing goods The E-Commerce Difference M End of Chapter Answers Chapter 8 Question Number 1 Answer D – All of the above 2 A – Cookie 3 D –WSDL 4 C –Web Client 5 6 Fourth Scripting Language 7 Response 8 A(n) Applet 9 False 10 False 11 False 12 True 13 C 14 D 15 A 17 The 4 tier e-commerce infrastructure has the following components: Web Client: Enter the URL and you send an HTTP request to a Web serve Web Server: Receives request and decides on how 16 Level 1 Head Reference for Answer Second-Generation E-Commerce Technologies: Providing Interaction Second-Generation E-Commerce Technologies: Providing Interaction Fourth-Generation E-Commerce Technologies: Transforming Processes Second-Generation E-Commerce Technologies: Providing Interaction The Stages of E-commerce Second-Generation E-Commerce Technologies: Providing Interaction Second-Generation E-Commerce Technologies: Providing Interaction Second-Generation E-Commerce Technologies: Providing Interaction First-Generation E-Commerce Technologies: Establishing a Web Presence Second-Generation E-Commerce Technologies: Providing Interaction Second-Generation E-Commerce Technologies: Providing Interaction Fourth-Generation E-Commerce Technologies: Transforming Processes Third-Generation E-Commerce Technologies: Supporting Transactions Difficulty E E M M E E E M E M E E E First-Generation E-Commerce Technologies: Establishing a Web Presence Third-Generation E-Commerce Technologies: Supporting Transactions E Second-Generation E-Commerce Technologies: Providing Interaction M E End of Chapter Answers to send response back to the client server. It request is static then sends back response but it the request is dynamic then the web server routes the request to the client and application server. Application Server: If needed the server performs queries on the data server to get the requested data. Data/File Server: Stores data that may be needed for the E-commerce transaction. 18 XML (eXtensible Markup Language) uses tags to mark up content and/or data so that applications can recognize it. The goal of XML is to describe data. XML tags allow applications to understand the underlying meaning of data and then react appropriately. For example, an <invoice> tag may signal to an on-line application that the incoming data represents an invoice for an ordered product and then the application can process the data accordingly. Fourth-Generation E-Commerce Technologies: Transforming Processes M 19 The features often looked for in an e-commerce website include: interactivity and security. These are critical for the effective usage of e-commerce. The fear of lost data and identity theft can make many nervous about using e-commerce. Students may mention technologies such as: AJAX Blogging RSS VOIP Fourth-Generation E-Commerce Technologies: Transforming Processes M Fourth-Generation E-Commerce Technologies: Transforming Processes D 20 17 End of Chapter Answers Chapter 9 Question Number 1 A Level 1 Head Reference for Answer Corporate and IT Governance 2 Transfer (This choice does not exists) Enterprise Risk Management M 3 C Enterprise Risk Management D 4 D Enterprise Risk Management M 5 Near sourcing A Global Perspective E 6 Off shoring A Global Perspective M 7 Enterprise Risk Management Enterprise Risk Management M 8 Applicable risk Enterprise Risk Management M 9 False Global IS and Global IT M 10 False Global IS and Global IT E 11 True Global IS and Global IT E 12 True A Global Perspective M 13 B Enterprise Risk Management M 14 A Enterprise Risk Management M 15 C Enterprise Risk Management M 16 The congress passed the Sarbanes Oxley act in 2002 to restore public and investor’s trust in public accounting and reporting of publicly traded companies. After the Enron and World Com financial frauds the SOX held the CEO and the CFO liable and responsible for the financial statements produced by the company. The SOX required more documentation of process, decreased the time between reporting financial statements, and prohibited accounting firms from selling their non audit business to the companies. A global perspective is a world wide approach to business that seeks to create business value in an economic world that is largely flat, borderless and cyber connected. Example: GE off shoring its billing operations to India, thus saving money for itself and creating jobs and revenue in India. Four challenges to IT Globalization are identified by Enterprise Risk Management D A Global Perspective E Global IS and Global IT D 17 18 18 Answer Difficulty E End of Chapter Answers 19 20 19 Ives and Jarvenpaa on page 271 of text, they are: (1) the linkage of global IT to global business strategy; (2) Information Technology platforms; (3) International data sharing; and (4) cultural environment. Here is a possible answer if the student chooses (4) “Cultural environment:” The answer to this depends on your point of view. For example, you might believe that cultural environments are the most serious challenge to IT globalization. If so, then successfully competing on a global scale requires more than just native speaking IT professionals or knowledge workers. A truly global organization is aware of and embraces the diversity inherent in different cultures. An organization would be committed to education and training of its knowledge workers in cultural differences, languages, etc. Also, HR policies would rotate IT managers and IT employees through various locations to enable them to gain firsthand knowledge and experience of various cultures. Also, IT departments would be mindful of cultural environments when developing websites, global IS, etc. Enterprise Information Security is defined on page 284 of the text as “an ongoing, strategic business process of risk and threat assessment and management, which helps to ensure safe and continuous business operation and the availability, confidentiality, and integrity of an enterprise’s information resources wherever they might be located. Availability means that the business has access to whatever information resource it needs to create business value. Confidentiality addresses the need to keep safe certain types of sensitive information and to restrict access to this information to authorized users. Integrity as related to information means ensuring that the facts, events, knowledge, etc., captured and stored in information systems is accurate and complete (see “CARROTS” in Chapter 3). The threats and risks include unauthorized access, compromise, theft, loss, etc and a complete answer would address several of these. “Recent” examples of public and private organizational risk will include those from the text such as the “Kaiser…” example on page 286, as well as examples from current headlines such as “Homeland Security Admits Privacy Errors in AntiTerror Effort.” The integration and exposure of sensitive data is an increasing risk faced by modern organizations. While Kaiser received fines, the Department of Homeland Security faces the risks of loss of credibility, possible reduced effectiveness, and of litigation. “(http://www.eweek.com/article2/0,1895,2077595,00. asp?kc=EWEWEMNL122506EP25A) The PPT framework is: Enterprise Information Security D Enterprise Information Security M End of Chapter Answers People – refers to the members of an organization and the roles that they play. Technology – includes tools, methods and mechanisms to support organizational processes. Policy – represents the documented rules for governance. 20