Chapter 20 Information Technology and E-Business True/False Questions 1. A key aspect in the success of Wal-Mart is updating the information technology infrastructure. Answer: True 2. Level: 1 Page: 743 Type: F Level: 1 Page: 743 Type: F Level: 2 Page: 743 Type: F Level: 2 Page: 743 Type: F Operations information systems typically support the strategic decision-making needs of higher-level managers. Answer: False 8. Type: F The conciseness characteristic of high-quality information is present when all types of information are provided. Answer: False 7. Page: 742 The chief technology officer (CTO) is responsible for implementing new information technology and for managing organizational databases. Answer: False 6. Level: 1 Data that are converted into meaningful and useful context for the receiver are called information. Answer: True 5. Type: F Data are facts that are raw, unsummarized, and unanalyzed. Answer: True 4. Page: 742 By providing managers with more information more quickly than ever before, modern information technology has deteriorated efficiency and effectiveness of the strategic decision-making process. Answer: False 3. Level: 2 Level: 1 Page: 744 Type: F Transaction-processing systems, process control systems, and information-reporting Chapter Twenty * Information Technology and E-Business Test Bank * Page 554 systems are types of operations information systems. Answer: False 9. Type: F Level: 1 Page: 745 Type: F Level: 2 Page: 746 Type: F Level: 1 Page: 746 Type: F Level: 1 Page: 747 Type: F Level: 1 Page: 747 Type: F A collaborative work system is a computer-based information system that enables a novice computer user to more easily access complex and powerful computer software. Answer: False 17. Page: 744 A software that displays documents on more than one users screen and allows all users to see changes or comments as they are made by one person is called groupware. Answer: True 16. Level: 2 An executive information system is a management information system to support the information needs of senior managers dealing with the highest level of strategic decisions. Answer: True 15. Type: F A management information system is a computer-based system that provides information and support for effective managerial decision making. Answer: True 14. Page: 744 Systems such as word processors, desktop publishing, and E-mail, which transform manual procedures to electronic media, are known as information reporting systems. Answer: False 13. Level: 2 Office automation systems are used to transform manual accounting procedures to electronic media. Answer: True 12. Type: F Process control systems is a type of management information systems. Answer: False 11. Page: 744 Software developed for banking organizations to enable them to process the great volume of checks and debit transactions in today's business world is the transaction processing system (TPS). Answer: False 10. Level: 2 Level: 2 Page: 748 Type: F The WWW is a global collection of computer networks linked together for the exchange of data and information. Chapter Twenty * Information Technology and E-Business Test Bank * Page 555 Answer: False 18. Type: F Level: 2 Page: 750 Type: F Level: 2 Page: 751 Type: F Level: 2 Page: 751 Type: F Level: 2 Page: 751 Type: F Level: 2 Page: 752 Type: F Reliable Tools, Inc. should top $500 million in annual gross sales using E-Bay. Answer: False 26. Page: 748 The biggest boom in e-commerce is in C2C transactions. Answer: False 25. Level: 1 Potential disadvantages of a spin-off strategy are the loss of brand recognition, higher startup costs, and loss of leverage with suppliers. Answer: True 24. Type: F A potential problem with a spin-off company strategy for integrating bricks and clicks is that the new operation does not have the flexibility and autonomy needed to move quickly in the Internet world. Answer: False 23. Page: 748 Bricks and clicks refers to blending traditional operations with an Internet initiative. Answer: True 22. Level: 2 One reason extranet are growing in popularity is that they enable users at a variety of locations to participate with whatever computers and operating systems they have. Answer: True 21. Type: F An extranet is an internal communications system that uses the technology and standards of the Internet but is accessible only to people within the company. Answer: False 20. Page: 748 Most commonly today, e-business refers to electronic linkages over the Internet with customers, partners, suppliers, employees or other key constituents. Answer: True 19. Level: 1 Level: 3 Page: 752 Type: F An ERP system blurs the line dividing operations information systems from management information systems. Answer: True Level: 2 Page: 753 Type: F Chapter Twenty * Information Technology and E-Business Test Bank * Page 556 27. When carefully implemented, ERP can cut costs, increase cycle time, and reduce productivity. Answer: False 28. Page: 756 Type: F Level: 3 Page: 757 Type: F Level: 2 Page: 757 Type: F Level: 1 Page: 760 Type: F Level: 2 Page: 760 Type: F Although information technology enhances collaborations within the organization, it has yet to be successful in enhancing collaborations between the organizations and external constituencies such as customers and suppliers. Answer: False 35. Level: 2 One disadvantage of IT is that it beats down the team spirit that is essential for learning, change, and growth. Answer: False 34. Type: F Information overload is one of the problems associated with advances in technology. Answer: True 33. Page: 756 Organizations change the locus of knowledge by providing information to people who would not otherwise receive it through implementing IT. Answer: True 32. Level: 2 The greatest value of intranets for knowledge management is increasing the transfer of tacit knowledge. Answer: True 31. Type: F Customer relationship management systems are the use of a huge database that combines all of a company's data and allows users to access the data directly, create reports and obtain answers to what-if questions. Answer: False 30. Page: 754 It is expected that, in a few years, knowledge resources will be the primary way in which businesses will compete. Answer: True 29. Level: 2 Level: 2 Page: 761 Type: F Peer to peer software allows individual computers to talk directly with other PC’s without an intermediary. Answer: True Level: 3 Page: 762 Type: F Chapter Twenty * Information Technology and E-Business Test Bank * Page 557 Multiple Choice Questions 1. Wal-Mart managers use information systems, for example __________, to keep close tabs on inventory. a. b. c. d. e. IT Tables caluculators technology planning hand held scanners strategic IT Answer: d 2. Level: 2 Microsoft Office Suit Information technology Executive Information management Process controls Data Answer: b Level: 1 Page: 742 Type: F Which of these refers to raw facts and figures that in and of themselves may not be useful? a. b. c. d. e. Information Technology Data E-commerce EDI Answer: c 4. Type: F ______ consists of hardware, software, telecommunications, database management, and other technologies. a. b. c. d. e. 3. Page: 742 Level: 1 Page: 743 Type: F One of your supervisors gives you a report that analyzes the latest production counts. This supervisor is giving you a. b. c. d. e. data. timely updates. information. work that the supervisor should be doing. none of the above. Answer: c Level: 2 Page: 743 Type: A Chapter Twenty * Information Technology and E-Business Test Bank * Page 558 5. Dana’s supervisor gives her a report with the latest details for her meeting with the executives. Unfortunately, the report has so much details that there is no way for her to pick out the information she needs. This report lacks a. b. c. d. e. content. quality. completeness. timeliness. detail. Answer: a 6. Level: 2 Clarity Timeliness Completeness Accuracy All of these Answer: e Level: 1 Type: F Accuracy Relevance Conciseness Clarity All of the above are content dimension characteristics of high-quality information Answer: d Level: 2 Page: 744 Type: F ______ is a form dimension characteristic of high-quality information. a. b. c. d. e. Accuracy Clarity Relevance Conciseness All of these Answer: b 9. Page: 744 ______ is NOT a content dimension characteristic of high-quality information. a. b. c. d. e. 8. Type: A Which of the following characteristics are important for management information? a. b. c. d. e. 7. Page: 743 Level: 2 Page: 744 Type: F Which of these is NOT a form dimension characteristic of high-quality information? a. Clarity Chapter Twenty * Information Technology and E-Business Test Bank * Page 559 b. c. d. e. Detail Order Presentation Scope Answer: e 10. Level: 2 Page: 744 Type: F Tom wants to design an information system for the operations of Brothers, Inc. What type of system should Tom look into? a. b. c. d. e. A decision support system An executive information system A transaction processing system A GDSS A GIS Answer: c Level: 2 Page: 744 Type: A A(n) ______ system is classified as an operations information system. a. b. c. d. e. information reporting transaction processing executive information decision support geographic information Answer: b 13. Type: F management information system. transaction processing system. executive information system. record keeping system. GDSS. Answer: b 12. Page: 744 A type of information system that supervisors routinely use to help with their record keeping is called a(n) a. b. c. d. e. 11. Level: 2 Level: 2 Page: 744 Type: F Jeffrey is a new recruit at We-Compute, Inc. He is totally confused about what transactionprocessing system (TPS) does. Which of these definitions should you give him about TPS? a. b. A system that records and processes data resulting from routine business transactions. A computer system that monitors and controls ongoing physical processes such as temperature. Chapter Twenty * Information Technology and E-Business Test Bank * Page 560 c. d. e. A system that combines modern hardware and software to handle the tasks of publishing and distributing information. A system that organizes information in the form of pre-specified reports. An interactive computer-based system that uses decision models and specialized databases to support organization decision makers. Answer: a 14. Level: 1 Page: 744 Type: F A computer system that monitors and controls ongoing physical processes, such as temperature or pressure changes, is called a(n) a. b. c. d. e. transaction processing system. executive information system. process control system. process change system. management information system. Answer: c Level: 1 Page: 745 Type: F Susan was just asked to install a process control system at 123 Manufacturing, Inc. Susan should be looking to install which of these? a. b. c. d. e. A system that records and processes data resulting from routine business transactions. A computer system that monitors and controls ongoing physical processes such as temperature. A system that combines modern hardware and software to handle the tasks of publishing and distributing information. A system that organizes information in the form of prespecified reports. An interactive computer-based system that uses decision models and specialized databases to support organization decision makers. Answer: b 17. Type: A Relevance Timeliness Currency Frequency Time period Answer: a 16. Page: 744 Which of these is NOT a time dimension characteristic of high quality information? a. b. c. d. e. 15. Level: 2 Level: 2 Page: 745 Type: A Which of these is NOT an operations information system? Chapter Twenty * Information Technology and E-Business Test Bank * Page 561 a. b. c. d. e. Transaction-processing system Process control system Office automation system Information-reporting system All of these are operations information systems Answer: d 18. Level: 2 Page: 745 Type: F Which of the following systems is classified as a management information system? a. b. c. d. e. A transaction processing system A process control system An office automation system An information reporting system All of the above Answer: d Level: 2 Page: 745 Type: F systems typically support the strategic decision-making needs of higher-level managers. a. b. c. d. e. Management information Geographic information Expert Operations information Process control Answer: a 21. Type: F Groupware Information-reporting system Executive information system Decision support system Process control system Answer: e 20. Page: 745 Which of these is NOT a management information system? a. b. c. d. e. 19. Level: 2 Level: 2 Page: 746 Type: F Charles is a production manager at a local potato chip company. He needs data on the anticipated number of orders and the current inventory. He is using a computer-based information system to help him make production decisions. What type of system is he using? a. b. A transaction processing system An executive information system Chapter Twenty * Information Technology and E-Business Test Bank * Page 562 c. d. e. A production information system A management information system None of the above Answer: d 22. Level: 1 Page: 746 Type: F A(n) ______ is the most common form of MIS. a. b. c. d. e. office automation system executive information system group decision support system information reporting system transaction processing system Answer: d Level: 2 Page: 746 Type: F An interactive computer-based system that uses decision models and specialized databases to support organization decision makers is known as a(n) a. b. c. d. e. expert system. office automation system. decision support system. transaction processing system. GIS. Answer: c 25. Type: A office automation system executive information system group decision support system information reporting system transaction processing system Answer: d 24. Page: 746 A(n) ______ is a system that organizes information in the form of pre-specified reports that managers use in day-to-day decision making. a. b. c. d. e. 23. Level: 2 Level: 1 Page: 746 Type: F Systems that combine modern hardware and software such as word processors, desktop publishing, and E-mail that transform manual procedures to electronic media are referred to as a. b. c. d. transaction processing systems. executive information systems. production information systems. management information systems. Chapter Twenty * Information Technology and E-Business Test Bank * Page 563 e. none of these. Answer: e 26. Level: 2 Page: 747 Type: F ______ is an Effort to systematically gather knowledge, make it widely available in the organization, and foster a culture of learning. a. b. c. d. e. An ERP Knowledge management Data mining Empowerment Data warehousing Answer: b Level: 1 Page: 747 Type: F ______ are management information systems to facilitate strategic decision making at the highest level of management. a. b. c. d. e. DSSs EISs IRSs TPSs PCSs Answer: b 29. Type: F Intranet Groupware Extranet Middleware Hardware Answer: b 28. Page: 747 Which of these displays a document on more than one user's screen and allows all the users to see changes or comments as they are made by one person? a. b. c. d. e. 27. Level: 2 Level: 1 Page: 747 Type: F A(n) ______ is also known as a group decision support system. a. b. c. d. e. expert system collaborative work system total organizational system geographic information system GIS Answer: b Level: 2 Page: 748 Type: F Chapter Twenty * Information Technology and E-Business Test Bank * Page 564 30. A computer-based information technology that is helpful for contributing diverse information to team decision making is called a(n) a. b. c. d. e. artificial intelligence. expert system. electronic data interchange. collaborative work system. none of these. Answer: d 31. Level: 2 EIS WWW Internet TPSs information-reporting system Answer: c Level: 1 Type: F extranet middleware groupware intranet GDSS Answer: d Level: 1 Page: 748 Type: F Business exchanges that occur electronically refers to a. b. c. d. e. Internet. WWW. EDI. e-commerce. C2B. Answer: d 34. Page: 748 A(n) ______ is a computer network that uses Internet technology but limits access to all or some of the organization's employees. a. b. c. d. e. 33. Type: F The ______ is a global collection of computer networks linked together for the exchange of data and information. a. b. c. d. e. 32. Page: 748 Level: 1 Page: 748 Type: F A network that links the computer systems of buyers and sellers to allow the transmission of structural data primarily for ordering, distribution, and payables and receivables is called Chapter Twenty * Information Technology and E-Business Test Bank * Page 565 a(n) a. b. c. d. e. EDI. DSS. EIS. TPS. WWW. Answer: a 35. Level: 1 Page: 750 Type: F Which of these is NOT an e-business strategy for integrating bricks and clicks? a. b. c. d. e. Market experience In-house internet division Cost-efficiency Spin-off All of these are e-business strategies for integrating bricks and clicks Answer: c Level: 2 Page: 751 Type: F All of these are advantages of a spin-off strategy for integrating bricks and clicks EXCEPT a. b. c. d. e. Direct links to customers. Flexibility. Customization. Productivity. Distribution efficiency. Answer: d 38. Type: F GIS middleware intranet groupware extranet Answer: e 37. Page: 750 A(n) ______ is a computer network that uses Internet technology but links authorized users inside the company with certain outsiders such as customers or vendors. a. b. c. d. e. 36. Level: 2 Level: 2 Page: 750-751 Type: F The biggest boom in e-commerce is in ______ transactions. a. b. c. C2C C2B B2B Chapter Twenty * Information Technology and E-Business Test Bank * Page 566 d. e. B2C C2G Answer: c 39. Level: 2 Page: 753 Type: F Which of the following is the use of a huge database that combines all of a company's data and allows users to access the data directly, create reports, and obtain answers to what if questions? a. b. c. d. e. Data warehousing Networking Knowledge management Data mining None of the above Answer: a Level: 1 Page: 757 Type: F Software that uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant is called a. b. c. d. e. data warehousing. networking. knowledge management. data mining. none of the above. Answer: d 42. Type: F GIS GDSS ERP EIS DSS Answer: c 41. Page: 752 A(n) system collects, processes, and provides information about an organization's entire enterprise, including orders, product design, production, purchasing, inventory, distribution, HR, receipt of payments, and forecasting of future demands. a. b. c. d. e. 40. Level: 2 Level: 1 Page: 757 Type: F Which of these is NOT an implication of information technology, according to your text? a. b. c. d. Empowered employees Increased employee turnover Information overload Enhanced collaborations Chapter Twenty * Information Technology and E-Business Test Bank * Page 567 e. Improved employee effectiveness Answer: b 43. Type: F Information overload Decreased collaborations Poor employee effectiveness Authoritarian employees Reduced efficiency Answer: a Level: 3 Page: 760 Type: F ______ is/are one problem associated with advances in technology. a. b. c. d. e. Organizational efficiency Information overload High level of coordination Flexibility All of these Answer: b 45. Page: 759 Which of these is a problem associated with advances in technology? a. b. c. d. e. 44. Level: 2 Level: 2 Page: 760 Type: F ______ file sharing allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, and Web pages. a. b. c. d. e. B2B C2C P2P C2B B2C Answer: c Level: 2 Page: 762 Type: F Scenario Questions Scenario—B.J. Patel B.J. Patel is an executive with Technocraft Productions. This morning, B.J. has been attending a top management meeting exploring the potential value of using a new computer system at Technocraft. The executive team has reached a consensus opinion that the new system should be able to increase the effectiveness and the efficiency of operations and services. B.J. has been assigned to work directly with computer system vendors and to develop the best system for Technocraft. Chapter Twenty * Information Technology and E-Business Test Bank * Page 568 1. B.J. is negotiating with a computer software firm to develop an interactive CBIS that facilitates group communication and decision making. This software is normally classified as a. b. c. d. e. artificial intelligence. a collaborative work system. an expert system. an electronic data exchange. none of the above. Answer: b 2. If B.J. needs to record and process data resulting form business operations, he should consider a(n) a. b. c. d. e. TPS. EIS. DSS. IRS. PCS. Answer: a 3. Type: A Type: A As B.J. has reviewed the development of computer technology, he recognizes that, of the following, the most complex hardware/software combination is a. b. c. d. e. a Transaction Processing System. an Executive Information System. an Office Automation System. a Production Information System. none of the above. Answer: b Type: A Short-Answer Questions 1. An organization's consists of the hardware, software, telecommunications, database management, and other technologies it uses to store data and make them available in the form of information for organizational decision making. Answer: information technology 2. Page: 742 _______ are unsummarized and unanalyzed facts and figures. Chapter Twenty * Information Technology and E-Business Test Bank * Page 569 Answer: Data 3. Page: 743 Data that have been converted into a meaningful and useful context for the receiver is called . Answer: information 4. A computer-based information system that supports a company's day-to-day operations is known as a(n) _______. Answer: operations information system 5. Page: 744 A type of operations information system that records and processes data resulting from routine business transactions such as sales, purchases, and payroll is called a(n) . Answer: transaction-processing system 6. Page: 743 Page: 744 List three types of operations information systems. Answer: The three types of operations information systems are (1) transaction-processing systems, (2) process control systems, and (3) office automation systems. Page: 744 7. The three operations information systems are TPS, ______, and ______. Answer: process control systems; office automations systems Page: 745 8. A(n) _______ is a computer system that monitors and controls ongoing physical processes, such as temperature or pressure changes. Answer: process control system 9. combine modern hardware and software such as word processors, desktop publishers, E-mail, and teleconferencing to handle the tasks of publishing and distributing information. Answer: Office automation systems 10. Page: 745 Page: 745 List the four types of management information systems. Chapter Twenty * Information Technology and E-Business Test Bank * Page 570 Answer: (1) Information-reporting systems, (2) decision support systems, (3) executive information systems, and (4) groupware. Page: 746-747 11. A(n) is a computer-based system that provides information and support for effective managerial decision making. Answer: management information system (MIS) 12. A system that organizes information in the form of pre-specified reports that managers use in day-to-day decision making is called a(n) . Answer: information reporting system 13. Page: 746 are interactive, computer-based information systems that rely on decision models and specialized databases to support decision makers. Answer: Decision support systems (DSSs) 14. Page: 746 are management information systems to facilitate strategic decision making at the highest level of management. Answer: Executive information systems (EIS) 15. Page: 748 The ______ is a collection of central servers of accessing information on the Internet. Answer: World Wide Web (WWW) 19. Page: 747 The ______ is a global collection of computer networks linked together for the exchange of data and information. Answer: Internet 18. Page: 747 is software that displays documents on more than one user's screen and allows all users to see changes or comments as they are made by one person. Answer: Groupware 17. Page: 747 An interactive computer-based system that facilitates group communication and decision making is known as a(n) _______. Answer: groupware 16. Page: 746 Page: 748 Any business that takes place by digital processes over a computer network rather than in physical space refers to ______. Chapter Twenty * Information Technology and E-Business Test Bank * Page 571 Answer: e-business 20. ______ refers to business exchanges that occur electronically. Answer: E-commerce 21. Page: 748 A computer network that uses internet technology but links authorized users inside the company with certain outsiders such as customers or vendors is called a(n) . Answer: extranet 23. Page: 748 A computer network that uses internet technology but limits access to all or some of the organization's employees is referred to as a(n) . Answer: intranet 22. Page: 748 Page: 750 List the two strategies for integrating bricks and clicks. Answer: The two strategies are (1) market expansion, and (2) increase productivity. Page: 751 24. An electronic marketplace setup by an intermediary where buyers and sellers meet is called a(n) ______. Answer: B2B marketplace 25. Page: 752 A networked information system that collects, processes, and provides information about an organization's entire enterprise, from identification of customer needs and receipt of orders to distribution of products and receipt of payments is called a(n) . Answer: enterprise resource planning (ERP) System 26. Efforts to systematically gather knowledge, make it widely available in the organization, and foster a culture of learning is called . Answer: knowledge management 27. Page: 757 is the use of a huge database that combines all of a company's data and allows users to access the data directly, create reports, and obtain answers to what-if questions. Answer: Data warehousing 28. Page: 753 Page: 757 Software that uses sophisticated decision-making processes to search raw data for Chapter Twenty * Information Technology and E-Business Test Bank * Page 572 patterns and relationships that may be significant is called Answer: data mining 29. Page: 757 A single point of access for employees to multiple sources of information that provides personalized acces on the corporate intranet is called __________. Answer: Knowledge management portal 30. . Page: 758 ______ file sharing allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, control points, and Web pages. Answer: Peer-to-peer (P2P) Page: 762 Essay Questions 1. Differentiate between data and information. ANSWER: The primary difference between data and information is the level of value. Data has a lower value because it is raw, unsummarized, and unanalyzed facts. By comparison, information consists of data that are meaningful and can alter the receiver's understanding. Level: 1 2. Page: 743 Briefly describe the characteristics of high-quality information along the three broad categories. ANSWER: The characteristics of useful information fall into three broad categories: time, content, and form. Please refer to exhibit 20.1 in the text. Level: 2 3. Page: 743-744 Distinguish between management information systems and operations information systems. ANSWER: The essential differences between these two types of information systems are the functions they perform and the organizational client they serve. A management information system typically supports the strategic decision-making needs of top Chapter Twenty * Information Technology and E-Business Test Bank * Page 573 management. Examples would include executive information systems, decision support systems, and information reporting systems. An operations information system is a computer-based information system that supports a company's day-to-day operations, including office automation systems, transaction processing systems, and process control systems. Level: 2 4. Page: 744-748 Differentiate between intranet and extranet. ANSWER: Intranet is a computer network that uses Internet technology but limits access to all or some of the organization's employees. An extranet also uses Internet technology but links authorized users inside the company with certain outsiders such as customers or vendors. Level: 2 5. Page: 748-750 Describe the benefits and implementation of the different strategies for integrating bricks and clicks. ANSWER: The strategies are: (1) market expansion, and (2) increased productivity. Please refer to Exhibit 20.6 for more details. Level: 2 6. Page: 741 Briefly explain the management implications of information technology. ANSWER: Some specific implications include improved employee effectiveness, increased efficiency, empowered employees, information overload, enhanced collaborations, and organizational learning. Level: 2 Page: 759-761 Chapter Twenty * Information Technology and E-Business Test Bank * Page 574