Chapter 1
Managing the Digital Firm
1-1
Chapter 1
Managing the Digital Firm
True-False Questions
1.
Chrysler uses a Web-enabled system called Saveway that replaces paper-based processes
with digital links to supplier systems.
Answer: False
2.
Difficulty: Hard
Reference: p. 4
Difficulty: Easy
Reference: p. 5
Difficulty: Medium
Reference: p. 6
Nicholas Carr, an editor at Harvard Business Review argues that no firm can use IT to
achieve a strategic edge over its competitors any more than it could with electricity,
telephones, or other infrastructure.
Answer: True
8.
Reference: p. 4
It has been proven that information technology can give a firm a long-lasting competitive
advantage.
Answer: False
7.
Difficulty: Easy
Investment in information technology plays a minimal role in increasing the productivity of
firms.
Answer: False
6.
Reference: p. 4
In 2005, U.S. firms alone will spend nearly $1.8 billion on IT and telecommunications
equipment and software.
Answer: False
5.
Difficulty: Easy
Information technologies and systems are revolutionizing the operation of firms, industries,
and markets.
Answer: True
4.
Reference: p. 3
Modern digital firms use the Internet and networking technology to make data flow
seamlessly among different parts of the organization; streamline the flow of work; and create
electronic links with customers, suppliers, and other organizations.
Answer: True
3.
Difficulty: Medium
Difficulty: Hard
Reference: p. 6
The networking and communications revolution is being driven by the growth of the Internet,
Internet-based technologies, and new business models and processes that leverage the new
technologies.
Answer: True
Difficulty: Easy
Reference: pp. 7-8
1-2
Managing the Digital Firm
9.
Relationships with customers, employees, suppliers, and logistic partners are increasingly
becoming paper-based relationships.
Answer: False
10.
Reference: p. 9
Difficulty: Medium
Reference: p. 10
Difficulty: Easy
Reference: p. 10
Difficulty: Easy
Reference: p. 10
Difficulty: Hard
Reference: p. 11
In knowledge- and information-based economies, the market value of many firms is based
largely on tangible assets, such as buildings, machinery tools, and inventory.
Answer: False
18.
Difficulty: Easy
Knowledge and information work account for 55 percent of the U.S. gross national product
and nearly 60 percent of the labor force.
Answer: False
17.
Reference: p. 9
Globalization has transformed the conduct of business.
Answer: True
16.
Difficulty: Medium
The success of firms today and in the future no longer depends on their ability to operate
globally.
Answer: False
15.
Reference: p. 9
The traditional business firm is a flat, decentralized, unstructured arrangement of generalists
who typically rely on a fixed set of standard operating procedures to deliver a customized
product.
Answer: False
14.
Difficulty: Medium
The Internet and related technologies make it possible to conduct business across firm
boundaries almost as efficiently and effectively as it is to conduct business within the firm.
Answer: True
13.
Reference: p. 9
The Internet and the new markets are changing the cost and revenue structure of traditional
firms and are hastening the demise of traditional business models.
Answer: True
12.
Difficulty: Easy
Electronic commerce designates the use of the Internet and digital technology to execute all
of the activities of the enterprise.
Answer: False
11.
Chapter 1
Difficulty: Medium
Reference: p. 11
Major industrial powers are being transformed to knowledge- and information-based service
economies and leaving manufacturing to the third-world countries.
Answer: True
Difficulty: Easy
Reference: p. 11
Chapter 1
19.
Managing the Digital Firm
Information-intense products require a great deal of knowledge and training to produce.
Answer: True
20.
Difficulty: Medium
Reference: p. 15
Difficulty: Medium
Reference: p. 15
Difficulty: Easy
Reference: p. 16
Difficulty: Medium
Reference: p. 18
Difficulty: Medium
Reference: p. 19
Information systems literacy includes a behavioral as well as a technical approach to
studying information systems.
Answer: True
29.
Reference: p. 13
Few businesses have an information value chain, in which raw information is systematically
acquired and then transformed through various stages that add value to that information.
Answer: False
28.
Difficulty: Easy
Firms sometimes invest in information systems to cope with government regulations or other
environmental demands.
Answer: True
27.
Reference: p. 12
A formal information system can be a manual one.
Answer: True
26.
Difficulty: Easy
Feedback helps the organization evaluate input.
Answer: True
25.
Reference: p. 12
In an information system, input, processing, and output produce data.
Answer: False
24.
Difficulty: Medium
Information systems help managers and workers analyze problems, visualize complex
subjects, and create new products.
Answer: True
23.
Reference: p. 11
By digitally enabling and streamlining their work, digital firms have the potential to achieve
unprecedented levels of profitability and competitiveness.
Answer: True
22.
Difficulty: Easy
Business processes are those procedures within the company that require accounting.
Answer: False
21.
1-3
Difficulty: Medium
Reference: p. 19
The key elements of an organization are its people, structure, business processes, politics,
and culture.
Answer: True
Difficulty: Medium
Reference: p. 20
1-4
Managing the Digital Firm
30.
Secretaries, bookkeepers, and clerks would all be considered knowledge workers.
Answer: False
31.
Reference: p. 22
Difficulty: Hard
Reference: p. 25
Difficulty: Medium
Reference: p. 25
Difficulty: Medium
Reference: p. 26
Difficulty: Easy
Reference: p. 26
To work properly, an information system must balance technology and human behavior and
requirements, even if less-than-optimal technology must be used.
Answer: True
39.
Difficulty: Medium
The behavioral approach to information systems focuses on changes in attitudes,
management and organizational policy, and behavior.
Answer: True
38.
Reference: p. 22
Computer science, management science, and operations research all contribute to the
technical approach to information systems.
Answer: True
37.
Difficulty: Easy
Managerial complementary assets include elements such as strong senior management
support for change and incentive systems that monitor and reward individual innovation.
Answer: True
36.
Reference: p. 22
Standards are one type of organizational asset for optimizing returns on information
technology.
Answer: False
35.
Difficulty: Medium
The Internet is an international network of commercial networks.
Answer: False
34.
Reference: p. 21
A network requires at least three computers.
Answer: False
33.
Difficulty: Medium
Storage technology includes the physical media for storing data, but not the software
governing the organization of data on these physical media.
Answer: False
32.
Chapter 1
Difficulty: Medium
Reference: p. 26
The declining cost and growth in power of information technology always translates into
productivity enhancements and bottom-line profits.
Answer: False
Difficulty: Easy
Reference: p. 27
Chapter 1
40.
Managing the Digital Firm
1-5
Security and control will be an ongoing concern for information systems because these
problems can never be eliminated.
Answer: True
Difficulty: Easy
Reference: p. 30
Multiple-Choice Questions
41.
Internet culture is:
a.
b.
c.
d.
global.
regional.
domestic.
local.
Answer: a
42.
network technology
digital technology
information technology
productivity technology
Answer: c
Difficulty: Easy
Reference: p. 4
The ultimate end product of the new ways of conducting business electronically is:
a.
b.
c.
d.
the extinction of the traditional bureaucracy.
more government oversight.
a more complicated tax structure.
the digital firm.
Answer: d
44.
Reference: p. 4
What term is used to refer to all of the computer-based information systems used by
organizations and their underlying technologies?
a.
b.
c.
d.
43.
Difficulty: Easy
Difficulty: Easy
Reference: p. 4
The largest component of capital investment for firms in the United States and many
industrialized societies is:
a.
b.
c.
d.
inventory.
information technology.
machinery.
buildings.
Answer: b
Difficulty: Easy
Reference: p. 4
1-6
Managing the Digital Firm
45.
In 2005, U.S. firms alone will spend nearly $1.8 __________________ on IT and
telecommunications equipment and software.
a.
b.
c.
d.
thousand
million
billion
trillion
Answer: d
46.
Difficulty: Medium
Reference: p. 9
Buying and selling of goods and services electronically with computerized business
transactions using the Internet, networks, and other digital technologies is called:
a.
b.
c.
d.
electronic commerce.
electronic communications.
electronic business.
electronic exchanges.
Answer: a
Difficulty: Medium
Reference: p. 9
The application of the Internet and related technologies to digitally enable government
and public sector agencies’ relationships with citizens, businesses, and other arms of
government is called:
a.
b.
c.
d.
e-commerce.
e-business.
e-government.
e-technology.
Answer: c
49.
Reference: p. 4
digital business.
electronic business.
electronic commerce.
digital processes.
Answer: b
48.
Difficulty: Easy
The use of the Internet and digital technology to execute all of the activities in the
enterprise is referred to as:
a.
b.
c.
d.
47.
Chapter 1
Difficulty: Easy
Reference: p. 9
Experts believe that ____________________ percent of travel sales will be online within
a decade.
a.
b.
c.
d.
10 to 30
30 to 40
40 to 50.
50 to 70.
Answer: d
Difficulty: Easy
Reference: p. 9
Chapter 1
50.
Managing the Digital Firm
Developing a new product, generating and fulfilling an order, creating a marketing plan,
and hiring an employee are examples of:
a.
b.
c.
d.
creating feedback.
business processes.
maintaining a competitive edge.
industrial processes.
Answer: b
51.
Difficulty: Easy
Reference: p. 13
Information is:
a.
b.
c.
d.
the accumulation of raw data.
the way we analyze problems.
the best form of knowledge.
data shaped into meaningful form.
Answer: d
Difficulty: Easy
Reference: p. 13
Streams of raw facts representing events occurring in organizations or the physical
environment before they have been organized and arranged into a form that people can
understand and use are called:
a.
b.
c.
d.
wisdom.
knowledge.
data.
expertise.
Answer: c
54.
Reference: p. 12
DaimlerChrysler and General Motors.
Cisco Systems and Dell Computers.
Wal-Mart and Sears.
GKN Aerospace North America and Flextronics.
Answer: b
53.
Difficulty: Easy
These two companies are close to becoming fully digital firms:
a.
b.
c.
d.
52.
1-7
Difficulty: Easy
Reference: p. 15
Input:
a. captures or collects raw data from within the organization or from the external
environment.
b. allows the analysis of problems faced by the organization.
c. is data shaped into meaningful form.
d. converts raw data into meaningful form.
Answer: a
Difficulty: Easy
Reference: p. 15
1-8
Managing the Digital Firm
55.
Converting raw data into a more meaningful form is called:
a.
b.
c.
d.
capturing.
processing.
controlling.
feedback.
Answer: b
56.
Difficulty: Easy
Reference: pp. 15-16
__________________ use paper-and pencil-technology.
a.
b.
c.
d.
Manual systems
Bureaucracies
Most established companies
Reactionaries
Answer: a
Difficulty: Easy
Reference: p. 16
Electronic computers and related software programs are the technical foundation, the
tools and materials, of:
a.
b.
c.
d.
all business procedures.
information accumulation.
modern information systems.
all industrialized countries.
Answer: c
59.
Reference: p. 15
Informal
Modern
Traditional
Formal
Answer: d
58.
Difficulty: Easy
__________________ systems depend on fixed definitions of data and procedures for
collecting, storing, processing, disseminating, and using the data.
a.
b.
c.
d.
57.
Chapter 1
Difficulty: Medium
Reference: p. 16
Sets of operating instructions that direct and control computer processing are called:
a.
b.
c.
d.
protocols.
policies.
computer programs.
procedures.
Answer: c
Difficulty: Easy
Reference: p. 16
Chapter 1
60.
Managing the Digital Firm
One of the information processing activities in the business information value chain is:
a.
b.
c.
d.
modeling
planning multinational organizations.
dissemination satellite communications systems.
knowledge management
Answer:
61.
Reference:
p. 19
Difficulty: Easy
Reference: p. 19
A broad-based understanding of information systems that includes behavioral knowledge
about organizations and individuals using information systems as well as technical
knowledge about computers is called:
a.
b.
c.
d.
computer literacy.
technology literacy.
management literacy.
information systems literacy.
Answer: d
Difficulty: Medium
Reference: p. 19
Which of the following would not be classified as a management activity in the business
information value chain?
a. Disseminating
b. Planning.
c. Coordinating.
d. Controlling.
Answer: a
64.
Difficulty: Medium
contribute to corporate value.
comply with government regulations.
link up with business partners.
gather competitive knowledge.
Answer: a
63.
c
The primary purpose why information systems are built is to:
a.
b.
c.
d.
62.
1-9
Difficulty: Medium
Reference: p. 19
Promoting the organization’s products and services is a business function of:
a.
b.
c.
d.
manufacturing and production.
finance and accounting.
human resources.
sales and marketing.
Answer: d
Difficulty: Easy
Reference: p. 21
1-10
Managing the Digital Firm
65.
Creating products and services is a business function of:
a.
b.
c.
d.
manufacturing and production.
finance and accounting.
human resources.
sales and marketing.
Answer: a
66.
Difficulty: Easy
Reference: p. 21
Maintaining the organization’s financial records is a business function of:
a.
b.
c.
d.
accounting and finance.
manufacturing and production.
human resources.
sales and marketing.
Answer: a
Difficulty: Easy
Reference: p. 21
Maintaining the organization’s labor force is a business function of:
a.
b.
c.
d.
manufacturing and production.
finance and accounting.
human resources.
sales and marketing.
Answer: c
69.
Reference: p. 21
manufacturing and production.
finance and accounting.
human resources.
sales and marketing.
Answer: b
68.
Difficulty: Easy
Managing the organization’s financial assets is a business function of:
a.
b.
c.
d.
67.
Chapter 1
Difficulty: Easy
Reference: p. 21
Engineers or architects who design products or services are called:
a.
b.
c.
d.
data workers.
service workers.
information specialists.
knowledge workers.
Answer: d
Difficulty: Medium
Reference: p. 21
Chapter 1
70.
Managing the Digital Firm
Secretaries, bookkeepers, or clerks are called:
a.
b.
c.
d.
data workers.
service workers.
information specialists.
knowledge workers.
Answer: a
71.
Difficulty: Easy
Reference: p. 21
An intranet uses:
a.
b.
c.
d.
mainframe technology.
infrared telecommunications systems.
the telecommunications capacities of fiber optic networks.
Internet technology within the boundaries of the firm.
Answer: d
Difficulty: Medium
Reference: p. 22
The shared information technology resources for the organization are called its:
a.
b.
c.
d.
MIS plan.
operational network.
IT infrastructure.
business infrastructure.
Answer: c
74.
Reference: p. 21
middle managers.
senior managers.
operational managers.
supervisory personnel.
Answer: b
73.
Difficulty: Medium
Long-range strategic decisions about what products and services to produce are done by:
a.
b.
c.
d.
72.
1-11
Difficulty: Medium
Reference: p. 23
_____________________ assets are required to derive value from a primary investment.
a.
b.
c.
d.
Complementary
Supplemental
Core
Capital
Answer: a
Difficulty: Medium
Reference: p. 24
1-12
Managing the Digital Firm
75.
Investments in new business processes, management behavior, or training to enhance
returns on information technology investments are called _____________________ .
a.
b.
c.
d.
organizational investments
organizational and management capital
social capital
business investments
Answer: b
76.
Chapter 1
Difficulty: Medium
Reference: p. 24
An example of a managerial asset required to optimize returns from information
technology investments would be:
a. decentralized authority
b. teamwork and collaborative work environment
c. laws and regulations
d. distributed decision-making rights
Answer: b
77.
Difficulty: Hard
Reference: p. 25
An example of a social asset required to optimize returns from information technology
investments would be:
a. teamwork.
b. culture valuing efficiency and flexibility.
c. telecommunications infrastructure.
d. training programs.
Answer: c
78.
Reference: p. 25
_____________________ focuses on mathematical techniques for optimizing selected
parameters of organizations, such as transportation costs.
a.
b.
c.
d.
Behavioral science
Computer science
Management science
Operations research
Answer: d
79.
Difficulty: Hard
Difficulty: Medium
Reference: p. 26
Because information systems are so essential to business, government, and daily life,
organizations must take special steps to ensure:
a.
b.
c.
d.
that all managers know and understand the basics of copyright law.
that the systems are accurate, reliable, and secure.
that references are checked before employees are hired.
that software is updated frequently.
Answer: b
Difficulty: Easy
Reference: p. 27
Chapter 1
Managing the Digital Firm
1-13
Fill in the Blanks
80.
A(n) digital firm is one where nearly all significant business processes and relationships are
managed through digital means.
Difficulty: Easy
81.
The term, information technology refers to all of the computer-based information systems
used by organizations and their underlying technologies.
Difficulty: Medium
82.
Reference: p. 9
E-government is the application of the Internet and related technologies to digitally enable
government and public sector agencies’ relationships with citizens, businesses, and other
arms of government.
Difficulty: Easy
88.
Reference: p. 9
Electronic commerce deals with the buying and selling of goods and services electronically
with computerized business transactions using the Internet, networks, and other digital
technologies.
Difficulty: Easy
87.
Reference: p. 9
Electronic business, designates the use of the Internet and digital technology to execute all
of the activities in the enterprise.
Difficulty: Easy
86.
Reference: p. 7
Allowing people to renew their drivers’ licenses online is an example of e-government.
Difficulty: Medium
85.
Reference: p. 7
The Internet has inspired entirely new business models for the digital distribution of music,
journals, and Hollywood films.
Difficulty: Medium
84.
Reference: p. 4
Dell, Amazon.com, eBay, and Wal-Mart are examples of companies with unique competitive
advantage in their industries.
Difficulty: Medium
83.
Reference: p. 4
Reference: p. 9
A(n) traditional business firm is a hierarchical, centralized, structured arrangement of
specialists relying on a fixed set of standard operating procedures to deliver a mass-produced
product or service.
Difficulty: Medium
Reference: p. 10
1-14
Managing the Digital Firm
89.
A(n) knowledge- and information-intense product is one that requires a great deal of
learning and knowledge to produce.
Difficulty: Easy
90.
Reference: p. 15
Formal systems rely on accepted and fixed definitions of data and procedures for collecting,
storing, processing, disseminating, and using these data.
Difficulty: Easy
98.
Reference: p. 15
Feedback allows members of the organization to evaluate and correct input.
Difficulty: Easy
97.
Reference: p. 15
Processing is the conversion, manipulation, and analysis of raw input into a form that is
more meaningful to humans.
Difficulty: Easy
96.
Reference: p. 15
Streams of raw facts representing events occurring in organizations or the physical
environment before they have organized and arranged into a form that people can understand
and use is referred to as data.
Difficulty: Easy
95.
Reference: p. 13
Information is data that has been shaped into a form that is meaningful and useful to human
beings.
Difficulty: Easy
94.
Reference: p. 12
A(n) information system is composed of interrelated components working together to
collect, process, store, and disseminate information to support decision making, coordination,
control, analysis, and visualization in an organization.
Difficulty: Easy
93.
Reference: p. 11
Developing a new product, generating and fulfilling an order, or hiring an employee are all
examples of business processes.
Difficulty: Medium
92.
Reference: p. 11
A(n) digital firm is one where nearly all significant business processes and relationships are
managed through digital means.
Difficulty: Easy
91.
Chapter 1
Reference: p. 16
A(n) computer-based information system relies on computer hardware and software for the
processing and dissemination of information.
Difficulty: Easy
Reference: p. 16
Chapter 1
99.
Managing the Digital Firm
1-15
Computer programs/software are sets of operating instructions to direct and control
computer processing.
Difficulty: Easy
Reference: p. 16
100. Information systems literacy encompasses an understanding of the management and
organizational dimensions of systems as well as the technical dimensions of systems.
Difficulty: Easy
Reference: p. 19
101. A(n) information value chain transforms raw information through various stages that add
value to that information.
Difficulty: Medium
Reference: p. 19
102. The business perspective calls attention to the managerial/organizational nature of
information systems.
Difficulty: Medium
Reference: p. 19
103. A(n) business function is a specialized task performed in the business organization.
Difficulty: Easy
Reference: p. 20
104. A(n) data worker processes the organization’s paperwork.
Difficulty: Easy
Reference: p. 21
105. A(n) operational manager monitors the day-to-day activities of the organization.
Difficulty: Easy
Reference: p. 21
106. A(n) Web site comprises all of the Web pages maintained by an organization or an
individual.
Difficulty: Easy
Reference: p. 22
107. A(n) intranet is an internal network based on Internet technology and standards.
Difficulty: Easy
Reference: p. 22
108. The physical equipment used for input, processing, and output activities in an information
system is the computer hardware.
Difficulty: Easy
Reference: p. 22
109. A(n) network links two or more computers to share data or resources such as a printer.
Difficulty: Easy
Reference: p. 22
1-16
Managing the Digital Firm
Chapter 1
110. The World Wide Web is a system with universally accepted standards for storing, retrieving,
formatting, and displaying information in a networked environment.
Difficulty: Easy
Reference: p. 22
111. The world’s largest and most widely used network is the Internet.
Difficulty: Medium
Reference: p. 22
112. A(n) information technology infrastructure is all of the technologies comprising the
resources that can be shared throughout the organization.
Difficulty: Easy
Reference: p. 23
113. Complementary assets are those assets required to derive value from a primary investment.
Difficulty: Easy
Reference: p. 24
114. Among the complementary assets required to optimize returns from information technology
investments, efficient business processes are an example of a(n) organizational asset.
Difficulty: Hard
Reference: p. 25
115. Management science emphasizes the development of models for decision-making and
management practices.
Difficulty: Easy
Reference: p. 26
116. A(n) technical approach to information systems includes management science, computer
science, and operations research.
Difficulty: Hard
Reference: p. 26
117. A(n) sociotechnical perspective on information systems says that the performance of the
system is optimized when both the technology in the organization mutually adjust to one
another until a satisfactory fit is obtained.
Difficulty: Hard
Reference: p. 27
118. The study of management information systems focuses on the use of computer-based
information systems by managers.
Difficulty: Easy
Reference: p. 27
Chapter 1
Managing the Digital Firm
1-17
Essay Questions
119.
Your text outlines five factors to consider when assessing the growing impact of IT in
business firms today and over the next ten years. List these five factors.
1.
2.
3.
4.
5.
120.
Internet growth and technology convergence.
Transformation of the business enterprise.
Growth of a globally connected economy.
Growth of knowledge and information-based economies.
Emergence of the digital firm.
Compare and contrast the characteristics of the new manager and the traditional manager.
The traditional manager relied — and still relies — on formal plans, a rigid division of labor,
and formal rules. One of the most obvious characteristics of this form of management is the
time it takes for decisions to work their way through channels. The new manager relies on
informal commitments and networks to establish goals (rather than formal planning), a
flexible arrangement of teams and individuals working in task forces, and a customer
orientation to achieve coordination among employees. The new manager appeals to the
knowledge, learning, and decision making of individual employees to ensure proper
operation of the firm.
121.
Information technology is one of many tools that managers use to cope with change. List
and describe the four key components of information technology.
1. Computer hardware – is the physical equipment used for input, processing, and output
activities in an information system.
2. Computer software – consists of the detailed, preprogrammed instructions that
control and coordinate the computer hardware components in an information system.
3. Storage technology – includes both the physical media for storing data, such as
magnetic disk, optical disc, or tape, and the software governing the organization of data
on these physical media.
4. Communication technology – consisting of both physical devices and software, links
the various pieces of hardware and transfers data form one physical location to another.
122.
Describe the following terms: Internet, intranets, and an extranet.
1. The Internet is an international network of networks that are both commercial and
publicly owned. The Internet connects hundreds of thousands of different networks
from more than 200 countries around the world.
2. Intranets are internal corporate networks based on Internet technology.
3. Extranets are private intranets extended to authorized users outside the organization.
Firms use such networks to coordinate their activities with other firms for making
purchase, collaborating on design, and other interorganizational work.
1-18
Managing the Digital Firm
123.
Chapter 1
What are the functions of an information system from both a business and technical
standpoint?
An information system contains data, which are transformed into information about an
organization and its surrounding environment. Three basic activities – input, processing, and
output – produce the information organizations need. Feedback is output returned to the
appropriate people or activities in the organization to evaluate and refine the input.
Environmental adverse factors such as customers, suppliers, competitors, stockholders, and
regulatory agencies interact with the organization and its information systems.
124.
Define and discuss the information value chain.
In the information value chain, raw data are systematically acquired and then transformed in
various stages that add value to what is then called information. The primary purpose of
information systems is to contribute to corporate value. From the business perspective,
information systems are part of a series of value-adding activities for acquiring,
transforming, and distributing information that managers can use to improve decision
making, enhance organizational performance and ultimately increase firm profitability.
125.
Identify and describe the two contemporary approaches to information systems given by the
text, with special attention to the three separate disciplinary approaches taken by each. Note
that neither of these is the approach advocated by the authors.
1. Technical approaches – management science, computer science, and operations
research.
2. Behavioral approaches – psychology, economics, and sociology.
NOTE: The student’s answer should offer an explanatory paragraph for each of these items.
126.
What does the term “sociotechnical perspective”, as used by the authors, mean in terms of
the study of management information systems?
From the sociotechnical perspective, the performance of the system is optimized when both
the technology and the organization mutually adjust to one another until a satisfactory fit is
obtained. Sometimes this means that the technology must be changed and designed in “nonoptimal” ways to fit it to organizational and individual needs. In order for the sociotechnical
perspective to work, the organization and the individuals within it must also be changed
through training, learning, and planned organizational change.
127.
The technical approach to information systems emphasizes mathematically based models to
study information systems, as well as the physical technology and formal capabilities of these
systems. List and discuss the three disciplines that contribute to the technical approach to
information systems.
1. Computer science – is concerned with establishing theories of computability
methods of computation, and methods of efficient data storage and access.
2. Management science – emphasizes the development of models for decisionmaking and management practices.
3. Operations research – focuses on mathematical techniques for optimizing
selected parameters of organizations, such as transportation, inventory
control, and transaction costs.
Chapter 1
128.
Managing the Digital Firm
1-19
Your text lists five key management challenges in building and using information systems.
List and discuss at least three of these.
1.
2.
3.
4.
5.
The information systems investment challenge
The strategic business challenge
The globalization challenge
The information technology infrastructure challenge
Ethics and security