IS 301
Exam 1 Study Guide
Ekedahl
EXAM FORMAT
The exam will contain True / False, Multiple Choice, and possibly matching questions. In addition, there will be 3-5 short answer questions. For the short answer questions, you will write no more than a paragraph or two. Paper will be provided for the short answer questions. You do not need a blue book. I will provide a scantron.
The exam is closed book. However you may bring 1 page (2 sides) of notes on an 8 ½ x 11 piece of paper.
TIPS
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At the end of each chapter, key terms are presented, along with a reference of where those key terms are defined. Review these key terms and definitions.
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The chapter summary items also provide good concise answers for the types of conceptual questions that you are likely to see on the exam.
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Make sure to review the cases discussed in class. o For example, be able to discuss how the Harrah’s decision support system is used to improve player loyalty and target offers to suit customer needs. Understand how historical and predictive modeling is used to improve targeted customer offers. o Review the Hershey case and be able to discuss the failure of its ERP system. o Review how Amazon’s EC2 has the potential to revolutionize the way we own and manage computers and software. o Understand how FedEx uses Web services to expose its business processes to customers.
EXAM CHAPTERS
The material from the computer and Internet history lesson will be on the exam. However, you need not remember exact dates of the historical events.
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The ARPA’s role in the creation of the Internet.
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The introduction of the router.
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The creation and proliferation of the WWW.
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The introduction of the first search engines.

Chapter 1 – Information Systems in Business
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Understand the meaning of the terms data, information, and business intelligence.
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Understand the different organizational cultures related to information technology.
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Know how IT must communicate and understand the business processes of other functional business units. Understand how various business units and function rely on information technology. o For example, sales and marketing might need credit information from accounting. o SCM would need historical sales information for materials requirements planning and manufacturing scheduling.
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Be able to list and describe IT efficiency (throughput, response time, …) and effectiveness
(usability, customer satisfaction, …) metrics.
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List and describe the ways that IT can be used to give an organization a competitive advantage.
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Describe the elements of Michael Porter’s Five Forces model, and how IT can be used to improve supplier power.
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Describe the elements of Michael Porter’s generic strategies. (Cost leadership, differentiation, focused strategy)
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What is meant by the term “value chain?” o Know the difference between primary activities and support activities.
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What are switching costs?
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Be able to discuss Friedman’s flattening forces and how the Internet has contributed to those flattening forces.
Chapter 2 – Strategic Decision Making
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Understand the role of and the function of o Transaction processing systems o Managerial information systems o Decision support systems o Executive information systems
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Understand the levels of decision making o Strategic o Tactical o Operational
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Be able to give examples of industries that use decision support systems and how those industries can use a DSS to make better decisions o Insurance o Telecommunications o Airlines
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Referring to the video shown in class, be able to discuss the industries that might use a geographical information system and the reason those industries might use it.
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Know how sensitivity analysis, what-if analysis, and goal-seeking analysis are used in a decisionsupport system.

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Be able to list and describe the common elements of a digital dashboard and executive information systems.
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Be able to define and give an example of an intelligent agent.
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De able to describe the purpose of data mining.
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Artificial intelligence o Be able to describe the Touring test o Domains
 Cognitive science
 Robotics
 Natural interfaces
 Neural networks
 Using fuzzy logic to deal with uncertainty
 Intelligent agents
 Expert systems o Be able to discuss the limitations of AI
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Introduction to business processes o Be able to describe the parts of a common business process such as a sales transaction. o Understand the difference between customer facing business processes and business facing business processes. o Be able to describe the risks associated with business process reengineering and how those risks can be minimized. o Understand the differences between business process improvement and business process reengineering. o Be able to discuss the Hershey ERP failure presented in class. o What is business process modeling? How might a flowchart be used to model a business process?
Chapter 3 – Ebusiness
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Be able to identify and describe disruptive and sustaining technologies.
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Be able to discuss trends in Ebusiness such as grid computing the cloud technology.
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Understand the meaning of the term “digital divide”.
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You should be able to describe the evolution of the Internet. o In addition to the book discussion, you should know the basic timeline presented in class.
 ARPA, DARPA, privatization, creation of the WWW, etc. o Understand the concepts surrounding Web 2.0 and Web 3.0.
 Web 2.0 (User participation, collaborative social networking)
 Web 3.0 (Data-driven, the semantic Web)
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Understand the purpose of the essential Internet protocols and services. o HTTP o FTP

o SMTP
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Know the essential services provided by Internet Service Providers and Application Service
Providers. o Pipeline to the Web (at&t, Charter, …) o Web hosting services o Database services o Backup services
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Be able to describe the difference between the terms Ebusiness and Ecommerce.
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Be able to describe and give examples the various Ebusiness models. o Business-to-consumer o Business-to-business o Consumer-to-consumer o Business-to-government
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Understand the term Electronic Data Interchange and its role in automating common business transactions.
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Be able to describe how Ebusiness strategies can be used to give business a competitive advantage. o Sales and marketing
 Mass customization and loyalty programs
 Affiliate and partner programs o Financial services
 Financial intermediary (PayPal)
 Electronic payment and check systems o Procurement and supply chain o Customer service
 Web based self service
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Be able to describe and give an example of an electronic exchange o Forex o ARCA / EX
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Be able to list the types of business to consumer businesses and give examples of each. o Brick and mortar o Pure play o Click and mortar
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Be able to define the term reverse auction.
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Understand the meaning of the term Service Oriented Architecure (SOA)
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Be able to describe a Web Service and characteristics of Web Services. o Understand the role of WSDL and SOAP in Web service.

PRACTICE QUESTIONS
1.
A Web service is a good example of the Service Oriented Architecture (SOA). TRUE
2.
Application service providers offer services such as Web hosting, and database hosting. TRUE
3.
Ebusiness refers to the buying and selling goods on the Internet. FALSE (ECOMMERCE)
4.
A decision-support system might use artificial intelligence. TRUE
5.
MySpace and Facebook would be examples of Web 2.0 social networking technologies. TRUE
6.
The Internet and World Wide Web were created at nearly the same time. FALSE
7.
Recording a credit card charge would be an example of a(n) a.
Decision support system b.
Transaction processing system (CORRECT) c.
Service oriented architecture d.
Management information system
8.
What term related to artificial intelligence is used to deal with ambiguity, such as near or far? a.
Fuzzy logic (CORRECT) b.
Approximation c.
Genetic algorithm d.
Decision support system e.
None of the above
9.
Which of the following are Internet protocols? a.
Web 2.0 and Web 3.0 b.
W3C c.
HTTP (CORRECT) d.
All of the above e.
None of the above.
10.
Give an example of a consumer-to consumer Ecommerce system (EBAY)