Management Information Systems
How Businesses Use Information Systems
1) Operational management is responsible for directing the day-to-day operations of the business and
therefore needs transaction-level information.
Answer: TRUE
2) Deciding whether to introduce a new product line is the responsibility of an operational manager.
Answer: FALSE
3) Business processes refer to the manner in which work is organized, coordinated, and focused to
produce a valuable product or service.
Answer: TRUE
4) The performance of a business firm depends on how well its business processes are designed and
coordinated.
Answer: TRUE
5) Information systems automate many steps in business processes that were already automated.
Answer: FALSE
6) Ordering a book online from Chapters.Indigo.ca or downloading a music track from iTunes are
entirely new business processes based on old business models.
Answer: FALSE
7) Functional systems that operate independently of each other are becoming a thing of the future
because they cannot easily share information to support cross-functional business processes.
Answer: FALSE
8) Operational management, middle management, and senior management each use a specific type of
system to support the decisions they must make to run the company.
Answer: TRUE
9) At the operational level, tasks, resources, and goals are predefined and highly unstructured.
Answer: FALSE
10) Managers need TPS to monitor the status of internal operations and the firm's relations with the
external environment.
Answer: TRUE
11) Transaction processing systems are often so central to a business that TPS failure for a few hours
can lead to a firm's demise and perhaps that of other firms linked to it.
Answer: TRUE
Page Ref: 37
12) Middle management needs systems to help with monitoring, controlling, decision making, and
administrative activities.
Answer: TRUE
Page Ref: 37
13) Sometimes you will hear TPS referred to as business intelligence systems because they focus on
helping users make better business decisions.
Answer: FALSE
Page Ref: 37
14) Digital dashboards are becoming an increasingly popular feature of DSS.
Answer: FALSE
Page Ref: 38
15) Information that was previously fragmented in different systems can be easily shared across the firm
to help different parts of the business work more closely together.
Answer: TRUE
Page Ref: 43
16) Enterprise systems integrate the key business processes of an entire firm into a single software
system that enables information to flow seamlessly throughout the organization.
Answer: TRUE
Page Ref: 42
17) Supply chain management (SCM) systems help businesses manage relationships with their
customers.
Answer: FALSE
Page Ref: 43
18) Customer relationship management (CRM) systems help firms manage their relationships with their
customers.
Answer: TRUE
Page Ref: 43
19) SCM systems consolidate and integrate customer information from multiple communication
channels.
Answer: FALSE
Page Ref: 43
20) Transaction processing systems (TPS) enable organizations to better manage processes for capturing
and applying knowledge and expertise.
Answer: FALSE
Page Ref: 43
21) Knowledge management systems (KMS) also link the firm to external sources of knowledge.
Answer: TRUE
Page Ref: 43
22) KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as
processes for creating new knowledge and integrating it into the organization.
Answer: TRUE
Page Ref: 43
23) DSS applications create deep-seated changes in the way the firm conducts its business, and they are
often costly to implement.
Answer: FALSE
Page Ref: 43
24) Intranets and extranets are really more technology platforms than specific applications.
Answer: TRUE
Page Ref: 43
25) An intranet typically centres on a portal that provides a single point of access to information from
several different systems and to documents using a Web interface.
Answer: TRUE
Page Ref: 43
26) End users are representatives of departments outside the information systems group for whom
applications are developed.
Answer: TRUE
27) Transaction processing systems are most commonly used by the senior management level of an
organization.
Answer: FALSE
28) A transaction processing system is a computerized system that performs and records the daily
routine transactions necessary to conduct business.
Answer: TRUE
29) A hotel reservation system is a typical example of a management information system.
Answer: FALSE
30) Management information systems typically support non-routine decision making.
Answer: FALSE
31) Enrolling employees in benefits plans is a business process handled by the finance and accounting
function.
Answer: FALSE
Page Ref: 34
32) Functional systems that support business processes within a single functional group, such as human
resources, are being phased out in favour of cross-functional systems.
Answer: TRUE
33) Managers need TPSs to monitor the status of internal operations and the firm's relations with the
external environment.
Answer: TRUE
34) Most MISs use sophisticated mathematical models or statistical techniques.
Answer: FALSE
Page Ref: 37
35) Decision-support systems help managers make decisions that are unique, rapidly changing, and not
easily specified in advance.
Answer: TRUE
Page Ref: 38
36) Decision-support systems use internal information as well as information from external sources.
Answer: TRUE
Page Ref: 38
37) ESSs are designed to serve the middle management of the organization.
Answer: FALSE
Page Ref: 39
38) ESSs are designed to incorporate data about external events, but they also draw summarized
information from internal MIS and DSS.
Answer: TRUE
Page Ref: 39
39) ESSs are designed primarily to solve specific problems.
Answer: FALSE
Page Ref: 39
40) Information supplied by an enterprise system is structured around cross-functional business
processes.
Answer: TRUE
Page Ref: 42
41) Enterprise systems often include transactions with customers and vendors.
Answer: TRUE
Page Ref: 42
42) Supply chain management systems are more externally oriented than enterprise systems.
Answer: TRUE
Page Ref: 42
43) Maintaining online directories of employees with special areas of expertise is one application of
knowledge management systems.
Answer: TRUE
Page Ref: 45
44) CN reduced costs and improved customer service significantly because it had learned how to apply
new technology to improve the processes involved in intermodal transfers.
Answer: TRUE
Page Ref: 32
45) The sales and marketing function is responsible for selling the product.
Answer: TRUE
Page Ref: 34
46) The sales and marketing function is responsible for assembling the product.
Answer: FALSE
Page Ref: 34
47) System outputs do not include online and hard-copy reports for management and employee
paycheques.
Answer: FALSE
48) Toronto-based Dundas Data Visualization's digital dashboard delivers comprehensive and accurate
information for decision making.
Answer: TRUE
Page Ref: 40
49) A point-of-sale system captures purchase and payment data at a physical location where goods or
services are bought and sold using computers, automated cash registers, scanners, or other digital
devices.
Answer: TRUE
Page Ref: 41
50) Enterprise applications automate processes that do not span multiple business functions and
organizational levels and may extend outside the organization.
Answer: FALSE
Page Ref: 42
51) Canadian Tire uses an extranet to communicate between the home office and its associate
dealerships to broadcast information, saving the company potentially millions of pieces of paper
formerly used for this type of communication.
Answer: TRUE
52) The Internet has become a powerful tool for instantly mobilizing interest groups for political action
and fundraising.
Answer: TRUE
53) "Interaction" jobs tend to be professional jobs in the service sector that require close coordination
and collaboration.
Answer: TRUE
Page Ref: 45
54) People working together can complete a complex task faster than the same number of people
working in isolation from one another.
Answer: TRUE
Page Ref: 47
55) People working collaboratively in groups can come up with less innovative ideas for products,
services, and administration than the same number working in isolation from one another.
Answer: FALSE
Page Ref: 47
56) Identifying customers is a responsibility of the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
Answer: D
Page Ref: 34
57) Producing bills of materials is a business process within the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
Answer: C
Page Ref: 34
58) Which of the following is an example of a cross-functional business process?
A) identifying customers
B) creating a new product
C) assembling a product
D) paying creditors
Answer: B
59) Which type of system would you use to change a production schedule if a key supplier was late in
delivering goods?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: B
60) To monitor the status of internal operations and the firm's relations with the external environment,
managers need ________ systems.
A) decision-support
B) knowledge
C) transaction processing
D) management information
Answer: C
61) Which type of system would you use to determine the five suppliers with the worst record in
delivering goods on time?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: C
Page Ref: 37
62) A relocation control system that reports summaries on the total moving, house-hunting, and home
financing costs for employees in all company divisions would fall into the category of
A) knowledge management systems.
B) transaction processing systems.
C) executive-support systems.
D) management information systems.
Answer: D
Page Ref: 37
63) The term "management information systems" designates a specific category of information systems
serving:
A) integrated data processing throughout the firm.
B) transaction process reporting.
C) employees with online access to historical records.
D) middle management functions.
Answer: D
Page Ref: 37
64) Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to
which type of system?
A) MIS
B) TPS
C) ESS
D) DSS
Answer: D
Page Ref: 38
65) John has worked in the marketing department of a computer supplier for five years. He obtains
information on marketing decisions from a system that handles only marketing data for the firm. John is
using which kind of system?
A) MIS
B) DSS
C) cross-functional
D) functional
Answer: D
66) Mary has some decisions to make in regards to pricing her candy products. She is wondering what
the effect will be on sales if she raises the price by 10 percent and reduces the amount of grams in the
candy bags by 2 percent. Mary should use what kind of information system to help her make this
decision?
A) MIS
B) DSS
C) cross-functional
D) functional
Answer: B
Page Ref: 38
67) Richard has started a new food business. He will have about 300 customers per day and receive
supplies from 50 suppliers per month. In order to keep track of all of these various business transactions,
he needs a system. What kind of system should Richard install?
A) MIS
B) DSS
C) cross-functional
D) TPS
Answer: D
68) Donna works for a national pizza company in Calgary. They have over 100 stores across Canada.
Every week they receive all the sales and cost data from all their stores. This data is processed and
aggregated on a weekly basis. Then reports are given to Donna so that she can analyze the performance
of the business. What kind of system is Donna using?
A) MIS
B) DSS
C) cross-functional
D) TPS
Answer: A
Page Ref: 37
69) Helen is the head of a cosmetic distributor. They have over 300 accounts across Canada. Helen is
tasked with scanning both the internal and external environment of the business. Helen then helps to
determine overall strategies the company will pursue. What type of information system will Helen use to
help her with her task?
A) MIS
B) DSS
C) ESS
D) TPS
Answer: C
Page Ref: 39
70) Bill works for a firm that manufactures doors for commercial businesses. He is the accountant for
the firm. To do his job he must collect data about raw inventory levels, goods in production, finished
goods, and all the costs of the inputs of those processes. Bill would most likely benefit by using what
kind of system to perform his job at a high level?
A) CRM
B) SCM
C) ERP
D) TPS
Answer: C
Page Ref: 43
71) Eddy is feeling a lot stress in his work life right now. He is a purchasing manager for a large retail
store and the holiday season is fast approaching. He needs to make sure that the store is well stocked so
that they have enough inventory from all their suppliers to cover this busy time of year. Eddy would
most likely benefit by using what kind of system to perform his job at a high level?
A) CRM
B) SCM
C) ERP
D) TPS
Answer: B
Page Ref: 43
72) Susan is employed by a new car dealership. The dealership knows that it is less expensive to retain
current customers than it is to get new customers. Her dealership likes to follow up with current
customers every four months for up to two years to make sure that they are satisfied with their purchase.
Susan would be well served to use what kind of system in her duties?
A) CRM
B) SCM
C) ERP
D) TPS
Answer: A
Page Ref: 43
73) Bill works for Nike in Edmonton. Nike gives Bill access to internal company data such as inventory
levels, pricing, product availability as well as training on new products. Nike is most likely using which
system to help motivate and train their own employees?
A) CRM
B) SCM
C) intranet
D) extranet
Answer: C
Page Ref: 43
74) Glen manufactures shoes for Nike in Hong Kong. His firm receives the plans for the shoes from
Nike eight month before Nike needs the shoes. Glen needs a constant flow of information with Nike in
Canada. Glen needs to know colour, sizes, and number of models needed. Glen also gives Nike reports
through the system as to the status and cost of production of Nike's order. Nike is most likely using
which system to keep in contact and manage their shoe production?
A) CRM
B) SCM
C) intranet
D) extranet
Answer: D
75) ________ are a type of Web site that makes it easy for users to contribute and edit text content and
graphics without any knowledge of Web page development or programming techniques.
A) Wikis
B) Virtual worlds
C) Social networking
D) E-mail
Answer: A
Page Ref: 48
76) ________ are computer-based simulated environment intended for its users to inhabit and interact
via graphical representations called avatars.
A) Wikis
B) Virtual worlds
C) Social networking
D) E-mail
Answer: B
Page Ref: 49
77) ________ are online communities for expanding users' business or social contacts by making
connections through their mutual business or personal connections.
A) Wikis
B) Virtual worlds
C) Social networking
D) E-mail
Answer: C
Page Ref: 48
78) ________ are the computer-to-computer exchange of messages.
A) Wikis
B) Virtual worlds
C) Social Networking
D) E-mail
Answer: D
Page Ref: 48
79) Systems analysts are
A) highly trained technical specialists who write computer software instructions.
B) specialists who translate business problems and requirements into information requirements and
systems
C) employees who heads the formal security function for an organization
D) senior managers in charge of the information systems function in a firm.
Answer: B
80) ________ systems are especially suited to situations in which the procedure for arriving at a solution
may not be fully defined in advance.
A) Management information
B) Transaction processing
C) Decision-support
D) Knowledge management
Answer: C
Page Ref: 38
81) Which type of system would you use to forecast the return on investment if you used new suppliers
with better delivery track records?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: D
Page Ref: 38
82) Decision-support systems are often referred to as business ________ systems.
A) information
B) intelligence
C) analysis
D) modeling
Answer: B
Page Ref: 39
83) ESS are specifically designed to serve which level of the organization?
A) operational
B) end-user
C) middle management
D) senior management
Answer: D
Page Ref: 39
84) Executive support systems are information systems that support the
A) long-range planning activities of senior management.
B) knowledge and data workers in an organization.
C) decision-making and administrative activities of middle managers.
D) day-to-day processes of production.
Answer: A
Page Ref: 39
85) Which systems often deliver information to senior executives through a portal, which uses a Web
interface to present integrated personalized business content?
A) transaction processing systems
B) executive support systems
C) management information systems
D) decision-support systems
Answer: B
Page Ref: 39
86) Which type of system would you use to determine what trends in your supplier's industry will affect
your firm the most in five years?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: A
Page Ref: 39
87) What is the most important function of an enterprise application?
A) increasing speed of communicating
B) enabling business functions and departments to share information
C) enabling a company to work collaboratively with customers and suppliers
D) enabling cost-effective e-business processes
Answer: B
Page Ref: 42
88) ________ are designed to support organization-wide process coordination and integration.
A) Decision-support systems
B) Management information systems
C) CRM systems
D) Enterprise applications
Answer: D
Page Ref: 42
89) A(n) ________ system collects data from various key business processes and stores the data in a
single, comprehensive data repository, usable by other parts of the business.
A) transaction
B) enterprise
C) automatic reporting
D) management information
Answer: B
Page Ref: 43
90) You manage the IT department at a small startup Internet advertiser. You need to set up an
inexpensive system that allows customers to see real-time statistics such as views and click-throughs
about their current banner ads. Which type of system will most efficiently provide a solution?
A) CRM
B) enterprise system
C) extranet
D) intranet
Answer: C
Page Ref: 43
91) The four major enterprise applications are
A) SCMs, CRMs, DSSs, and KMSs.
B) SCMs, CRMs, ESSs, and KMSs.
C) enterprise systems, SCMs, DSSs, and CRMs.
D) enterprise systems, SCMs, CRMs, and KMSs.
Answer: D
Page Ref: 43
92) Enterprise systems are also known as ________ systems.
A) resource planning
B) enterprise resource planning
C) enterprise support
D) management information
Answer: B
Page Ref: 43
93) Enabling management to make better decisions regarding organizing and scheduling sourcing,
production, and distribution is a central feature of
A) SCMs
B) TPSs
C) KMSs
D) ERPs
Answer: A
Page Ref: 43
94) ________ systems integrate supplier, manufacturer, distributor, and customer logistics processes.
A) Collaborative distribution
B) Supply-chain management
C) Reverse logistics
D) Enterprise planning
Answer: B
Page Ref: 43
95) ________ uses a set of integrated applications to address all aspects of the customer relationship.
A) CRM
B) MIS
C) CLE
D) CLU
Answer: A
Page Ref: 43
96) Which types of systems consolidate the relevant knowledge and experience in the firm to make it
available to improve business processes and management decision making?
A) TPS
B) Extranets
C) KMS
D) CRM
Answer: C
Page Ref: 43
97) An information system for ________ would NOT be categorized as a KMS.
A) distributing documents
B) documenting the expertise of company specialists
C) enabling the discovery of new product applications
D) discovering new sales channels for a product
Answer: D
Page Ref: 43
98) Which type of information system is an intranet most easily adapted to?
A) CRM
B) MIS
C) TPS
D) KMS
Answer: D
Page Ref: 43
99) Which of the following types of system helps expedite the flow of information between the firm and
its suppliers and customers?
A) intranet
B) extranet
C) KMS
D) TPS
Answer: B
100) Which of the following occupations would NOT be categorized as an "interaction" job?
A) sales representative
B) business manager
C) engineer
D) operations manager
Answer: C
Page Ref: 48
101) Which of the following decisions requires knowledge based on collaboration and interaction?
A) How long will it take to manufacture this product?
B) Should we collaborate with outside vendors on new products and services?
C) In which geographical locations are our products garnering the most sales?
D) Which product design is the most efficient for the user in terms of energy use?
Answer: B
Page Ref: 45
102) E-government refers to the application of ________ to digitally enable government and publicsector agencies relationships with citizens, businesses, and other arms of government.
A) the Internet and networking technologies
B) e-commerce
C) e-business
D) any computerized technology
Answer: A
103) Buying or selling goods over the Internet is called
A) e-commerce.
B) e-business.
C) an intranet.
D) an extranet.
Answer: A
104) The use of digital technology and the Internet to execute the major business processes in the
enterprise is called
A) e-commerce.
B) e-business.
C) enterprise applications.
D) MIS.
Answer: B
105) The principal liaison between the information systems groups and the rest of the organization is
a(n)
A) programmer.
B) information systems manager.
C) systems analyst.
D) CTO.
Answer: C
106) A ________ is a senior manager who oversees the use of IT in the firm.
A) CEO
B) CFO
C) CIO
D) CTO
Answer: C
107) The ________ helps design programs and systems to find new sources of knowledge or to make
better use of existing knowledge in organizational and management processes.
A) CTO
B) CSO
C) CKO
D) CPO
Answer: C
108) The CPO is responsible for
A) ensuring that the company complies with existing data privacy laws.
B) making better use of existing knowledge in organizational and management processes.
C) enforcing the firm's information security policy.
D) overseeing the use of information technology in the firm.
Answer: A
109) The advantage of a having a centralized information services department that operates as a separate
department similar to other departments is that
A) this is more likely to produce more compatible systems and more coherent long-term systems
development plans.
B) this lowers costs of technology purchases.
C) systems are built that directly address that function's business needs.
D) systems are built that can function independently and more efficiently.
Answer: A
110) Which of the following roles falls into the duties of an information systems manager?
A) writing software instructions for computers
B) acting as liaison between the information systems group and the rest of the organization
C) translating business problems into information requirements
D) managing data entry staff
Answer: D
111) Which of the following types of organizing the information systems function would you be most
likely to find in a small company with 20 employees?
A) as departments within each functional area
B) as a separate, centralized department
C) represented within each major division of the company
D) none of the above
Answer: D
112) Which of the following types of organizing the information systems function would you be most
likely to find in a very large, multinational corporation?
A) as departments within each functional area
B) as a separate, centralized department
C) represented within each major division of the company
D) none of the above
Answer: C
113) You work for a highly successful advertiser that is just about to expand nationally. Of utmost
importance will be finding a way to store and disseminate their clients continually updated branding
guides, which include multiple image files and text documents, to all of the firm's branches. What
system will best serve these needs?
A) an intranet with KMS capabilities
B) an extranet with KMS capabilities
C) a TPS with KMS capabilities
D) a CRM
Answer: B
Page Ref: 43
114) You have been hired by a non-profit agency to implement a system to handle their donations. Event
fundraisers need to be able to quickly access a donor's information and history. The marketing
department needs to be able to create customized mailing lists, in order to send different messages to
different types of donors. What system will best meet these needs?
A) TPS
B) TPS with DSS capabilities
C) TPS with MIS capabilities
D) TPS with ESS capabilities
Answer: C
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115) You have been hired by Inspiration Inc. to help improve their profit margin. Inspiration Inc. is a
business communications consultancy that services many clients in different industries throughout the
United States. The end products of the company are customized recommendations for the best use of a
clients existing resources for improving internal communications, typically delivered via documentation
in different media. The company has approximately 100 consultants, all of whom are located in their
central headquarters in Chicago. What system do you recommend to improve the company's business
processes and increase their profit margin?
A) Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating
with the client, and minimize the amount of paperwork needed
B) CRM, to maintain easily accessible customer records to minimize the time spent looking for client
data
C) KMS, for minimizing redundant work on similar clients
D) marketing system, for improving sales levels
Answer: A
Page Ref: 43
116) Fulfilling a customer order involves a complex set of steps that requires the close coordination of
the ________ functions.
A) sales, accounting, and manufacturing
B) production, accounting, and manufacturing
C) sales, production, and manufacturing
D) sales, accounting, and production
Answer: A
Page Ref: 34
117) A ________ captures purchase and payment data at a physical location where goods or services are
bought and sold using computers, automated cash registers, scanners, or other digital devices.
A) Wiki
B) TPS
C) ESS
D) point-of-sale system
Answer: D
Page Ref: 41
118) A ________ allows individuals at two or more locations to communicate simultaneously through
two-way video and audio transmissions.
A) videotape
B) wiki
C) blog
D) videoconference
Answer: D
Page Ref: 49
119) ________ is a private and shared calendars service.
A) Google Talk
B) Google Docs
C) Google Gmail
D) Google Calendar
Answer: D
120) ________ is a free online e-mail service, with mobile access capabilities.
A) Google Talk
B) Google Docs
C) Google Gmail
D) Google Calendar
Answer: C
121) ________ is an instant messaging and text and voice chat service.
A) Google Talk
B) Google Docs
C) Google Gmail
D) Google Calendar
Answer: A
122) ________ is an online word processing, presentation, spreadsheet, and drawing software; online
editing and sharing.
A) Google Talk
B) Google Docs
C) Google Gmail
D) Google Calendar
Answer: B
123) Microsoft SharePoint is the most widely adopted ________ for small and medium-sized firms that
use Microsoft server and networking products.
A) process system
B) collaboration system
C) ERP system
D) decision system
Answer: B
124) Which service is an enterprise server-based collaboration environment that provides social
networking, Twitter-like micro-blogging, wiki workspaces with integrated weblogs, distributed
spreadsheets, and a personal home page for every user.
A) Socialtext
B) Zoho
C) BlueTie
D) Basecamp
Answer: A
Page Ref: 52
125) Which service performs collecting and collaborating on text, line drawings, images, Web pages,
video, RSS feeds, and project management for free or monthly charge for premium service.
A) Socialtext
B) Zoho
C) BlueTie
D) Basecamp
Answer: B
Page Ref: 52
126) Which service performs online collaboration with e-mail, scheduling, to-do lists, contact
management, file sharing, and a monthly user fee.
A) Socialtext
B) Zoho
C) BlueTie
D) Basecamp
Answer: C
Page Ref: 52
127) Which service allows sharing to-do lists, files, message boards, milestone tracking and is free for a
single project, with a monthly fee for 15 projects with 5 gigabytes of storage.
A) Socialtext
B) Zoho
C) BlueTie
D) Basecamp
Answer: D
Page Ref: 52
128) ________, an integrated audio and visual environment that allows a person to give the appearance
of being present at a location other than his or her true physical location.
A) Telecommuting technology
B) Advanced technology
C) VOIP technology
D) Telepresence technology
Answer: D
Page Ref: 49
129) A(n) ________ is a set of logically related activities for accomplishing a specific business result.
Answer: business process
130) A Web interface used to present integrated personalized business content to users is called a(n)
________.
Answer: portal
Page Ref: 39
131) ________ applications span the entire firm, integrating information from multiple functions and
business processes to enhance the performance of the organization as a whole.
Answer: Enterprise
Page Ref: 42
132) ________ systems are used by middle management to combine data and sophisticated analytical
models or data analysis tools to support nonroutine decision making.
Answer: Decision-support
Page Ref: 38
133) IT ________ includes the strategy and policies for using information technology within an
organization.
Answer: governance
134) The ________ function is responsible for attracting, developing, and maintaining the firm's
workforce.
Answer: human resources
Page Ref: 34
135) A state Web site that allows citizens to pay parking fines online is a form of ________.
Answer: e-government
136) Supply chain management systems are one type of ________ system because they automate the
flow of information across organizational boundaries.
Answer: interorganizational
Page Ref: 43
137) ________ are highly trained technical specialists who write the software instructions for
computers.
Answer: Programmers
138) Business ________ refer to the manner in which work is organized, coordinated, and focused to
produce a valuable product or service.
Answer: processes
139) To a large extent, the ________ of a business firm depends on how well its business processes are
designed and coordinated.
Answer: performance
140) Information systems automate many steps in business processes that were formerly performed
________.
Answer: manually
141) ________ systems that operate independently of each other are becoming a thing of the past
because they cannot easily share information to support cross-functional business processes.
Answer: Functional
142) Operational management, middle management, and ________ management each use a specific
type of system to support the decisions they must make to run the company.
Answer: senior
143) At the ________ level, tasks, resources, and goals are predefined and highly structured.
Answer: operational
144) Managers need TPS to monitor the status of ________ operations and the firm's relations with the
external environment.
Answer: internal
145) ________ management needs systems to help with monitoring, controlling, decision-making, and
administrative activities.
Answer: Middle
Page Ref: 37
146) ________ are often so central to a business that failure for a few hours can lead to a firm's demise
and perhaps that of other firms linked to it.
Answer: Transaction processing systems; TPS
Page Ref: 37
147) Sometimes you will hear ________ referred to as business intelligence systems because they focus
on helping users make better business decisions.
Answer: DSS
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148) Digital dashboards are becoming an increasingly popular feature of ________.
Answer: ESS
Page Ref: 39
149) This ________ of data in hundreds of separate systems ("silos of information") degrades
organizational efficiency and business performance.
Answer: fragmentation
Page Ref: 45
150) ________ systems integrate the key business processes of an entire firm into a single software
system that enables information to flow seamlessly throughout the organization.
Answer: Enterprise
Page Ref: 43
151) ________ systems help businesses manage relationships with their suppliers.
Answer: Supply chain management (SCM)
Page Ref: 43
152) Supply chain management systems are one type of ________ because they automate the flow of
information across organizational boundaries.
Answer: interorganizational system
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153) ________ systems help firms manage their relationships with their customers.
Answer: Customer relationship management (CRM)
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154) ________ enable organizations to better manage processes for capturing and applying knowledge
and expertise.
Answer: Knowledge management systems (KMS)
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155) KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as
processes for creating new ________ and integrating it into the organization.
Answer: knowledge
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156) ________ applications create deep-seated changes in the way the firm conducts its business, and
they are often costly to implement.
Answer: Enterprise
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157) Intranets and extranets are really more technology ________ than specific applications.
Answer: platforms
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158) An intranet typically centres on a ________ that provides a single point of access to information
from several different systems and to documents using a Web interface.
Answer: portal
159) Companies can connect their intranets to internal company ________ systems, enabling employees
to take actions central to a company's operations
Answer: transaction
160) ________ expedite the flow of information between the firm and its suppliers and customers.
Answer: Extranets
161) Teams of employees who work together from many different locations around the world need tools
to support ________ collaboration.
Answer: workgroup
Page Ref: 47
162) LinkedIn.com provides ________ services to business professionals.
Answer: networking
Page Ref: 48
163) The most well-known wiki is ________.
Answer: Wikipedia
Page Ref: 48
164) ________ are ideal tools for storing and sharing company knowledge and insights.
Answer: Wikis
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165) ________ constitute the principal liaisons between the information systems groups and the rest of
the organization.
Answer: Systems analysts
166) The ________ is a senior manager who oversees the use of information technology in the firm.
Answer: CIO
167) ________ are representatives of departments outside the information systems group for whom
applications are developed.
Answer: End users
168) ________ includes the strategy and policies for using information technology within an
organization.
Answer: IT governance
169) Very large firms with ________ divisions and product lines might allow each division to have its
own information systems group.
Answer: multiple
170) ________ are representatives of departments outside of the information systems group for whom
applications are developed.
Answer: End users
171) The ________ function is responsible for selling the product.
Answer: sales and marketing
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172) The ________ function is responsible for assembling the product.
Answer: manufacturing and production
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173) ________ include online and hard-copy reports for management and employee paycheques.
Answer: System outputs
174) Toronto-based Dundas Data Visualization's digital ________ delivers comprehensive and accurate
information for decision making.
Answer: dashboard
Page Ref: 40
175) A ________ system captures purchase and payment data at a physical location where goods or
services are bought and sold using computers, automated cash registers, scanners, or other digital
devices.
Answer: point-of-sale
Page Ref: 41
176) ________ automate processes that span multiple business functions and organizational levels and
may extend outside the organization.
Answer: Enterprise applications
Page Ref: 42
177) Canadian Tire operates its inTirenet ________ so that its employees can access information and
share problem solutions.
Answer: intranet portal
178) ________ such as Second Life are online 3-D environments populated by "residents" who have
built graphical representations of themselves known as "avatars."
Answer: Virtual worlds
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179) A ________ allows individuals at two or more locations to communicate simultaneously through
two-way video and audio transmissions.
Answer: videoconference
Page Ref: 49
180) Microsoft SharePoint is the most widely adopted a ________ system for small and medium-sized
firms that use Microsoft server and networking products.
Answer: collaboration
Page Ref: 49
181) Identify and discuss the major types of information systems that serve the main management
groups within a business. What are the relationships among these systems?
Answer: The four major categories of information systems are:
1. Transaction processing systems, such as payroll or order processing, track the flow of the daily
routine transactions that are necessary to conduct business.
2. Management-information systems (MIS) provide the management control level with reports and
access to the organization's current performance and historical records. Most MIS reports condense
information from TPS and are not highly analytical.
3. Decision-support systems (DSS) support management decisions when these decisions are unique,
rapidly changing, and not specified easily in advance. They have more advanced analytical models and
data analysis capabilities than MIS and often draw on information from external as well as internal
sources.
4. Executive-support systems (ESS) support senior management by providing data of greatest
importance to senior management decision makers, often in the form of graphs and charts delivered via
portals. They have limited analytical capabilities but can draw on sophisticated graphics software and
many sources of internal and external information.
The various types of systems in the organization exchange data with one another. TPS are a major
source of data for other systems, especially MIS and DSS. ESSs primarily receive data from lower-level
systems.
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182) You have been hired to work with 10 salespeople from different branches of a national business in
creating an online training site for new sales employees. Identify six collaboration tools that are
available to help the team work together. Which single tool would be the most helpful for the project, in
your opinion, and why?
Answer: Collaboration tools include (1) Internet-based collaboration environment; (2) e-mail and
instant messaging; (3) cell phones and smart phones; (4) social networking; (5) Wikis; and (6) virtual
worlds. The most helpful of these might be the Internet-based collaboration environment, because it
would enable people to have discussions, calendars, conferences, and share documents.
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183) Your aunt has asked you for your suggestions to make her business, a local sandwich shop, more
efficient. Describe at least three types of business processes that a sandwich shop have. Can any be
better coordinated through the use of information systems?
Answer: The business processes of a sandwich shop would include: Taking orders, making sandwiches,
selling to the customer, ordering supplies, opening the store, closing the store, cleaning the store, paying
employees, hiring employees, paying creditors and vendors, creating financial statements, paying taxes,
managing cash.
Many of these processes could be helped by better information systems, specifically those that
require recorded data, such as any financial processes (payments, cash management, taxes, salaries) and
information gathered from and distributed to employees.
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184) Describe the role of IT governance within the firm.
Answer: IT governance is the management of how the information systems function is organized and
handled within the firm. IT governance includes the strategy and policies for using information
technology within an organization. It specifies the decision rights and framework for accountability to
ensure that the use of information technology supports the organization's strategies and objectives. For
example, IT governance decides how decisions implementing and evaluating new systems are made,
whether the IT function should be decentralized or centralized, who has power to create and manage
systems, and what kind of ROI is expected from systems.
185) Apex Vacuum, a family-owned manufacturer of budget vacuums, has grown exponentially over the
last few years. However, the company is having difficulty preparing for future growth. The only
information system used at Apex is an antiquated accounting system. The company has one
manufacturing plant located in Arkansas; and three warehouses, in Arkansas, Delaware, and California.
The Apex sales force is national, and Apex purchases about a third of its vacuum parts and materials
from a single overseas supplier. You have been hired to recommend the information systems Apex
should implement in order to maintain their competitive edge. However, there is not enough money for a
full-blown, cross-functional enterprise application, and you will need to limit the first step to a single
functional area or constituency. What will you choose, and why?
Answer: Student answers will vary. For example: a TPS focusing on production and manufacturing to
keep production costs low while maintaining quality, and for communicating with other possible
vendors. The TPS would later be used to feed MIS and other higher level systems.
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186) Describe at least two benefits of using enterprise systems.
Answer: Enterprise systems integrate the firm's key business processes in sales, production, finance,
logistics, and human resources into a single software system so that information can flow throughout the
organization, improving coordination, efficiency, and decision making. These systems help create a
more uniform organization in which everyone uses similar processes and information, and measures
their work in terms of organization-wide performance standards. The coordination of the firm's key
business processes allows the firm to respond more rapidly to customer demands.
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187) How can a good CRM system increase profits for a company?
Answer: Customer relationship management uses information systems to coordinate all of the business
processes surrounding the firm's interactions with its customers. The systems consolidate customer
information from multiple sources—telephone, e-mail, wireless devices, traditional sales and marketing
systems, and the Web—so that the firm can obtain a unified view of a customer. This allows the firm to
identify its most profitable customers and make special efforts to please them.
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188) What is the connection between organizations, information systems, and business processes?
Answer: Business processes refer to the manner in which work activities are organized, coordinated,
and focused to produce a specific business result. They also represent unique ways in which
organizations coordinate work, information, and knowledge and the ways in which management chooses
to coordinate work. Managers need to pay attention to business processes because they determine how
well the organization can execute, and thus are a potential source for strategic success or failures.
Although each of the major business functions has its own set of business processes, many other
business processes are cross-functional. Information systems can help organizations achieve great
efficiencies by automating parts of these processes or by helping organizations rethink and streamline
them. Firms can become more flexible and efficient by coordinating and integrating their business
processes to improve management of resources and customer service.
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189) What are cross-functional business processes? Give an example.
Answer: Cross-functional processes are those that require input, cooperation, or coordination between
the major business functions in an organization. For instance, when a salesman takes an order, the major
business functions of planning, production, inventory control, shipping, accounting, and customer
relations will all be involved before the order is completed.
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190) The retail home improvement chain you work for, DIY Discount, has noticed that one of its brands
of faucets is not selling nearly as well as anticipated. What information systems of the business will you
use to determine the reason for the poor sales? Discuss what information you will retrieve from which
system. Which of the information systems will be most important for your analysis? Which of the
systems will be least important?
Answer: You might query operational level TPS to make sure that the product is actually getting to the
stores and being restocked. You could query MIS to see average sales levels according to geography,
location, and other factors to see if there are any specific factors affecting the sales. You might query
ESS to see if the same faucets are being sold by competitors and what these prices are. You might use
DSS to see what factors could increase sales.
Assuming that the faucets are being properly stocked at the stores, the most important systems to
query are the managerial-level systems: MIS for summaries of sales records to help pinpoint any other
factors; ESS to check competition, and DSS for higher-level analysis to forecast possible solutions.
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191) A retail sporting goods chain has been expanding rapidly for the last 4 years. This growth has
exposed some problems in their old stand alone legacy computer systems. They are always stocking out
of popular items. What type of system would you suggest they look at implementing and why?
Answer: This sporting goods chain might look at implementing a supply chain management system.
Supply chain management (SCM) systems help businesses manage relationships with their suppliers.
These systems help suppliers, purchasing firms, distributors, and logistics companies share information
about orders, production, inventory levels, and delivery of products and services so that they can make
better decisions about how to organize and schedule sourcing, production, and distribution. The ultimate
objective is to get the right amount of their products from their source to their point of consumption with
the least amount of time and with the lowest cost.
Supply chain management systems are one type of interorganizational system because they automate the
flow of information across organizational boundaries.
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192) An Internet-based company that retails concert tickets on the Web has found a niche market selling
second-tier band concerts. They would like to involve their customer in helping them with their business
by creating a viral marketing atmosphere and getting feed back and participation from these customers
who are passionate about their music. What tools would help them create this type of customer
collaboration?
Answer: Some of the systems they should be using include: e-mail and instant messaging (IM), social
networking, wikis, and perhaps virtual worlds. Using a multiple tools and media would give a variety to
their customers who would appreciate this interaction about a service which they are passionate about.
193) You work for a national consulting firm with offices in every province across Canada. The Calgary
office has developed a new technique for costing out natural resource extraction. This took the Calgary
office about three months to develop. The Toronto office is also consulting with resource-based
companies in Ontario. What system would aid the sharing of information that might be useful in various
provinces and why?
Answer: This firm would be a prime candidate for a KMS. Knowledge management systems (KMS)
enable organizations to better manage processes for capturing and applying knowledge and expertise.
These systems collect all relevant knowledge and experience in the firm and make it available wherever
and whenever it is needed to improve business processes and management decisions. They also link the
firm to external sources of knowledge. KMS support processes for acquiring, storing, distributing, and
applying knowledge, as well as processes for creating new knowledge and integrating it into the
organization. They include enterprise-wide systems for managing and distributing documents, graphics,
and other digital knowledge objects; systems for creating corporate knowledge directories of employees
with special areas of expertise; office systems for distributing knowledge and information; and
knowledge work systems to facilitate knowledge creation. Other knowledge management applications
use intelligent techniques that codify knowledge for use by other members of the organization and tools
for knowledge discovery that recognize patterns and important relationships in large pools of data.
194) The organization you work for has over 200 employees. Cost for IT support of this many people is
getting expensive and this service is not part of the core business. Describe what Google services are out
there that might benefit your firm in this regard?
Answer: One of the most widely used "free" online services for collaboration is Google Apps/Google
Sites. Google Sites allows users to quickly create online, group-editable Web sites. Google Sites is one
part of the larger Google Apps suite of tools. Google Sites users can design and populate Web sites in
minutes and, without any advanced technical skills, post a variety of files including calendars, text,
spreadsheets, and videos for private, group, or public viewing and editing.
Google Apps works with Google Sites and includes the typical desktop productivity office software
tools (word processing, spreadsheets, presentation, contact management, messaging, and mail). A
Premier edition charging businesses $50 per year for each user offers 25 gigabytes of mail storage, a
99.9-percent uptime guarantee for e-mail, tools to integrate with the firm's existing infrastructure, and
24/7 phone support.
195) Our firm understands the advantage of improving collaboration among its 200 employees. Our firm
wants to know how to make the best decision in adopting collaboration technology in order to benefit
the most from this technology. Present a decision-making matrix to make this purchasing decision.
Answer: Here's a to-do list to get started. If you follow these six steps, you should be led to investing in
the correct collaboration software for your firm at a price you can afford, and within your risk tolerance.
1. What are the collaboration challenges facing the firm in terms of time and space? Locate your firm
in the time/space matrix. Your firm can occupy more than one cell in the matrix. Different collaboration
tools will be needed for each situation.
2. Within each cell of the matrix where your firm faces challenges, exactly what kinds of solutions are
available? Make a list of vendor products.
3. Analyze each of the products in terms of their cost and benefits to your firm. Be sure to include the
costs of training in your cost estimates and the costs of involving the information systems department if
needed.
4. Identify the risks to security and vulnerability involved with each of the products. Is your firm
willing to put proprietary information into the hands of external service providers over the Internet? Is
your firm willing to risk its important operations to systems controlled by other firms? What are the
financial risks facing your vendors? Will they be here in three to five years? What would be the cost of
making a switch to another vendor in the event the vendor firm fails?
5. Seek the help of potential users to identify implementation and training issues. Some of these tools
are easier to use than others.
6. Make your selection of candidate tools, and invite the vendors to make presentations.