Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

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2. Enterprise software allows data to be used by multiple functions and business processes for
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3. Companies can use configuration tables provided by the enterprise software to tailor a
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4. The upstream portion of the supply chain consists of the organizations and processes for
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14. Dell Computer’s build-to-order system is an example of a pull-based model.
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15. Total supply chain costs represent the majority of operating expenses for many businesses
and in some industries approach 75 percent of the total operating budget.
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Customer relationship management ww customers who cost a lot
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21. What problem in its supply chain system did Whirlpool face by 2000?
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bh .com 23. (Synthesis)

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30. Synthesis
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Answer: a Difficulty: Hard Reference: p. 359
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Answer: a Difficulty: Medium Reference: p. 359
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Supply chain complexity and scale: - b - b -bh
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34. A network of organizations and business processes for procuring raw materials, transforming
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and finished products,
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to customers isocalled
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a. distribution channel.
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c. value chain.
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35. IHOP purchased a middleware software package to integrate its data because:
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c. they were able to customize their business processes to this software.
d. this packaged software addressed their unique needs.
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w 37. Awcompany’s w.u suppliers, and the processes
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a. the supplier’s internal supply chain.

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ob -bh 38. b
A company’s h b h
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b h .com 39. comin a supply chain because

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40. Which of the following traditional solutions enables manufacturers to deal with uncertainties
in the supply chain?
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w .u a.w.ujust-in-time strategy. w.u w .uo w .uo
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c. ASAP inventory.
d. replenishment-only inventory.
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Answer:
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Difficulty:
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Reference: p. 362
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w w.u w.u w w
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b
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w the supply chain is called:
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m
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w .uo w .uob w .u b w .uob .u ob
ww ww chain source systems w w ww www
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c o c o m systems. om om
bh . d. bh .
supply chain planning systems or supply bh .
chain execution systems. h.c h.c
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w w.u w w w
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Answer: ww Medium
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44. Systems that enable a firm to generate demand forecasts for a product and to develop
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b h .com plans for that product
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c. supply chain planning systems.
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d. supply chain execution
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h.c
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Reference: w
ww ww ww ww ww
45. Supply chain planning systems:
m a. m m m om
-bh.co track the physical
- b
o of goods.
h.cstatus - b h.co - b h.co bh.c
.u ob b. obtransportation mode to .use
identify.uthe b product delivery. .uob
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w wthe financial information w w u all parties. w w.u
ww c. w
track
w w involving ww ww
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b h .com b h .com
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ob -bh b. Replenishment
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b- b h
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b
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w 47. w.u to manage the flowwofwproducts
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w ensure that products are delivered
w w w
to the right locationswin the most efficient mannerwbest
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m
.uo b-b ob-
b
b. udelivery
. .uo b-b .uo b-b .uo b- b
w w w w w
ww wwc. planning ww ww ww
d. execution
m .com com com om

h.co
Answer: d Difficulty: Medium Reference: p. 364
h . h. .c
b - b b- b b -bh b-b b -bh
w .uo o
w.u chain execution systems:
w.u
o
w.u
o .u o
ww
48. Supply
ww ww w w www
a. schedule product subassemblies.
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b-bh h
time period.
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ob- the firm to generate .demand
h - b h - b h
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o c. .uenable
w w uob forecasts for a product.
w .uob w .uob
ww wwd. develop sourcing andwmanufacturing
w ww how much of a specific
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to manufacture in a given time period.
b h .com Answer: a
b h .com .com
Difficulty: Medium
h .com
Reference:
h pp. 364–365
h.c om
ob- o b- o b-b o b-b .uo b-b
w.u w.u w.u systems would notwinclude:
w.u w
ww 49.
w w
Capabilities of supply chainw
w planning
w ww
a. replenishment.
.com .com .c m om om
b. advanced scheduling and manufacturingoplanning.
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c. demand planning.
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w d.w.uorder w.u w w
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m 50. m m om om
bh.co h.cofo a supply chain execution
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h.csystem is: h.c bh.c
.u ob -
.uo b-b .uo b-b .uo b-b ob-
w w distribution planning.www w w.u
ww wwa. ww ww
b. transportation planning.
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h .com d. .com
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h.c om h.c om h.c om
b- b -bh b-b b-b b-b
w .uo w
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o
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o
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o
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51. Some supply chain integration can be developed inexpensively by:
.c om .c om h.c om .c om .com
ob -bh o b-bh to the business processes
a. adapting
o b -bembedded o b -bh
in SCM packages.
b- b h
w .u b.w.uusing Internet technologyw.u w.u w .uo
ww wwc. adapting PRM modules ww ww ww
d. customizing ERP software
h.c om Answer: b h.com .com

Difficulty:hMedium m
h.co p. 365
Reference: h.c om
.uo b-b .u ob-
b
o b-b o b-b .uo b-b
w w w.u w.u w
ww ww w w w w ww

bh.c b h b h b h
b-b
h.c
w w.u w.u w w
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b
ob -b
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m om om om om
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w 52. A supply w
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w.ua: w
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a. pull-based model
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o m .com om om m
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b h h.c h.c h.co
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replenishment-driven
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w w w w w
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53. m A build-to-order supply-chain

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- bh.co - b h - b h - bh.co -bh
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.uo b .uob model .uob o b ob
w w
a. supply-driven w w.u ww
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ww ww
b. demand-driven model ww w w w
c. replenishment-driven model
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o .com om om
-bh h.c h h.c h.c
ob Answer: b .uo b-b ob-
b b-b
.uo p. 366 .uo b-b
w.u w Difficulty:.uMedium
w Reference:
w w
ww ww ww ww ww
54. Concurrent supply chains are made possible by which technology?
b h .com a. Internet technology

b h .com b h .com h.c om h.c om
ob- b. Pull-basedob -
technology ob- .uo b-b .uo b-b
w.u w . u w . u w w
ww c.
d.
ww chain management systems
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ww
Just-in-time supply-chain technologies
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Answer: a Reference: pp. 366–367
b h b h b h .c b h b h
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w .uob 55. Companiesw.with uobeffective supply chainwmanagement
.uob .uob
systems can expect:
w w .uob
ww ww ww ww ww
a. improved customer service and responsiveness.
c o m b. cost reduction.
om
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-bh
. c. reduced inventory
b h b h h.c bh.c
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all of the .uob
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w w w w w.u
ww ww ww ww ww
bh .com A method of firm interaction

56.
b h.com with a customer, suchb h .casom b h .com
telephone, e-mail, customer service
b h .com
- - mail, or point of purchase - describes: - -
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desk, conventional best
w w w w w
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a. point of presence. ww ww ww
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b h .com d. purchase point.b h .com b h.com b h .com b h.com
- - b- b- b-
w .uob w .uob w.u
o
w.u
o
w .uo
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Answer: w w
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
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bh.c b h
b-b
h.c b h
b-b
h.c
w w.u w.u w w
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b
ob -b
ww w w ww ww ww
m om om om om
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w 57. w.u of the following enterprise
Which w.usoftware deals with employee
w.u issues such as settingww.u
ww w w
w objectives, employee performance
w w w
management, performance-based compensation,wand
employee training?
h.com a. Enterprise
h om software
.csystems h .com h.c om h.co
m
.uo b-b ob-
b
b. uEmployee
.
- b
uob software
relationship management
. .uo b-b .uo b- b
w w w w w
ww wwc. Supply chain managementww software ww ww
d. Customer relationship management software
m .com com com om

h.co
Answer: b Difficulty: Easy Reference: p. 371
h . h. .c
w .uo w.u
o
w.u
o
w.u
o .u o
ww
58.
w
(Analysis)
w ww w w www
Based on your reading of the International House of Pancakes case study, which strategy for
om m forces was a chief focusmof IHOP’s updated information
combating competitive
o m systems? om
-bh
.c h.c h.co h.c o h.c
ob o b-b .uob
-b
o b-b .uo b-b
w.u a. .u
w Low-cost leadership
w w.u w
ww w
w b. Product differentiation
w w ww ww
c. Focus on market niche
d. Strengthen customer and supplier intimacy
b h .com b h .com b h .com b h .com b h .com
ob- .uob
Answer: -d
.uob
- Hard
Difficulty:
.uob
-
Reference: pp. 370–371 ob-
w.u w w w ww
.u
ww 59.
ww ww w w
What are the three general business functions that CRM software serves?
w
.c om a. ERM, PRM,
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and CRM
.com .com h.c om
b -bh b. Sales, b h
customer b h
ob- and marketing, human.uresources,
ob- - b h
b-b
w .u o c.w.u
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w uob
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ww wwd. Sales and marketing,wcustomer
w service, and human
w
wresources ww
bh .com bh.c
om
bh.c
om h.c om
bh.c
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Which b-the following is an important- o b-b
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ww w w w w w w.u w
w w that is found in most majorw CRM software products? w ww
a. Returns management
bh .com b h.com
b. Order management
h.com h.c om h.c om
.uo b- ob- management
c. Account
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w d.w of the above w w w.u
ww w w ww ww w w
.com .com om
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-bh 61. - b h
Which capability would be classified as
- b h
an CRM b h
application?
- b- b h
w .uob w .uob w .uob w .uob w .uo
ww wwa. SFA modules ww ww ww
b. Call center automation modules
c. Web-based customer self-service modules
h.c om d. om
h.cabove
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m
h.c om h.c om
.uo b-b ob-
b
o b-b o b-b .uo b-b
w w.u w.u w.uReference: w
ww wwAnswer: d w wDifficulty: Medium w w p. 374 ww

bh.c b h b h b h
b-b
h.c
w w.u w.u w w
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b
ob -b
ww w w ww ww ww
m om om om om
.u ob -
.uo b-b b-b
o dealing with the analysis o b-b o b-b
w 62. Customerwrelationship w.u
management applications w.u of customer data toww.u
ww w w
w information for improvingwbusiness performance best w
provide w
describes: w
a. operational customer relationship management applications.
om b. m
.corelationship com .com h.co
m
bh.c .applications.
analytical customer
h management h h
- - b - b - b - b
w .uob c.
w .uob management applications.
supply chain
w . uob w . uob w .uo b
ww d. ww customer relationshipwmanagement
generic w applications. ww ww
b-b 63. - b
Which type of enterprise b
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software would allow b -bh
w .uo w .uob w .uob .u .u ob
ww w w w w w ww www
a. PRM
b. Operational CRM
c o m c. Analytical CRM
om .com om om
- bh . d. ERM bh.c b h
b-b
h.c
b-b
h.c
.uob ob- .uob
-
.uo .uo
w w.u w w w
ww ww c
Answer: ww Medium
Difficulty: w w
64. This metric is based on the relationship between the revenue produced by a specific
b h .com customer, the expenses
b h om in acquiring andhservicing
.cincurred b .com that customer, and
b h
m
.coexpected
the
b h .com
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life of the relationship and
w w w w w
ww ww
a. Churn rate
ww ww ww
b. CLTV
.com .com om om om
c. Cost per lead
-bh b h h.c h.c h.c
.uob
d. Cost per sale
.uo b- o b-b o b-b .uo b-b
w w w.u w.u w
ww ww b
Answer: w w
Difficulty: Easy w w
65.
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services from a company.coismcalled: .com .com .com
-bh - b h - b h - b h -b h
w .uob w .uob w .uob w .uob w .uob
ww ww
a. switching costs. ww ww ww
b. churn rate.
c. CLTV.
o m
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h h h.c h.c h.c
.uo b-b .uob
- b
o
.u b-b o b-b
.u p. 375 o b-b
w wwb
Answer: ww Medium
Difficulty: ww
Reference: w.u
ww w w w w w
.c om .c om .com .com .com

ob -bh ob-bh b- b h
b- b h
b- b h
w .u w .u w .uo w .uo w .uo
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww

bh.c b h
b-b
h.c b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob -
.uo b-b o b-b o b-b .uo b-b
w 66. wSynthesis w.u w.u w
ww ww ww w w ww
Which type of enterprise application or technique would help you best identify hidden
buying patterns of your customers?
h.com h .com h .com h.c om h.co
m
.uo b-b a. u
. OLAP
b
ob- using a SCM system.uob-
b
.uo b-b .uo b- b
w w w w w
ww wwb. Data mining using a CRM
ww system ww ww
c. Predictive analysis using a PRM system
d. None of the above
m com com com com
- bh.co b
Answer:b-b h. b h.
- Hard
Difficulty: - bh .
Reference: pp. 374–375 - b h .
.uo b o .uob .uob .uob
w w.u w w w
ww w w ww
Synthesis in terms of assemble ww ww
67. How does the implementation of enterprise applications introduce switching

mcosts?
om m o h.co
m
h.co om
- bh.c b-b
h.c -b - b b-b
h.c
w .uob w w.uob to stop using your
o processes may cause customers
a. .uNew
w uob
.products. w .uo
ww w w
w b. Price transparency becomes
w more pronounced. w w ww
c. Cost transparency becomes more pronounced.
d. It is costlier to switch vendors.
b h .com b h .com b h .com b h .com h.c om
ob- .uob
Answer: -d
.uob
- Medium
Difficulty: ob-
Reference: p. 377
.uo b-b
w.u w w w.u w
ww 68.
ww ww ww
From your reading of the Invacare case study, what might have prevented the high levels of
ww
lost sales that resulted from the use of new order-to-cash modules in its information systems?
.c om h. com . com . com h.c om
ob -bh a. More
o b -bcomplete testing
o b -bh o b -bh b-b
w .u b.w.u w.u with the new system
Integrating its business processes w.u w .uo
ww wwc. Management supportwofwthe new systems ww ww
d. All of the above
m m m m om
-bh.co Answer: abh.co
- Difficulty: .co
bhMedium
o
bh.c pp. 378–379
Reference: bh.c
.u ob .uob .u ob- .u ob- ob-
ww w
wEvaluation ww ww w.u
w 69. w w w ww
Why is an order-to-cash service considered a complex process to implement as an enterprise
h .com application? .com .com .com h.c om
b- b -bh b-b
h
b-b
h
b-b
w .uo a.w .uob .u o .u o .u o
ww ww w ww concept that legacywsystems
It is a modern, Internet-based ww typically do not provide.
w ww
b. It needs information from many different functions of the enterprise.
c. It requires the use of XML and Web services.
d. All of the above
.c om .c mo m
h.co
m
h.co .com
ob -bh ob -bh b - b b - b b- b h
w .u w.u b
Answer: w .uo
o
.uReference: p. 379 w .uo
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww

bh.c b h b h b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob - b-b
.uo of the Limited Brands o b-b b-b
.uo of 400 merchandise w.uo b-b
w 70. From yourwreading w.ucase study, what was the wcause
ww w
wshowing up at the parking w
trailers w w was designed to hold onlyww
lot of a distribution center thatw
150 trailers?
h.c om a. Legacy applications

h
m for SCM
.coused h .com h .com h.co
m
.uo b-b b
ob- little-understood supply-chain
b. Use of a ucomplex,
. . uob
- b execution system
. uob
- b
.uo b- b
w w w w w
ww ww
c. Hundreds of SCM applications w different platforms being
won ww used ww
d. Lack of real-time reporting capabilities
m Answer: .com Difficulty: Medium com com om

h.co
c Reference: pp. 385–386
h . h. .c
w .uo w .uo w.u
o
w.u
o .u o
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b h .comBest practices are the

71. b h .com
most successful solutions b .com
orhproblem-solving h
methodsbfor
om
.cconsistently b h .com
- b- - - -
w .uob w .uoachieving
and effectively .uob
a business objective.
w w .uob w .uob
ww ww ww ww ww
Difficulty: Easy Reference: p. 359
b h .comThe downstream portion

72.
b h .coofmthe supply chain consists
b h .coofmthe organizations andbhprocesses
.com for b h .com
- - -customers. - -
.uob .u b .uob .uob .uob
distributing andodelivering products to the final
w w w w w
ww ww ww ww ww
Difficulty: Medium Reference: p. 361
73.omDemand planning is usedoto

.c m .com .com om
determine how much product a business needs to make to
.c h.c
ob -bh b-
h
satisfy all of its customers’
b demands. b- b h
b- b h
b-b
w .u w .uo w.u
o
w.u
o
w .uo
ww ww w w
74. Firms can use extranets to coordinate supply chain processes shared with their business
bh .compartners. b h .com h.c om h.c om
bh.c
om
.uob
-
.uob
-
.uo b-b .uo b-b ob-
w w w ww w.u
ww ww ww Medium
Difficulty: w
75. In a push-based model of supply chain management systems, production master schedules
bh .comare based on forecasts

b h
m guesses of demand for.cproducts,
.cobest
or
b h om
b h com to
and products are .“pushed”
b h .com
- - - - -
customers.
w w w w w
ww ww ww Medium
Difficulty: w w
76.
.c omA(n) touch point is a hmethod
com
of interaction with the customer,
.conventional m
.cororetail
such as telephone, e-mail,
.com .com
b -bh - b
customer service desk, mail, Web - b h
site, store. - b h - b h
w .u o
w .uob w .uob w .uob w .uob
ww ww ww Medium
Difficulty: w w
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww

bh.c b h
b-b
h.c b h
b-b
h.c
.uob- ob- o .uo b- .uo
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob - o b-b o b-b b-b
.uo data, tools, and systems aso
b-b
w 77. w.u relationship management
Partner w.u(PRM) uses many of the wsame w.u
ww w w
wcustomer relationship management
w w
w between a company andwits
to enhance collaboration w
selling partners.
h.com h .com .com

Difficulty:hEasy m
h.co p. 371
Reference: h.co
m
.uo b-b .uo b- b
w ww force automation/SFA w wwsales staff increase theirwww
ww 78. wSales wwmodules in CRM systemswhelp
productivity by focusing sales efforts on the most profitable customers, those who are good
candidates for sales and services.
m .com com com om
- bh.co b h b h. b h .
-bh
.c
.uo b .uo b- .uob
- Medium
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Chapter 10
E-Commerce: Digital Markets,
Digital Goods
True-False Questions
1. E-commerce refers to the use of the Internet and the Web to transact business.
2. Retail consumer e-commerce is currently growing at single-digit rates.
Answer: False Difficulty: Easy Reference: p. 392
3. The Internet shrinks information asymmetry.
4. Information asymmetry exists when one party in a transaction has more information for the
transaction than the other party.
5. Disintermediation provides major benefits to the distributor.
6. A banner ad opens automatically and does not disappear until the user clicks on it.
7. An online syndicator aggregates content or applications from multiple sources, packaging

them for distribution, and reselling them to third-party Web sites.
8. Mobile commerce is the use of wireless devices to conduct e-commerce transactions from
any location.
9. Web sites can gather bountiful detailed information about customer behavior and
demographics.
159
10. Blogs have had a significant impact on political affairs.
11. One use of EDI is Web personalization.
12. Direct goods are not directly involved in the production process.
13. Automobile manufacturing is an example of a vertical market.
14. Many third-party Net marketplaces provide vertical markets for a single industry.
Answer: True Difficulty: Hard Reference: p. 412
15. Although Internet-enabled cell phones are able to access the Web at anytime and from
anyplace, the amount of information that they can actually handle at one time is very limited.
16. Sophisticated electronic commerce software has capabilities for processing credit card
purchases on the Web.
17. Accumulated balance digital payment systems allow consumers to make instant online
payments to merchants and other individuals based stored value in a digital account.
18. Digital cash can be used for micropayments or larger purchases.
19. Digital checks are less expensive than credit cards.
20. Peer-to-peer payment systems are the principal payment systems for electronic commerce.
160
Multiple-Choice Questions
21. One of the recent critical challenges facing Major League Baseball was:
a. poor coordination between local and national sales channels.

b. poorly managed sales channels.
c. outdated information systems.
d. decreasing ticket sales.
Answer: d Difficulty: Medium Reference p. 389
22. What was the most important impact of Major League Baseball’s Web site development efforts?
a. Created a strategic advantage for major league baseball

b. Increased the efficiency of baseball operations
c. Strengthened the relationship with customers and suppliers
d. Made it possible for major league baseball to survive
Answer: c Difficulty: Hard Reference pp 389–390
23. Through what channel did e-commerce first evolve?
a. Online advertising sales

b. Internet portals
c. Online book sales
d. Internet service providers
24. Since the dot-com bubble burst of 2001, e-commerce revenues:
a. have essentially stagnated.

b. show signs of stabilizing.
c. have returned to solid growth.
d. have returned to exponential growth.
25. Which of the following is not a recent development in e-commerce?
a. Growth of wireless Internet connections

b. Online, interactive models for newspapers and other traditional media
c. Use of blogs as a commercial medium
d. Exponential growth of e-commerce retail sales
Answer: d Difficulty: Hard Reference: p. 392–393
161
26. Which new development is helping expand B2B e-commerce opportunities?
a. Podcasting
b. Blogs
c. .NET and Web services
d. Dropping of computing and networking component prices
27. Based on your reading of the chapters, e-commerce is:
a. still in its beginning phases.

b. widely accepted by consumers, although technology is still quickly changing.
c. not yet fully accepted by consumers, although much of its driving technology is firmly
in place.
d. well entrenched as a form of modern commerce.
28. Which of the following is not one of the unique features of e-commerce technology?
a. Information density
b. Information asymmetry
c. Richness
d. Interactivity
29. The quality of ubiquity, as it relates to e-commerce, is illustrated by:
a. the same set of standards being used across the globe.

b. plentiful, cheap information.
c. the enabling of commerce worldwide.
d. the availability of Internet technology everywhere and anytime.
30. The lowered costs of information storage, processing, and communication, along with the
improvement of data quality has resulted in which unique quality of e-commerce?
a. Information density
b. Richness
c. Customization
d. Interactivity
162
31. A marketplace extended beyond traditional boundaries and removed from a temporal and
geographic location is called a(n):
a. virtual community.
b. marketspace.
c. online marketplace.
d. e-hub.
32. The effort required to locate a suitable product is called:
a. price discrimination.
b. search costs.
c. menu costs.
d. transparency costs.
33. Information density refers to:
a. the complexity and content of a message.

b. the total amount and quantity of information delivered to consumers by merchants.
c. the total amount and quantity of information available to all market participants.
d. the amount of information available to reduce price transparency.
34. Selling the same goods to different targeted groups at different prices is called:
a. price customization.
b. price opacity.
c. price gouging.
d. price discrimination.
35. Information __________________ exists when one party in a transaction has more
information that is important for the transaction than the other party.
a. transparency
b. asymmetry
c. symmetry
d. imbalance
163
36. The cost to a merchant of changing the price of a product is called a:
a. pricing cost.
b. dynamic pricing cost.
c. menu cost.
d. switching cost.
37. Varying a product’s price according to the supply situation of the seller is called:
a. menu pricing.
b. supply pricing.
c. dynamic pricing.
d. asymmetrical pricing.
38. Reducing the business process layers in a distribution channel is called:
a. disintermediation.
b. BPR.
c. market segmentation.
d. network effects.
Answer: a Difficulty: Easy Reference: p. 397
39. Compared to digital markets, traditional markets:
a. have lower search costs.

b. have higher marketing costs.
c. have higher delayed gratification effects.
d. have higher transaction costs.
Answer: d Difficulty: Hard Reference: p. 398
40. Digital goods are goods that:
a. are produced digitally.

b. are sold over digital networks.
c. are delivered digitally.
d. all of the above.
164
41. Compared to traditional goods, digital goods:
a. have higher marketing costs.

b. have lower production costs.
c. have greater pricing flexibility.
d. have higher inventory costs.
42. Which of the following Internet business models does Amazon.com use?
a. Information broker
b. Transaction broker
c. Online service provider
d. Virtual storefront
43. Which of the following businesses utilizes the content provider Internet business model?
a. Amazon.com
b. eBay.com
c. CNN.com
d. Motocross.com
44. Which of the following is an ad that opens automatically and does not disappear until the
user clicks on it?
a. Banner ad
b. Controlled ad
c. Portal ad
d. Pop-up ad
45. Internet content providers:
a. generate from directing buyers to sellers.

b. save users money and time by processing online sales dealings.
c. provide a digital environment where buyers and sellers can establish prices for products.
d. create revenue by providing digital content over the Web.
165
46. Transaction brokers:
a. generate revenue from advertising or from directing buyers to sellers.

b. save users money and time by processing online sales dealings.
c. provide a digital environment where buyers and sellers can establish prices for products.
d. sell physical products directly to consumers or individual businesses.
47. Online marketplaces:
a. save users money and time by processing online sales dealings.

b. provide a digital environment where buyers and sellers can establish prices for products.
c. create revenue by providing digital content over the Web.
d. sell physical products directly to consumers or individual businesses.
48. Which of the five moral dimensions does the Interactive Session on MySpace.com raise?
a. Information rights and obligations

b. Quality of life
c. System quality
d. Property rights and obligations
Answer: b Difficulty: Hard Reference: p. 402
49. A “supersite” that provides a comprehensive entry point for a huge array of Internet
resources and services is called a(n):
a. portal.
b. online syndicator.
c. content provider.
d. information broker.
50. Pure-play business models:
a. are primarily used in business-to-business electronic commerce.

b. do not sell a physical product.
c. are extensions of traditional bricks-and-mortar businesses.
d. did not have an earlier existing bricks-and-mortar business before they went to the
Internet.
166
51. eBay is an example of:
a. a click-and-mortar business.
b. C2C electronic commerce.
c. B2C electronic commerce.
d. an online exchange.
52. Businesses retailing products and services directly via the Internet to individual consumers
best describes:
a. B2B electronic commerce.

c. M-commerce.
d. B2C electronic commerce.
53. Consumers selling goods and services electronically to other consumers best describes:
a. disintermediation.
c. M-commerce.
d. B2C electronic commerce.
54. The presentation of Web pages tailored to a customer, based on the gathering of demographic
information provided by the customer, is called:
a. interactive marketing.
b. personalization.
c. collaborative filtering.
d. localization.
55. Tools that record customer activities at Web sites and store them in a log for further analysis
are called:
a. clickstream tracking tools.

b. customer tracking tools.
c. collaborative filtering tools.
d. filtering tools.
167
56. Tools that compare user behavior and interests to make purchasing recommendations to users
are called:
a. clickstream tracking tools.

b. customer tracking tools.
c. collaborative filtering tools.
d. filtering tools.
57. From your reading of the text, which general strategy to overcome market forces is an
overarching focus for Stonyfield Farm?
a. Low-cost leadership
b. Product differentiation
58. What strategy was implemented by Stonyfield Farm’s use of blogs?
59. The organizational department responsible for handling customer service issues is the:
a. service center.
b. customer support.
c. call center.
d. sales department.`1
60. EDI is:
a. the use of Internet technologies for electronic data transactions.

b. the exchange between two organizations of standard transactions through a network.
c. electronic data invoicing.
d. electronic delivery infrastructure.
168
61. The process of sourcing goods and materials, negotiating with suppliers, paying for goods,
and making delivery arrangements is called:
a. procurement.
b. e-procurement.
c. supply chain management.
d. electronic commerce.
62. An extranet that links a large firm to its suppliers and other key business partners is called
a(n):
a. private industrial network.

b. e-hub.
c. marketspace.
d. exchange.
63. ______________________ are more transaction oriented than private industrial networks.
a. Private exchanges
b. E-hubs
c. Extranets
d. All of the above
64. Net marketplaces:
a. focus on continuous business process coordination between companies for supply chain
management.
b. operate as independent intermediaries between buyers and sellers.
c. are geared towards short-term spot purchasing.
d. are more relationship oriented and less transaction oriented than private industrial
networks.
65. A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is
called a(n):
a. exchange.
b. vertical market.
c. private exchange.
d. e-hub.
169
66. Which type of application takes special advantage of the unique capabilities of mobile
technology?
a. Text-based messaging
b. Personalized services
c. Location-based applications
d. Interactive, video-rich applications
67. The electronic payment system in which users make micropayments and purchases on the
Web, accumulating a debit balance on their credit card or telephone bill is called a(n)
_______ payment system.
a. smart card
b. accumulated balance digital
c. stored value
d. digital cash
68. The electronic payment system that uses a credit card-size plastic card that stores digital
information and that can be used for electronic payments in place of cash is called:
a. digital cash.
b. e-cash.
c. digital wallet.
d. smart card.
69. Based on your reading of the case study text, which of the four generic strategies to deal with
competitive forces was the motivating factor behind eBay’s acquisition of JotSpot and
Kaboodle?
70. Based on your reading of the text, how do wireless marketing strategies differ from
“traditional” Internet marketing strategies?
a. Focus is on bringing message related to the customer’s point of need or locale.
b. Content-rich messaging
c. Greater personalization
d. Pushing Web sites to customers
Answer: a Difficulty: Medium Reference: p. 413–415
170
Fill In the Blanks
71. Menu costs are the merchants’ costs of changing prices.
Difficulty: Hard Reference: p. 397
72. A(n) virtual storefront sells physical products directly to consumers or individual businesses.
73. A(n) virtual community provides an online meeting place where people with similar interests
can communicate and find useful information.
74. A(n) portal provides the initial point of entry to the Web along with specialized content and
other services.
75. Exchanges are a third-party Net marketplace primarily transaction oriented and that connect
many buyers and suppliers for spot purchasing.
76. A(n) digital wallet stores credit card and owner identification information and provides these
data automatically during electronic commerce purchase transactions.
77. A(n) micropayment is a payment for a very small sum of money, often less than $10.
78. Stored value payment systems enable a consumer to make instant online payments to
merchants and other individuals based on value stored in the digital account.
79. Peer-to-peer payment systems allow people to send money to vendors or individuals who are
not set up to accept credit card payments.
80. A(n) digital checking system extends the functionality of existing checking accounts so they
can be used for online shopping payments.
171
Essay Questions
81. Describe how e-commerce affects careers in the four major business functions. Which
function do you think is most affected currently?
• If your career is in finance and accounting, you will be working with systems for
receiving payments electronically over the Internet and for delivering new online
financial services based on the Web.
• If your career is in human resources, you will be using online job-hunting sites to attract
new employees.
• If your career is in manufacturing, production or operations management, you will be
using the Internet for sourcing, and using public B2B commerce systems and private
industrial networks for procurement and management of your supply chain.
• If your career is in sales and marketing, you will be using the Web to provide digital
products and services, and to sell and promote products by using personalization,
customization, and community marketing techniques.
I think the function most affected currently by e-commerce is manufacturing and production,
as a company’s supply chain can affect 75% of its total operating budget. The efficiency and
better decision making afforded by e-commerce can make significant changes in a
company’s supply chain and, therefore, profits.
82. "Knowledge increases exponentially," is a phrase with which we are all familiar. How
does this concept apply to electronic business and the emergence of the digital firm?
Support your contentions.
Student answers will vary: One answer might be:
The exponential increases of knowledge refer to shared information. For example, once the
concept of a wheel is established, inheritors of that knowledge do not have to “reinvent the
wheel.” The Internet is a tool similar to the wheel: it is based on shared standards and
universal tools. The Internet and shared networking technologies are allowing new
techniques for attracting customers and selling customers to be developed and adapted very
quickly. For example, although early Internet retailers had difficulty setting up secure credit
card transactions and payment systems, today there are many systems in place as vendors
step in to create shared tools for doing this. The Internet is fostering shared knowledge and as
such propagating ever greater increases in that knowledge.
Difficulty: Hard Reference: p. 391–418
172
83. What are transaction costs? List and describe at least four ways that the Internet can
reduce transaction costs.
Transaction costs are the costs in participating in a market and purchasing goods and services
that a business cannot make itself. Because of its speed and the availability of information,
the Internet makes it possible to reduce the time expenditure in such transactions as
answering the customer questions, trading shares of stock, correcting an employee record,
processing customer orders, making advertising information available, or paying a bill.
Because time and effort is reduced, transaction costs are reduced.
84. List and describe at least five different Internet business models. Which of these models
do you think is the most risky for a dot-com business? Support your answer.
The eight models are: virtual storefront, information broker, transaction broker, online
marketplace, content provider, online service provider, virtual community, and portal. The
choice of riskiest model will depend on the individual student.
85. Using Web personalization technology, companies are moving into customer-centered
retailing. Discuss this concept, defining relevant terms.
Web personalization is the art of gathering enough information about visitors to your Web
site that you can present that site to returning visitors, hopefully new customers, by name and
by interest area.
Customer-centered retailing allows a company to tailor products individually to many
customers at the same time. In Internet terms, this is referred to as “mass customization.” In
the past, because it could not know each of its customers individually, a company had to
create a product aimed at a broad variety of needs and hope that the needs of enough
customers could be met with that product to create a profit. Customers, on the other hand,
had to choose among products that already existed, or pay an increased price for a product
tailored individually to them.
The Internet, by making it possible for companies and their customers to interact
individually, has changed this equation. Companies can now use the capacities of the Internet
to provide ongoing information, service, and support to individuals, which will create
positive interactions with customers that can serve as the foundations for long-term
relationships and repeat purchases.
86. List and describe at least three ways in which the individual consumer may pay for
purchases on the Internet.
The principal electronic payment systems for electronic commerce for the individual are
credit card, digital wallet, accumulated balance digital payment systems, stored value
systems, digital cash, peer-to-peer payment systems, and electronic checks. Most consumers
use their credit card.
Difficulty: Medium Reference: p. 416–417
173
87. List and describe the three major types of electronic commerce. Which do you think is
ultimately the most valuable to the individual consumer? Support your answer.
Business-to-consumer, business-to-business, and consumer-to-consumer. All three are
valuable to the consumer, but in the long run, business-to-business may be the most valuable
to the individual consumer because it will reduce prices and increase both goods and
services. (Other opinions, of course, are supportable.)
88. What methods could a portal use to generate revenue? Which do you think might be
most successful, and why?
Advertising, subscriptions, selling collected marketing information, and directing buyers to
sellers could all generate revenue. I would think the most successful method would be
through collecting marketing information, because as a portal that links to large amounts of
external information and attracts repeat customers, the portal would have the opportunity to
gather a lot of information about each user.
89. You are consulting for Lucky’s, a chain of gas stations. What types of e-commerce
opportunities, if any, are relevant to Lucky’s? Could Lucky’s make use of any Internet
business models for this opportunity?
In terms of B2B e-commerce, Lucky’s might be able to procure goods over the Internet, use
a private industrial network to coordinate their supply chain with suppliers and manage
inventory. Depending on the structure of the gasoline retail business, industry net
marketplaces and exchanges might be of use.
In terms of B2C e-commerce, there are not many opportunities, as it is inefficient to sell
gasoline over the Internet. However, a mobile payment system, similar to Mobil’s SpeedPass
payment system, is a way of offering more convenient services to customers. Additionally,
Lucky’s could make sure that it’s stations are listed in popular location-based mobile services
that help drivers find nearby gas stations.
90. You have been hired as a marketing consultant by a law firm in Los Angeles that
specializes in juvenile justice. What ways can you use the Internet as a marketing tool
and to advertise the firm’s services?
For market research, you could advertise on search engines. You could pay for marketing
research at relevant portals. You could also collect customer information from the company’s
Web site. You could monitor relevant blogs to see what issues are of concern in juvenile
justice, so as to address these concerns in your advertising campaigns.
To advertise, you could advertise on search engine results and at relevant portals or legal
information content providers, using banner ad or popup ads. If it were feasible, you could
create a juvenile justice portal and blog for the company in order to attract users whom you
could gather market research as well as promote your services.
174
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c. structured knowledge system.
d. neural network.
b-b b -cbh - b h
ob-
b h
b-b
w .uo w.u
o
Answer:
w.uob Medium
w.u
p. 438
w .uo
ww ww ww ww ww

bh.c b h b h b h
b-b
h.c
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w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob - b-b
uo already exists inside awfirm b-b
.uoin the form of formal reports
o b-b o b-b
w 35. Knowledgew.that w.u or presentations is ww.u
ww w
w as:
categorized w w w w w
a. structured knowledge.
om b. .com om om h.co
m
bh.c h.c h.c
semistructured h knowledge.
- - b b-b b-b - b
w .uob c. uob
tacit knowledge.
ww d. ww
unstructured knowledge. ww ww ww
Answer: a Difficulty: Easy Reference: pp. 437–438
h .com h . com h. com h . com .c om
b-b 36. b
ob-utilization
A collection of internal and external knowledge b b
- in a single location for omore
- efficient -bh
w .uo w .uand w .uob is called a: w .u b .u ob
ww
management
ww
by the organization
ww ww www
a. KWS.
c o m b. knowledge repository.
.com .com om om
-bh
. c. h
document database.
b b h h.c h.c
.uob b-
.uomanagement .uob
- o b-b .uo b-b
w d. document
w system.
w w.u w
ww ww w w ww ww
b h .com What management-oriented

37.
b h .com challenge did Stikeman
b h om face in building a successful
.cElliot b h .com KM b h .com
- - - - -
system?
w w w w w
ww ww ww ww
a. Ensuring that everyone in the branches had access to the same resources
ww
b. Freeing up partners from client work in order to populate the database
.com m om .com om
c. Ensuring that junioroemployees used the KM system
.cpartners .cpersonal h.c
-bh d. b h
Persuadingbsenior
- from hoarding
b- b h
their experience b- b h
b-b
w .uob w .uo w.u
o
w.u
o
w .uo
ww ww b
Answer: w w
38. Once a knowledge taxonomy is developed, documents are all __________ with the proper
bh .com classification. b h .com h.c om h.c om
bh.c
om
.uob
-
.uob
-
.uo b-b .uo b-b ob-
w w w w w.u
ww ww
a. tagged ww ww ww
b. linked
c. tupled
o m
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h h h.c h.c h.c
.uo b-b .uob
- b
o
.u b-b o b-b
.u p. 443 o b-b
w wwa
Answer: ww Medium
Difficulty: ww
Reference: w.u
ww w w w w w
39. Which of the following is a collaboration tool used to support knowledge management
o m systems? m o m m .com
-bh
.c
-bh
.c
- b h.co - b h.co b h
.u ob a. Blogsw .u ob .uob .uo b .uo b-
w w w w
ww b. ww
Wikis ww ww ww
c. Social bookmarking
d. All of the above
h.c om om h.co
m .com .com
b-b bh.c b b h b h
.uo Answer: d ob- ob -
Difficulty: uMedium -
.uob pp. 445–447
Reference:
.uob
-
w w.u w. w w
ww ww w w ww ww
om .com om .com om
bh.c b h 180ob-bh
.c b h
b-b
h.c
.u ob- o b- .uo b- .uo
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob -
.uo b-b b-b
.uo Technology, what w b-b
uo of the drawbacks to using o b-b
w 40. As
wdiscussed in the InteractivewSession: is.one w.u
ww w w w
w social bookmarking withinwa corporate knowledge management
w system? w w
a. Lack of standards in taxonomy

om .com with other products .com om h.co
m
bh.c h.c
b. Lack ofhintegration h
- b b b-b b
.uob ob- of ability to categorize.ubookmarks
c. uLack
. ob- .uo .uo b-
w w w w w w
w wwd. Proliferation and duplication
ww of bookmarks ww ww
ob -bh 41. Tools for b h
-the management, delivery, - b h
tracking, - bh
and assessment of bvarious types of employee b- b h
w.u w .uobbest describes:
learning w .uob w .uo w.u
o
ww w w w w w w w w
a. investment workstation.
b. organizational mlearning system.
.c om . c o .com h.c om h.c om
b-bh c. employee
b h enrichment
ob- management system.
system.
-b h
b-b b-b
w.u
o d.
w .ulearning w .uob w.u
o
w .uo
ww ww ww ww ww
b h .com 42. Most knowledge m

.coworkers
h require specialized m
.coknowledge
h omthey also rely on:
work systems,.cbut
h h.c om
ob- uo b-b .uo b-b .uo b-b .uo b-b
w.u a.w. office systems. w w w
ww w w
b.
ww
schools and universities.
ww ww
c. imaging systems.
.c om d. om systems.
data transferring om om om
-bh bh.c b-b
h.c
b-b
h.c
b-b
h.c
.u ob ob- o o .uo
w w.u
Answer: a w.u
Difficulty: Medium w .uReference: p. 448 w
ww ww w w ww ww
43. A ________________________ is very important to a knowledge worker’s system.
m m m om om
bh.co .co system
a. careful hfiling
b b h.co h.c bh.c
.u ob - ob -
b. .ufinancial analysis system .uob -
.uo b-b ob-
w w CAD capability w w w.u
ww w w
c. ww ww ww
d. user-friendly interface
bh .com Answer: d
b h.com .com
Difficulty: Medium
h .com
Reference:
h
p. 449
h.c om
.uo b- .uob
- o b-b o b-b o b-b
w 44. w w.u
_______________________________ often are designed w.uoptimized for the specific
and w.u
ww w w w
tasks to be performed.
w w w w w
a. Graphics programs
.c om m
.coworkstations .com .com .com
b -bh b
b. Knowledgeh
ob- simulators - b h
b- b h
b- b h
w .u o c.w.uVirtual w .uob w .uo w .uo
ww wwd. CAD stations ww ww ww
om .com .com om om
- bh.c b h bh
b-b
h.c
b-b
h.c
w w w w.u w.u w
w ww w w w w ww

bh.c b h b h b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob -
uo b-b o b-b o b-b .uo b-b
w 45. w.workstations:
CAD/CAM w.u w.u w
ww ww ww w w ww
a. provide engineers, designers, and factory managers with precise control over industrial
design and manufacturing.
h.c om b. .com
provide an important
h .com
source of expertise forhorganizations. h .com h .com
.uo b-b c. allow groups
.
- b
uob to work together onwdocuments.
. uob
- b
. uob
- b
. uob
- b
w w w w
ww d. wwhigh-end PCs used in the w
are w
financial ww situations
sector to analyze trading ww
instantaneously and facilitate portfolio management.
m Answer: .com Difficulty: Medium com

.com om
h.co
a Reference: p. 451
h h. h .c
b - b b- b - b
ob-
b -bh
w .uo w
o
.ufollowing w .uob as a knowledge work
w .usystem? .u ob
ww
46. Which of
ww
the would not be
ww
classified
ww www
a. Computer-aided design
c o m b. 3D visualization
.com .com om om
-bh
. c. h
Investment workstations
b b h h.c h.c
.uob -
.uobreasoning .uob
- o b-b .uo b-b
w d. Case-based
w w w.u w
ww ww w w ww ww
Answer: d Difficulty: Hard Reference: pp. 449–451
b h .com Which of the following

47.
b h .cisom .com
a type of intelligent technique?
b h h.c om h.c om
.uob
-
w w w w w
ww ww
a. Knowledge networks
b. Case based reasoning
ww ww ww
c. Computer-aided design
.com om om om om
d. VRML
-bh bh.c b-b
h.c
b-b
h.c
b-b
h.c
.uob b .u ob- o o .uo
w Answer: w w.uHard
Difficulty: w.u p. 451–461
Reference: w
ww ww ww ww ww
48. Virtual reality applications for the Web use a standard called:
m a. m om om om
bh.co CADDIS
b h.co h.c h.c bh.c
.u ob - b. VRML.uob -
.uo b-b .uo b-b ob-
w w w w w.u
ww c. ww
KWSVR ww ww ww
d. TCP/IP
bh .com Answer: b b h.com Difficulty: Medium.com

h .com
Reference: p. 450
h h.c om
-
.uob 49. Virtual reality b-
.uosystems: .uo b-b .uo b-b o b-b
w w w w w.u
ww ww ww ww w w
b -bh b. b h
provide an important
- source of expertise b
for
- horganizations. - b h - b h
w .u o c. .uob to work together onwdocuments.
allowwgroups .uob w .uob w .uob
ww d. ww architects, engineers,wand
provide w medical workers with precise,
ww photorealistic ww
simulations of objects.
h.c om Answer: om h.co

m .com om
b-b
d
bh.c Difficulty: Medium
b-b
Reference: p. h450
b-b b-b
h.c
.uo .u ob- o o .uo
w w w.u w.u w
ww ww w w w w ww
om .com om .com om
bh.c b h 182ob-bh
.c b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob - b-b
.uo workstations: o b-b o b-b .uo b-b
w 50. Investment
w w.u w.u w
ww ww ww w w ww
h.com b. providehan m
.coimportant m organizations.
.cofor
source of expertise
h h .com h .com
.uo b-b c. uallow
.
b
ob- groups to work together. uoon
b
b-documents. . uob
- b
. uob
- b
w w w w w
ww wwd. are high-end PCs used ww ww trading situations ww
in the financial sector to analyze
instantaneously and facilitate portfolio management.
m .com com .com .com

h.co
b b h b h. bh b h
b - b- b- - -
w .uo 51. w .uoof the following is usedwfor
Which .uoknowledge discovery? w.uob w.uob
ww ww ww ww ww
a. Expert systems
b. Transaction processing systems
.c om . c o m .com h.c om h.c om
b-bh c. b h
Case-based
ob-mining
reasoning
-b h
b-b b-b
w.u
o d.
w .uData w .uob w.u
o
w .uo
ww ww ww ww ww
b h .com 52. .com are not used to capture

Which of the following
h .comtacit knowledge?
h h.c om h.c om
w.u a.w. Expert systems w w w
ww w w
b. Case-based reasoning
ww ww ww
c. Fuzzy logic
.c om d. om
Neural networks om om om
-bh bh.c b-b
h.c
b-b
h.c
b-b
h.c
.u ob ob- o o .uo
w w.u
Answer: d w.u
Difficulty: Hard w .uReference: p. 451 w
ww ww w w ww ww
53. Technology that consists of computer-based systems that attempt to emulate human behavior
is called:
m .com om om om
.u ob - a. b-
o logic.
.ufuzzy .uo b-b .uo b-b ob-
w w w w w.u
ww wwb. neural networks. ww ww ww
c. AI technology.
d. genetic algorithms.

.uo b- .uob
Answer: -c
.uob
- Medium
Difficulty: ob-
w w w w.u w.u
ww 54. wwAn inference engine is: ww ww w w
a. a strategy form
.c om o searching the rule baseh.incoanmexpert system that begins
.cthe
with information
.com .com
b -bh entered
- b hby
obprogramming
user. b
b-an expert system. .uob- b h - b h
w .u o b.w.uthe .uoof
environment
w w w .uob
ww wwc. a method of organizing wwexpert system knowledgewinto w chunks. ww
d. a strategy used to search through the rule base in an expert system by forward chaining
or backward chaining.
b-b b -dbh - b h
ob-
b h
b-b
w .uo w.u
o
Answer:
w.uob Medium
w.u
p. 452
w .uo
ww ww ww ww ww

bh.c b h b h b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
w 55. w.u is:
Forward chaining w.u w.u w
ww ww ww w w ww
a. a strategy for searching the rule base in an expert system that begins with information
entered by the user.
h.c om b. the programming h om
.cenvironment of an expert h .com
system. h .com h .com
.uo b-b c. a method
.
- b
uoofborganizing expert system. b- b
uoknowledge into chunks. uob-
.
b
. uob
- b
w w w w w
ww d. w
awstrategy wwbase in an expert system that
for searching the rule wwbegins with a hypothesis.ww
ob -bh56. b h
- is:
Backward chaining - b h - bh - b h
w.u w .uob w .uob w.uob w.uob
ww w wwbase in an expert system that
a. awstrategy for searching the rule ww begins with informationww
entered by the user.
c o m b. the programming environment

c o m of an expert system.
.com .com om
-bh
. c. h .
a method of organizing
b expert system h
knowledge
b into chunks. b h h.c
.uob d. b- searching the rule base.uinoban- expert system that begins
.uofor
a strategy
-
.uobwith a hypothesis. .uo b-b
w w w w w
ww ww ww ww ww
b h .com Which of the following

57.
b h .cisom
the expert system used by
b h
m
.coCountrywide Funding Corp.
b h .cotommake b h .com
- - - requests? - -
preliminary creditworthiness decisions on loan
w w w w w
ww ww
a. AskMe
ww ww ww
b. EVAL
.com om om om om
c. CLUES
-bh d. CBR bh.c b-b
h.c
b-b
h.c
b-b
h.c
.uob .uob- o o .uo
w w w.u w.u w
ww ww c
Answer: w w
Difficulty: Hard w w
58. Expert systems:
bh .com b h .com h.com h.c om
bh.c
om
.u ob- a. o b-
solve problems b-b
too difficult for humanoexperts. .uo b-b ob-
w w.u on DO WHILE rules.ww.u w w.u
ww b. are
w wbased w ww ww
c. work in very limited domains.
d. share characteristics with mainframe computing.

.uob
- Answer: c ob-
.uob
-
Difficulty: Medium
.uob
w w.u w w w.u
ww ww ww ww w w

ob -bh ob-bh b- b h
b- b h
b- b h
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww
om .com om .com om
bh.c b h 184ob-bh
.c b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob -
w 59. Analysis
w w.u w.u w
ww ww ww w w ww
It is unlikely you could represent the knowledge in the Encyclopedia Britannica with an
expert system because:
h.c om h .com h .com h .com h .com
.uo b-b a. uthere
.
b
. uob
b
ob-is no one expert who understands
- - b
uob within the encyclopedia.
all the material contained
. . uob
- b
w w w w w
ww wwb. the knowledge changeswwradically over a short time.ww ww
c. not all the knowledge in the encyclopedia can be represented in the form of IF-THEN
rules.
m d. comis too general.
the knowledge com com om
bh.co h. -bh
. h. -bh
.c
.uo b - o b-b o b o b-b ob
w w.u
Answer: c w.u
Difficulty: Medium w.uReference: p. 454 ww
.u
ww w w ww w w w
Analysis in terms of appraise
.c om 60. om
.c systems deal with problems om om om
b-bh bhexpert
Virtually all
- - bh.c of: b-b
h.c
b-b
h.c
w.u
o
w .uob w.uob w.u
o
w .uo
ww wwa. policy development. ww ww ww
b. classification.
c. logic and control.
b h .com d. .com
high complexity.
h h.c om h.c om h.c om
ob- o b-b o b-b o b-b .uo b-b
w.u w.u w.u w .uReference: w
ww w w
Answer: b
w wDifficulty: Hard
ww p. 455
ww
61. Expert systems are expensive and time-consuming to maintain:
-bh a. because-bhtheir rule base is so complex.
-bh -bh -bh
w .uob o b
b.w.ubecause they rely on equipment o b
w.u that becomes outdated.
w.u
o b
w.u
o b
ww wwc. because their rules must
wwbe reprogrammed every w w
time there is a change in the w w
environment, which in turn may change the applicable rules
d. because only the person who created the system knows exactly how it works, and may
m m m m m
-bh.co h.co when changes are needed.
not be available
-b h.co
-b h.co
-b h.co -b
ob ob ob ob ob
w.u w.u w.u w.u w.u
ww wwAnswer: c ww Difficulty: Hard ww ww
Reference: p. 455
62. In this technique, descriptions of past experiences of human specialists are stored in a
h .com .com
database for later .com a situation with similar
retrieval when the user encounters .comcharacteristics. h.c om
b- b -bh b-b
h
b-b
h
b-b
w .uo a.w .uob
CBR w .uo w .uo w.u
o
ww wwb. Fuzzy logic ww ww w w
c. Data mining
d. LMS
.c om .c m o .com .com .com
ob -bh ob -bh b- b h
b- b h
b- b h
w .u w.u a
Answer: w uo
.Difficulty: Easy w .uo w.u
Reference: p. 455 o
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww

bh.c b h b h b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
w 63. w.u
Evaluation w.u w.u w
ww ww ww w w ww
You are an automotive engineer working on an application that will automatically parallel
park a car. The intelligent technique you may find most useful is:
m
.uo b-b a. case-based
.
- b
uobreasoning. .uo b-b .uo b-b .uo b- b
w w w w w
ww b. ww intelligence.
artificial ww ww ww
c. fuzzy logic.
d. expert system.
m .com com com com
- bh.co b h b h. b h . b h .
.uo b Answer: c
.uo b- .uob
-
Difficulty: Medium Reference:b-pp. 455–457
.uo .uob
-
w w w w w
ww ww in terms of choose ww
Evaluation ww ww
64. Hardware and software that attempts to emulate the processing patterns of the biological
b h .com brain best describes:
b h .com b
m
h.co
m
h.c o h.c om
.uob
-
.uob
-
.uob
- o b-b .uo b-b
w w ww w.u w
ww ww network.
a. neural w ww ww
b. expert system.
c. case-based reasoning.
o m
.c d. .com om om om
bh
fuzzy logic.
h h.c h.c h.c
.u ob- . uo b-b uo
. b-b .uo b-b .uo b-b
w wwa ww Medium ww w
ww Answer:
w Difficulty:
w Reference:
w p. 457
ww
65. Genetic algorithms:
.com . com . com bh. com h.c om
-bh a. -bh to particular problems
develop solutions -bh fitness, crossover, and
using -mutation. b-b
w .uob b. o b
w.u knowledge as groups w
represent .u o b
ofwcharacteristics. w.u
o b
w .uo
ww c. w w w
do not work for most problems. w w ww
d. are based on logic.
m Answer: .com m m om
-bh.co a b h bh.c
Difficulty: Medium o Reference: p. .co
bh458–459 bh.c
.u ob .uo b- .uob
-
.uob
- ob-
ww w
w the following describes w w w w w w.u
w 66. Which
wof a difference between neural w
networks and genetic ww
algorithms?
h .coma. Genetic algorithms

h
mdesigned to process large
.coare h
m
.coamounts of information. .com
h.c om
b- b b. ob-
b
Genetic algorithms b
ob- discovery, while neural
are a type of knowledge -bh are an
obnetworks b-b
w .uo . u
w technique.
intelligent w . u w . u w.u
o
ww c. ww networks are programmed
Neural ww to “learn”. ww w w
d. All of the above
.c om .c om .c om c om .com
b -bh Answer: c
b-bh -bh
Difficulty: Hard bh.457–459
Reference: -pp.
b- b h
w .u o
w .u o
w .uob w .uob w .uo
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww
om .com om .com om
bh.c b h 186ob-bh
.c b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob - o b-b b-b
uobackground without direct o b-b o b-b
w 67. w.u programs that workwin
Software w.the w.u human intervention towcarry
w.u
ww w w
w out specific, repetitive, andwpredictable tasks for individual
w users, business processes,
w or
software applications, are called:
h.c om a. intelligent
h om
.cagents. h .com h.c om h.co
m
.uo b-b ob-
b
b. uintelligent
. techniques.
. uob
- b
.uo b-b .uo b- b
w w w w w
ww wwc. business intelligence.ww ww ww
d. AI hybrid systems.
m .com om .com .com

h.co
Answer: a Difficulty: cMedium Reference: p. 460
b b h b h. bh b h
b - b- b- ob- -
w .uo 68. w
What
o of intelligent techniques
.utype w .uohelped Procter & w .udetermine
Gamble the most w .uob
efficient
ww wwmethods for their trucks towdeliver
w
goods? ww ww
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80. Systems that integrate genetic algorithms, fuzzy logic, neural networks, and expert systems
b h .comare called hybrid AIbsystems.
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Briefly outline the knowledge management chain as it might apply to the online catalog
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- - - - -
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knowledge network system, but other tools you can use include best-practices documents,
b h b h h .coand blogs for helping b h .coand
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Why are knowledge workers so important to the digital firm? What are their functions
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bh .com b h ombusiness arena.

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What is the difference between a neural network, fuzzy logic, and genetic algorithms?
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h h.com bh.c
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7. The system is not in production until conversion is complete.
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b. iterative prototyping is not required.
c. objects are reusable.
.c om .com .com om om
b-bh d.
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a single bhused
interface object can be
- bh.c
for the entire application.
- b-b
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w.u
o
ww w wAnswer: c w wDifficulty: Easy ww Reference: p. 533 ww
51. Back-end CASE tools

m focus on:
om h.co om om om
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converting
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w b. capturing design specifications
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c. integrating legacy tools with systems in development.
d. integrating databases with user interfaces.
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b -bh b -abh b h
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b h
b-b
.uob
o Answer:
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w .u w.u w w.u w .uo
ww ww ww ww ww
52. The oldest method for building information systems is the:
bh .com b h .com b h .com h.c om

bh.c
om
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a. component-based
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development. -
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w b.w w w w.u
ww ww c. ww
object-oriented development. ww ww
d. systems development lifecycle.
h .com bh.c
b- b Answer: -d
ob -bhEasy
Difficulty:
ob ob -bh p. 534
Reference:
b-b
w .uo w.u w.u w.u w.u
o
ww 53. w
w In the traditional systems w w w w
development lifecycle, end users: w w
a. are important and ongoing members of the team from the original analysis phase
om .com .com .com .com
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b b b b
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d. are limited to providing information requirements and reviewing the technical staff’s
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b-b bh.c
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b-b
h.c
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.uob ob-
Reference: p. 534
.uo
w w.u w w.u w
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bh.c b h b h b h
b-b
h.c
w w.u w.u w w
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b
ob -b
ww w w ww ww ww
m om om om om
w 54. w.uof systems building are
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stages organized
ww stage w w w
w in the next stage begun? w
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a. Traditional
om b. Prototyping h.com om om h.co
m
- bh.c RAD uob-
b b-b
h.c
b-b
h.c - b
w .uob c.
ww d. wwof the above
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h .com bh.c
om h.com h.co
m .c om
b-b 55. (Synthesize) - - b - b -bh
.u o .uob .uob w.u
o b .u ob
w ww w w w
ww
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w w www
As a technical project manager you have decided to propose implementing a prototyping
methodology for a small Web-based design project. What is the order of steps you will
.c o m follow in this project? m o .com m

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-bh h.c h h h
ob b-b - b
.uob revise and enhance w
o prototype; use the prototype; ob-
b
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w.u a. Develop
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w
ww b. ww user requirements, develop
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revise and enhance
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b h .com prototype.
b h .com b h .com b h .com h.c om
ob- d. Define theob -
requirements, ob-
develop the prototype, revise and enhanceob - prototype.
the
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w.u w.u w .u w .u w
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(Synthesize in terms of arrange, compose)
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.usystem
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w ww
a. end-user oriented
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b h .com h.com h.c om
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object-oriented .uo b-b .uo b-b ob-
w w w w w.u
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development methodology: o b-b
w w w w w.u
ww ww a. ww ww
end users can take over the work of IT specialists. w w
b. the organization quickly outgrows the new system.
c. hardware, software, and quality standards are lessmimportant.
b h .com d. b h .com may be inadequate.
testing and documentation b h.co b h .com b h.com
- - - b- b-
w .uob w .uob w.u
ob
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h.c om om h.co
m om om
b-b bh.c b b-b
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om .com om .com om
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m om om om om
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w 58. wManagement w.development
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of end-user applications by: w
ww ww ww ww ww
a. developing a formal development methodology.
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h
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m
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w w w w w
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ob -bh 59. b h b
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w.u w .uob w .uob w .uob .u
ww wwa. Report generators andwquery
w w w w ww
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ww w wAnswer: c w wDifficulty: Hard w w p. 536 ww
b h .com 60. b h om
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b h om
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b h .com
ob- used toob - entire applications? ob-
create ob- ob-
w.u w.u w.u w.u w.u
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w .uob w.u
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w .uo w .uo
ww w
w Answer: c
w
w Difficulty: Easy ww Reference: p. 537 ww
61. Fourth-generation tools cannot replace conventional development tools because:
bh.c
om
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o cannot handle large numbers
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o of transactions or extensive b-b
o procedural logic. .u ob-
w w w.u with legacy systems. w.u w
ww wwb. they are not designedwtowintegrate w w ww
c. they do not incorporate methods for documentation.
d. they do not incorporate methods for testing.

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Difficulty:
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-
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w w w w ww
ww 62. ww ww w w w
If an organization’s requirements conflict with the software package chosen and the package
cannot be customized, the organization will have to:
.c om .c om .c om .com .com
ob -bh a. change
o b-bhits procedures. o b -bh b- b h
b- b h
w .u b.w.uoutsource the development u the system.
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ww wwc. redesign the RFP. ww ww ww
d. change the evaluation process.
h.c om Answer: a h.com .com

Difficulty:hEasy m
h.co p. 538
Reference: h.com
.uo b-b .u ob-
b
o b-b o b-b .uo b-b
w w w.u w.u w
ww ww w w w w ww

bh.c b h b h b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
w 63. w.u such as _____________________
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can easily undercut
ww from w w
outsourcing. w w w w w
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om b. comvendor .com .com .com
bh.c
transitioning to ha.new h h h
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w .uob c.
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w . uob
technology services
w . uob
w w d. ww
all of the above ww ww ww
ob -bh64. - b h
The process of creating workable information b h
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w.u w .uob w .uob w .uob w.uob
ww ww
a. RAD. ww ww ww
b. JAD.
c o m c. prototyping.
om .com om om
bh . d. both b or c. h.c h h.c h.c
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w w w w w
ww ww a
Answer: ww Easy
Difficulty: w w
Reference: pp. 539–541 ww
65. The chapter case on outsourcing models describes the outsourcing model of transaction
b h .com relationships as onebhin.cwhich:
om
b h .com b h .com h.c om
.uob
-
. u ob- . u ob- . u ob- .uo b-b
w w w w w
ww ww the vendor and firm co-manage
a. both
ww the project. ww
b. the firm contracts for relatively small chunks of IT services that are well-defined.
ww
c. the firm’s internal staff are used on a transaction basis by the vendor.
use of the vendor’s osystems are contracted for on a use or transaction basis.
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d.
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h.c
b-b
h.c
b-b
h.c
w Answer: w w.uMedium
Reference: w
ww ww ww ww ww
66. This type of systems development is characterized by significantly speeding up the design
phase and the generation of information requirements and involving users at an intense level.
m .com om om om
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w w w w w.u
ww b. ww
JAD ww ww ww
c. Prototyping
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Difficulty: Medium
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w w.u w w w.u
ww ww ww ww w w

ob -bh ob-bh b- b h
b- b h
b- b h
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww
om .com om .com om
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b-b
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w w.u w.u w w
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b
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m om om om om
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w 67. (Synthesis)
w w.u w.u w
ww ww ww w w ww
You are an IT project manager for an advertising firm. The firm wishes to create an online
survey tool that will be used to survey focus group reactions to products in development. The
h.com most important
h om
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m as possible as
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uocorporate service. However,
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b
b- know that many of the
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b
ob- managers that are .uob-
usenior
b
w w w w w
ww wwbusiness owners of this project
ww have difficulty in understanding
ww ww
technical or software
development issues, and are likely to change their requirements during the course of
development. What development method would be most successful for this project?
m com .com m om
- bh.co b h. b h bh.co -bh
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.uo b a. RAD
ob-
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w b.w w.u w.u ww
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ww wwc. End-user developmentww w w w
d. Prototyping
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b-bh -bhMedium
Difficulty: -bh pp. 534–541
Reference:
b-b
w.u
o
ww 68. w w
w Groups of objects are assembled
w w w
w for common functions,wwhich can
into software components
be combined into large-scale business applications, in this type of software development.
b h .com .com development bh.com

a. Object-oriented
b h h.c om h.c om
ob- ob-
b. Component-based development ob- .uo b-b .uo b-b
w.u w. u w . u w w
ww ww ww
c. Structured methodologies
d. RAD
ww ww
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Difficulty: Easy Reference:om
p. 542 om
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h.c
b-b
h.c
b-b
h.c
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w w.u w.u w.u w.u
ww 69.
w w
w Compared to the use of proprietary
w components, Web w
w w w
services promise to be less expensive
and less difficult to implement because of:
m m m m om
-bh.co - b h.coto integrate seamlessly
a. their ability
- b h.colegacy systems.
with
- b h.co bh.c
ob b. .u obuse of universal standards.
the ob ob ob-
w.u w.u
w the ubiquity of the Internet. w.u w.u
ww w w
c. w w w w ww
d. the ability to reuse Web services components.
bh .com Answer: b
b h.com .com
Difficulty: Easy
h .com
Reference:
h
p. 542
h.c om
.uo b- .uob
- b-b
uothe U.S. Army payroll w b-b
.uo the primary cause of o b-b
w 70. Aswdiscussed in the chapter w w.on
case systems, w.u
ww w w w
errors in the system were due to: w w w w
a. lack of integration between two systems used for payroll.

.c om .com .combusiness processes.bh.com .com
ob -bh b. vendor b h
unfamiliarity with the U.S.
ob-
b h
Army’s
ob-of documentation in the.ureengineering b- b- b h
w .u c.w.ulack w process. w.uo w .uo
ww ww ww
d. poorly documented processes ww
used for determining pay. ww
om .com .com om om
- bh.c b h bh
b-b
h.c
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w ww w w w w ww

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w w.u w.u w w
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b
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w Fill in the Blanks w w.u w.u w
ww ww ww w w ww
71. A systems analysis includes a(n) feasibility study that is used to determine whether the
solution is achievable, from a financial, technical, and organizational standpoint.
h.c om h .com .c om .com h.co
m
b-b b- b b -bh - b h - b
w .uo w .uo o
Difficulty: Medium
w.u .uob p. 525
Reference:
w w .uo b
ww ww ww ww ww
72. Information requirements contain a detailed statement of the information needs that a new
system must satisfy; identifies who needs what information, and when, where, and how the
h.
m
co information is needed. com h. com . com h. .c om
b-b b-b b -bh b-b b -bh
w .uo w .uo u o
w.Medium
o
.u p. 525 .u o
ww ww
Difficulty:
ww www
Reference:
w ww
73. A(n) systems design is the model or blueprint for an information system solution and consists
o mof all the specifications thatmwill deliver the functions identified
o m during systems analysis.
m om
-bh
.c h.c h.co h.c o h.c
ob .uo b-b ob -b b-b
.uo p. 525 .uo b-b
w.u w wu
Difficulty:.Medium Reference:
w w
ww ww w w ww ww
74. Conversion is the process of changing from the old system to the new system.
b h .com b h .com Difficulty: Easy bh.com Reference: p. 527

b h .com b h .com
- b- ob- ob- ob-
w .uob 75. The conversion w .uostrategy w . u w . u w . u
ww ww
parallel strategy.
in which thew
wwconcurrently is called a(n)ww
w old and new systems are run
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Difficulty: Medium om Reference: p. 527om
b h b h b h .c b h .c b h .com
- - - ob- level of the -
w .uob 76. Process specifications
w .uob describe the transformation
w .uob occurring withinwthe
.ulowest w .uob
ww wwdiagrams.
data flow ww ww ww
. c o m . co m Difficulty: Easy .com Reference: p. 531

.com .com
-bh - b h - b h - b h -b h
w .uob 77. Computer-aided w .uobsoftware (systems) engineering
w .uob (CASE) provides w .uob tools to automate w.uob
software
ww ww
the methodologies ww of repetitive work in systems
to reduce the amount ww development. ww

- 78. A(n) request forobproposal
- - of questions submittedotob-external vendors -
.uob .uob .uob
(RFP) is a detailed list
w to w
determine u well they meet the organization’s
.how w specific w .u
requirements. w
ww ww ww ww ww
-bh79. b h
Joint application design is a process used to
b- end-users and information b h
accelerate
- the generation of b h
information
- b- b h
w .uob requirements
w uohaving
.by w .uob system specialistswwork .uobtogether in w .uo
ww wwinteractive design sessions.
intensive ww ww ww
om .com .com om om
- bh.c b h bh
b-b
h.c
b-b
h.c
w w w w.u w.u w
w ww w w w w ww
om .com om .com om
bh.c b h 224ob-bh
.c b h
b-b
h.c
w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob -
uo b-b o b-b b-b
uo on extensible markup o b-b
w 80. Webw.services w.u software components
loosely coupled, reusable w.based w.u
ww w w w w
wlanguage (XML) and otherwopen protocols and standardswthat enable one applicationwto
communicate with another with no custom programming required.
h.com h .com .com

Difficulty:hMedium m
h.co p. 542
Reference: h.co
m
.uo b-b .uo b- b
w w w w w
ww ww ww ww ww
m .com .com m om
- bh.co b h b h bh.co -bh
.c
.uo b .uo b- ob- o b- ob
w w w.u w.u ww
.u
ww ww ww w w w

b-bh b-b -b h
b-b b-b
w.u
o
w .uo w.uob w.u
o
w .uo
ww ww ww ww ww
b h .com b h .com h.c om h.c om h.c om

w.u w.u w w w
ww w w ww ww ww
.c om om om om om
-bh bh.c b-b
h.c
b-b
h.c
b-b
h.c
w w w w w
ww ww ww ww ww
m .com om om om
.u ob -
w w w w w.u
ww ww ww ww ww

.uo b- .uob
-
w w w w w.u
ww ww ww ww w w

ob -bh ob-bh b- b h
b- b h
b- b h
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h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
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w w w.u w.u w
ww ww w w w w ww

bh.c b h b h b h
b-b
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w w.u w.u w w
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m om om om om
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w Essay Questions w w.u w.u w
ww ww ww w w ww
81. Synthesis
h.c om Describe each type hof.corganizational

om .comby information technology.
change enabled
h h .com Give h .com
.uo b-b an example u
.
b
ofoeach
b
b- type of change, as .itumight
ob- be illustrated through
.
- b
uobthe operations of a w.uob
- b
w w w w
ww hotel.ww ww ww ww
1. In automation, employees are assisted with performing tasks automatically. In a hotel,
.com this might mean that
. com
a system is set up for the c
. om
reservations desk to record and
. com process
. com
ob -bh b h
ob- of procedures, standard
customer reservations. - b h
b- b h - b h
w.u 2. In w w.u
rationalization w .uob operating proceduresware .uostreamlined. In a w .uob
ww w this might mean that a w
hotel,
w ww three or four steps for ww
reservation system that required
checking a customer in would be reduced to one or two steps.
3. In business process reengineering, business processesm are analyzed, simplified mand
om .comthe reservation and bcheck-in o o .com
- bh.c redesigned. Inbahhotel,
- - h . c system might be h .
designed
b c to allow
- of a hotel - b h
w .uob .uob to reserve rooms and
the customers
w w uob in themselves, without
.check w
obneed
.uthe w .uob
ww ww
employee ww
to confirm the process. ww ww
4. In paradigm shift, the very nature of the business is rethought and new business models
are defined. In a hotel, this might mean that the idea of renting rooms on a night-by-
b h .com b h .com
night basis to clients might be rethought of as.an
b h
m
coextended b h .com even as
stay place, or perhaps
b h .com
ob- ob- or other business type.ob-
a condominium ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
.c om Synthesis in terms ofhmodel

.com h.c om h.c om h.c om
b -bh - b b-b b-b b-b
w .u o
w .uob w .uo w .uo w .uo
ww ww ww ww ww
m .com om om om
.u ob -
w w w w w.u
ww ww ww ww ww

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-
w w w w w.u
ww ww ww ww w w

ob -bh ob-bh b- b h
b- b h
b- b h
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
h.c
b-b
h.c
w w w.u w.u w
ww ww w w w w ww
om .com om .com om
bh.c b h 226ob-bh
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b-b
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w w.u w.u w w
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m om om om om
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w 82. wSynthesis w.u w.u w
ww ww ww w w ww
You are consulting for the information technology division of a state university to guide
and facilitate the design of a new system for handling college applications, which has
h.c om previously been
h
m
.cohandled entirely with h com
a .paper-based process. Theyh om like to set up
.cwould h .com
.uo b-b .
- b
uob by which prospective
a system
.
- b
uob can apply online.
students
.
- b
uob factors should theyw.uob
What - b
w w w w
ww wwconsider before embarkingwwon systems development? ww ww
Student answers will vary, but should include an understanding of the elements of reviewing
h .com com process to understandcohow
an identified business
h. h. m the process works. Ancexample
h . om answer is: h .com
.uo b-b .uo b-b b
.ubusiness b- b
ob- process they wish.utooenable .uob
- b
w w
The university has decided w
which w through w
information
ww wwtechnology. Now they should
ww perform some more analysis
ww on that process itself. Factors
ww they
will need to look at include:
.c om  identifying .c om .c om .c om h.c om
ob-bh o b -bh the inputs and outputs.o b -bh o b -bh b-b
w.u  w.uidentifying the flow of this u
w.process. w.u w .uo
ww ww identifying the various ww wwdelays in the process.
activities and buffers or time ww
 identifying the resources: capital, labor, and time involved in the process.
 identifying the minformation structure and flow.
b h .com  identifying
b h .cothe process owner. b h . c o m
b h .com h.c om
ob- ob- other process actors.uand
 .uidentify ob-decision makers. .uob
-
.uo b-b
w.u w w w w
ww ww ww ww ww
They will need to review the existing process and determine what steps can be automated or
reengineered. A systems analysis with feasibility study should ultimately be conducted.
.c om om .com .com om
-bh bh.c b h b h
b-b
h.c
.u ob .uob- -
.uob Hard
Difficulty: ob-
Reference: p. 520
.uo
w w w w.u w
ww ww ww ww ww
Synthesis in terms of propose
m 83. om processes are measured.

Describe how business om om om
bh.co h.c h.c h.c bh.c
.u ob - b-b
.uoare four main dimensions .used b-b
uo to measure business processes:
.uo b-b ob-
w wThere
w w w.u
ww ww ww ww ww
 Process cost: the total cost of the process for a typical transaction.
 Process time: the total decision and activity time of all actors.
bh .com 
b h.com the ability of the
Process flexibility:
b h .com to produce a variety
process
b h om or change in h.com
.coutputs
of
b
.uo b- . u
- of environmental pressures.
obface
the
. u ob- . u ob- . u ob-
w w w Process quality: the amount
wwof time and money spent towcorrect
w defective parts and service.
ww
ww w w w w

ob -bh ob-bh b- b h
b- b h
b- b h
ww ww ww ww ww
h.c om om h.co
m om om
b-b bh.c b b-b
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b-b
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w w w.u w.u w
ww ww w w w w ww

bh.c b h b h b h
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w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
uo do to achieve w.uo b-b
w 84. w.upurpose of systems analysis?
What is the w.u What does the systems
w.analyst
ww thesew w
goals? w w w w ww
It consists of defining the problem, identifying its causes, specifying the solution, and
b h .com identifying the information

b h .comrequirements that must
b h
m by a system solution..com
.cbeomet b h bh .com
- - - b- b-
w .uob The systemw uob creates a road mapwof.uthe
.analyst obexisting organizationw .uosystems,
and identifying w.uo
ww ww owners and users of data
the primary wwin the organization. Fromwthis w organizational analysis,ww
the systems analyst details the problems of existing systems. By examining documents, work
. c o m papers,
systems,
and procedures; observing system operations; and interviewing key users of the
the analyst h
m the problem areas.cand
.coidentify
can omobjectives a solution would
.comachieve. .c om
- bh - b b h bh -bh
.uob .uob requires building a new
Often the solution b-
.uoinformation system or improving -
.uob an existing one. .u ob
w w w w ww
ww ww ww ww w
The systems analysis itself would include a feasibility study to determine whether the solution
suggested would be achievable from a financial, technical, and organizational standpoint.
b h .com b h .com Difficulty: Medium

b h.com Reference: pp.
b h com
.524–525 b h .com
- - - - -
ww 85. wwdescribe at least nine factors
List and ww considered in the design
wwspecifications for a newww
system. Give at least two examples for each one.

.com  com timing com com com
Output. Medium, content,
b h b h . b h . b h . b h .
ob- - flow, data entry
Input. Origins,
.uob Simplicity, efficiency, b-
.uologic, .uob
-
.uob
-
w.u  User winterface. w feedback, errors w w
ww  ww
Database design. Logical data wwmodel, volume and speed w w
requirements, organization w
w
and design, record specifications
.c om  .comWhat activities, whobperforms
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.com them, when, how,bwhere
program modules, required
.com
reports, timing of outputs
.com
b -bh  b- b h
Manual procedures. h
ob- output controls, procedural - h - b h
w .u o  w .uoInput
Controls. controls, processingw .ucontrols, w .uob controls w .uob
ww  ww
Security. ww
Access controls, catastrophe plans, audit trails w
w ww
 Documentation. Operations documentation, systems documents, user documentation
m  Conversion. Transfer files, initiate procedures, select testing method, cut overoto new
bh.co system b h .com b h .com b h .c m b h .com
ob - b- training techniques,.udevelop
ob- training modules, identify - -
w.u  .uoSelect
Training.
w w w .uob training facilities w.uob
ww  ww
Organizational changes. Task wwredesign, job design, processwwdesign, organization ww
structure design, reporting relationships
bh .com b h.com Difficulty: Medium.com

h .com
Reference: p. 526
h h.c om
.uo b- .uob
-
. uo b-b . uo b-b . uo b-b
w wwfor the IT departmentwofww ww job to set up the www
ww 86. You work
w a startup ASP, and it is your
w
testing processes for a new enterprise system the company will be hosting. Describe the
processes you will recommend. What unique considerations will you have?
.c om The first step is to prepare
.comthe test plan. Any individual
.comcomponents will need omtested
.cbe .com
b -bh - b h b h b h
ob- will need to be tested..uBecause
to
ob- this is a - b h
w .u o .uoband then the system aswa.uwhole
separately, first,
w w w .uob
ww w
hostedwapplication, w to be tested as accessed
the system willwneed ww from the variety of ww
platforms that are supported by the application. If the hosted application supports both Mac
and Windows users, the system and its parts will need to be tested using client computers
h o m
.c running these systems..com bh .com
h .com h h.c om
.uo b-b .u ob- ob-b o b-b .uo b-b
w w w.uHard
Reference: w
ww ww ww ww ww
om .com om .com om
bh.c b h 228ob-bh
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b-b
h.c
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w w.u w.u w w
ww ww ww ww ww
b
ob -b
ww w w ww ww ww
m om om om om
.u ob -
w 87. Evaluation
w w.u w.u w
ww ww ww w w ww
What are the advantages and disadvantages of prototyping? Describe the steps in
prototyping. Give at least two circumstances under which prototyping might be useful.
h.com h .com h .com h .com h .com
.uo b-b b
- is most useful when there
.uob Because prototyping
Prototyping
uob
b
u
- b
-is some uncertainty aboutobrequirements or design ob- b
w w
solutions. w .encourages intense w
end-user .involvement throughout w.u
the
ww ww ww ww ww
process, it is more likely to produce systems that fulfill user requirements. Working
prototype systems can be developed very rapidly and inexpensively.
m m m m m
- bh.co - b h.co can gloss over essential
Rapid prototyping
- b .co in systems development.
hsteps - b
o completed
h.Ifcthe - b h.co
.uo b ob works reasonably well, .management
prototype uob obfor reprogramming, .uob
may not see the .need
w w.u w wu w
ww w w
redesigned, full w w
documentation in testing to build a w
polished
w production wwbackfire
system. This can
later with large quantities of data or large numbers of users in a production environment.
.c om om
The steps in prototyping
h.c
are:
.com h.c om h.c om
b-bh b-b -b h
b-b b-b
w.u
o  .uidentify
w
o .uob
the user’s basic requirements.
w w.u
o
w .uo
ww ww develop an initial prototype.
ww ww ww
 use the prototype.
 revise and enhance the prototype.
ob- b- might be especially .useful
Prototyping
.uothe b- in designing end-user.uinterfaces,
uoof ob- or situations in
.uob
-
w.u w
which users have no clear w
ideas what their w
information requirements are. w
ww ww ww ww ww
.c om 88. m
o features of each ofhthe o m o m om
-bh bh.c
List the identifying b .c five systems development
bh.capproaches. b-b
h.c
.u ob u ob- u ob- u ob- o
ww 
w w . Systems lifecycle. w w .
Sequential step-by-step formal w w .
process, written specification w w.u
and
w w w w w
approvals, limited role of users
 Prototyping. Requirements specified dynamically with experimental system; rapid,
m omiterative process; usersh.continually
informal, cand com com
interact with the prototype com
-bh.co  b h . b b h . b h .
ob ob- developed
Applications software package. b-Commercial software.eliminates
.uoprograms uob
- the need for
.uob
-
w.u w .uinternally w
software w w
ww ww
 End-user development. ww Systems created by end w w
users using fourth-generation
w
wsoftware
tools, rapid and informal, minimal role of information systems specialists

.com omSystems built and sometimes om operated by an external ovendor
m om
Outsourcing.
bh -b h.c -bh
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.uo b- .uob .uob Medium
Difficulty: ob
.uReference: pp. 534–539 .uob
-
w w w w w
ww ww ww ww ww

ob -bh ob-bh b- b h
b- b h
b- b h
ww ww ww ww ww
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b-b bh.c b b-b
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w w w.u w.u w
ww ww w w w w ww

bh.c b h b h b h
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w w.u w.u w w
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b
ob -b
ww w w ww ww ww
m om om om om
w 89. w.u
ww ww ww w w ww
What qualities of object-oriented development make this method especially suitable for
Internet applications?
.uo b-b Object-oriented - b
bdevelopment
.isuomodeled
uses the object b
obas- the basic unit of systems
.uobjects
- b
obanalysis
.ubetween
and design.
.uob
- b
w w
The system as a collection w
of and the w
relationships them. w
ww ww ww ww ww
E-commerce companies need to be able to add, change, and retire their technology
o m capabilities very rapidly. Object-oriented development allows objects to be reused and
om to create new software, m m om
h . c repackaged h.cobjects
with other h.cosaving money and development
h.co time. -bh
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.uo b-b .uo b-b .u ob-
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Difficulty: ww ww
ww ww ww Medium Reference:
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w
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w . u w.u w.uob w.u
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ww w
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- b h b h b h b h b h
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-
w w w w
ww wwdevelopment process. If users
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m .comsystem because theybhave
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.uo b- .uo b-
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.uo .uo b-b
w w w w w
ww ww ww ww
The role of the user in the development of software depends on the method of development ww
used. In SLDC work, end users are limited to providing information requirements and
. c o m reviewing the technical.cstaff’s

o m work. In prototyping, . c
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iterative
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b h b h
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w w w w
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ob -b ob -b ob -b ob-

h.com Achieving h .com

bh .com com coordination and control.

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