CHAPTER 1

1. Which of the following statements is NOT accurate regarding how information systems are
transforming business?
In 2019, global spending on information technology and information technology services
was nearly $8.3 billion.

2. A(n) ________ is one in which nearly all the organization's significant business relationships
with customers, suppliers, and employees are digitally enabled and mediated.
digital firm

3. Information systems encompass all of the following tasks regarding information

EXCEPT ________.
creates data

4. Which one of the following is NOT one of the major business functions or specialized tasks
performed by business organizations and supported by information systems?
collective bargaining

5. The study of information systems is a multidisciplinary field. Which of the following lists
accurately includes all of the disciplines?
Computer Science, Operations Research, Sociology, Management Science, Economics,
Psychology

6. Select the item below that is NOT one of the ways in which computer science contributes to
the understanding of information systems.
theory of business process development

7. __________ is able to personalize shoppers’ experiences when they are in stores based on the
items they pick up, even if they don’t purchase them.
AWM Smart Shelf

8. The __________ to information systems emphasizes mathematically based models to study

information systems, as well as physical technology and formal capabilities of these systems.
technical approach

9. Leadership, strategy, and management behavior are components of which dimension of

information systems?
management

10. Strong senior management support for change, incentive systems that monitor and reward
individual innovation, an emphasis on teamwork and collaboration, training programs, and a
management culture that values flexibility and knowledge are examples of __________.
managerial complementary assets
11. __________ consists of both physical devices and software, links the various pieces of
hardware, and transfers data from one physical location to another.
Networking and telecommunications technology

12. The disciplines that contribute to the behavioral approach (focusing on the design,
implementation, management, and business impact of systems) are_________.
psychology, sociology, and economics

13. Which of the following best defines complementary assets?

Complementary assets are those assets required to derive value from a primary
investment.

14. A(n) __________ links two or more computers to share data or resources.
network

15. Which of the following statements about information systems and globalization is false?
Internet service firms, such as Google and eBay, are able to replicate their business
models and services in multiple countries with only a redesign of their information
systems infrastructure.

16. Acrelec uses __________ to enable customers to shop as normal and check out by simply
exiting the store.
AWM Frictionless

17. The field of management information systems deals with __________ and __________
issues that arise during the development and implementation of information systems in an
organization.
behavioral; technical

18. __________ can be defined technically as a set of interrelated components that collect,
process, store, and distribute information to support decision making and control in an
organization.
An information system

19. What are the three main activities of an information system?

Input, processing, and output

20. Which issues are involved in the organizational dimension of information systems?
The organization's hierarchy, functional specialties, business processes, culture, and
political interest groups

21. This scenario is a good example of a business using information systems to achieve which of
the following strategic business objectives?
Operational excellence
22. A(n) __________ complementary investment is characterized by a supportive business
culture in which efficiency and effectiveness are highly valued.
organizational

23. Which of the following best describes business processes?

They are the set of logically related tasks and behaviors that organizations develop over
time to produce specific business results and the unique manner in which these activities
are organized and coordinated.

24. __________ is a field that deals with the behavioral issues as well as technical issues
surrounding the development, use, and impact of information systems used by managers and
employees in a firm.
Management information systems

25. Which of the following statements about information systems and globalization is false?
Communication between businesses in different parts of the world is now instant, but
expensive.

26. In which of the approaches to information systems is the performance of a system optimized
when both the technology and the organization mutually adjust to one another until a
satisfactory fit is obtained?
Sociotechnical

27. Which of the following are examples of key managerial complementary assets?
Strong senior management support for change, incentive systems that monitor and reward
individual innovation, an emphasis on teamwork and collaboration, training programs,
and a management culture that values flexibility and knowledge

28. This scenario is a good example of a business using information systems to achieve which of
the following strategic business objectives?
Customer and supplier intimacy

29. AWM Smart Shelf __________.

is used to personalize shoppers’ experiences when they are in stores based on the items
they pick up, even if they don’t purchase them

30. Which of the following is a good example of the relationship between information systems
and customer and supplier intimacy?
The Mandarin Oriental hotel in Manhattan keeps track of guest’s preferences, such as
their preferred room temperature and television programs, in a large data repository.
Individual rooms are networked to a central network server computer, so that when a
customer arrives, the system automatically changes the room conditions to meet each
customer’s specifications.
31. __________ refer to the set of logically related tasks and behaviors that organizations
develop over time to produce specific business results and the unique manner in which these
activities are organized and coordinated.
Business processes

32. Which of the following information technologies consists of detailed, preprogrammed

instructions that control and coordinate the computer in an information system?
Computer software

33. AWM Frictionless is a walk-in, walk-out solution that __________.

AWM Frictionless is a walk-in, walk-out solution that __________.

34. What is an information system?

An information system can be defined technically as a set of interrelated components that
collect, process, store, and distribute information to support decision making and control
in an organization.

1. Using Internet technology to create an internal system is called a(n) ________.

intranet

2. The information systems approach to this textbook is the ________.

sociotechnical approach

3. A raw fact would be considered ________.

data

4. In 2019, global spending on information technology and information technology services was
nearly _______.
$3.8 trillion

5. ________ includes hardware and software an organization needs to compete in the

marketplace.
information technology

6. Which of the following people are responsible for designing products or services and
creating new knowledge for the firm?
knowledge workers

7. ________ deals with both behavioral and technical issues regarding information systems, and
focuses on the development, use, and impact of systems by managers and employees.
Management information systems (MIS)

8. Sending a copy of an airline boarding pass to your printer is an example of ________.

 output

9. The logically related tasks and behaviors that companies carry out to achieve a specific
outcome are called ________.
business processes

10. The behavioral approach to information systems includes ________.

psychology and sociology

11. Which of the following options has drastically reduced the costs of operating and transacting
on a global scale?
internet

12. A handheld scanner is used to capture bar codes on the tickets collected at a sports event. The
scanning action is considered ________.
input
13. A company that produces a new low-cost product based on improved decision making has
likely achieved a(n) ________.
strategic business objective

14. A(n) ________, such as a clerk, uses data for things such as scheduling.
data worker

15. ________ includes components that collect, process, store, and distribute information to

support decision making and control in a business.
information systems (IS)

16. Which of the following is NOT a strategic objective that drives business firms' investment in
information systems?
Intellectual property management

17. The world's largest network is the ________.

internet

18. If almost all an organization's significant business relationships are digitally enabled, it

would be called a(n) ________.
digital firm

19. The technical approach to information systems includes ________.

computer science and management science

20. A job opening for someone who "has the ability to use analytical reasoning and relevant
judgment to address customer service issues, as well as generate new ideas," would be best
filled by a(n) ________.
knowledge worker
21. A raw fact shaped into a meaningful form is ________.
information

22. The millions of product bar codes scanned at supermarket checkout counters everyday are
examples of ________.
data

23. A large grocery chain has implemented a solution using superwide angle, low-light HD
cameras that enable viewing and tracking products on the shelves in real time. Which of the
following options BEST describes the effect of this technology on business?
Businesses are using information technology to achieve higher levels of operational
efficiency.

24. Firms use a(n) ________ to coordinate their activities with other firms.
extranet

25. How a company produces, delivers, and sells its products and services in the marketplace is
called a(n) ________.
business model
CHAPTER 2

1. Which of the following statements about information systems and business processes
is correct?
Information systems may make it possible to completely change a business process.

2. Which statement contains business processes associated with the correct functional area?
The business processes of paying creditors, creating financial statements, and managing
cash accounts are in the functional area of finance and accounting.

3. Systems that focus on delivering information to support management decision making are
termed ________?
business intelligence systems

4. What type of system is used by senior management to help make decisions such as
nonroutine decisions requiring judgment, evaluation, and insight?
Executive support system (ESS)

5. Select the answer that lists all of the business benefits of collaboration and social business.
Productivity, quality, innovation, customer service, financial performance

6. How do enterprise social networking tools create business value?

By connecting the members of an organization through profiles, updates, and
notifications, similar to Facebook features, but tailored to internal corporate uses

7. Which answer best describes what the information systems department is responsible
for maintaining?
The information systems department is responsible for maintaining the hardware,
software, data storage, and networks that comprise the firm's IT infrastructure.

8. Who is responsible for educating and training users and information systems specialists about
security, keeping management aware of security threats and breakdowns, and maintaining the
tools and policies chosen to implement security?
Chief security officer (CSO)

9. How does the ability to download a Kindle e-book from Amazon, buy a computer online at
Best Buy, and stream a music track from Apple Music illustrate the way information systems
affect business processes?
New information technology frequently changes the way a business works and supports
entirely new business models.

10. Which department consists of specialists such as programmers, systems analysts, and project
leaders?
The information systems department
11. Which of the following information systems department manager is responsible for ensuring
that the company complies with existing data privacy laws?
Chief privacy officer (CPO)

12. Which of the following best describes business intelligence?

It is a contemporary term for data and software tools for organizing, analyzing, and
providing access to data to help managers and other enterprise users make more informed
decisions.

13. A wiki page allows users to __________.

share corporate knowledge and insights.

14. Enterprise applications are __________.

systems that span functional areas and focus on executing business processes across the
business firm, and include all levels of management

15. Which of the following statements is true of telepresence technology?

An integrated audio and visual environment which allows a person to give the appearance
of being present at a location other than the person’s true physical location is called
telepresence technology.

16. Which of the following best describes enterprise systems?

Enterprise systems are used to integrate business processes in manufacturing and
production, finance and accounting, sales and marketing, and human resources into a
single software system.

17. Which of the following best describes social business?

Social business is the use of social networking platforms, including Facebook, Twitter,
and internal corporate social tools, to engage employees, customers, and suppliers, and
enhance collaborative work.

18. Which of the following major enterprise applications are used to integrate business processes
in manufacturing and production, finance and accounting, sales and marketing, and human
resources into a single software system?
Enterprise systems

19. Which of the following best defines decision-support systems (DSS)?

Decision-support systems (DSS) focus on problems that are unique and rapidly changing,
for which the procedure for arriving at a solution may not be fully predefined in advance.

20. Which of the following is a representative of a department outside of the information systems
group for whom applications are developed?
end user

21. The permission and privacy capabilities of an enterprise social networking tool allows
managers to __________.
 determine who has access to information

22. Collaboration is __________.

working with others to achieve shared and explicit goals

23. Which of the following information system department specialists are highly trained
technical specialists who write the software instructions for computers?
programmers

24. Which of the following best defines executive support systems (ESS)?
Executive support systems (ESS) address nonroutine decisions requiring judgment,
evaluation, and insight because there is no agreed-on procedure for arriving at a solution.

25. A __________ is a computerized system that performs and records the daily routine
transactions necessary to conduct business, such as sales order entry, hotel reservations,
payroll, employee record keeping, and shipping.
transaction processing systems (TPS)

26. __________ refers to the use of digital technology and the Internet to execute the major
business processes in the enterprise.
Electronic business

27.  __________ are the collection of activities required to produce a product or service. These
activities are supported by flows of material, information, and knowledge among the
participants in business processes.
business processes

28. __________ are the principal liaisons between the information systems groups and the rest of
the organization.
system analysts

29. Which of the following best describes supply chain management systems?
Supply chain management systems help suppliers, purchasing firms, distributors, and
logistics companies share information about orders, production, inventory levels, and
delivery of products and services so they can source, produce, and deliver goods and
services efficiently.

1. Management information systems (MIS) provide ________.

middle managers with reports on the organization's current performance

2. Business processes that cross many different functional areas and require coordination across
departments are supported by ________ among the participants.
flows of material, information, and knowledge
3. A(n) ________ is used by senior managers to make decisions.
executive support system (ESS)

4. ________ include(s) the strategy and policies for using information technology within an
organization.
IT governance

5. In many companies, the information systems department is headed by a(n) ________.

chief information officer (CIO)

6. A web interface that presents integrated personalized business content delivered to senior
managers is ________.
portal

7. Transaction processing systems (TPS) are information systems that are ________.

associated with the elementary activities and transactions of the organization.

8. An extranet is a system that shares data ________.

across multiple organizations

9. A key word in social business is ________.

conversations

10. If a cookie company uses Facebook to help it "listen" to its customers' responses to new
cookie recipes, they are embracing ________.
social business

11. Functional information systems that operate independently of one another are becoming a
thing of the past because ________.
they make sharing information across functional systems difficult

12. Working together as a team to align a competitive strategy with the company's goals is an
example of ________.
collaboration

13. Which of the following enables a company's business processes to be a source of competitive
strength?
Business processes that allow the company to innovate or execute better than its rivals

14. A display that presents graphs and charts of key performance indicators on a single screen for
managing a company is called a ________.
digital dashboard
15. The data and software tools for organizing, analyzing, and providing access to data to help
managers and other enterprise users make more informed decisions are referred to
as ________ systems.
business intelligence

16. Thompson Manufacturing implemented a decision support system (DSS) with the goal
of ________.
understanding the impact on production schedules if sales were to double in a future
month

17. Businesses that collaborate and use social business often see benefits in productivity,
quality, innovation, sales growth, and ________.
customer service

18. Downloading a Kindle e-book from Amazon, buying a computer online at Best Buy, and

downloading a music track from Apple Music, are examples of how information systems
help business processes by ________.
implementing entirely new business models

19. A(n) ________ system helps capture, manage, and apply the experience of the organization.
knowledge management (KM)

20. Which of the following systems would BEST support managers who focus on unique
problems for which the procedure to arrive at a solution may not be fully predefined
in advance?
Decision-support

21. Which of the following is NOT an example of a company's transaction processing system?

Walmart's internal email system

22. _________ help businesses become more efficient by integrating functional business
processes into a single information system that spans all business areas.
Enterprise resource planning (ERP) systems

23. Customer relationship management includes ________.

customer support applications

24. A collaborative business culture is characterized by:

reliance on teams of employees to achieve and implement the results.

25. A supply chain management system is considered a type of ________ system because it
shares data across multiple organizations.
interorganizational
CHAPTER 3

1. Porter's competitive forces are useful to analyze a firm's information systems and identify its 
strategic position within its industry

2. In Porter's competitive forces model how do information systems influence interfirm rivalry?

Superior information systems from a rival can reduce your position in the market

3. If your firm is locked into older information systems that are expensive to maintain, this
makes your firm vulnerable to _________.
new market entrants with the latest technology

4. With regards to substitute products, your firm will be at a competitive disadvantage if it does

not create _____.
new technology-based products

5. Firms that have computer-based, efficient supply chains can manage their suppliers' pricing
behavior. This is an example of managing which of Porter's competitive forces?
power of suppliers

6. What is a disruptive technology?
Disruptive technologies can be substitute products that perform as well as or better than
anything currently produced. In other cases, disruptive technologies simply extend
the market, usually with less functionality and much less cost, than existing products.

7. Which of the following is the correct classification for an organizational structure

characterized as a task force organization that must respond to rapidly
changing environments?
Adhocracy

8. From the point of view of economics, IT changes ________.

both the relative costs of capital and the costs of information

9. Information technology, especially the use of networks, can help firms lower the cost
of ________, making it worthwhile for firms to contract with external suppliers instead of
using internal sources.
market participation (transaction costs)

10. Information systems can be used to create products and services that are personalized to meet
a specific customer's requirements, termed __________.
mass customization

11. A powerful, current example of a rapidly expanding ecosystem is the mobile Internet
platform. In this ecosystem there are four industries; select the answer that identifies them.
Device makers, wireless telecommunication firms, independent software
applications providers, and Internet service providers
12. The more successfully a firm can align information technology with its business goals,
the ________.
more profitable it will be

13. To identify the types of systems that provide a strategic advantage to their firms, select the
list that contains all the questions managers should ask.
What is the structure of the industry in which the firm is located? What are the business,
firm, and industry value chains for this particular firm? Have we aligned IT with our
business strategy and goals?

14. Which of the following questions should managers be able to answer before implementing an
IT?
Where in the value chain will information systems provide the greatest value to the firm?

15. Which of the following best describes benchmarking?

Benchmarking involves comparing the efficiency and effectiveness of a business process
against strict standards and then measuring the performance against those standards.

16. The competitive advantages that strategic systems confer do not necessarily last long enough
to ensure long-term profitability because ________.
competitors can retaliate and copy strategic systems

17. According to transaction cost theory, __________.

firms and individuals seek to economize on transaction costs, much as they do on
production costs

18. Taking advantage of network economics, using the model of a virtual company, and creating
a business ecosystem are all examples of how information systems help businesses use
__________ to achieve competitive advantage.
network-based strategies

19. This scenario is an example of how information systems help businesses use __________ to
achieve competitive advantage.
core competencies

20. Most businesses make a mistake when it comes to adopting or implementing information
technology because ________.
businesspeople ignore IT instead of taking an active role in shaping it

21. Substitute products that perform as well as or better than anything currently produced are
called __________.
disruptive technologies

22. A __________ is loosely coupled but interdependent networks of suppliers, distributors,

outsourcing firms, transportation service firms, and technology manufacturers.
 business ecosystem

23. Which of the following best describes an organization?

An organization is a stable, formal social structure that takes resources from the
environment and processes them to produce outputs.

24. Which of the following best defines a value chain model?

The value chain model highlights specific primary and support activities in the business
where competitive strategies can best be applied (Porter, 1985) and where information
systems are most likely to have a strategic impact.

25. __________ is an example of a company that uses information systems to achieve the lowest
operational costs and the lowest prices.
Walmart

26. Which competitive strategy information systems to enable new products and services or
greatly change the customer convenience in using your existing products and services?
Product differentiation

27. According to _________, a firm is viewed as a “nexus of contracts” among self-interest

individuals rather than as a unified, profit-maximizing entity.
agency theory

28. A value web ___________.

is a collection of independent firms that use information technology to coordinate their
value chains to produce a product or service for a market collectively

29. In this example, information systems have what kind of an impact on an organization?
economic

30. Organizations like Walmart use information systems to __________.

achieve the lowest operational costs and the lowest prices

31. Inbound logistics (receiving and storing materials for distribution to production), operations
(transforming inputs into finished products), outbound logistics (storing and distributing
finished products), sales and marketing, and service are all __________.
primary activities

32. In this example, information systems have what kind of an impact on an organization?
economic

33. __________ consist of organization infrastructure (administration and management), human

resources (employee recruiting, hiring, and training), technology (improving products and the
production process), and procurement (purchasing input).
Support activities
34. Which of the following options directly links consumer behavior to distribution and
production and supply chains?
Efficient customer response system

35. Support activities consist of _________.

organization infrastructure, human resources, technology, and procurement

1. According to the value chain model, sales and marketing is considered a ________ activity
of the firm.
primary

2. Which of the following options increases the strength of the market entrant force?
The availability of a younger workforce with the necessary knowledge and skills at an
advantageous cost

3. Based on your reading, information systems help businesses compete ________.

but do not guarantee a successful outcome

4. In the music industry, ________ are considered a newer substitute for CD-based music

stores.
Internet music sites

5. According to your readings, ________ was able to link external suppliers, which allowed it

to obtain more than 70 percent of parts from outside the organization.
Ford

6. An innovation that dramatically changes the business environment is called a(n) ________.

disruptive technology

7. The power of the customer ________ if they have an easy time switching from one
company (e.g., not having to pay an exit fee) to another.
grows

8. The assumption that an MIS professor knows more about normalization than a student is an
example of ________.
organizational culture

9. Another name for standard operating procedures for creating goods and services is (are)
________.
routines

10. Which of the following options is a challenge to the sustainability of strategically

implementing an information system?
Coping with competitors who retaliate and copy strategic systems
11. Because Walmart has an efficient inventory replenishing system, they are able to
reduce ________ costs.
overhead

12. According to the value chain model, operations are considered a ________ of the firm.
primary activity

13. The competitive rivalry force of the Internet is strong because it has ________.
made it easier for companies to compete on price alone

14. The observation that IT broadens the distribution of information, empowers lower-level
employees, and increases management efficiency is an example of the _____________ effect
of information technology on organizations.
organizational and behavioral

15. A collection of routines for producing goods and services is called a(n) ________.
business process

16. A virtual company uses ________ to link people, assets, and ideas.

networks

17. In most cases, a business ecosystem includes ________.

a few keystone firms

18. Information systems can ________ the organization by empowering lower-level employees.

flatten

19. Nike sells customized sneakers through NIKE BY YOU to establish ________.

product differentiation

20. Companies that establish a competitive advantage by having the lowest prices in an industry
are using a ________ approach.
cost-leadership

21. A(n) ________ includes interdependent networks of suppliers, distributors, and outsourcing
firms.
business ecosystem

22. According to the value chain model, technology is considered a ________ of the firm.
support activity

23. A ________ consists of a networked system that can synchronize the value chains of
business partners ________.
value web; within an industry
24. According to the value chain model, employee recruiting, hiring, and training are considered
a __________ activity of the firm.
support

25. ________ include two organizations sharing expertise.

synergies