True or False
1. Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes. TRUE
2. A fully digital firm produces only digital goods or services. FALSE
3. An adhocracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.
4. From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor.
5.IT infrastructure technology is purely a set of physical devices and software applications that are required to operate the entire enterprise.
6. Client/server computing is a widely used form of centralized processing.
7. In green computing, reducing computer power consumption is a top priority.
8. In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries.
9. In the strategy of product differentiation, information systems are used to enable new products and services.
10.Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed. FALSE
11. Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. FALSE
12. The dimensions of information systems are management, organizations, and information technology. TRUE
13. Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.
14. A substantial part of management responsibility is creative work driven by new knowledge and information.
15. Intranets allow firms to work easily with third-party suppliers and vendors.
16. An IT infrastructure provides the platform on which the firm can build its information systems.
1. The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and
- A)improved flexibility.
- B)improved decision making.
- C)improved business practices.
- D)improved efficiency.
2. Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case?
- A)operational excellence
- B)new products and services
- C)competitive advantage
- D)customer support
3. The three activities in an information system that produce the information organizations use to control operations are
- A)information retrieval, research, and analysis.
- B)input, output, and feedback.
- C)input, processing, and output.
- D)data analysis, processing, and feedback.
4.Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization’s
- A)data management environment.
- B)networked environment.
- C)IT infrastructure.
- D)information system.
5. The Internet raises the bargaining power of customers by
- A)creating new opportunities for building loyal customer bases.
- B)making more products available.
- C)making information available to everyone.
- D)lowering transaction costs.
6. How would you determine the market demand for your firm’s IT services?
- A)Perform a TCO analysis.
- B)Benchmark your services.
- C)Hold focus groups to assess your services.
- D)Analyze sales returns on key investments.
7. The process of presenting a set of computing resources (such as computing power or data storage) so that they can all be accessed in ways that are not restricted by physical configuration or geographic location is called
- A)cloud computing.
- B)autonomic computing.
- D)multicore processing.
8. Which of the following are environmental actors that interact with an organization and its information systems?
- C)regulatory agencies
- D)all of the above