Managing in the Digital World.docx

Information Systems Today Managing in the Digital World 1) Knowledge workers are professionals who ________. A) use knowledge to perform their jobs, but do not create knowledge B) create, modify, and/or synthesize knowledge as a fundamental part of their jobs C) lack the ability to solve non-routine problems at work D) modify knowledge created by others, but do not create knowledge themselves E) work in a monotonous workplace and lack innovation Answer: B 2) Which of the following predictions made by Peter Drucker is true? A) Knowledge workers have lesser bargaining power than workers in other industries. B) Knowledge workers lack valuable real-world skills. C) Knowledge workers lack reliance on formal education. D) Knowledge workers are continually learning how to do their jobs better. E) Knowledge workers are paid less in comparison with their prior industrial counterparts. Answer: D 3) Who among the following coined the term "knowledge worker"? A) Peter Drucker B) Alvin Toffler C) Johannes Gutenberg D) Thomas L. Friedman E) Mark Zuckerberg Answer: A 4) Which of the following occurred when Alvin Toffler's "third wave" gained speed? A) Society moved from a predominantly agrarian culture to the urbanized machine age. B) Occupations changed to accommodate the mechanized society. C) The ability to perform repetitive tasks became a quality to be instilled and valued. D) Individuals shifted from handicrafting items for sale to working in factories. E) Information became the currency of the realm. Answer: E Page Ref: 7 Course LO: Compare and contrast different ways of connecting to the Internet 5) The various services offered by Google, such as Gmail (e-mail), Google Drive (word processing), or Google Calendar, all of which are accessed via a Web browser, freeing users from the task of installing or updating traditional desktop applications or worrying about storing or backing up data, are good examples of ________. A) cloud computing B) computer assembling C) data mining D) systems integration E) internetworking Answer: A Page Ref: 11 6) Which of the following terms means "knowing how to use a computer"? A) information security B) cloud computing C) information literacy D) computer compatibility E) collaborative thinking Answer: C Page Ref: 12 7) The ability to independently learn new technologies as they emerge and assess their impact on your work and life is called ________. A) computer networking B) computer adaptation C) computer fluency D) computer compatibility E) computer assembling Answer: C Page Ref: 13 8) Which of the following is an economic change brought about by globalization enabled by information technology? A) increase in the frequency of worldwide fads and phenomena B) development of low-cost computing platforms C) availability of low-cost communication systems D) increase in the outsourcing of labor E) decentralization of organizations Answer: D Page Ref: 14 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 9) Which of the following is a technological change brought about by globalization enabled by information technology? A) increase in the frequency of international travel B) increase in the levels of immigration C) enforcement of global patent and copyright laws D) decrease in the frequency of worldwide fads E) decentralization of organizations Answer: C Page Ref: 14 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 10) Which of the following is a cultural change brought about by globalization enabled by information technology? A) the enforcement of global patent and copyright laws B) the availability of low-cost communication systems C) the development of low-cost computing platforms D) the frequency of worldwide fads and phenomena E) decrease in the outsourcing of labor Answer: D Page Ref: 14 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 11) Which of the following operating systems released by Microsoft has become the de facto world standard in PC operating systems over time, enabling people from all over the world to use a common computing platform? A) Linux B) Mac OS X C) Windows D) FreeMint E) AmigaOS Answer: C Page Ref: 15 12) In 1994, a company called ________ released the first mainstream Web browser thereby opening up the possibilities of the Internet for the general public. A) Netscape B) Microsoft C) Oracle D) Google E) Mozilla Answer: A Page Ref: 15 13) Which of the following best explains the process of moving business processes or tasks to another company? A) offshoring B) liquidating C) cloud computing D) internetworking E) outsourcing Answer: E Page Ref: 15 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 14) Which of the following can be cited as an example of outsourcing? A) Microsoft hands over its customer service function to Convergys, located in India. B) Volkswagen acquires a steel manufacturing plant to reduce its overall production costs. C) Dell sources computer parts from suppliers located in Russia. D) Audi starts a manufacturing facility in China to take advantage of low labor costs. E) P&G acquires a retail outlet to reduce its distribution costs. Answer: A Page Ref: 15 AACSB: Analytic Skills; Dynamics of the Global Economy Difficulty: Difficult Classification: Application Course LO: Discuss the role of information systems in supporting business processes 15) Aircraft manufacturer Boeing designed its new 787 Dreamliner aircraft in Russia, making use of the availability of highly skilled aeronautical engineers. Identify this strategy. A) offshoring B) outsourcing C) liquidating D) franchising E) importing Answer: A Page Ref: 15 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 16) In order to take advantage of the high quality talent pool, Ernst & Young sets up operations in the Philippines and moves part of its tax services to its new facility. Identify this strategy. A) outsourcing B) franchising C) offshoring D) importing E) liquidating Answer: C Page Ref: 15 AACSB: Analytic Skills; Dynamics of the Global Economy Classification: Application Course LO: Discuss the role of information systems in supporting business processes 17) Outsourcing has seen a huge increase because of the ________. A) increase in decentralization B) increase in the use of cloud computing C) increase in advertising costs D) decrease in telecommunication costs E) decrease in the cost of raw materials Answer: D Page Ref: 15 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 18) According to Nicholas Carr, cloud computing may contribute to the decline in outsourcing. Which of the following justifies this statement? A) An IT outsourcer's business is built around managing complex internal systems. A shift to a simpler cloud-based IT infrastructure should reduce the need for outsourcing. B) Outsourcing is based on the availability of cheap labor; these workers will not be able to work on complex cloud-based IT infrastructures, thereby contributing to the decline in outsourcing. C) Cloud computing is customized in each country, thus making it impossible to outsource. D) Cloud computing is standardized in all countries, reducing the need for outsourcing. E) An IT outsourcer's business is aimed at focusing on core business activities and increasing control costs, thus a simpler cloud-based IT infrastructure would discourage outsourcing. Answer: A Page Ref: 15 ; Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 19) Organizations use the IS function and technology as the lever for simultaneously shrinking the organization by reducing personnel head count and making the organization more productive (i.e., doing more with less). Identify the term which defines this activity carried out within an organization. A) offshoring B) downsizing C) outsourcing D) liquidating E) networking Answer: B Page Ref: 16 Course LO: Discuss the role of information systems in supporting business processes 20) TransCorp is a medium-sized IT firm that is looking to outsource its payroll processes. Which of the following statements, if true, would most strengthen the decision to outsource? A) Companies in other countries can do the same amount of work at a comparable cost. B) Outsourcing has become a trend among most firms in developed nations. C) Companies in other countries are more efficient in all aspects of work, along with lower cost. D) Firms across the globe are adopting cloud computing systems. E) The firm is enjoying good profit margins. Answer: C Page Ref: 16 AACSB: Reflective Thinking; Dynamics of the Global Economy Difficulty: Difficult Classification: Critical Thinking Course LO: Discuss the role of information systems in supporting business processes 21) Worldwide banking group HSBC moving its back-office operations to China and India is an example of ________. A) franchising B) liquidating C) outsourcing D) internetworking E) cloud computing Answer: C Page Ref: 17 Course LO: Discuss the role of information systems in supporting business processes 22) Which of the following is a governmental challenge of operating in the digital world? A) differences in power distance and uncertainty avoidance B) import and export regulations C) aging population in the United States D) videoconferences across different time zones E) availability of labor force and salary differences Answer: B Page Ref: 18 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 23) Which of the following is a cultural challenge of operating in the digital world? A) conducting videoconferences across different time zones B) aging populations in the United States and Western Europe C) differences in power distance and uncertainty avoidance D) availability of labor force and salary differences E) differences in academic degrees and measurement units Answer: C Page Ref: 18 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 24) Which of the following is a geoeconomic challenge of operating in the digital world? A) differences in network infrastructures B) differences in the concept of time and life focus C) differences in measurement units D) differences in export and import regulations E) differences in languages Answer: A Page Ref: 18 ; Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 25) ________ refers to physical computer equipment, such as the computer monitor, central processing unit, or keyboard. A) Adware B) Malware C) Stealware D) Hardware E) Spyware Answer: D Page Ref: 19 Course LO: Describe the components of an information system (IS) 26) ________ refer(s) to a program or set of programs that tell the computer to perform certain tasks. A) Software B) Routers C) Hardware logic D) Data E) Networks Answer: A Page Ref: 19 Course LO: Describe the components of an information system (IS) 27) Which of the following statements is true about information systems (IS) and information technology (IT)? A) IT programs have a stronger managerial focus than IS programs. B) IS programs have a stronger data retrieval capacity than IT programs. C) Software and telecommunications are present in IS, but excluded from IT. D) The difference between IT and IS is increasing due to globalization. E) IT programs are more technical in nature than IS programs. Answer: E Page Ref: 19 28) Which of the following statements is true about data? A) It can be defined as a representation of reality. B) It is the ability to understand information. C) It has no meaning in and of itself. D) It is the ability to make decisions or predictions based on information. E) It organizes or manipulates information to make it suitable for a given task. Answer: C Page Ref: 20 Course LO: Describe the components of an information system (IS) 29) Which of the following statements is true about information? A) It has no meaning in and of itself. B) It organizes or manipulates knowledge to make it suitable for a given task. C) It is raw material—recorded, unformatted words and numbers. D) It is a representation of reality. E) It is the ability to make predictions based on data. Answer: D Page Ref: 20 Course LO: Describe the components of an information system (IS) 30) Which of the following statements is true about knowledge? A) It has no meaning in and of itself. B) It is raw material—recorded, unformatted words and numbers. C) It is the ability to understand information. D) It assists in converting information into raw data. E) It has little value in comparison with raw data. Answer: C Page Ref: 21 Course LO: Describe the components of an information system (IS) 31) Which of the following IS personnel is responsible for managing the firm's Web site? A) IS auditor B) Web host C) Web hacker D) Webmaster E) systems analyst Answer: D Page Ref: 23 32) Which of the following is true about the responsibility of an IS manager, within the context of information systems management? A) He is the highest-ranking official, responsible for IS use throughout the firm. B) He is responsible for managing an existing information system. C) He is the lowest-ranking official responsible for managing databases throughout the organization. D) He is responsible for managing security measures of a newly installed information system. E) He is the highest-ranking official, responsible for strategic planning throughout the organization. Answer: B Page Ref: 23 33) Which of the following IS personnel is responsible for managing disaster recovery within an organization? A) IS security manager B) IS auditor C) Webmaster D) programmer E) database administrator Answer: A Page Ref: 23 34) Which of the following is the highest-ranking IS personnel responsible for strategic planning and IS use throughout a firm? A) chief information officer B) IS security manager C) IS auditor D) Webmaster E) IS manager Answer: A Page Ref: 23 35) In information systems management, a systems consultant is responsible for ________. A) analyzing business requirements and selecting information systems that meet those needs B) coding, testing, debugging, and installing programs C) auditing information systems for compliance with internal and external standards D) managing security measures and disaster recovery E) providing information systems knowledge to external clients Answer: E Page Ref: 23 36) Which of the following core competencies are part of an IS personnel's technical knowledge and skills? A) systems analysis and design B) integrating subsystems and systems C) interpersonal skills and group dynamics D) network operating systems E) technological communication and presentation Answer: D Page Ref: 24 Course LO: Discuss the role of information systems in supporting business processes 37) Which of the following core competencies is part of an IS personnel's business knowledge and skills? A) cloud computing B) technological communication and presentation C) systems development life cycle D) integrating subsystems and systems E) virtualization Answer: B Page Ref: 24 Course LO: Discuss the role of information systems in supporting business processes 38) Which of the following core competencies is part of an IS personnel's systems knowledge and skills? A) hardware platforms B) virtualization C) information gathering and analysis D) cabling and network interface cards E) application software Answer: C Page Ref: 24 Course LO: Discuss the role of information systems in supporting business processes 39) Connecting host computers and their networks together to form even larger networks is called ________. A) data mining B) internetworking C) ethernet framing D) network simulation E) queueing Answer: B Page Ref: 27 Course LO: Discuss the role of information systems in supporting business processes 40) The process of connecting separate information systems and data to improve business processes and decision making is known as ________. A) database development B) business intelligence C) systems integration D) cloud computing E) collaboration systems Answer: C Page Ref: 27 Course LO: Discuss the role of information systems in supporting business processes 41) Which of the following types of information systems facilitates collaboration and knowledge sharing? A) visualization system B) word processor C) intelligent system D) electronic commerce system E) social software Answer: E Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 42) Which of the following types of information systems enables people to communicate, team up, and coordinate with each other? A) electronic commerce system B) geographic information system C) virtualization system D) intelligent system E) collaborative system Answer: E Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 43) Which of the following types of information systems creates, stores, analyzes, and manages spatial data? A) electronic commerce system B) collaborative system C) virtualization system D) geographic information system E) decision support system Answer: D Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 44) Which of the following types of information systems enables customers to buy goods and services from a firm's Web site? A) supply chain management system B) electronic commerce system C) geographic information system D) collaborative system E) customer relationship management system Answer: B Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 45) Which of the following types of information systems supports the coordination of suppliers, product or service production, and distribution? A) supply chain management system B) electronic commerce system C) intelligent system D) collaborative system E) geographic information system Answer: A Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 46) Identify the purpose of a transaction processing system used in organizations. A) to support the activities within a specific functional area of the firm B) to handle day-to-day business event data at the operational level of the organization C) to support interaction between the firm and its customers D) to support the coordination of suppliers, product or service production, and distribution E) to enable customers to buy goods and services from a firm's Web site Answer: B Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 47) The purpose of a(n) ________ is to support and integrate all facets of the business, including planning, manufacturing, sales, marketing, and so on. A) intelligent system B) functional area information system C) electronic commerce system D) enterprise resource planning system E) management information system Answer: D Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 48) The purpose of an intelligent system is to ________. A) enable people to communicate, collaborate, and coordinate with each other B) create, store, analyze, and manage spatial data C) emulate or enhance human capabilities D) support the coordination of suppliers, product or service production, and distribution E) produce detailed information to help manage a part of the firm Answer: C Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 49) Which of the following can be cited as an example of a supply chain management system? A) procurement planning B) market analysis C) knowledge portal D) sales force automation E) product demand forecasting system Answer: A Page Ref: 28 Course LO: Discuss the role of information systems in supply chain management and performance 50) Identify the purpose of an office automation system. A) to create, store, analyze, and manage spatial data B) to provide access to databases in order to support quantitative decision making C) to support a wide range of predefined day-to-day activities of individuals and small groups D) to support interaction between the firm and its customers E) to enable customers to buy goods and services from a firm's Web site Answer: C Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 51) With respect to the types of information systems used in organizations, a grocery store checkout cash register with a connection to a network is an example of a(n) ________. A) intelligent system B) functional area information system C) decision support system D) transaction processing system E) electronic commerce system Answer: D Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 52) Microsoft's Exchange/Outlook and Lotus Notes provide people with e-mail, automated calendaring, and online, threaded discussions, enabling close contact with others, regardless of their location. Identify the type of information system. A) collaboration system B) office automation system C) data mining and visualization system D) functional area information system E) geographic information system Answer: A Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 53) With respect to the types of information systems used in organizations, Amazon.com is an example of a(n) ________ system. A) electronic commerce B) geographic information C) virtualization and data mining D) supply chain management E) office automation Answer: A Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 54) With respect to the types of information systems used in organizations, a word processor is an example of a(n) ________ system. A) electronic commerce B) supply chain management C) office automation D) geographic information E) data mining and virtualization Answer: C Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 55) With respect to the types of information systems used in organizations, an automated system for analyzing bank loan applications is an example of a(n) ________ system. A) geographic information B) electronic commerce C) social software D) visualization E) intelligent Answer: E Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 56) With respect to types of information systems used in organizations, an inventory management and planning system is an example of a(n) ________ system. A) geographic planning B) management information C) electronic commerce D) virtualization E) social software Answer: B Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 57) With respect to the types of information systems used in organizations, an Online Analytical Processing (OLAP) system is an example of a(n) ________ system. A) data mining and visualization B) geographic information C) electronic commerce D) office automation E) social software and collaboration Answer: A Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 58) With respect to the types of information systems used in organizations, a product demand forecasting system is an example of a(n) ________ system. A) visualization B) geographic information C) decision support D) social software E) electronic commerce Answer: C Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 59) With respect to the types of information systems used in organizations, sales force automation is an example of a(n) ________ system. A) customer relationship management B) electronic commerce C) geographic information D) supply chain management E) data mining and visualization Answer: A Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 60) Financial, operations, and human resource management is an example of a(n) ________ system, with respect to the types of information systems used in organizations. A) social software B) data mining and visualization C) geographic information D) enterprise resource planning E) electronic commerce Answer: D Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 61) Which of the following is used to describe the issues and standards of conduct as they pertain to the use of information systems? A) virtual ethics B) social informatics C) cyber security D) cloud computing E) computer ethics Answer: E Page Ref: 33 ; Ethical Understanding and Reasoning Abilities Course LO: Discuss the ethical and social issues raised by the use of information systems 62) ________ is concerned with what information an individual should have to reveal to others in the workplace or through other transactions, such as online shopping. A) Information accessibility B) Information accuracy C) Information privacy D) Information asymmetry E) Information piracy Answer: C Page Ref: 34 ; Ethical Understanding and Reasoning Abilities Course LO: Discuss the ethical and social issues raised by the use of information systems 63) Information about one's identity and place of living is an example of ________. A) behavioral data B) geographic data C) psychographic data D) demographic data E) attitudinal data Answer: D Page Ref: 35 64) Which of the following statements is true about the companies operating in the online world and a customer's online privacy? A) The vendor cannot track the Web pages a customer looks at. B) The vendor cannot track what products a customer examines in detail. C) The vendor is not capable of knowing the method of payment a customer chooses to use. D) The vendor is not required by law to respect a customer's privacy. E) The vendor cannot know where a customer is having the product delivered. Answer: D ; Ethical Understanding and Reasoning Abilities Course LO: Discuss the ethical and social issues raised by the use of information systems 65) The ________ Act of 1986 made it much more difficult for anyone, including the government, to eavesdrop on phone conversations. A) Electronic Communication Modernization B) Internet Privacy C) Sarbanes-Oxley D) Gramm–Leach–Bliley E) Electronic Communications Privacy Answer: E ; Ethical Understanding and Reasoning Abilities Course LO: Discuss the ethical and social issues raised by the use of information systems 66) WorldTravel (www.worldtravel.com) is a travel Web site that provides detailed information about the different places that tourists can visit across the globe. Additionally, it also helps visitors to book tickets and hotels in these destinations. Which of the following, if true, would most assure the customers about their online privacy? A) WorldTravel, when collecting personal information, explicitly states the purpose of the information and that it will not be used for anything else. B) WorldTravel informs its members that it is following the best practices in the industry. C) WorldTravel, when collecting personal information, explicitly tells all its customers that the information collected will be protected by a third party who specializes in this domain. D) WorldTravel decides not to send any spam mails to any of its members. E) WorldTravel, when collecting personal information, explicitly tells all its customers that the information collected is protected under the Electronic Communications Privacy Act. Answer: A Page Ref: 37 AACSB: Reflective Thinking; Use of IT Difficulty: Difficult Classification: Critical Thinking Course LO: Discuss the ethical and social issues raised by the use of information systems 67) Which of the following steps should be taken by a person to ensure his privacy online? A) avoid Web sites that are monitored by independent organizations B) visit Web sites anonymously C) adjust his Web browser settings to save cookies D) ensure he receives a confirmation e-mail whenever he buys products online E) maintain only one e-mail account and use it when making online purchases Answer: B Page Ref: 37 Course LO: Discuss the ethical and social issues raised by the use of information systems 68) The gap between those individuals in our society who are computer literate and have access to information resources like the Internet and those who do not is referred to as the ________. A) horizontal disparity B) digital divide C) electronic gap D) power distance E) knowledge divide Answer: B Page Ref: 40-41 69) Which of the following can be cited as an example of a digital divide? A) Unlike Joey, Ryan has access to more books and good advice because he studies in a better school. B) Unlike Ben, Claudia possesses superior analytical skills, which makes her better at mathematics. C) Kevin has better chances of promotion when compared to Vincent because of his people skills. D) Lora has access to more information than Frank because she knows how to operate a computer. E) Sam is a good multitasker when compared to Neal, which makes him a better manager. Answer: D Page Ref: 40-41 AACSB: Analytic Skills; Use of IT Classification: Application 70) A global project called One Laptop per Child is attempting to distribute low-cost laptop computers to children in developing countries around the world in an attempt to shrink the ________. A) digital divide B) systems integration C) power distance D) horizontal disparity E) information privacy Answer: A Page Ref: 41 Classification: Application 71) Advances in cloud computing (think Gmail, Evernote, or DropBox) allow for accessing e-mails, files, notes, and the like from different devices, enhancing portability and mobility in computing. Answer: TRUE 72) According to futurist Alvin Toffler's description of the "waves of change" in his book The Third Wave, the "first wave" was based on the movement from the machine age into the information age. Answer: FALSE Page Ref: 8 73) The most significant trend affecting organizational IS personnel in the next decade—according to research firm Gartner—is consumerization of IT. Answer: TRUE Page Ref: 11 74) The development of low-cost computing platforms and communication technologies is an economic change brought about by the globalization enabled by information technology. Answer: FALSE Page Ref: 14 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 75) Increase in frequency of international travel, tourism, and immigration is a cultural change brought about by the globalization enabled by information technology. Answer: TRUE Page Ref: 14 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 76) Globalization is the integration of economies throughout the world, enabled by innovation and technological progress. Answer: TRUE Page Ref: 14 AACSB: Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 77) One of the main reasons persuading a company to outsource its business is to be able to focus on non-core business activities. Answer: FALSE Page Ref: 16 AACSB: Dynamics of the Global Economy 78) Countries such as India remain popular for offshore outsourcing because of rising salaries. Answer: FALSE Page Ref: 16 AACSB: Dynamics of the Global Economy 79) According to the suggestions of the noted technology author Nicholas Carr, cloud computing can contribute to an increase in outsourcing. Answer: FALSE Page Ref: 17 ; Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 80) Software refers to a group of two or more computer systems linked together with communications equipment. Answer: FALSE Page Ref: 19 Course LO: Describe the components of an information system (IS) 81) Knowledge is the ability to understand information, form opinions, and make decisions or predictions based on the information. Answer: TRUE Page Ref: 21 Course LO: Describe the components of an information system (IS) 82) An information system is a combination of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute data. Answer: TRUE Page Ref: 21 83) The technical area of competency of an IS professional is the most easy to maintain in the digital world because of the huge popularity of individual technologies. Answer: FALSE Page Ref: 24 Course LO: Discuss the role of information systems in supporting business processes 84) Transaction processing systems (TPS) are used by a narrow range of organizations only to process customer transactions more efficiently. Answer: FALSE Page Ref: 27 Course LO: Discuss the role of information systems in supporting business processes 85) The purpose of a knowledge management system is to create, store, analyze, and manage spatial data. Answer: FALSE Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 86) Office automation systems such as Microsoft Office and the OpenOffice.org Productivity Suite provide word processing, spreadsheet, and other personal productivity tools, enabling knowledge workers to accomplish their tasks. Answer: TRUE Page Ref: 28 Course LO: Discuss the role of information systems in supporting business processes 87) IS personnel with service mentality put up roadblocks to customers' new systems ideas and give reasons that the new ideas cannot or will not work. Answer: FALSE Page Ref: 29 88) IS personnel with service mentality believe that the customers own the technology and the information and that the technology and information are there for the customers, not for the systems personnel. Answer: TRUE Page Ref: 29 89) Technology use by organizations can be strategic and can be a powerful enabler of competitive advantage. Answer: TRUE Page Ref: 31 Course LO: Discuss the role of information systems in supporting business processes 90) Data about one's tastes and preferences is an example of demographic data. Answer: FALSE Page Ref: 35 91) When a person makes Web purchases, vendors are required by law to respect the privacy of that person. Answer: FALSE ; Ethical Understanding and Reasoning Abilities Course LO: Discuss the ethical and social issues raised by the use of information systems 92) The Electronic Communications Privacy Act (ECPA) offered far stronger support for e-mail communications than it did for voice mail. Answer: FALSE 93) Discuss Peter Drucker's predictions about knowledge workers and the knowledge society. Answer: In 1959, Peter Drucker predicted the rise in the importance of information and of information technology (IT) and coined the term knowledge worker. Knowledge workers are professionals who are relatively well educated and who create, modify, and/or synthesize knowledge as a fundamental part of their jobs. Drucker's predictions about knowledge workers were very accurate. As he predicted, they are generally paid better than their prior agricultural and industrial counterparts; they rely on and are empowered by formal education, yet they often also possess valuable real-world skills; they are continually learning how to do their jobs better; they have much better career opportunities and far more bargaining power than workers ever had before; they make up about a quarter of the workforce in the United States and in other developed nations; and their numbers are rising quickly. Drucker also predicted that, with the growth in the number of knowledge workers and with their rise in importance and leadership, a knowledge society would emerge. He reasoned that, given the importance of education and learning to knowledge workers and the firms that need them, education would become the cornerstone of the knowledge society. Possessing knowledge, he argued, would be as important as possessing land, labor, or capital. 94) In his book The Third Wave, futurist Alvin Toffler describes three distinct phases, or "waves of change," that have taken place in the past or are presently taking place within the world's civilizations. Discuss the characteristics of these phases. Answer: The first wave—a civilization based on agriculture and handwork—was a comparatively primitive stage that began as civilizations formed and lasted for thousands of years. The second wave of change—the industrial revolution—overlapped with the first wave. The industrial revolution began in Great Britain toward the end of the eighteenth century and continued over the next 150 years, moving society from a predominantly agrarian culture to the urbanized machine age. Steel mills, textile factories, and eventually automobile assembly lines replaced farming and handwork as the principal source of family income. As the industrial revolution progressed, not only did occupations change to accommodate the mechanized society, but so did educational, business, social, and religious institutions. On an individual level, punctuality, obedience, and the ability to perform repetitive tasks became qualities to be instilled and valued in children in public schools and, ultimately, in workers. In a much shorter period of time than it took for civilization to progress past the first wave, societies worldwide moved from the machine age into the information age—a period of change Toffler has dubbed the "third wave." As the third wave gained speed, information became the currency of the realm and a tremendous acceleration occurred in the amount and kind of information available to populations. Now knowledge could be imparted in written form and sometimes came from distant locations. Information could be saved, absorbed, debated, and written about in publications, thus adding to the exploding data pool. Page Ref: 7-9 95) List a few economic, cultural, and technological changes that take place due to globalization enabled by information technology. Answer: The effects of globalization can be seen in many ways, such as the greater international movement of commodities, money, information, and labor, as well as the development of technologies, standards, and processes to facilitate this movement. Specifically, a more global and competitive world spurs visible economic, cultural, and technological changes, including the following: 1. Economic Changes - Increases in international trade, in the development of global financial systems and currency, and in the outsourcing of labor. 2. Cultural Changes - Increases in the availability of multiculturalism through television and movies; the frequency of international travel, tourism, and immigration; the availability of ethnic foods and restaurants; and the frequency of worldwide fads and phenomena such as Facebook, Groupon, Twitter, and YouTube. 3. Technological Changes - The development of low-cost computing platforms and communication technologies; the availability of low-cost communication systems such as e-mail, Skype, and instant messaging; the ubiquitous nature of a low-cost global telecommunications infrastructure like the Internet; and the enforcement of global patent and copyright laws to spur further innovation. Page Ref: 14 ; Dynamics of the Global Economy Course LO: Discuss the role of information systems in supporting business processes 96) Define data–the most basic element of an information system. Give an example. Answer: Unformatted data, or simply data, are raw symbols, such as words and numbers. Data have no meaning in and of themselves, and are of little value until processed. For example, if a person was asked what 465889727 meant or stood for, he would be unable to tell. However, if the same data was presented as 465-88-9727 and told it was located in a certain database, in John Doe's record, in a field labeled "SSN," he might rightly surmise that the number was actually the Social Security number of someone named John Doe. Page Ref: 20 Course LO: Discuss the role of information systems in supporting business processes 97) Describe the technical, business, and systems competencies that IS personnel should possess. Answer: The technical competency area includes knowledge and skills in hardware, software, networking, and security. In a sense, this is the "nuts and bolts"of information systems. This is not to say that the IS professional must be a high-level technical expert in these areas. On the contrary, the IS professional must know just enough about these areas to understand how they work and how they can and should be applied. Typically, the IS professional manages or directs those who have deeper, more detailed technical knowledge. The technical area of competency is the most difficult to maintain because of the rapid pace of technological innovation in the digital world. The business competency area is one that sets the IS professional apart from others who have only technical knowledge and skills. It is absolutely vital for IS professionals to understand the technical areas and the nature of the business as well. IS professionals must also be able to understand and manage people and projects, not just the technology. These business skills propel IS professionals into project management and, ultimately, high-paying middle- and upper-level management positions. Systems competency is another area that sets the IS professional apart from others with only technical knowledge and skills. Those who understand how to build and integrate systems and how to solve problems will ultimately manage large, complex systems projects as well as manage those in the firm who have only technical knowledge and skills. Page Ref: 23-25 Course LO: Discuss the role of information systems in supporting business processes 98) Briefly describe transaction processing systems. Answer: Transaction processing systems (TPS) are used by a broad range of organizations to not only more efficiently process customer transactions, but also generate a tremendous amount of data that can be used by the organization to learn about customers or ever-changing product trends. Your local grocery store uses a TPS at the checkout that scans bar codes on products; as this occurs, many stores will print discount coupons on the backs of receipts for products related to current purchases. Every hour, online retailer Amazon.com's Web site processes thousands of transactions from around the world. This massive amount of data is fed into large data warehouses and is then analyzed to provide purchase recommendations to future customers. In addition, TPS data are sorted and organized to support a broad range of managerial decision making using a variety of systems; the most common of these is generally referred to as a management information system. TPS data also provide input into a variety of information systems within organizations, including decision support systems, intelligent systems, data mining and visualization systems, knowledge management systems, social software, geographic information systems, and functional area information systems. Page Ref: 27 Course LO: Discuss the role of information systems in supporting business processes 99) Discuss the Electronic Communications Privacy Act and its implications for e-mail privacy. Answer: In 1986, Congress passed the Electronic Communications Privacy Act (ECPA), which offered far stronger support for voice mail than it did for e-mail communications. This act made it much more difficult for anyone (including the government) to eavesdrop on phone conversations. E-mail privacy is, therefore, much harder to protect. In addition, no other laws at the federal or state levels protect e-mail privacy. The ECPA and the court case judgments, thus far, on e-mail monitoring suggest that companies must be prudent and open about their monitoring of e-mail messages and Internet usage. Companies should use good judgment in monitoring e-mail and should make public their policy about monitoring messages. One primary reason that employees perceive their e-mail to be private is the fact that they are never told otherwise. In addition, employees should use e-mail only as appropriate, based on their company's policy and their own ethical standards. 100) With respect to online privacy, list the widely accepted fair information practice principles outlined by the U.S. Federal Trade Commission which must be followed by businesses operating online. Answer: When surveyed about concerns related to Internet use, most consumers list issues of information privacy as a top concern. As a result, governments have pressured businesses to post their privacy policies on their Web sites. As outlined in the U.S. Federal Trade Commission "Fair Information Practice Principles" widely accepted fair information practices include: 1. Notice/Awareness - Providing information about what data are gathered, what the data are used for, who will have access to the data, whether provision of the data is required or voluntary, and how confidentiality will be ensured. Such information is typically contained in data privacy statements on a Web site. 2. Choice/Consent - Providing options about what will be done with the data (e.g., subscription to mailing lists after a purchase). Typically, consumers are given a choice to opt-in (i.e., signal agreement to the collection/further use of the data, e.g., by checking a box) or opt-out (i.e., signal that data cannot be collected/used in other ways). 3. Access/Participation.- Providing customers with means to access data collected about them, check for accuracy, and request correction of inaccuracies. 4. Integrity/Security - Ensuring integrity of the data (e.g., by using only reputable sources of data), as well as implementing safeguards against unauthorized access, disclosure, or destruction of data. 5. Enforcement/Redress - Providing means to enforce these practices, and/or for customers to receive remedies, for example, through self-regulation or appropriate laws and regulations. Page Ref: 37 Course LO: Discuss the ethical and social issues raised by the use of information systems 101) Discuss a few steps taken to maintain his privacy by a customer shopping online. Answer: To make sure his online shopping experience is a good one, a customer can take a few additional steps to maintain his privacy: 1. Choose Web Sites That Are Monitored by Independent Organizations - Several independent organizations monitor the privacy and business practices of Web sites (e.g., www.truste.com). 2. Avoid Having "Cookies"Left on the Machine - Many commercial Web sites leave cookies on the user's machine so that the owner of the site can monitor where the user goes and what he does on the site. To enhance ones privacy, a user should carefully manage his browser's cookie settings or get special "cookie management" software. 3. Visit Sites Anonymously - There are ways to visit Web sites anonymously. Using services provided by companies such as Anonymizer (www.anonymizer.com), one has a high degree of privacy from marketers, identity thieves, or even coworkers when surfing the Web. 4. Use Caution When Requesting Confirmation E-Mail - When one buys products online, many companies will send him a confirming e-mail message to let him know that the order was received correctly. A good strategy is to have a separate e-mail account, such as one that is available for viewing via a Web browser, that one uses when making online purchases. 5. Beware What You Post or Say Online - As an old adage goes, "the Internet never forgets"; anything from status updates to Twitter messages to blog posts can be stored forever, and most information remains somewhere on the Web, even after the original page has long been taken down. It is safe to say that probably almost everybody engages in some regrettable activities at some point in time. Yet, having such activities appear on the Web can be devastating for one's career. Page Ref: 37-38 Course LO: Discuss the ethical and social issues raised by the use of information systems 102) What is digital divide? Identify its challenges. Answer: The gap between those individuals in our society who are computer literate and have access to information resources like the Internet and those who do not is referred to as the digital divide. The digital divide is one of the major ethical challenges facing society today when you consider the strong linkage between computer literacy and a person's ability to compete in the information age. The digital divide in America is rapidly shrinking, but there are still major challenges to overcome. In particular, people in rural communities, the elderly, people with disabilities, and minorities lag behind national averages for Internet access and computer literacy. Outside the United States, the gap gets even wider, and the obstacles get much more difficult to overcome, particularly in the developing countries, where infrastructure and financial resources are lacking. For example, most developing countries are lacking modern informational resources such as affordable Internet access or efficient electronic payment methods like credit cards. Page Ref: 40-41