226-final-review

Studocu is not sponsored or endorsed by any college or university 226 Final review Business Technology Management (Concordia University) Studocu is not sponsored or endorsed by any college or university 226 Final review Business Technology Management (Concordia University) Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

COMM 226 – FINAL EXAM REVIEW CHAPTER 1: THE IMPORTANCE OF MIS 3 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 3 E SSAY Q UESTIONS 5 CHAPTER 2: BUSINESS PROCESSES, INFORMATION, AND INFORMATION SYSTEMS 9 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 9 E SSAY Q UESTIONS 10 CHAPTER 3: ORGANIZATIONAL STRATEGY, INFORMATION SYSTEMS, AND COMPETITIVE ADVANTAGE 14 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 14 E SSAY Q UESTIONS 16 CHAPTER 4: HARDWARE AND SOFTWARE 20 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 20 E SSAY Q UESTIONS 22 CHAPTER 5: DATABASE PROCESSING 26 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 26 E SSAY Q UESTIONS 28 CHAPTER 6: DATA COMMUNICATIONS 32 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 32 E SSAY Q UESTIONS 34 CHAPTER 7: BUSINESS PROCESS MANAGEMENT 38 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 38 E SSAY Q UESTIONS 40 CHAPTER 8: E-COMMERCE, WEB 2.0, AND SOCIAL NETWORKING 46 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 46 E SSAY Q UESTIONS 48 CHAPTER 9: BUSINESS INTELLIGENCE AND INFORMATION SYSTEMS FOR DECISION MAKING 52 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 52 E SSAY Q UESTIONS 54 CHAPTER 10: INFORMATION SYSTEMS DEVELOPMENT 58 N OTES FROM M ULTIPLE C HOICE Q UESTIONS 58 E SSAY Q UESTIONS 60 CHAPTER 11: INFORMATION SYSTEMS MANAGEMENT 64 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) Chapter 1: The Importance of MIS Notes from Multple Choice Questons "The number of transistors per square inch on an integrated chip doubles every 18 months." This observation is known as Moore’s Law . As a result of Moore's Law, the price to performance ratio of computers has fallen dramatically. Because of Moore's Law, the cost of data communications and data storage is essentially zero. The cost of data storage is so low that it is essentially free. Because the cost of data storage and data communications is essentially zero, any routine skill will be outsourced to the lowest bidder . In today's world, skills such as tax accounting and computer programming no longer guarantee job security. What is the reason for this? They are routine skills, which can and will be outsourced to the lowest bidder. Peter is an engineer working in the United States. In accordance with Moore's Law, which of the following is a nonroutine cognitive skill that would provide him with job security? Systems thinking . Modeling system components and showing how components' inputs and outputs relate to one another is attributable to systems thinking . Creating and testing promising new alternatives, consistent with available resources is an example of experimentation . Abstract reasoning is the ability to make and manipulate models. Systems thinking is the ability to model the components of a unit, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed. Collaboration is the activity of two or more people working together to achieve a common goal, result, or work product. In a job interview, you are asked to make a group presentation with four other interviewees. You are required to form a team and then compete with other groups to win the presentation contest. Which of the following skills is your interviewer trying to test? Collaboration Patricia is the marketing manager at a manufacturing firm. She develops ideas and plans with her subordinates and provides and receives critical feedback. Here, Patricia is displaying collaboration skills. 3 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) Which of the following is necessary for effective collaboration? The ability to give and receive critical feedback Which of the following marketable skills is the most useful in overcoming the fear of failure? Ability to experiment Experimentation involves making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources one has. In a job interview, you are asked to use a product that you have never used before and are not familiar with. Which of the following skills is your interviewer trying to test? Ability to experiment A group of components that interact to achieve a purpose is referred to as a system . When you use a computer to write a class report, you are using the computer, storage disk, keyboard, and monitor as tools. You use MS Word or some other word processing program, and type words, sentences, and paragraphs in your report. You also enter your report into the program, print it, and save and back up your file. In this situation, identify the procedure component of an information system. Entering the report, printing it, and saving it Which of the following is an example of the hardware component of an information system? Microprocessor The five-component framework of an information system consists of computer hardware, software, data, people, and procedures . In a grocery store, the clerk scans the UPC code on an item, which is transmitted to the computer. The actual scanner device is an example of the hardware component of an IS. What are key elements of the definition of management information systems (MIS)? Information systems, development and use, and business goals and objectives Which of the following is a valid reason for a company to create a new information system? The new information system will increase employee productivity. Information technology : the products, methods, inventions, and standards that are used to produce information. Which of the following distinguishes information systems from information technology? People Users should take security seriously is the most crucial requirement for the success of a security system? An essential characteristic of a strong password: It should not contain your user name or company name. 4 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) Systems thinking is the ability to model the components of a system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed. 5) What is collaboration? How can one ensure effective collaboration? Collaboration is the activity of two or more people working together to achieve a common goal, result, or work product. Effective collaboration isn't about being nice. In fact, surveys indicate the single most important skill for effective collaboration is to give and receive critical feedback. 6) What is experimentation? Explain its importance. Successful experimentation is not throwing buckets of money at every idea that enters your head. Instead, experimentation is making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources you have. Fear of failure paralyzes many good people and many good ideas. This can be overcome by having the ability to experiment. 7) Describe an information system. A system is a group of components that interact to achieve some purpose. An information system (IS) is a group of components that interact to produce information. An IS is based on the five- component framework of computer hardware, software, data, procedures, and people. These five components are present in every information system—from the most simple to the most complex. 8) Describe the five components of an information system using an example. The five components of an information system are computer hardware, software, data, procedures, and people. When you use a computer to write a class report, you are using hardware (the computer, storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other word-processing program), data (the words, sentences, and paragraphs in your report), procedures (the methods you use to start the program, enter your report, print it, and save and back up your file), and people (you). 9) Do you think a computer is an essential component of an information system? Why or why not? Many information systems include computers. However, there are information systems that do not include computers. A calendar hanging on the wall outside of a conference room that is used to schedule the room's use is also an information system. 10) Define management information systems. What are the key elements of its definition? Management information systems refer to the development and use of information systems that help businesses achieve their goals and objectives. This definition has three key elements: development and use, information systems, and business goals and objectives. 11) Other than development tasks, what are the other roles than you will need to undertake 6 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) in the use of information systems? In addition to development tasks, you will also have important roles to play in the use of information systems. You will need to learn how to employ the system to accomplish your goals. You will also have important ancillary functions as well. For example, when using an information system, you will have responsibilities for protecting the security of the system and its data. You may also have tasks for backing up data. When the system fails, you will have tasks to perform while the system is down as well as tasks to accomplish to help recover the system correctly and quickly. 12) What are the points one needs to keep in mind when deciding to implement a management information system (MIS)? When deciding to implement an MIS, one needs to keep in mind that information systems are not created for the sheer joy of exploring technology. They are not created so that the company can be “modern” or so that the company can claim to be a “new-economy company.” They are not created because the IS department thinks it needs to be created or because the company is “falling behind the technology curve.” An MIS exists to help businesses achieve their goals and objectives. As a future business professional, you need to learn to look at information systems and technologies only through the lens of business need. 13) Explain the difference and the relationship between information technology (IT) and information systems (IS). Information technology and information system are two closely related terms, but they are different. IT refers to methods, inventions, standards, and products. IT refers to raw technology, and it concerns only the hardware, software, and data components of an information system. In contrast, an information system is a system of hardware, software, data, procedures, and people that produce information. IT, by itself, will not help an organization achieve its goals and objectives. It is only when IT is embedded into an IS—only when the technology within the hardware, software, and data is combined with the people and procedure components—that IT becomes useful. 14) What is the role of users in information security? Like all information systems, security systems have the five components, including people. Thus, every security system ultimately depends on the behavior of its users. If the users do not take security seriously, if they do not follow security procedures, then the hardware, software, and data components of the security system are wasted expense. 15) Explain how you would create a strong password. Strong passwords should have seven or more characters in them, consisting of upper and lower case letters, numbers, and special characters. They should not contain any complete dictionary word in any language, nor should they contain your user name, real name, or company name. They should also be different from any other password that you have previously used. An example of a strong password is Qw37^T1bb?at. 7 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) Chapter 2: Business Processes, Informaton, and Informaton Systems Notes from Multple Choice Questons A business process is a network of activities, roles, resources, repositories, and data flows that interact to accomplish a business function. Activities are collections of related tasks that receive inputs and process those inputs to produce outputs. In a business process flowchart, activities are shown in rectangles . Roles are sets of procedures. Decisions are shown in diamonds in a business process flowchart. A decision is a question that can be answered yes or no Decisions provide branching points within the flow of a business process. Roles are shown in ovals in a business process flowchart. Resources are people, facilities, or computer programs that are assigned to roles. Roles are shown above or below activities in a business process flowchart? A repository is a collection of business records. Repositories hold the collective memory of an organization? Repositories are shown as scrolls in a business process flowchart. What is the defining characteristic of the outermost components (hardware and people) of the IS framework? They take actions The software and procedure components of the IS framework are both sets of instructions . The software component of the IS framework provides instructions for hardware. The procedure component of the IS framework provides instructions for people. In the IS framework, data is the bridge between the computer side on the left and the human side on the right. Which of the following are actors in an information system? Hardware and people 9 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) When work that was formerly done by people has been moved to computers, it is said to be automated . Automation of a process activity consists of moving work from the human side to the computer side of the symmetrical five-component framework. Information is defined as knowledge derived from data . John Reed examines the stature of each of his team members on the school basketball team. He finds that the average height of the players is 6 feet 3 inches. John's finding is an example of information . Data is defined as recorded facts or figures. The fact that Jeff Parks works 9 hours per day is an example of data . Which of the following is a characteristic of good information? It must be contextually relevant As the CEO of a call center, which of the following information is good information for you? Department-level averages of revenue generation figures Relevant information is information that directly pertains to both the context and to the subject it references. Which of the following refers to information that is based on correct and complete data, and has been processed correctly as expected? Accurate information A monthly report that arrives 6 weeks late is an example of information that is not timely . Which of the following is true regarding characteristics of good information? Information must hold an appropriate relationship between its cost and its value. A problem is the perceived difference between what is and what ought to be. Egocentric thinking centers on the self. People who engage in empathetic thinking consider their view as one possible interpretation of the situation and actively work to learn what other people are thinking. Essay Questons 1) What is a business process? Define activities. A business process is a network of activities, resources, facilities, and information that interact to achieve some business function. Activities are collections of related tasks that receive inputs and process those inputs to produce outputs. Activities can be manual (people following procedures), 10 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) $17.50 per hour and that another employee of the same organization earns $25.00 per hour is an example of data. 8) Define accurate information. Why is an information system providing accurate information crucial to an organization? Good information is accurate information, which is information that is based on correct and complete data, and it has been processed correctly as expected. Accuracy is crucial; managers must be able to rely on the results of their information systems. The IS function can develop a bad reputation in the organization if a system is known to produce inaccurate information. In such a case, the information system becomes a waste of time and money as users develop work- arounds to avoid the inaccurate data. 9) Explain the importance of timeliness of information in an organization. Timely information is information that is produced in time for its intended use. A monthly report that arrives 6 weeks late is most likely useless. The information arrives long after the decisions have been made that needed that information. An information system that tells you not to extend credit to a customer after you have shipped the goods is unhelpful and frustrating. Notice that timeliness can be measured against a calendar (6 weeks late) or against events (before we ship). 10) In some cases, developing systems that provide information in near real time is much more difficult and expensive than producing information a few hours later. Provide an example that supports this statement. A person who works in marketing needs to be able to assess the effectiveness of new online ad programs. He wants an information system that will not only deliver ads over the Web, but one that will also enable him to determine how frequently customers click on those ads. In this case, determining click ratios in near real time will be very expensive; saving the data in a batch and processing it some hours later will be much easier and cheaper. If you can live with information that is a day or two old, the system will be easier and cheaper to implement. 11) Define relevant information. Explain the importance of relevant information in an organizational context. Relevant information is information that directly pertains to both the context and to the subject it references. Considering context, you, the CEO, need information that is summarized to an appropriate level for your job. A list of the hourly wage of every employee in the company is unlikely to be useful. More likely, you need average wage information by department or division. A list of all employee wages is irrelevant in your context. Information should also be relevant to the subject at hand. If you want information about short- term interest rates for a possible line of credit, then a report that shows 15-year mortgage interest rates is irrelevant. 12) Explain the importance of just barely sufficient information in the information age we live in. 12 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) Just barely sufficient information is information that is sufficient for the purpose for which it is generated, but only so. We live in an information age; one of the critical decisions that each of us has to make each day is what information to ignore. The higher you rise into management, the more information you will be given, and because there is only so much time, the more information you will need to ignore. So information should be sufficient, but just barely. 13) What are the costs associated with information? When is information considered to be worth its cost? Information is not free. There are costs for developing an information system, costs of operating and maintaining that system, and costs of your time and salary for reading and processing the information the system produces. For information to be worth its cost, an appropriate relationship must exist between the cost of information and its value. 14) List the two major benefits of an information system. The two major benefits of an information system are: 1. Labor savings 2. More data that can be processed for more information 15) What role does an individual's thinking play in the five components of an information system? When you consider the five components of an information system, the last component, people, includes you. Your mind and your thinking are not merely a component of the information systems you use; they are the most important component. Even if you have the perfect information system, if you do not know what to do with the information that it produces, you are wasting your time and money. The quality of your thinking is a large part of the quality of the information system. 13 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) Focused differentiation Which of the following is an example of a competitive strategy employed by a firm? Launching a unique product targeted at a section of consumers According to Porter, to be effective the organization's goals, objectives, culture, and activities must be consistent with the organization’s strategy . Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service. Which of the following is true of a value-chain? It is a network of value-creating activities. A business that selects a differentiation strategy would add cost to an activity provided it has a positive margin . The difference between the value that an activity generates and the cost of the activity is called the margin . Collecting, storing, and physically distributing the product to buyers describes which of the following primary activities? Outbound logistics Inducing buyers to purchase the product and providing a means for them to do so describes which of the following primary activities? Sales and marketing Each stage of the value chain not only adds value to the product but also accumulates costs . Which of the following is a primary activity in the value chain? Delivering products to consumers Firm infrastructure includes general management, finance, accounting, legal, and government affairs. Porter's model of business activities includes linkages , which are interactions across value activities. Manufacturing systems that include linkages, use sales forecast to plan production. Manufacturing systems use linkages to reduce inventory costs. 15 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) As Porter says, the processes and systems in an organization pursuing differentiation must create sufficient value to cover their costs . If a value chain's margin is positive, the company must retain its present practices . Organizations gain a competitive advantage by creating new products or services, enhancing products and services and by differentiating their products and services from those of their competitors. Which of the following is a product implementation principle of competitive advantage? Enhance goods or services Which of the following strategies is also called establishing high switching costs? Locking in customers Which of the following is a process implementation principle of competitive advantage? Establishing alliances Which of the following is least likely to be an outcome of organizations forming alliances with each other? Increase in mutual competitiveness Essay Questons 1) Briefly describe how organizational strategy determines the structure of information systems. Organizations examine the structure of their industry and, from that, develop a competitive strategy. That strategy determines value chains, which, in turn, determine business processes. The nature of business processes determines the requirements and functions of information systems. 2) Describe Porter's five forces model. Organizational strategy begins with an assessment of the fundamental characteristics and structure of an industry. A model used to assess an industry structure is Porter's five forces model. Porter's five competitive forces can be grouped into two types: forces related to competition and forces related to supply chain bargaining power. The competitive forces are: competition from vendors of substitutes, competition from new competitors, and competition from existing rivals. The bargaining power forces include the bargaining power of suppliers and the bargaining power of customers. The intensity of each of the five forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be. Organizations examine these five forces and determine how they intend to respond to them. That examination leads to competitive strategy. 3) What are the four competitive strategies based on Porter's five forces model? An organization responds to the structure of its industry by choosing a competitive strategy. 16 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) the bicycle users. 8) What is a value chain? List the primary activities in a value chain. A value chain is a network of value-creating activities. The generic value chain developed by Porter consists of five primary activities and three support activities. The primary activities are: a. In-bound logistics-which deals with receiving, storing, and disseminating inputs to the product b. Operations-which involves transforming inputs into the final product c. Out-bound logistics-which deals with collecting, storing, and physically distributing the product to buyers d. Marketing and sales-which involves inducing buyers to purchase the product and providing a means for them to do so e. Customer service-which involves assisting customer's use of the product and thus maintaining and enhancing the product's value 9) Explain value chain linkages. Porter's model of business activities includes linkages, which are interactions across value activities. For example, manufacturing systems use linkages to reduce inventory costs. Such a system uses sales forecasts to plan production; it then uses the production plan to determine raw materials needs and then uses the material needs to schedule purchases. The end result is just-in- time inventory, which reduces inventory sizes and costs. 10) How did Porter define technology, human resources and firm infrastructure? Porter defined technology broadly. It includes research and development, but it also includes other activities within the firm for developing new techniques, methods, and procedures. He defined human resources as recruiting, compensation, evaluation, and training of full-time and part-time employees. Finally, firm infrastructure includes general management, finance, accounting, legal, and government affairs. 11) Describe the support activities in a value chain. The support activities in the generic value chain facilitate the primary activities and contribute only indirectly to the production, sale, and service of the product. They include procurement, which consists of the processes of finding vendors, setting up contractual arrangements, and negotiating prices. Porter defined technology broadly. It includes research and development, but it also includes other activities within the firm for developing new techniques, methods, and procedures. He defined human resources as recruiting, compensation, evaluation, and training of full-time and part-time employees. Finally, firm infrastructure includes general management, finance, accounting, legal, and government affairs. Supporting functions add value, albeit indirectly, and they also have costs. 12) What is the criterion on which business processes should run? According to Porter, whether business processes are low-cost or high-service, these processes and systems must create sufficient value that they will more than cover their costs. If not, the margin of those systems will be negative. If a value chain's margin is negative, the company 18 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907

Experiencing MIS, 3e (Kroenke) must make some change. Either the value must be increased, or the costs of the value chain need to be reduced. 13) How can one develop competitive strategies using products? How can information systems help in the process? Some competitive techniques are created through products and services or created through the development of business processes. There are three principles that concern products and services. Organizations gain a competitive advantage by: a. creating new products or services b. enhancing existing products or services c. differentiating their products and services from those of their competitors An information system can be part of a product or it can provide support for a product or service. 14) Describe some competitive advantage strategies that are based on business processes. Some of the competitive strategies that are based on business processes include: a. Establishing high switching costs-organizations can lock in customers by making it difficult or expensive for customers to switch to another product. b. Lock in suppliers-organizations can lock in suppliers by making it difficult to switch to another organization, or, stated positively, by making it easy to connect to and work with the organization. c. Creating entry barriers-competitive advantage can be gained by creating entry barriers that make it difficult and expensive for new competition to enter the market. d. Establish alliances-another means to gain competitive advantage is to establish alliances with other organizations. e. Finally, by creating better business processes, organizations can gain competitive advantage by reducing costs. 19 Downloaded by Dylan (dylanbarichard10@gmail.com) lOMoARcPSD|9417907