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NAME: _______________________________________ USC ID: _____________________ CPTR 210/INFS 215: Information Systems Theory and Application Instructions: Print

t the following document and answer all questions Submit the completed document in class on Tuesday 3rd October 2011 at 6:40 pm Absolutely no late submissions or excuses for late submissions will be accepted. Section 1: True /False State whether the following are true or false by placing a T or F respectively in the column provided. 1) Information systems are a vital component of successful businesses and organizations. 2) Cash registers at many fast-food restaurants are part of a large information system that can track products sold, inventory levels, and the amount of money in the cash drawer. 3) Gaining a strategic advantage over competitors requires innovative application of information technologies. 4) Executive information systems were developed to limit the data to which top executives had access. 5) Information systems have always been needed to process data generated by, and used in, business operations. 6) Enterprise collaboration systems provide critical information from a wide variety of internal and external sources in easy-to-use displays to executives and managers. 7) Strategic information systems can provide expert advice for operational chores, such as equipment diagnostics or for managerial decisions. 8) Within the information system development process, designers of applications base their design on an analysis of the business requirements of the organization. 9) The processing component of a system involves capturing and assembling elements that enter the system to be processed. 10) In the context of the information systems model, the generic concept of "software" includes sets of operating instructions called "programs," and the set of information processing instructions called "procedures." 11) Information systems can contribute much more to an enterprise than ensuring efficient business operations; they can change the way businesses compete. 12) When a firm strives to find ways to help its suppliers and customers reduce their costs, or to increase the costs of their competitors, it is pursuing a differentiation strategy. 13) As an additional competitive strategy, a firm can create barriers to entry that would discourage customers from entering a market. 14) One of the ways an organization can build a customer-focused business is to build customer value and loyalty using Internet technologies. This strategy would include building a Web community of customers, employees, and partners. 15) The value chain concept divides the activities of a firm into a set of primary activities and a set of complimentary activities. 16) Using case managers to handle almost all tasks in a business process, instead of splitting tasks among many different specialists, is an example of a self-directed crossfunctional team. 17) A virtual company may be able to share infrastructure and risk with alliance partners. 18) One of the biggest drawbacks of using knowledge management systems (KMS) is that they are not designed to provide rapid feedback to knowledge workers.

Section 2: Multiple Choice Circle the correct answer. 1) Information technology can help all kinds of businesses improve the efficiency and effectiveness of _______________. a) business process b) managerial decision making c) workgroup collaboration d) All of the choices are correct.

2) According to the Real Life Case, all the following are reasons for the success of Sew What? except: a) Hard work b) Low prices c) Quality workmanship d) Information technology

3) Within the context of an information system, which of the following would be considered a typical end user? a) Managers b) Accountants c) Customers d) All of the above

4) I n essence, e-business is considered an online exchange of _______________. a) value b) goods c) resources d) information

5) A business firm's operations support systems should efficiently _______________. a) update corporate databases b) process business transactions c) control industrial processes d) All of the choices are correct.

6) A manager needs to have summary sales information, organized by product line, before making a purchasing decision. This type of information would most likely come from a _______________ system. a) transaction processing b) enterprise collaboration c) management information d) process control

7) _______________ give direct computer support to managers during the decision-making process. a) Enterprise collaboration systems b) Management information systems c) Decision support systems d) All the choices are correct.

8) Establishing new business linkages and alliances with customers, suppliers, and competitors is an example of a(n) _______________ strategy. a) alliance b) differentiation c) innovation d) growth

9) The major thrust of knowledge management systems (KMS) is to: a) Develop computer systems with capabilities normally associated with human intelligence, such as reasoning, learning, and problem solving b) Develop computer systems in order to help knowledge workers create, organize, and share important business knowledge wherever and whenever needed c) Develop computer systems that support and shape the competitive position and strategies of an enterprise d) Develop computer systems that provide a variety of composite or cross-functional capabilities 10) When the success of an information system is measured by its effectiveness, which of the following does not apply? a) Supporting the organization's business strategies b) Enabling the organization's business processes c) Enhancing the organizational structure and culture d) Minimizing the cost, time, and use of resources 11) Which of the following statements does not apply to the system concept? a) Feedback consists of data or information concerning the performance of a system b) The control component of a system makes any necessary adjustments to the input and processing components of the system to ensure that proper output is produced c) The feedback component of a system monitors and evaluates information provided by the control component to determine whether the system is moving toward its goal d) Input involves capturing and assembling elements that enter the system so that they can be processed 12) The five competitive forces that shape the structure of competition in an industry include all of the following except: a) The rivalry of competitors b) The restrictions imposed by government regulations c) The threat of substitutes d) The bargaining power of customers e) The threat of new entrants

13) The level of change linked to business process reengineering can best be described as _______________. a) incremental b) cyclical c) radical d) sequential

14) A company implements information systems linked by the Internet and extranets to support strategic business relationships with customers, suppliers, and other business partners. This is an example of using information technology to pursue a(n) _______________ strategy. a) cost leadership b) differentiation c) innovation d) alliance

15) Investing in information systems technology to make a firm's customers or suppliers dependent on them for the continued use of innovative, mutually beneficial interorganizational information systems is an example of _______________. a) reducing barriers to entry b) reducing switching costs c) creating switching costs d) improving the value chain

16) According to the text, when a firm sustains profits that exceed the average for its industry, that firm is said to possess: a) The ability to control the entire industry. b) Competitive alliances. c) Switching costs. d) Competitive Advantage.

17) If a company emphasizes the strategic business uses of information technology, its management would view _______________ as a major competitive differentiator. a) human resources b) accounting c) IT d) new products

18) The level of change linked to business process reengineering can best be described as _______________. a) incremental b) cyclical c) radical d) sequential

19) To be an agile company, a business must implement all of the following competition strategies except: a) Leverage the impact of people and information b) Enrich customers with solutions to their problems c) Resist change and uncertainty d) Cooperate with customers, suppliers, and competitors 20) Becoming a knowledge-creating company or a learning organization means: a) Consistently creating new business knowledge b) Disseminating knowledge widely throughout the company c) Quickly building the new knowledge into products and services d) All of the choices are correct.

Section 3: Case Study Read Competition against Free: Wikipedia Faces Down Encyclopedia Britannica (Page 68 of Chapter 2) In the space provided below narrate (handwritten) a response to questions a d.

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