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Chapter 1: A Look Toward the

Future of Information

Technology

Test Bank

Multiple Choice

  1. What is a primary reason why businesses ask you to like, follow, fan, share, sign up, watch, join, or download things on the Internet?
  1. To get access to consumers and data about them to improve performance.
  2. To reduce advertising and public relations costs.
  3. Because consumers are spending an increasing amount of time on the Internet.
  4. Because traditional television and print advertising is not very effective.

Answer: (A)

Difficulty: Medium

Section Ref: 1.1 IT and Management Opportunities and Challenges

AACSB: Use of information technology

  1. All of the following current technology trends are identified by your textbook as offering valuable business opportunities except:
  1. Social media,
  2. Mobile computing
  3. Cloud computing
  4. 3D technologies

Answer: (D)

Difficulty: Easy

Section Ref: 1.1 IT and Management Opportunities and Challenges

AACSB: Use of information technology

  1. Data analytics can help companies achieve these business outcomes, except:
  1. Retain the most profitable customers.
  2. Continuously improve operational efficiency.
  3. Transform and automate financial processes.
  4. Define company mission.

Answer: (D)

Difficulty: Medium

Section Ref: 1.1 IT and Management Opportunities and Challenges

AACSB: Analytic skills

  1. Which of the following is not considered a form of messy data?
  1. Cash register transactions
  2. Tweets
  3. Posts or comments
  4. Images

Answer (A)

Difficulty: Easy

Section Ref: 1.1 IT and Management Opportunities and Challenges

AACSB: Use of information technology

  1. Most research and consulting firms agree that ______to gain insights and a competitive edge is one of the biggest opportunities and challenges facing managers.
  1. Finding low cost data
  2. Properly formatting data
  3. Identifying unique data sources
  4. Using data analytics

Answer: (D)

Difficulty: Hard

Section Ref: 1.1 IT and Management Opportunities and Challenges

AACSB: Reflective thinking skills

  1. Data analytic processes include all of the following activities except:
  1. Locating and collecting reliable data from multiple sources that are in various formats.
  2. Preparing the data for analysis.
  3. Performing the correct analyses, verifying the analyses, and then reporting the findings in meaningful ways.
  4. Processing payment to information vendors/suppliers.

Answer: (D)

Difficulty: Medium

Section Ref: 1.1 IT and Management Opportunities and Challenges

AACSB: Analytic skills

  1. Productivity is a measure of efficiency and equal to ______/ ______
  1. Outputs / Inputs
  2. Profits / Losses
  3. Expenses / Revenues
  4. Good Information / Poor Information

Answer (A)

Difficulty: Hard

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Reflective thinking skills

  1. IT department’s understanding of strategy, risks, and opportunities; and the business’ understanding of IT’s potential and limitations is referred to as:
  1. Business process reengineering
  2. IT and Business Alignment
  3. Strategic Planning
  4. Competitive advantage

Answer (B)

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Reflective thinking skills

  1. Examples of ______that can be facilitated by IT are customer order processing, credit approval, opening a new account, order fulfillment, processing an insurance claim, and shipping a product.
  1. Strategic activities
  2. Business processes
  3. Planning activities
  4. Competitive advantages

Answer (B)

Difficulty: Easy

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Use of information technology

  1. The goal of ______is to eliminate the unnecessary non–value added processes, then to simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs.
  1. Strategic Planning
  2. Business process reengineering (BPR)
  3. Real-time information systems
  4. Business Intelligence

Answer (B)

Difficulty: Easy

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Use of information technology

  1. In terms of IT reliability and efficiency, managers and others need to know that they can trust the data—be able to rely on the each of the following characteristics except:
  1. Accuracy
  2. Availability
  3. Strategic fit
  4. Security

Answer: (C)

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Use of information technology

  1. Integration, computation, and analysis of massive data repositories to gain a competitive advantage by identifying trends and relationships in organizational data, and/or creating or taking advantage of business opportunities is the function of:
  1. Business Intelligence (BI)
  2. Real-time systems
  3. Cloud computing
  4. Mobile computing

Answer: (A)

Difficulty: Easy

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Use of information technology

  1. Which of the following is not an option for maximizing the benefits of cloud computing:
  1. Build a private cloud,
  2. Mobilize a transient cloud
  3. Lease a public cloud
  4. Build a hybrid cloud.

Answer: (B)

Difficulty: Easy

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Use of information technology

  1. Which if the following is not considered a benefit of cloud computing:
  1. Agility – example: near instantaneous increases or reductions in capacity
  2. Efficiency – example: improved asset utilization
  3. Innovation – example: better linkage to emerging technologies
  4. Security – example: increased protection of sensitive or proprietary data

Answer: (D)

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Use of information technology

  1. Collaboration and workflow tools help people work together in an organized way and manage their tasks more effectively regardless of
  1. Their location.
  2. Access to the Internet.
  3. Incompatible technologies.
  4. Differences in language and culture.

Answer: A

Difficulty: Easy

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Use of information technology

  1. How a company generates revenue from its assets is referred to as its ______.
  2. asset infrastructure
  3. business model
  4. corporate culture
  5. organizational structure

Answer: B

Difficulty: Easy

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Reflective thinking skills

  1. The importance of being an agile enterprise has increased significantly because of ______and ______.
  1. Competition; slowed population growth
  2. Social networks; rapid economic recovery
  3. Slow economic recovery; advances in mobile technology
  4. Rapid population growth; corporate strategy

Answer: C

Difficulty: Hard

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Reflective thinking skills

  1. Zipcar rents automobiles for short periods and cut its costs by eliminating rental centers, thus increasing profits. This statement defines Nokia’s business ______.
  1. Model
  2. Channel
  3. Supply chain
  4. Value proposition

Answer: A

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB: Reflective thinking skills

  1. The Internet of Things describes a network of:
  1. Personal connections – people from around the world
  2. An online directory of global IT vendors
  3. The listing of URL addresses compiled by search engines
  4. Equipment or devices connected to the Internet or networked via sensors

Answer: D

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB:Use of information technology

  1. Farm equipment with ground sensors can take into account crop and field conditions, and adjust the amount of fertilizer that is spread on areas that need more nutrients. This is made possible by:
  1. Social Media
  2. The Internet of Things
  3. Improved Strategic Planning Processes
  4. Changes in environmental regulations and laws

Answer: B

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB:Use of information technology

  1. Which if the following is not an example of the Internet of Things is being used by businesses?
  1. A network of ground sensors that allow agricultural operations to adjust the amount of fertilizer and water applied to specific field locations.
  2. Sensors in shoppers club cards that make it possible for retailers to offer discounts or promotions to consumers at the point of sale.
  3. Sensors in rental cars that allow companies to base rates on the driving behavior of their customers
  4. Sensors on packages of cereal, pasta, soup or other food products made for children that allow companies to determine young consumer’s satisfaction with the nutritional value of the product.

Answer: D

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB:Use of information technology

  1. Based on survey responses in 2010, from 472 organizations, all of the following were described as the most influential ITs except:
  1. Business Intelligence (BI)
  2. Cloud Computing
  3. Database Systems
  4. Collaboration and Workflow tools

Answer: C

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB:Use of information technology

  1. Based on survey responses in 2010, from 472 organizations, all of the following were described as the top 5 Management Concerns, except:
  1. Business productivity and cost reduction
  2. IT and business alignment
  3. Realigning corporate culture with market needs
  4. Business process reengineering

Answer: C

Difficulty: Medium

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB:Reflective thinking skills

  1. Which of the following is not one of the “Characteristics of High Quality Information” described in your textbook?
  1. Relevant
  2. Competitively priced
  3. Timely
  4. Easy to understand and use

Answer (B)

Difficulty: Easy

Section Ref: 1.2 Positioning IT to Optimize Performance

AACSB:Use of information technology

  1. Which of the following is not one of the attributes of an IT operation discussed in your textbook that gives a company competitive advantage?
  1. Agility – ability to respond quickly.
  2. Cutting Edge – only uses the latest, most advanced technology.
  3. Responsiveness – ability to scale IT capacity up or down as needed.
  4. Flexibility – ability to quickly integrate new functions or reconfigure software and apps.

Answer: B

Difficulty: Medium

Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage

AACSB:Use of information technology

  1. According to the textbook, IT agility, flexibility, and mobility are tightly interrelated and primarily dependent on:
  1. An organization’s IT infrastructure and architecture
  2. The IT division’s strategic hiring and training practices
  3. IT’s integration with production and accounting units
  4. Strategic alignment between IT budget and company mission statement

Answer: A

Difficulty: Hard

Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage

AACSB:Use of information technology

  1. Susan recently received a new iPad for her birthday. Even though she owns the device, she finds that she is increasingly using it for her work as a traveling sales person because it allows her to access email and important company information while she is away from the office. Susan’s use of personally owned technology is part of a trend called ______.
  1. Mixed use IT
  2. Employer IT cost shifting
  3. IT consumerization
  4. Unauthorized IT risk

Answer: C

Difficulty: Easy

Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage

AACSB:Use of information technology

  1. Using a combination of mobile and database technology, Papa Romano’s Pizza House keeps records of the pizza preferences of all its customers. Tommy likes ordering from Papa Romano’s because when he calls, he just says “send me the usual” and hangs up. They already know where he lives, what kind of pizza he wants and what credit card to bill. The big increase in ordering and fulfillment efficiency represents a(n) ______for Papa Romano’s.
  1. Operational Cost
  2. Strategic Mission
  3. Competitive Advantage
  4. Structural IT component

Answer: C

Difficulty: Medium

Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage

AACSB:Reflective thinking skills

  1. According to the research firm Gartner, the first part of the Information Age focused on the development of technology itself. In the second part of the Information Age, technology is everywhere and the key challenge is to ______
  1. Create even more powerful IT
  2. Reduce reliance on IT
  3. Reduce IT costs
  4. Create novel uses of IT to gain competitive advantage.

Answer: D

Difficulty: Medium

Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage

AACSB:Reflective thinking skills

  1. According to your textbook, two key components of corporate profitability are 1) industry structure and 2) ______.
  1. Technological adaptability
  2. IT proficiency
  3. Competitive advantage
  4. Corporate management style

Answer: C

Difficulty: Medium

Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage

AACSB:Reflective thinking skills

  1. IT functions that do not provide a competitive advantage, such as computers, databases and network services are examples of ______.
  1. IT commodities
  2. IT specialties
  3. Niche IT areas
  4. IT domains

Answer: A

Difficulty: Easy

Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage

AACSB:Use of information technology

  1. Strategic planning or analysis begins by identifying trends in all the following areas except:
  1. Political
  2. Informational
  3. Technological
  4. Economic

Answer: B

Difficulty: Easy

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. SWOT Analysis involves analyzing a company’s competitive situation on all of the following factors except:
  1. Strengths
  2. Weakness
  3. Opportunities
  4. Technology (IT)

Answer: D

Difficulty: Easy

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. ______involves the evaluation of strengths and weaknesses, which are internal factors; and opportunities and threats, which are external factors.
  1. Strategic analysis
  2. Business performance
  3. Operational planning
  4. SWOT analysis

Answer: D

Difficulty: Medium

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB: Use of information technology

  1. Price wars or other fierce reactions by competitors are examples of:
  1. Strengths
  2. Weaknesses
  3. Opportunities
  4. Threats

Answer: D

Difficulty: Medium

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB: Use of information technology

  1. The ______process is designed to answer the following types of questions:
  • What is the long-term direction of our business?
  • What is the overall plan for deploying our resources?
  • How do we achieve competitive advantage over rivals in order to achieve or maximizeprofitability?
  1. Enterprise Resource Planning (ERP)
  2. Business Intelligence (BI)
  3. Strategic Planning
  4. Marketing Research

Answer: C

Difficulty: Easy

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. According to the business strategy model developed by Harvard Business professor Michael Porter’s, an industry’s profit potential is largely determined by ______.
  1. The intensity of competitive forces within the industry
  2. Availability of necessary resources to produce the product/service
  3. Technological proficiency of companies in the industry
  4. Availability of skilled and unskilled labor

Answer: A

Difficulty: Medium

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. According to the Five Forces Model developed by Harvard Business professor Michael Porter, all of the following are major factors that determine a company’s standing in an industry, except:
  1. Threat of entry of new competitors
  2. Political and/or economic factors
  3. Bargaining power of suppliers
  4. Threat of substitute products/services

Answer: B

Difficulty: Hard

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. According to the Five Forces Model developed by Harvard Business professor Michael Porter, all of the following are major factors that determine a company’s standing in an industry, except:
  1. Competitive rivalry among firms existing in the industry
  2. Bargaining power of suppliers
  3. Bargaining power of customers or buyers
  4. Technological (IT) superiority

Answer: D

Difficulty: Hard

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. Harvard Business professor Michael Porter proposed that companies could follow one of three different competitive strategies. Which of the following is not one of Porter’s recommended strategies?
  1. Low price strategy
  2. Cost leadership strategy
  3. Differentiation strategy
  4. Niche strategies

Answer: A

Difficulty: Hard

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. Primary activitiesare those business activities through which a company produces goods, thus creating value for which customers are willing to pay. They include all of the following except:
  1. Inbound logistics, or acquiring and receiving of raw materials and other inputs
  2. Human Resources, including hiring, compensation and negotiating labor disputes
  3. Outbound logistics, which includes packaging, storage, delivery, and distribution
  4. Marketing and salesto customers

Answer: B

Difficulty: Medium

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Reflective thinking skills

  1. A ______is an IS that provides fast-enough access to information or data so that an appropriate decision can be made, usually before the data or situation changes.
  1. Real-time system
  2. Database system
  3. Mobile system
  4. Advanced network system

Answer: A

Difficulty: Medium

Section Ref: 1.4 Strategic Planning and Competitive Models

AACSB:Use of information technology

  1. Many of today’s businesses are being run by employees on their own devices, rather than on equipment specified and purchased by the IT department. This is sometimes referred to as the consumerization of IT, but also known by the term:
  1. IT Fragmentation
  2. Multiple IT Platform Network
  3. Bring Your Own Device (BYOD)
  4. Variable Equipment Infrastructure (VEI)

Answer: D

Difficulty: Easy

Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers

AACSB:Use of information technology

  1. In 2011, CareerCast determined ______to be the best job to have in today’s economy, thanks largely to the rise of cloud computing.
  1. Software engineers
  2. Network administrators
  3. IT Security Analysts
  4. Data Analysts

Answer: A

Difficulty: Medium

Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers

AACSB:Dynamics of the global economy

  1. Because of the shift to cloud computing, there is growing demand for professionals and managers who are more focused on ______than they are in application development.
  1. Cost reduction and efficiencies
  2. IT Training programs
  3. Cyber security systems
  4. Business development

Answer: D

Difficulty: Hard

Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers

AACSB:Dynamics of the global economy

  1. ______evaluate the newest and most innovative technologies and determine how they can be applied for competitive advantage. They develop technical standards, deploy technology, and supervise workers who deal with the daily IT issues of the firm. They frequently report to the Chief Information Officer (CIO).
  1. IT Project Directors
  2. Chief Technology Officers
  3. Directors of Computing Technology
  4. IT Designers

Answer: B

Difficulty: Hard

Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers

AACSB:Dynamics of the global economy

  1. Which of the following technology trends is cited in your textbook as being responsible for changing the nature of many IT jobs?
  1. More sophisticated Web Sites
  2. Social Media
  3. Cloud Computing
  4. Increase in mobile devices

Answer: C