Managing and Using Information Systems A Strategic Approach 4th Edition Test Bank

Managing and Using Information Systems A Strategic Approach 4th Edition By

Pearlson, K.E. and Saunders, C.S.

File: chapter1.rft, Chapter 1, The Information Systems Strategy Triangle

Multiple Choice

1. The Information Systems Strategy Triangle consists of three strategies. Which strategy focuses on where the organization seeks to go and how it expects to get there? a) Business Process b) Business Strategy c) Organizational Strategy d) Information Strategy e) Technology Strategy Ans: b (Medium) Response: See page

2. The general manager’s role in IT decision making can be described as? a) Optional b) Important for certain IT tasks c) Occasionally needed d) Mandatory e) Not appropriate Ans: d (Easy) Response: See page 1-2

3. This is term is defined as the situation when a company’s current and emerging business strategy is enabled, supported and not constrained by technology. a. tuned b. alignment c. adjustment d. misalignment e. technologically adjusted Ans: b (Easy) Response: See page 1-4

4. The ______________________ is a clear and compelling statement that unifies an organization's effort and describes what the firm is all about (i.e., its purpose). a. vision statement b. mission statement c. stakeholder statement d. stockholder statement e. organization objective Ans: b (Medium) Response: See page 1-5

5. The ________________________ is a plan articulating where a business seeks to go and how it expects to get there. a. vision statement b. mission statement c. stakeholder statement d. stockholder statement e. business strategy Ans: e (Medium) Response: See page 1-7 6. Organizations seek to gain competitive advantage by differentiation, cost, or _________. a. service b. focus c. profit d. value e. speed Ans: b (Easy) Response: See page 1-8 7. This model, created by D’Aveni, describes the strategies companies can use to disrupt competition. a. New 7 Ss Framework b. Hypercompetition Framework c. Strategic Framework System d. Standard System Strategy Model e. Multiple Competition Model Ans: b (Easy) Response: See page 1-13

8. A local hospital has created a cross-departmental team to rapidly respond to the growing health needs of the community, especially regarding emergency room services.

According to D’Avenis new 7Ss what approach are they following? a. Signaling strategic intent b. Positioning for surprise c. Positioning for speed d. Strategic soothsaying e. Signaling for surprise Ans: c (Hard) Response: See figure 1-14

9. Which company deployed a strategy to expose any weaknesses in their business (or department) that might be exploited by competitors? a. Raytheon b. General Dynamics c. General Electric d. Boeing Aerospace e. Lockheed Martin Ans: c (Easy) Response: See page 1-15

10. The general manager for a retail clothing outlet recently was cited as saying, “IT is the cornerstone of our company. All of our decisions are based on the sophisticated systems that we have deployed throughout our organization. IT drives our decisions”.

What position should the manager hold regarding IT and its influence on decision making? a. IT should drive business decisions b. Organizational goals should drive IT decisions c. Organizational strategy should drive IS decision making d. Business strategy should drive IS decision making e. All strategy should be driven by IT strategy Ans: d (Hard) Response: See page 1-16

11. The business diamond is useful for designing new organizations and diagnosing organizational troubles. Which component of the business diamond would include payroll, accounting, and inventory? a. Business Processes b. Values and Beliefs c. Tasks and Structures d. Business Levers e. Management Systems Ans: a (Medium) Response: See page 1-17

12. This is the physical means by which information is exchanged among hardware components? a) Hardware b) Software c) Networking d) Personnel e) Data Ans: c (Medium) Response: See page 1-19

13. _____________ is the plan an organization uses in providing information services. a. Business strategy b. IS Strategy c. Organization strategy d. Data strategy e. System Strategy Ans: b (Medium) Response: See page 1-19

14. This is the plan that an organization uses in providing information services. a. IS Strategy b. Information Assurance Development c. System Services Plan d. Information Technology Plan e. Data Availability Service

Ans: a (Easy) Response: See page 1-19

15. General managers should take an active role in decisions about information systems.

This is vital because of which one of the following reasons? a. IS cannot be trusted to make good decisions. b. IS staff has not been trained to make general business decisions. c. IS personnel do not have the companies best interests as their focus d. IS systems are designed to support business decisions. e. IS systems are normally incongruent with business goals.

Ans: d (Medium) Response: See page 1-2

16. This framework is called the ____________________ because it relates business strategy with IS strategy and organizational strategy. a. Porter’s Generic Framework b. D’Aveni’s Hypercompetition Model c. Information Technology Matrix d. IS Strategy Model e. Information Systems Strategy Triangle Ans: e (Easy) Response: See page 1-3

17. In the Jet Blue case study, the IS Strategy Triangle was out of __________ at the time of the weather crisis (ice storm). a) control b) alignment c) adjustment d) scope e) specification Ans: b (Medium) Response: See page 1-4

18. A company like Wal-Mart exercises this strategy to gain and hold competitive advantage? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: c (Medium) Response: See page 1-8

19. A company that sold unique high-priced furniture would practice which one of Porter’s strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: a (Medium) Response: See page 1-9

20. ACME Foods of Canton, OH is a seller of foods to the fast food restaurant business.

Which one of Porter’s strategies would it use to seek competitive advantage? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: b (Medium) Response: See page 1-9

21. What does CRM stand for? a) Custom Resource Management b) Customer Resource Maintenance c) Computer Resource Management d) Custom Relationship Maintenance e) Customer Relationship Management Ans: b (Medium) Response: See page 1-10

22. What type of company would be able to effectively utilize the unlimited resources model? a) Small retail shop b) Regional service shop c) Car dealership d) National retail chain e) Local pawn shop Ans: d (Medium) Response: See page 1-12

23. The _______________ models suggest that the speed and aggressiveness of the moves and countermoves in any given market create an environment in which advantages are “rapidly created and eroded”. a) Generic Framework b) Focus Strategy c) Hypercompetition d) Direct Strategy e) Porter’s Generic Strategies Ans: c (Medium) Response: See page 1-13 24. One of the assumptions that this model is based upon is “sustaining an advantage can be a deadly distraction”. a) Generic Framework b) Focus Strategy c) Hypercompetition d) Direct Strategy e) Porter’s Generic Strategies Ans: c (Medium) Response: See page 1-13

25.According to the Hypercompetition Framework, the goal of advantage should be ___________, not sustainability. a) disruption b) competition c) distraction d) confusion e) instability

Ans: a (Medium) Response: See page 1-13

26. When JetBlue installed Direct TV on its planes, it was employing which one of D’Avenis 7S’s? a) Signaling strategic intent b) Simultaneous and sequential strategic thrusts c) Positioning for speed d) Superior Stakeholder Satisfaction e) Signaling for surprise Ans: c (Hard) Response: See page 1-14

27. GE recognized that it could only sustain its competitive advantage for a limited time as competitors attempted to outmaneuver them. What was the model that Welch applied to help solve this problem? a) Destroy Your Organization b) Grow Your Organization c) Destroy Your System d) Grow Your System e) Destroy Your Business Ans: e (Medium) Response: See page 1-15

28. Which one of the following is a misconception of the Halo Effect as identified by Rosenzweig? a) Firm performance is driven entirely by internal factors. b) All companies must leverage information technology. c) Most companies are driven by internal factors. d) Firm performance is partially driven by internal factors. e) All companies are part of the information technology landscape Ans: a (Medium) Response: See page 1-21

29. Organizational variables include decision rights, business processes, formal reporting relationships, and ____________. a) formal networks b) business networks c) informal reporting relationships d) informal networks e) formal reporting relationships Ans: d (Medium) Response: See page 1-18

30. Which ONE of the following is NOT part of the information systems strategy matrix? a) Hardware b) Software c) Networking d) Personnel e) Data Ans: d (Medium) Response: See page 1-20

True/False

31. The Information Systems Strategy Triangle is primarily concerned with mapping IS strategy with organizational strategy.

Ans: False Response: See page 1-3

32. Once a firm is out of alignment, it does not mean that it has to stay that way.

Ans: True Response: See page 1-4

33. Porter’s three strategies for obtaining competitive advantage include cost leadership, differentiation, and focus.

Ans: True Response: See page 1-8

34. A company that makes its services available 24/7 would be practicing a differentiation strategy according to Porter.

Ans: True Response: See page 1-9

35. The Halo Effect, is the basic human tendency to make specific inferences on the basis of a general impression.

Ans: True Response: See page 1-21

Short Answer

36. The business diamond includes business processes, tasks and structures, management and management systems, and ___________________________.

Ans: values and beliefs Response: See page 1-17

37. This is a well-articulated vision of where a business seeks to go and how it expects to get there.

Ans: Business strategy Response: See page 1-7

38. According to Porter’s Generic Strategies Framework, a company that seeks to make its product unique in the marketplace is exercising this type of strategy.

Ans: Differentiation Response: See page 1-9

39. This model holds that the timing of the use of specialized knowledge can create a differentiation advantage as long as the knowledge remains unique Ans: Shareholder Value Model Response: See page 1-12

40. The _______________________ utilizes a large base of resources that allow an organization to outlast competitors by practicing a differentiation strategy.

Ans: Unlimited resources model Response: See page 1-12

Essay

41. List the three parts of the Information Systems Strategy Triangle and explain how the three parts interrelate?

42. Explain the concept “Every advantage is eroded”. Do you agree or disagree with this statement made by D’Aveni?

43. What is the purpose of the Hypercompetition Model? How do firms seek to utilize this model effectively (provide an example).

44. List and explain Porter’s three generic strategies for gaining competitive advantage.

Provide an example of a company for each strategy.

45. Explain IS strategy and list the components found in the IS strategy matrix.

File: chapter2.rtf, Chapter 2, Strategic Use of Information Resources

Multiple Choice

1. Which “era” of information resources focused primarily on effectiveness such solving problems and creating opportunities? a) 1960s b) 1970s c) 1980s d) 1990s e) 2000+ Ans: b (Medium) Response: See page 2-3

2. An IS infrastructure is an IT? a) Design b) Expenditure c) System d) Asset e) Liability Ans: d (Medium) Response: See page 2-4

3. Salesforce.com is considered to be which type of “Internet” based technology? a) Web 1.0 b) XML Based c) Web 2.0 d) Java e) WebClient Ans: c (Medium) Response: See page 2-5

4. This term, __________________, is defined as the available data, technology, people, and processes within an organization to be used by the manager to perform business processes and tasks a) information resources b) information technology c) information systems d) system technology e) organization resources Ans: a (Easy) Response: See page 2-4

5. This is an approach that improves the way a company finds raw components it needs to make a product or service, manufactures that product or service, and delivers it to customers. a) Customer Relationship Management b) Supply Chain Management c) Production Supply Management d) Strategic Alliance Management e) Value Chain Management Ans: b (Easy) Response: See page 2-21

6. This is a strategy whereby companies cooperate and compete at the same time with companies in its value net. a) Co-operation b) Competition c) Pre-Competition d) Collab-otition e) Co-opetition Ans: e (Medium) Response: See page 2-30

7. This “risk” can arise when a company seeks to use its Information Resources to gain competitive advantage and their competitors are forced to enter the market and offer the same or better resources due to deep pockets. a) Demonstrating bad timing b) Awakening a sleeping giant

c) Delivering a strategic coup d) Nudging a competitor e) Equal access competition Ans: b (Medium) Response: See page 2-31

8. Which one of the following risks may result in litigation against an organization? a) Demonstrating bad timing b) Awakening a sleeping giant c) Delivering a strategic coup d) Running afoul of the law e) Equal access competition Ans: d (Medium) Response: See page 2-33

9. If a company were to release a new technology, when its customers were not ready to use this new technology, would be which type of risk? a) Demonstrating bad timing b) Awakening a sleeping giant c) Delivering a strategic coup d) Running afoul of the law e) Equal access competition Ans: a (Medium) Response: See page 2-32

10. Which Era of information usage in organizations included a knowledge driven information model? a) 1960s b) 1970s c) 1980s d) 1990s e) 2000+ Ans: e (Medium) Response: See page 2-4

11. Which Era of information usage in organizations was marked by ROI, and Mainframe systems? a) 1960s b) 1970s c) 1980s d) 1990s e) 2000+ Ans: a (Medium) Response: See page 2-4

12. Which Era of information usage in organizations was user driven, and strategic? a) 1960s b) 1970s c) 1980s d) 1990s e) 2000+ Ans: c (Medium) Response: See page 2-4

13. This risk of using information resources, must be carefully considered by managers due to the wide spread use of the Internet? a) Demonstrating bad timing b) Awakening a sleeping giant c) Delivering a strategic coup d) Web-based alternative removes advantages e) Equal access competition Ans: d (Easy) Response: See page 2-32

14. Companies offer services to their customers that either “lock” them in to the company for these services or make it difficult or costly to switch to another company. a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors

Ans: a (Medium) Response: See page 2-12

15. eBay has offered a new services to help its customers build their own website. Which competitive force does this specifically address? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors Ans: b (Medium) Response: See page 2-12

16. A company that is in a very competitive market is experiencing which one of Porter's Five Competitive Forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors Ans: d (Medium) Response: See page 2-12

17. A company that is in a market with few buying options for the consumer is experiencing which one of Porter's Five Competitive Forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors Ans: a (Medium) Response: See page 2-12

18. Which one of Porter's Five Competitive Forces would a company, that is in a market

with lots of options that the consumer can engage in, create switching costs to keep customers from using a competitor? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors Ans: d (Medium) Response: See page 2-12

19. The Resource-Based View is useful in determining whether a firm’s strategy has created value. Unlike Porter’s competitive forces framework, this view maintains that competitive advantage comes from the ________________ and other resources of the firm. a) data b) technology c) information d) systems e) people Ans: c (Medium) Response: See page 2-23

20. Which one of the following is not considered to be a support activity of the value chain of a firm? a) Human Resources b) Service c) Purchasing d) Technology e) Organization Ans: b (Medium) Response: See page 2-17

21. Which one of the following is not considered to be a primary activity of the value chain of a firm? a) Marketing b) Sales c) Services

d) Operations e) Organization Ans: e (Medium) Response: See page 2-17

22. What is a collection of a firm’s value chains called? a) Value network b) Value chain environment c) Value system d) Chain network e) Organization chain Ans: c (Medium) Response: See page 2-18

23. _______________________ is an approach that improves the way a company finds raw components it needs to make a product or service, manufacture that product or service, and delivers it to customers. a) Resource Based Allocation b) Supply Chain Management c) Operations Management d) Supply Resource Management e) Customer Relationship Management Ans: b (Medium) Response: See page 2-21

24. If an airline were to partner with a hotel chain to offer online packages to consumers, this would be creating what type of partnership? a) Vendor Collaboration b) Co-opetition c) Strategic Co-opetition d) Strategic Alliance e) Industry Alliance Ans: d (Medium) Response: See page 2-29

25. Which part of the value chain includes order processing and shipping? a) Inbound Logistics b) Outbound Logistics c) Operations d) Service e) Organization Ans: b (Medium) Response: See page 2-17

26. This is an inter-organizational relationship that affords one or more companies in the relationship a strategic advantage. a) CRM b) SCM c) Organizational Partnership d) Strategic Partnership e) Strategic Alliance Ans: e (Medium) Response: See page 2-29

27. Which "view" has been applied in the area of Information Systems to help identify two subsets of information resources: those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term? a) Resource-Based View b) Information-System View c) Information-Resource View d) System-Based View e) Organization View Ans: a (Medium) Response: See page 2-23

28. If two airlines decided to work together on creating a reservation system to help create a competitive advantage would be practicing this strategy? a) Competition b) Co-opetition c) Collaboration d) Strategic Alliance e) Supply Chain Alliance Ans: b (Medium)

Response: See page 2-30

29. A local bank decided to roll out self-service safety deposit box service. At first, customers appeared interested in the new service but over time the bank discovered that the service was too advanced for its particular customer base. Which risk is the bank experiencing? a) Awakening a sleeping giant b) Implementing IS poorly c) Demonstrating bad timing d) Customer lack of interest e) Failing to deliver customer needs Ans: c (Hard) Response: See page 2-32

30. A utility company fits into which one of Porter's Five Forces model? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors Ans: a (Hard) Response: See page 2-11

True/False 31. A Web 2.0 technology is a newer Internet based technology that provides more interaction and participation among the users..

Ans: True (Medium) Response: See page 2.5

32. Network externalities offer a reason for value derived from plentitude.

Ans: True (Medium) Response: See page 2-7

33. A firm that uses threat of backward integration is using the "bargaining power of buyers" for strategic advantage.

Ans: False (Medium) Response: See page 2-12

34. A grocery store chain recently rolled out a customer loyalty program that sends the customer a $5 coupon towards their next purchase for every $250 they spend at the store.

This is an example of strategic use of bargaining power of suppliers Ans: False (Hard) Response: See page 2-12

35. Co-opetition is a strategy where companies agree to work together and compete at the same time.

Ans: True (Easy) Response: See page 2-30

Short Answer

36. Which ONE of Porter's Five Forces Model uses buyer selection, switching costs, and differentiation?

Ans: Bargaining power of buyers Response: See page 2-12

37. List the four support activities of the value chain.

Ans: Organization, Human Resources, Technology, Purchasing Response: See page 2-17

38. This is an approach that improves the way a company finds raw materials it needs to make a product or service.

Ans: Supply Chain Management Response: See page 2-21

39. Which Era of information usage in organizations was characterized by client server “distribution intelligence” as the dominate technology?

Ans: Era III, 1980s Response: See page 2-3

40. A small retail store begins to offer a new innovative service through its web site to gain competitive advantage. What risk is the store potentially in danger of?

Ans: Awakening a sleeping giant Response: See page 2-31

Essay

41. Compare and contrast the five competitive forces of Porter's Five Forces Model.

42. Provide 2 examples of types of companies that are in a market where threat of substitute products is high. What could these companies do to help minimize this threat?

43. Explain how co-opetition can be used effectively in a particular market segment?

Provide an example.

44. How is supply chain management used to gain competitive strategic advantage?

45. How is the Resource-Based View useful in determining whether a firm’s strategy has created value?

File: chapter3.rtf, Chapter 3, Organizational Impacts of Information Systems Use

Multiple Choice

1. _________________________ includes the organization’s design, as well as the managerial choices that define, set up, coordinate, and control its work processes. a) Organizational structure b) System architectures c) Organizational strategy d) Work strategy e) Organizational processes Ans: c (Medium) Response: See page 3-2

2. What indicates who in the organization has the responsibility to initiate, supply information for, approve, implement, and control various types of decisions? a) Organizational Strategy b) Formal Strategy Rights c) Decision Rights d) Decision Strategy e) Functional Rights Ans: c (Medium) Response: See page 3-3

3. In this type of organization work is organized into small work groups and integrated regionally and nationally/globally. IS reduces operating complexities and expenses by allowing information to be easily shared among different managerial functions. a) Network structured b) Traditionally structured c) Flat structured d) Matrix structured e) Functionally structured Ans: d (Medium) Response: See page 3-8

4. What type of organizations, which are comprised of formal/informal communication systems that connect all employees in the company and are known for their flexibility and adaptability? a) Traditionally structured b) Network structured c) Flat structured d) Matrix structured e) Functionally structured Ans: b (Medium) Response: See page 3-9

5. This type of structure is based upon the concepts of division of labor, specialization, and unity of command. Key decisions are made at the top and filter down through the organization. a) Hierarchical b) Traditionally structured c) Flat structured d) Matrix structured e) Functionally structured Ans: a (Medium) Response: See page 3-5

6. This type of organizational structure typically assigns workers with two or more supervisors in an effort to make sure multiple dimensions of the business are integrated, with each supervisor directing a different aspect of the employee’s work. a) Hierarchical b) Traditionally structured c) Flat structured d) Matrix structured e) Technology based Ans: d (Medium) Response: See page 3-8

7. These organizations take the networked structure one step further by combining IT with traditional components to form new types of components. These include electronic

linking, production automation, electronic workflows, electronic customer/supplier relationships and self-service Internet portals a) Hierarchical b) Traditionally structured c) Flat structured d) Matrix structured e) Technology based Ans: e (Hard) Response: See page 3-10

8. Which organizational structure has centralized decision making with power often residing in the owner? a) Matrixed b) Networked c) Meshed d) Flat e) Hybrid Ans: d (Medium) Response: See page 3-7

9. Which organizational structure relies on highly decentralized decision rights? a) Matrixed b) Networked c) Meshed d) Flat e) Hybrid Ans: b (Medium) Response: See page 3-9

10. IS plays three important roles in management control processes. These processes are data collection, evaluation, and _______________. a) transformation b) management c) communication d) implementation e) conversion

Ans: c (Medium) Response: See page 3-12

11. This includes the organization’s design, as well as the managerial choices that define, set up, coordinate, and control its work processes. a) Organizational strategy b) Business strategy c) Information resources strategy d) Systems strategy e) IT strategy Ans: a (Medium) Response: See page 3-2

12. Which ONE of the following would be considered a weakness of the matrix organizational structure? a) Decision rights b) Business options c) Informal structure d) Dual authority e) Formal reporting relationships Ans: d (Medium) Response: See page 3-8

12. Which one of the following would NOT be considered an organizational variable in organizational design? a) Decision rights b) Business processes c) Informal networks d) Incentives e) Formal reporting relationships Ans: d (Medium) Response: See page 3-2

13. A cultural variable would be which one of the following in organizational design? a) Decision rights b) Business processes

c) Values d) Incentives e) Formal reporting relationships Ans: c (Medium) Response: See page 3-2

14. Traditional organizational structures are considered to be one of three types of organizational design. What are these three structure types? a) traditional, flat, matrixed b) hierarchical, flat, matrixed c) matrixed, networked, flat d) matrixed, flat, networked e) traditional, networked, matrixed Ans: b (Hard) Response: See page 3-4

15. In which type of organizational design do middle managers do the primary information processing and communication function, telling subordinates what to do and then reporting the outcome to senior management? a) Network structured b) Traditionally structured c) Flat structured d) Matrix structured e) Hierarchical structured Ans: e (Medium) Response: See page 3-5

16. In which type of organizational structure will employees report to 2 or more supervisors? a) Hierarchical b) Traditionally structured c) Flat structured d) Matrix structured e) Functionally structured Ans: d (Medium) Response: See page 3-8

17. In which type of organizational structure is the power structure centralized, and the type of environment best supported is stable and certain? a) Flat structured b) Traditionally structured c) Hierarchical structured d) Matrix structured e) Functionally structured Ans: c (Medium) Response: See page 3-5

18. In which type of organizational structure is the power structure distributed, and its characteristics are known for flexibility and adaptability? a) Flat structured b) Network structured c) Hierarchical structured d) Matrix structured e) Functionally structured Ans: b (Medium) Response: See page 3-9

19. Many Internet-based companies have adopted this organizational structure because it uses self-service Internet portals, electronic workflows, and electronic linking? a) Flat structured b) Traditionally structured c) Hierarchical structured d) T-Form structured e) Functionally structured Ans: d (Hard) Response: See page 3-10

20. Which one of the following is NOT considered to be a control activity of management? a) Collecting b) Monitoring

c) Rewarding d) Evaluating e) Compensating Ans: a (Easy) Response: See page 3-12

21. IS plays three important roles in management control processes. These three processes include which of the following? a) Collection, Communication, Decision b) Communication, Collection, Monitoring c) Monitoring, Decision, Collection d) Decision, Evaluation, Collection e) Collection, Communication, Evaluation Ans: e (Medium) Response: See page 3-12

22. The organizational design challenge in data collection is twofold: (1) to embed monitoring tasks within everyday work, and (2) to _____________________________. a) reduce the negative impacts to workers being monitored b) increase the reliability of the data being collected by the company c) decrease the amount of unnecessary data being collected by the organization d) improve the security of the information being collected e) reduce the transfer occurrence of data being sent between business units Ans: b (Medium) Response: See page 3-14

23. The ready availability of so much information catches some managers in this dilemma. a) data overload b) analysis paralysis c) information paralysis d) information overload e) data paralysis Ans: b (Medium) Response: See page 3-16

24. What is the name of the evaluation of an individual’s performance is based on feedback provided by the individual’s supervisors, subordinates, and coworkers? a) Holistic b) 180-degree c) 360-degree d) Complete e) Circular Ans: c (Medium) Response: See page 3-17

25. One of the challenges of information technology is the _________ diversity faced by an organization, particularly one that spans multiple countries. a) organizational b) technical c) system d) cultural e) dynamic Ans: d (Easy) Response: See page 3-18

26. What would a company need to implement if it wanted to provide an environment that is flexible and adaptable? a) Matrix b) Networked c) Meshed d) Flat e) Hybrid Ans: b (Medium) Response: See page 3-9

27. Which type of organizational structure feels flat when IT is used primarily as a communication vehicle? a) Matrix b) Network c) Hierarchical

d) Flat e) Traditional Ans: b (Medium) Response: See page 3-9

28. Managers need to control work done at the _________ level. a) process b) cetralized c) job d) task e) objective Ans: a (Medium) Response: See page 3-13

29. A company that has locations across the globe and provides for interconnections between workers using intranets and the Internet is using what type of organizational structure? a) Traditionally structured b) Network structured c) Flat structured d) Matrix structured e) Functionally structured Ans: b (Medium) Response: See page 3-9

30. According to the Zara case in chapter 3, the decision rights for ordering had been moved to whom? a) Regional managers b) Individual purchasing agents c) Store managers d) Central production e) Headquarters Ans: c (Medium) Response: See page 3-4

True/False

31. Organizational strategy includes the organization’s design, as well as the managerial choices that define, set up, coordinate, and control its work processes.

Ans: True (Medium) Response: See page 3-2

32. Hierarchical organization structure is based on division of labor, specialization and unity of command.

Ans: True (Medium) Response: See page 3-5

33. In the flat organization structure decision making is decentralized.

Ans: False (Easy) Response: See page 3-7

34. A fine foods company delivers frozen foods to several restaurant chains in the greater Austin, TX area. The management of the company is currently hierarchical but wants to move to a networked organizational structure because of the structures flexibility and adaptability.

Ans: True (Hard) Response: See page 3-9

35. Decision rights indicate who in the organization has the responsibility to initiate, supply information for, approve, implement, and control various types of decisions.

Ans: True (Medium) Response: See page 3-3

36. The matrixed organizational structure usually has employees reporting to 2 or more supervisors and is known for its stable and certain environment Ans: False (Medium) Response: See page 3-8

37. Information systems play an important role in management control processes.

Specifically, these roles include data collection, communication, and evaluation.

Ans: True (Medium) Response: See page 3-12

38. At the individual level, IS can streamline the process of data collection (i.e., monitoring), and support performance measurement and evaluation, as well as compensation through salaries, incentives and rewards.

Ans: True (Medium) Response: See page 3-14

39. Differences in national culture normally do not affect system development and use.

Ans: False (Medium) Response: See page 3-19

40. The flat organizational structure is known for its dynamic and certain environment.

Ans: False (Medium) Response: See page 3-7

Short Answer

41. Which organizational structure uses IS and distributed information systems?

Ans: Networked Response: See page 3-9

42. These indicate who in the organization has the responsibility to initiate, supply information for, approve, implement, and control various types of decisions.

Ans: Decision Rights.

Response: See page 3-3

43. IS plays three important roles in management control processes. What are they?

Ans: Data Collection, Evaluation, and Communication.

Response: See page 3-12

44. What organization takes the networked organizational structure to the next level by using IT extensively as a design tool?

Ans: T-Form organization Response: See page 3-10

45. Which management control process is responsible for comparing actual performance with the desired performance that is established as a result of planning?

Ans: Evaluation Response: See page 69

Essay

46. Compare and contrast the four organization structures.

47. Discuss how organization structures can facilitate information flows.

48. What role do informal networks play in organizations? How can management utilize informal networks to the organizations advantage?

49. List and define ways that management can use information technology for performance measurement and evaluation.

50. What is the “zero time” organization? What are the five disciplines that the organization must master?

File: chapter4.rtf, Chapter 4, Information Technology and the Design of Work

Multiple Choice

1. A __________________ is a structure that makes it possible for individuals to work for an organization and live anywhere. a) matrixed system b) remote organization c) virtual organization d) matrix organization e) hierarchical organization Ans: c (Easy) Response: See page 4-3

2. What is the most widely form of communication in a virtual organization?. a) Teleconferencing b) E-mail c) Instant Messaging (IM) d) Live online chat e) VoIP Ans: b (Easy) Response: See page 4-3

3. A virtual organization is which type of structure? a) traditional b) flat c) hierarchical d) networked e) matrixed Ans: d (Medium) Response: See page 4-3

4. The concept of “jobs” is being replaced with the concept of what?

a) events b) systems c) actions d) tasks e) work Ans: e (Easy) Response: See page 4-5

5. This telecommunication technology is becoming more and more popular within organizations as it provides a means for reducing long distance costs? a) E-mail b) IM c) VoIP d) VPN e) Teleconferencing Ans: c (Medium) Response: See page 4-9

6. This is an Internet protocol based application that provides convenient communication between people using a variety of different device types, including computer-to-computer and mobile devices. a) E-mail b) IM c) VoIP d) VPN e) Teleconferencing Ans: b (Medium) Response: See page 4-9

7. As of 2006, more than ___million Americans telecommuted in some fashion. a) 30 b) 35 c) 40 d) 45 e) 50 Ans: d (Medium)

Response: See page 4-24

8. The main benefit of ________________ is that the user can aggregate frequently updated data such as news, blog entries, changing stock prices, and recent changes on wiki pages into one easily manageable location. a) Email b) Groupware c) RSS Web Feeds d) Bulletin Boards e) Virtual Private Networks Ans: c (Medium) Response: See page 4-11

9. This model suggests that employee attitudes may change if they think the new system will help them to do more or better work for the same effort, and that it’s easy to use) Employee participation in the system’s design and implementation also helps. a) Information Management Model (IMM) b) Employee Technology Model (ETM) c) Capability Maturity Model (CMM) d) Computer Access Model (CAM) e) Technology Acceptance Model (TAM) Ans: e (Medium) Response: See page 4-35

10. Automated work means that technology replaced the human worker. ______________ work means that workers are provided with access to a variety of information that allows them to go beyond the requirements of the job. a) Informated b) Project management c) Collaboration systems d) Bulletin boards e) Web boards Ans: a (Medium) Response: See page 4-21

11. In the "Framework for work design" work is either done by a __________________ or by a __________________. a) technician, worker b) computer, system c) system, schedule d) person, computer e) laptop, PDA Ans: d (Medium) Response: See page 4-6

12. What looks and acts like the Internet, but it is comprised of information used exclusively with a company and unavailable to the Internet community as a whole. a) Web Portal b) Intranet c) Extranet d) Groupware e) Shareware Ans: c (Medium) Response: See page 4-8

13. In 1958 Leavitt and Whisler predicted this outcome from the use of IT. a) Greater worker productivity b) Reduced line worker productivity c) Shrinkage in the ranks of line workers d) Shrinkage in the ranks of middle management e) Greater control of management objectives and activities Ans: d (Hard) Response: See page 4-18

14. ) This is a set of interactive telecommunication technologies which allow two or more locations to interact via two-way video and audio transmissions simultaneously. a) E-mail b) IM c) VoIP d) VPN e) Teleconferencing

Ans: e (Medium) Response: See page 4-10

15. These are workers that work from wherever they are currently located, such as a hotel room in Tokyo, or a coffee shop in Boston. a) roaming workers b) teleconference workers c) geographically dispersed workers d) global workers e) mobile workers Ans: e (Easy) Response: See page 4-23

16. This an example of a VoIP software program. a) Skype b) Dreamweaver c) Access d) NetCall e) Outlook Ans: a (Medium) Response: See page 4-9

17. This is an evolving communications technology architecture which automates and unifies all forms of human and device communications in context, and with a common experience? a) E-mail b) Instant Messaging c) Unified Communications d) Virtual Private Networks e) Teleconferencing Ans: c (Medium) Response: See page 4-10

18. Steve works for an international marketing firm that specializes in the sporting goods industry. Steve travels weekly to many parts of the world and brings his "electronic

office" with him wherever he goes. According to the text, what type of worker is Steve? a) telecommuter b) mobile worker c) global worker d) roaming worker e) contract worker Ans: b (Medium) Response: See page 4-23

19. Which one of the following is NOT an advantage of telecommuting for employees? a) Geographic flexibility b) Higher personal productivity c) Higher morale d) Less expensive tools e) Lower absenteeism Ans: d (Medium) Response: See page 4-26

20. This model suggests that managers cannot get employees to use a system until they want to use it. a) User Interface Model b) Usability Acceptance Model c) Technology Acceptance Model d) System Acceptance Model e) System Usability Model Ans: c (Medium) Response: See page 4-35

21. It was estimated that in 2006 more than ______ million people in the United States were employed in positions directly in the IT sector, according to the bureau of labor. a) 2.5 b) 3.7 c) 5.5 d) 9.2 e) 10 Ans: b (Medium)

Response: See page 4-14

22. It is estimated that the number of IT workers in the U.S. will grow to ____ by the year 2016. a) 3.7 b) 3.8 c) 4.0 d) 4.5 e) 5.0 Ans: c (Medium) Response: See page 4-14

23. Team members who are _______________ and prefer to do several activities at one time may want to have instant messaging or Skype (a Voice-over-IP support system) available to them so that they can communicate with their teammates and still work on other tasks. a) bichronous b) monochronous c) asynchronous d) synchronous e) polychronous Ans: e (Medium) Response: See page 4-34

24. The word telecommute comes from a combination of what two words? a) telephony, commuter b) telecommunications, commuting c) teleconferencing, communications d) telecommuter, communications e) telephone, communicate Ans: b (Medium) Response: See page 4-23

25. This software system enables workers to more easily share data and information across an organization electronically.

a) shareware b) firmware c) e-ware d) groupware e) intraware Ans: d (Medium) Response: See page 4-13

26. What is the last step in the Technology Acceptance Model (TAM)? a) Intention to use b) Application of system use c) Conceptual system use d) Actual system use e) Frequency of use Ans: d (Medium) Response: See page 4-36

27. Mary works in a department that has recently implemented a new software system to track expenses. She has heard from others in the organization that the system is not user friendly and is very difficult to use. In order for Mary to "accept" this new system she needs to perceive that the system is what? a) useful b) easy to use c) others intend to use d) intuitive e) interactive Ans: b (Medium) Response: See page 4-36

28. With the advent of virtual teams a team member has this advantage? a) No face-to-face meetings b) Lack of peer contact c) They can live anywhere d) Easy skills evaluation e) Fewer actual work hours Ans: c (Medium)

Response: See page 4-30

29. Virtual Teams require all but which one of the following skills to be successful? a) good communication b) flexibility c) planning d) knowledge of the use of IT e) general business skills Ans: e (Medium) Response: See page 4-30

30. Which virtual team challenge is more difficult for managers to manage/manipulate since there may be a great deal of difference between groups and individuals? a) communication b) technology c) diversity d) management e) location Ans: c (Medium) Response: See page 4-34

True/False

31. A virtual organization is a structure that makes it possible for individuals to work for an organization and live anywhere.

Ans: True (Easy) Response: See page 4-3

32. In the framework for work design determining the best way to accomplish a task is done first.

Ans: False (Medium) Response: See page 4-7

33. The Bureau of Labor estimated that there were 5 million IT workers in the United States.

Ans: False (Easy) Response: See page 4-14

34. VoIP is a method enabling telecommunications (phone calls) to be transmitted over an IP based network.

Ans: True (Medium) Response: See page 4-9

35. Mobile workers are workers that work from any physical location.

Ans: True (Medium) Response: See page 4-23

36. Unified communications (UC) are an evolving communications technology architecture which automates and unifies all forms of human and device communications in context, but with a dissimilar experience.

Ans: False (Medium) Response: See page 4-10

37. One of the advantages of telecommuting for an employee is the ability to work from any location.

Ans: True (Medium) Response: See page 4-23

38. The purpose of the Technology Acceptance Model is to determine if a particular system will be used by its target audience.

Ans: False (Medium) Response: See page 4-35

39. The Technology Acceptance Model (TAM) states that managers cannot get employees to want to use a system if they do not want to use the system Ans: True (Medium) Response: See page 4-35

40. A small building firm is considering moving to a new IT system. However, the management is worried that the users of the system will not accept it because of its significant differences in uses. The Technology Acceptance Model would work in analyzing this issue.

Ans: True (Medium) Response: See page 4-35

Short Answer

41. List the four steps of the Technology Acceptance Model?

Ans: Perceived Ease of Use, Perceived Usefulness, Behavioral Intention of Use, Actual System Use Response: See page 4-35

42. This technology Looks and acts like the Internet and is comprised of information used exclusively within a company but is unavailable to the Internet community as a whole.

Ans: Intranet Response: See page 4-8

43. What is the first step of the Framework for Work Design?

Ans: What work will be performed?

Response: See page 4-7

44. Driving factors of telecommuting include a shift to knowledge based work, changing demographics and lifestyle preferences, more powerful PC’s, increasing reliance on web based technologies, and _____________________.

Ans: mounting emphasis on conserving energy Response: See page 4-30

45. An advantage of virtual teams is that teams in different parts of the world can cooperate to get work done faster due to time zone differences. What is this called?

Ans: Follow the sun.

Response: See page 4-30

Essay

46. Describe the work design framework. How is it useful in organizations?

47. List and discuss several factors that support the growth of telecommuting. In your opinion, which one is most critical?

48. Discuss ways that IT has changed the way managers manage employees.

49. What are the driving factors of telecommuting? Discuss the effects of each one of these drivers.

50. Outline the Technology Acceptance Model. Why is it useful for organizations considering moving to new technology?

File: chapter5.rtf, Chapter 5, Information Technology and Changing Business Processes

Multiple Choice

1. In this business structure a common view of a firm is as a hierarchy organized around a set of functions. Each group has a core competency that it concentrates upon. a) Technology b) Business reengineering approach c) Silo d) Process Control e) Business process Ans: c, (Medium) Response: See page 5-3

2. This type of improvement relies on gradual, continuous process improvement. a) BPR b) CMM c) TQM d) ERP e) SS Ans: c, (Medium) Response: See page 5-9

3. In business, a ___________ is defined as an interrelated set of activities and tasks that turns inputs into outputs, and includes; a beginning and an end, inputs and outputs, a set of actions, and a set of metrics for measuring effectiveness. a) Task b) Objective c) System d) System Quality Management e) Process Ans: e, (Medium) Response: See page 5-6

4. This type of process reengineering uses a radical improvement method for change. a) Business Process Reengineering b) System Development Engineering c) Total System Management d) System Quality Management e) Total Quality Management Ans: a, (Medium) Response: See page 5-9

5. If an organization was going to make substantial changes to its customer service department it would use this type of transformation tool. a) Business Process Reengineering (BPE) b) Reengineering Process Control (RPC) c) Engineering Control System (ECS) d) Total Process Improvement (TPI) e) System Process Control (SPC) Ans: a, (Medium) Response: See page 5-9

6. Processes very often can cut across functional lines. This is referred to as which one of the following? a) The cross-functional nature of business processes. b) The functional direction of management systems. c) The business process reengineering functional process d) The TQM cross-functional system process e) The BRP cross-functional system process Ans: a, (Medium) Response: See page 5-9

7. Personnel often react favorably to this process improvement method because it lets them “own” improvements. It also works well for tweaking existing processes, but less well when more radical change is required a) Business Process Reengineering b) System Development Engineering c) Total System Management d) System Quality Management e) Total Quality Management

Ans: e, (Medium) Response: See page 5-9

8. These are comprehensive software packages that incorporate all modules needed to run the operations of a business. They should include the following modules: Manufacturing, Accounting, Human resources and Sales. a) BRP systems b) Groupware system c) ERP systems d) TQM systems e) BBB systems Ans: c, (Medium) Response: See page 5-18

9. The process perspective helps the manager to accomplish ALL but which ONE of the following? a) avoid duplicate work b) facilitate cross-functional communication c) optimize business processes d) optimize expertise e) serve the customers and stakeholders Ans: d, (Medium) Response: See page 5-6

10. One of the benefits of a silo based structure is that it does this? a) optimize expertise b) avoid duplicate work c) optimize business processes d) facilitate cross-functional communication e) facilitate self-contained functional units Ans: a, (Easy) Response: See page 5-4

11. This is the tool that is used to help understand a business process. a) data-flow diagram

b) workflow diagram c) flow chart diagram d) business process diagram e) business process redesign diagram Ans: b (Medium) Response: See page 5-12

12. In the silo perspective for business processes ALL but which ONE of the following is a potential problem. a) suboptimization b) communication gaps c) complex bureaucracy d) lost information e) redundancy of expertise Ans: e (Medium) Response: See page 5-5

13. With a functional organization it is easier to do this? a) benchmark with outside organizations b) collaborate between departments on projects c) keep the big picture in view d) avoid or reduce duplicate work e) optimize business processes Ans: a (Hard) Response: See page 5-4

14. According to the text, how is a process defined? a) as a set of related activities embedded with meaning b) as having a beginning but not necessarily an end c) as an interrelated, sequential set of activities and tasks d) as a system of unrelated activities and tasks e) as any set of activities that may be utilized in a silo perspective organization Ans: c (Medium) Response: See page 5-6

15. A company that wants to make significant changes to their organization in a very short time frame would utilize which type of process design? a) Total Quality Management b) Workflow Management c) Business Process Management d) Business Process Reengineering e) Total Workflow Management Ans: d (Medium) Response: See page 5-9

16. Which ONE of the following is NOT an element found in achieving radical process change? a) Begin with a vision of which performance metrics best reflect the success of overall business strategy b) Make changes to the existing process. c) Measure the results using the predetermined metrics d) Evaluate the results using metrics yet to be determined e) All are part of the radical process change methodology Ans: d (Hard) Response: See page 5-11

17. When would an organization elect to use BPR over TQM? a) When they want to take small, incremental changes b) When they need to attain aggressive improvement goals c) When they have time to refine their improvement goals d) When there is not a need to make significant immediate changes e) When they want the employees to have control over the changes Ans: b (Hard) Response: See page 5-9

18. Which ONE of the following is NOT a key aspect of BPR? a) The need to make small, incremental changes b) The need for radical change c) Challenging old assumptions d) Empowerment of individuals in the process e) Networked organizing

Ans: a (Medium) Response: See page 5-10

19. ACME Widgets needs to completely redo their inventory control system. If they determined that this change needed to be made in small, incremental changes; what tool for change would they use? a) System Process Redesign b) Business Process Reengineering c) Total Quality Management d) Workflow Diagram Design e) The Business Process Management System Ans: c (Medium) Response: See page 5-9

20. Which ONE of the following is NOT a reason why companies failed to reach their goals with radical design? a) Lack of a coherent communications program b) Introducing unnecessary complexity into the new process design c) Underestimating the amount of effort needed to redesign and implement the new processes. d) Lack of employee support for process changes e) Combining reengineering with downsizing Ans: d (Medium) Response: See page 5-13

21. This is a set of information system tools that many organizations use to enable information flow within and between processes. a) Enterprise system b) Silo system c) Workflow system d) Management information e) Synchronized system Ans: a (Medium) Response: See page 5-18

22. These processes iterate through a constant renewal cycle of design, deliver, evaluate, redesign, and so on. a) Flexible b) Business c) Enterprise d) Unique e) Agile Ans: e (Medium) Response: See page 5-14

23. The term _________________________________is often used as the all encompassing term for looking beyond individual business processes and considering the bigger, cross functional picture of the corporation. a) vertical integration b) cross-functional integration c) enterprise integration d) horizontal integration e) system integration Ans: d (Medium) Response: See page 5-15

24. Many organizations have restructured their common business processes into this type of model. For example, IT services, human resources, procurement, and finance are often services needed by all business units of a corporation. a) Enterprise integrated b) Stacked services c) Shared services d) System services e) Corporate-wide services Ans: c (Medium) Response: See page 5-16

25. A class of software systems has been created to help businesses to manage their business processes. What are these software systems are called? a) Business Process Management (BPM) b) Business Performance Process Management (BPPM)

c) Enterprise System Management (ESM) d) Process Control Management (PCM) e) Systems Control Management (SCM) Ans: a (Easy) Response: See page 5-16

26. One of the reasons that ERP systems are so expensive is due to which ONE of the following? a) They are complex and large b) They are modular in nature c) They are sold as a suite d) They require sophisticated hardware upgrades e) They require a significant level of testing and debugging Ans: c (Medium) Response: See page 5-22

27. Joe has recently been hired to help a local firm implement an ERP system. Joe visits the company to determine its expectations for such a system. He immediately realizes that the company does not really know the real cost of an ERP system as they just seem to be quoting the price tag of the software. In order for the company to really understand the real cost of an ERP system he needs to clearly explain this concept? a) TCO b) EIS c) BPR d) TQM e) SILO Ans: a (Medium) Response: See page 5-22

28. Another type of enterprise system in common use is the supply chain management system, which manages this. a) Supply Chain System b) Integrated Enterprise Supply c) Supply Chain Management d) Integrated Supply Chain e) Supply Chain Process

Ans: d (Medium) Response: See page 5-23

29. _____________________ supply networks are the next step for companies with highly evolved supply chain capabilities. a) Integrated-system b) ERP c) Demand-driven d) System-driven e) Process design Ans: c (Medium) Response: See page 5-26

30. The major difference between an ERP and ERP II system is this feature. a) Advances in software usability and flexibility b) Information is made immediately available to external stakeholders c) Information is made available to all departments in the company d) Advanced quering and reporting capabilities e) Close integration with the web and web related technologies Ans: b (Medium) Response: See page 5-19

True/False

31. Processes very often can cut across functional lines.

Ans: True (Medium) Response: See page 5-6

32. The process perspective keeps the big picture in view.

Ans: True (Medium) Response: See page 5-6

33. Business process reengineering takes a slow methodical approach to enacting change into an organization.

Ans: False (Medium) Response: See page 5-9

34. In business, a process is defined as an interrelated, sequential set of activities and tasks that turns inputs into outputs, and includes a set of metrics for measuring efficiency.

Ans: False (Hard) Response: See page 5-6

35. A characteristic of enterprise systems is that they are ready to go out of the box.

Companies can implement these systems with no assembly being required.

Ans: False (Easy) Response: See page 5-22

Short Answer

36. What perspective keeps the big picture in view and allows the manager to concentrate on the work that must be done to ensure the optimal creation of value?

Ans: Process perspective Response: See page 5-6

37. Which type of change management system uses small incremental changes?

Ans: Total Quality Management (TQM) Response: See page 5-9

38. Which type of system is a set of information system tools that many organizations use to enable this information flow within and between processes?

Ans: Enterprise system Response: See page 5-17

39. This is the software that is used to connect processes running in one or more computers across a network. An example would be a web site to a database.

Ans: Middleware Response: See page 5-20

40. This type of organizational structure (perspective) results in duplication of information, lack of coordination between departments, and lack of communication on a company wide basis.

Ans: Silo Response: See page 5-5

Essay

41. Explain the process perspective. Why do companies gain advantage from using this perspective?

42. Compare and contrast Total Quality Management and Business Process Reengineering.

43. What are the risks of radical redesign and why would an organization want to take these risks?

44. List and discuss several advantages and disadvantages of enterprise systems.

45. When would an organization not want to implement an Enterprise Resource Planning (ERP) system? Why?

File: chapter6.rtf, Chapter 6, Architecture and Infrastructure

Multiple Choice

1. This is like the plans for a building, unchangeable in some areas, but subject to interpretation in others. a) IS infrastructure b) IS architecture c) ERP systems d) Groupware systems e) Business processes Ans: b (Medium) Response: See page 6-4

2. This consists of physical components, chosen and assembled in a manner that best suits the plan. a. IS infrastructure b. IS architecture c. ERP systems d. Groupware systems e. Business processes Ans: a (Medium) Response: See page 6-4

3. This provides a blueprint for translating business strategy into a plan for IS. a) IS infrastructure b) IS architecture c) ERP systems d) Groupware systems e) Business processes Ans: b (Medium) Response: See page 6-4

4. This includes the hardware, software, data, and network components of a business. a) IS infrastructure b) IS architecture c) ERP systems d) Groupware systems e) Business processes Ans: a (Medium) Response: See page 6-4

5. Microsoft Windows Vista software would be part of this IS framework? a) IS architecture b) Functional specs c) Business requirement d) IS infrastructure e) Architecture requirement Ans: d (Easy) Response: See page 6-8

6. When developing a framework for transforming _________________________ into architecture and then into infrastructure there are basic components to consider such as hardware, and software. a) corporate concepts b) corporate mission c) organization goals d) system strategy e) business strategy Ans: e (Medium) Response: See page 6-4

7. This is a type of architecture where one personal computer system requests information from another computer that hosts the information. a) Mainframe b) Centralized c) Client/server d) Peer Mainframe e) Client Mainframe

Ans: c (Medium) Response: See page 6-10

8. This type of architecture is defined as an architecture where larger software programs are broken down into services which are then connected to each other, in a process called orchestration. a) SOA b) ERP c) SAP d) ISP e) OSP Ans: a (Medium) Response: See page 6-10

9. Mary from accounting is asking about the new plan to upgrade the servers that host the accounting software package for the company. You explain to her that you are in the process of getting technical specifications for the hardware and pricing so that you can place the order. This would be part of which of the following plans? a) IT architecture b) IT infrastructure c) System architecture d) Server upgrade program e) IT strategy Ans: b (Hard) Response: See page 6-8

10. Marketing has repeatedly asked the IT department about the possibility of aligning the new marketing plan with the company's web site. They would like the new web site to be able to support more active content and permit customers to query an online catalog. You let them know that this is currently being considered and determining if this new business strategy can be translated into a viable plan of action. This would be part of which ONE of the following? a) IT architecture b) IT infrastructure c) System architecture d) Server upgrade program e) IT strategy

Ans: a (Hard) Response: See page 6-17

11. When developing a framework for transforming business strategy into architecture and then infrastructure which ONE of the following would NOT be considered? a) Hardware b) Software c) Network d) Data e) Requirement Ans: e (Easy) Response: See page 6-8

12. Windows 2003 server is normally arranged in this type of IT architecture. a) Mainframe b) Client/server c) Peer-to-Peer d) Server Centric e) Server-Server Ans: b (Medium) Response: See page 6-10

13. The type of software used in an SOA architecture is often referred to as what? a) Services Oriented Architecture b) Software-as-a-service c) Systems software d) Software-as-an-architecture e) System-as-a-service Ans: b (Medium) Response: See page 6-10

14. Which type of computer/IT architecture is limited to a central computer system? a) Mainframe b) Client/Server c) Peer-to-Peer

d) Wireless e) Server-to-Server Ans: a (Medium) Response: See page 6-9

15. Which type of IT architecture is the most flexible because of its ability to connect from many locations, but service connects are not available everywhere? a) Mainframe b) Client/Server c) Peer-to-Peer d) Wireless e) Server-to-Server Ans: d (Medium) Response: See page 6-12

16. _______________________ are architectures where significant hardware, software and possibly even data elements reside on the Internet. a) Internet-oriented architectures b) TCP/IP architectures c) Web-oriented architectures d) Mobile architectures e) VoIP architectures

Ans: c (Medium) Response: See page 6-12

17. A small company in Des Moines wants to set up an IT architecture for its workforce.

The company recently moved to an older building that has solid walls and ceilings.

Furthermore, most of the staff like the flexibility of moving around the open office space to perform work on their laptops. Which architecture makes most sense for this company? a) Mainframe b) Client/Server c) Peer-to-Peer d) Wireless e) Server-to-Server

Ans: d (Medium) Response: See page 6-12

18. What is an example of another architecture that is designed to translate strategy into architecture and then into a detailed infrastructure? a) Saunders b) TCP/IP c) Mainframe d) Client/Server e) Zachman Ans: e (Medium) Response: See page 6-14

19. Understanding the life-span of the IT infrastructure and architecture is called? a) IT life cycle b) Strategic time frame c) Architecture life cycle d) IT life-span e) System time frame Ans: b (Medium) Response: See page 6-17

20. This is an example of an enterprise architecture framework? a) TOGAF b) Mainframe c) SOA d) Client/server e) Enterprise System Ans: a (Medium) Response: See page 6-14

21. Hypercompetition implies that any architecture must be designed with maximum flexibility and _____________ to ensure it can handle the imminent business changes. a) modularity

b) quantity c) scalability d) sustainability e) availability Ans: c (Medium) Response: See page 6-18

22. _________ is a major concern for business managers and IT managers alike because businesses feel vulnerable to attack. a) Security b) Scalability c) Operationalizing d) Modularity e) Standardization Ans: a (Medium) Response: See page 6-21

23. Which ONE of the following criteria is not applicable for the IT infrastructure? a) Growth requirements/scalability b) Strategic time frame c) Standardization d) Maintainability e) Staff experience Ans: b (Easy) Response: See page 6-23

24. __________ computing is the availability of entire computing infrastructure over the Internet. a) Internet b) Open c) Net d) Enterprise e) Cloud Ans: e (Medium) Response: See page 6-26

25. Which evaluation criteria is more applicable to the IT infrastructure rather than the IT architecture? a) Growth requirements/scalability b) Strategic time frame c) Assessing financial issues d) Technological advances e) Staff experience Ans: c (Medium) Response: See page 6-24

26. ABCD Enterprises recently acquired another company that has a very weak IT architecture. In order to bring the architecture up to its standards, ABCD should consider a complete overhaul starting with this? a) Translate strategic goals to business requirements b) Define the strategic goals c) Plan for growth d) Apply SOA architecture model e) Assess the strategic time frame Ans: b (Medium) Response: See page 6-24

27. Which ONE of the following is NOT a component of an enterprise architecture? a) Core business processes b) Shared data c) Linking and automation technologies d) Employee groups e) Customer groups Ans: d (Medium) Response: See page 6-13

28. Janet and Steve from accounting would like to be able to access their files from anywhere in the companies building. They routinely hold meetings in the lobby, cafeteria, and sometime outside on the benches in the park next to the office building.

You mention to them that you are concerned because of confidentiality issues related to the files that they wish to access remotely. Which characteristic of an IT architecture are

you concerned with? a) Security b) Flexibility c) Scalability d) Software e) Controls Ans: a (Medium) Response: See page 6-22

29. What type of IT architecture would not be wise to implement in a medium size company where flexibility and scalability are critical? a) client/server b) peer-to-peer c) mainframe d) wireless e) all of the above would be fine Ans: c (Hard) Response: See page 6-9

30. The first step of moving from strategy to architecture to infrastructure is? a) Determine the business plan b) Outline the mission and vision of the organization c) Translate strategy into action items d) Define the strategic goals e) Determine and prioritize goals Ans: d (Medium) Response: See page 6-24

True/False

31. A company’s infrastructure is always determined before its architecture.

Ans: False (Easy) Response: See page 6-4

32. Wanting to upgrade the cabling in a company is part of the IT infrastructure.

Ans: True (Medium) Response: See page 6-7

33. Data is NOT one of the basic components to be considered when developing a framework for transforming business strategy into architecture and then into infrastructure.

Ans: False (Medium) Response: See page 6-8

34. TOGAF is an open architecture that has been developing and continuously evolving since the mid-90s.

Ans: True (Easy) Response: See page 6-14

35. SOA is increasingly popular because the design enables large units of functionality to be built almost entirely from existing software service components.

Ans: True (medium) Response: See page 6-10

Short Answer

36. This type of architecture is popular in many organizations where one software program requests and receives data and sometimes instructions from another software program.

Ans: Client/server architecture Response: See page 6-10

37. What type of IT architecture is supported by a centralized computer system most likely running larger proprietary software and programs?

Ans: Mainframe architecture Response: See page 6-9

38. What IT architecture is an approach that defines a service or an interface as a reusable piece of software?

Ans: Server-oriented architecture Response: See page 6-10

39. This framework determines architectural requirements by providing a broad view that helps guide the analysis of the detailed one.

Ans: Zachman Response: See page 6-14

40. What term is used to describe how well an infrastructure component can adapt to increased, or in some cases decreased, demands?

Ans: Scalable or scalability Response: See page 6-20

Essay

41. Discuss the major differences between computer architecture and infrastructure.

42. Why would an organization elect to use a mainframe architecture? List several examples.

43. Compare and contrast the client-server and peer-to-peer architectures. Why would a business use the peer-to-peer architecture?

44. What can a company do to ensure that its IT architecture and infrastructure are secure? List specific tasks that can be done to help manage risk.

45. List and discuss the steps of moving from strategy to infrastructure. Which step is most important to the process? Why?

File: chapter7.rtf, Chapter 7, Information Systems Sourcing

Multiple Choice

1. Sourcing involves many decisions. What is the first step? a) Build or develop b) Integration c) Methodology determination d) Make or buy e) Sourcing type Ans: d (Medium) Response: See page 7-4

2. Outsourcing that is contracted to a company that is located in a country that is in the same time zone, is referred to as this type of sourcing. a) Farshoring b) Nearshoring c) Zoneshoring d) Time-enabled sourcing e) Time Zone Outsourcing Ans: b (Easy) Response: See page 7-21

3. If a company decides to make the IT system they are using this type of sourcing. a) Outsourcing b) Make-sourcing c) Inshoring d) Offshoring e) Insourcing Ans: e (Medium) Response: See page 7-6

4. What is the most traditional approach to sourcing?

a) Outsourcing b) Insourcing c) Inshoring d) Offshoring e) Nearsourcing Ans: b (Medium) Response: See page 7-6

5. The purchase of a good or service that was previously provided internally, or that could be provided internally. a) Outsourcing b) Insourcing c) Inshoring d) Offshoring e) Nearsourcing

Ans: a (Easy) Response: See page 7-7

6. The most common driver for insourcing is to ______________________________. a) Keep employees loyal to the company b) Make a system that cannot be bought c) In-house IT developers develop a greater skill set d) It can lose control over the development of the system e) Keep core competencies in-house Ans: e (Medium) Response: See page 7-6

7. Which ONE of the following is NOT a driver for outsourcing? a) Greater capacity on demand b) Eases transition to new technologies c) Working effectively with suppliers d) Overcome inertia to consolidate data centers e) Provides a cash infusion Ans: c (Hard) Response: See page 7-9

8. Maintaining an adequate level of control is a challenge for this type of sourcing. a) Outsourcing b) Insourcing c) Inshoring d) Offshoring e) Nearsourcing Ans: a (Medium) Response: See page 7-9

9. To avoid outsourcing pitfalls, GHRB Inc. is careful not to negotiate solely on this issue. a) Time b) Price c) Personnel d) Location e) Services Ans: b (Medium) Response: See page 7-12

10. This is when the MIS organization uses contractor services, or even builds its own data center in a distant land. a) Outsourcing b) Insourcing c) Inshoring d) Offshoring e) Nearsourcing Ans: d (Medium) Response: See page 7-13

11. This was the first country to make outsourcing a total industry and important focus. a) China b) India c) Mexico d) Taiwan

e) Singapore Ans: b (Medium) Response: See page 7-15

12. Many offshoring countries have implemented quality programs such as ___________ to attract outsourcing contracts. a) Insourcing b) B2B c) Six Sigma d) CMM e) Bayesian Principles Ans: c (Medium) Response: See page 7-14

13. Which of the following make countries attractive for offshoring? a) High English language proficiency. b) Countries that are politically stable. c) Countries with lower crime rates. d) Countries with friendly relationships e) All of the above Ans: e (Easy) Response: See page 7-15

14.Which Tier of the software exporting nations would a country like Brazil be in? a) Tier 1 b) Tier 2 c) Tier 3 d) Tier 4 e) Tier 5 Ans: b (Medium) Response: See page 7-16

15. Which Tier of the software exporting nations has the characteristics of a small population base or political instability?

a) Tier 1 b) Tier 2 c) Tier 3 d) Tier 4 e) Tier 5 Ans: b (Medium) Response: See page 7-16

16. Which Tier of the software exporting nations would a country like Cuba be in? a) Tier 1 b) Tier 2 c) Tier 3 d) Tier 4 e) Tier 5 Ans: c (Medium) Response: See page 7-16

17. Cultural differences can cause challenges when offshoring IT work. For example, in this country, workers are less likely than Westerners to engage in small talk. a) India b) Canada c) The Bahamas d) Mexico e) Costa Rica Ans: a (Medium) Response: See page 7-17

18. This model states that Level 1 means that the software development processes are immature, bordering on chaotic. a) Zachmans Framework Model b) Development Life Cycle Model c) Capability Maturity Model d) Decision Support Model e) Software Institute Model Ans: c (Medium) Response: See page 7-15

19. What is one reason given by governments to limit or restrict offshoring IT? a) Cost b) Job losses c) Consumer pricing d) Security issues e) Monopolistic practices Ans: b (Medium) Response: See page 7-20

20. This is an overseas subsidiary of a company that is set up to serve the parent company and serves as an alternative to offshoring or nearshoring. a) Subsidiary source b) Company-sourcing c) Insourcing d) Nearshoring e) Captive center Ans: e (Medium) Response: See page 7-22

21. This is a type of Captive Center that performs core business processes for the parent company but outsources noncore work to offshore provided company. a) Hybrid Captive b) Shared Captive c) Divest Captive d) Terminated Captive e) Core Captive Ans: a (Medium) Response: See page 7-23

22. Which type of Captive Center performs work for both parent company and external customers? a) Hybrid Captive b) Shared Captive c) Divest Captive

d) Terminated Captive e) Core Captive Ans: b (Medium) Response: See page 7-23

23 Which type of Captive Center has a large enough scale and scope that it is wellpositioned to be sold for a profit by the parent company? a) Hybrid Captive b) Shared Captive c) Divest Captive d) Terminated Captive e) Core Captive Ans: c (Medium) Response: See page 7-23

24. What is it called when a company takes back in-house, previously outsourced, IS assets, activities, and skills? a) Backsourcing b) Insourcing c) Companysourcing d) Inshoring e) Internalsourcing Ans: a (Easy) Response: See page 7-23

25. Which of the following are reasons attributed to backsourcing? a) Higher than expected costs. b) Poor service. c) Change in management d) Change in the way IS is perceived within the company. e) Sometimes was not problems but provided opportunities (mergers, acquisitions, etc.). f) All of the above Ans: e (Medium) Response: See page 7-25

26. Which outsourcing model is a company that “rents” the use of an application to the custome?. a) ISP b) OSP c) ASP d) CMM e) IMM Ans: c (Medium) Response: See page 7-27

27. This outsourcing model takes a task traditionally performed by an employee or contractor, and outsources it to an undefined, generally large group of people, in the form of an open call. a) Groupsourcing b) Crowdsourcing c) Communitysourcing d) Insourcing e) Callsourcing Ans: b (Easy) Response: See page 7-27

28. This outsourcing model implies that all IS can be outsourced. a) Complete b) All c) CMM d) Full e) System Ans: d (Medium) Response: See page 7-29

29. This is a long-term, purposeful web of close relationships for providing a product or service in a coordinated fashion? a) Strategic Network b) Software Network c) Web-Sourced Network

d) System Capability Network e) Full System Network Ans: a (Medium) Response: See page 7-31

30. There are approximately _____ countries actively involved in outsourcing. a) 50 b) 75 c) 100 d) 250 e) 500 Ans: a (Medium) Response: See page 7-15

True/False

31. When considering where to outsource you should primarily negotiate based on financial data.

Ans: False (Medium) Response: See page 7-12

32. The most traditional approach to sourcing is insourcing.

Ans: True (Easy) Response: See page 7-6

33. One of the disadvantages of outsourcing is the economies of scale the outsourcing company can leverage.

Ans: False (Hard) Response: See page 7-7

34. A major benefit of outsourcing is that the company that is outsourcing some of its IT functionality will be able to focus on its core business activities.

Ans: True (Medium) Response: See page 7-8

35. An application service provider (ASP) is a company that “rents” the use of an application to the customer.

Ans: True (Medium) Response: See page 7-27

Short Answer

36. This is the most traditional approach to sourcing.

Ans: Insourcing Response: See page 7-6

37. ________________ means the purchase of a good or service that was previously provided internally, or that could be provided internally Ans: Outsourcing Response: See page 7-7

38. If a company decides to outsource and wants to outsource to a company in another country that is close in proximity, they are using this type of outsourcing Ans: Nearshoring Response: See page 7-21

39. This is when a company who had previously outsourced part of its IT functions brings those functions back in-house.

Ans : Backsourcing Response: See page 7-23

40. Amalco Inc. has decided to outsource some of its IT functions but is going to spread the work among several different outsourcing companies. What is this called?

Ans: Selective sourcing Response: See page 7-29

Essay

41. Discuss the sourcing decision cycle framework. Which decision do you think will impact the choice of inshoring or offshoring the most?

42. Define backsourcing and list several reasons why companies backsource?

43. What is a captive center? List and define the four strategies that companies use with captive centers.

44. Define and then discuss crowdsourcing. How does it differ from traditional outsourcing?

45. How can a government create an environment where companies from other nations will want to offshore work to their country? List several specific examples.

File: chapter8.rtf, Chapter 6, Governance of the Information Systems Organization

Multiple Choice

1. Which ONE of the following is not a valid IT related position in industry? a) CIO b) CTO c) CNO d) CKO e) CFO Ans: e (Medium) Response: See page 8-8

2. Which IT position is responsible for managing outsourcing relationships? a) Chief knowledge officer b) Chief information officer c) Chief network officer d) Chief resource officer e) Chief privacy officer Ans: d (Medium) Response: See page 8-8

3. This is an approved set of preparations and sufficient procedures for responding to a variety of disaster events. a) Business Continuity Plan b) Disaster Recovery Plan c) Business Disaster Plan d) Disaster Business Plan e) Business Security Plan Ans: a (Medium) Response: See page 8-14

4. Mary works for CNI Inc. in Des Moines, IW. CNI is a leading supplier of banking

software to Iowa, Nebraska, and Illinois. She recently was promoted to Chief Technology Officer. If her goal is to ultimately move up to the next level what “position” does she eventually want? a) Chief knowledge officer b) Chief information officer c) Chief network officer d) Chief resource officer e) Chief privacy officer Ans: b (Hard) Response: See page 8-8

5. This is the process of preparing for a disaster - what if our data-center is hit by a hurricane, etc., asking the question “how do we continue to operate?” a) Business Architecture Engineering b) IT Redundancy Planning c) RAID d) Restoration of Services e) Business Continuity Planning Ans: e (Medium) Response: See page 8-14

6. Which of the following should a manager expect from the IS organization? a) Anticipating new technologies. b) Participating in setting strategic direction. c) Innovating current processes d) Developing and maintaining systems. e) All of the above Ans: e (Hard) Response: See page 8-9

7. Which IS professional is responsible for creating the knowledge management infrastructure, building a knowledge culture, and making corporate knowledge pay off? a) Chief technology officer (CTO) b) Chief knowledge officer (CKO) c) Chief telecommunications officer (CTO) d) Chief network officer

e) Chief privacy officer Ans: b (Medium) Response: See page 8-8

8. Which IS professional is responsible for managing phones, networks, and other communications technology across entire enterprise? a) Chief technology officer (CTO) b) Chief knowledge officer (CKO) c) Chief telecommunications officer (CTO) d) Chief network officer e) Chief privacy officer Ans: c (Medium) Response: See page 8-8

9. This is a balanced approach to managing a companies IT organization. a) Centralization b) Decentralization c) Federalism d) Joint-Control e) Business Centricity Ans: c (Medium) Response: See page 8-21

10. This type of organization management is where IT controls most of its IT infrastructure in one location. a) Distributed Control b) Decentralized c) Federalism d) Joint-Control e) Centralized Ans: e (Easy) Response: See page 8-21

11. This managerial IS position is responsible for managing such computer hardware as firewalls, and software such as antivirus software. a) Chief technology officer (CTO) b) Chief knowledge officer (CKO) c) Chief telecommunications officer (CTO) d) Chief network officer e) Chief information security officer (CISO) Ans: e (Medium) Response: See page 8-8

12. Steve works in the IS department for a large international banking company as a database administrator. He eventually wants to move up in the IS organization and work on tracking emerging technologies and providing advice on technology adoptions. What position would be the best fit for his career goals? a) Chief technology officer (CTO) b) Chief knowledge officer (CKO) c) Chief telecommunications officer (CTO) d) Chief network officer e) Chief information security officer (CISO) Ans: a (Medium) Response: See page 8-8

13. Most companies would like to achieve the advantages derived from both centralized and decentralized organizational paradigms. What type of IT governance model would best fit this definition? a) Distributed Control b) Decentralized c) Federalism d) Joint-Control e) Centralized Ans: c (Medium) Response: See page 8-22

14. Once a system is up and running support personnel, such as ______________ monitor the daily processing of transactions and reports.

a) Database Administrators b) Network Administrators c) Systems Developers d) Business Analysts e) Web Developer Ans: a (Medium) Response: See page 8-17

15. This facility normally houses large mainframe systems or rows of servers. a) Network Facility b) Server Farm c) Cluster Center d) Mainframe Site e) Data Center Ans: e (Medium) Response: See page 8-19

16. ______________ IS organizations scatter IT components in different locations to address local business needs. a) Distributed Control b) Decentralized c) Federalism d) Joint-Control e) Centralized Ans: b (Medium) Response: See page 8-22

17. Since general managers typically look to the IS organization to handle __________, the IS organization identifies and prioritizes threats to the company’s information assets.

It develops and implements security policies and technical controls to address each threat. a) BCP b) Architecture c) Process System d) Security e) Coding Ans: d (Medium)

Response: See page 8-14

18. The IT department is usually responsible for planning for this very important responsibility. a) Human Resource Management b) Business Continuity Planning c) Strategic Use of Information Technology d) Supplier Management e) Business Function Recovery Ans: b (Medium) Response: See page 8-15

19. What is “specifying the decision rights and accountability framework to encourage desirable behavior in using IT.”? a) IT governance b) IT decision making c) IT policies d) Decision policies e) Democratization Ans: a (Medium) Response: See page 8-24

20. When it comes specifically to IT governance, Weill and his colleagues propose five generally applicable categories of IT decisions. Which ONE of the following is NOT one of Weill’s categories? a) IT principles b) IT architecture c) IT infrastructure strategies d) Business application needs e) IT cost and evaluation Ans: e (Hard) Response: See page 8-24

21.The IT Governance Council reports directly to the board of directors or the ________? a) CIO

b) CKO c) CEO d) CTO e) CNO Ans: c (Medium) Response: See page 8-28

22. What is a steering committee at the highest level called? a) Executive Steering Committee b) IT Governance Council c) Executive Council of IT d) Systems Steering Council e) Chief Steering Committee Ans: b (Medium) Response: See page 8-28

23. IT governance has two major components: (1) the assignment of decision-making authority and responsibility, and (2) the __________________________. a) decision-making tasks b) decision rights c) business plan d) capability maturity model e) decision-making mechanism Ans: e (Hard) Response: See page 8-24

24. Consider the different approaches taken to organize IS. In the five eras of information usage, which approach dictated a centralized approach to IS because the system resided in one physical location? a) Client/Server b) Peer-to-Peer c) Core d) Mainframe e) System V Ans: d (Medium) Response: See page 8-23

25. What approach to IT organizational structure tends to be unresponsive, and doesn’t meet every business unit’s needs? a) Centralized b) Decentralized c) Federal d) Federated e) Hybrid Ans: a (Medium) Response: See page 8-21

26. What approach to IT organizational structure tends to not have synergy and integration? a) Centralized b) Decentralized c) Federal d) Federated e) Hybrid Ans: b (Medium) Response: See page 8-21

27. A national food chain has decided to follow a form of IT organization that focuses on strategic control, synergy, IT vision and leadership, and group-wide IT strategy and architecture. Which ONE of the following strategies would that company be using? a) Centralized b) Federalism c) Decentralized d) Federated e) Hybrid Ans: b (Medium) Response: See page 8-22

28. Bob has been tasked with creating a plan in case of emergency to keep his company functioning. He needs to create which ONE of the following plans? a) Security Policy

b) Emergency Preparedness Plan c) Disaster Continuity Plan d) Collateral Damage Plan e) Business Continuity Plan Ans: e (Medium) Response: See page 8-16

29. After 911 many businesses are considering placing backup data centers in remote locations, but the concern when crossing borders is whether that data center will be available when needed. This is part of which plan? a) Security Policy b) Emergency Preparedness Plan c) Disaster Continuity Plan d) Collateral Damage Plan e) Business Continuity Plan Ans: e (Medium) Response: See page 8-16

30. Recent study shows four profiles that characterize the CIOs leadership role. Which ONE of the following is NOT a CIO profile? a) IT Orchestrator b) IT Advisor c) IT Laggard d) IT Mechanic e) IT Sluggard Ans: e (Medium) Response: See page 8-30

True/False

31. The CIO is an executive who manages IT resources in order to implement enterprise strategy.

Ans: True (Medium) Response: See page 8-3

32. The federal IT attempts to capture the benefits of both the centralized and decentralized approaches to IT management while eliminating the problems of each.

Ans: True (Medium) Response: See page 8-23

33. In the IS organization the CIO usually reports to the chief financial officer (CFO).

Ans: False (Medium) Response: See page 8-30

34. Information security is generally seen as very technical and only dealing with the internal operations of the IS organization.

Ans: True (Medium) Response: See page 8-14

35. The CIO must have technical skills, business skills are optional. .

Ans: False (Medium) Response: See page 8-4

Short Answer

36. The enterprise’s top technology architect, often works alongside the CIO. This person must have enough business savvy and communication skills to create an organizational vision for new technologies, as well as to oversee and manage the firm’s technological operations and infrastructure.

Ans: Chief Technology Officer (CTO) Response: See page 8-8

37. Which IS professional is responsible for managing outsourcing relationships?

Ans: Chief Resource Office (CRO) Response: See page 8-8

38. What type of organizational structure seeks to take the best features of the centralized and decentralized approaches?

Ans: Federalism Response: See page 8-22

39. What is an approved set of preparations and sufficient procedures for responding to a variety of disaster events?

Ans: Business Continuity Plan Response: See page 8-16

40. Over ½ of these professionals listed corporate strategy as a top responsibility.

Ans: Chief Information Officer (CIO) Response: See page 8-30

Essay

41. Define the role of the CIO (duties, responsibilities, etc.). How does this position differ from the CFO?

42. List four top IS positions and define the responsibilities of each one. Is one more important than the others and if so, why?

43. What should a business manager be able to expect from the IS department? What should a manager not expect the IS department to do?

44. What is a business continuity plan and what would you find in this plan (list several items and then discuss them)?

45. Define Federalism as it pertains to organizational structures. How does it improve on the centralized model?

File: chapter9.rtf, Chapter 9, Using Information Ethically

Multiple Choice

1. In information ethics the first P in PAPA stands for which one of the following? a) Property b) Propriety c) Prevent d) Permit e) Privacy Ans: e (Easy) Response: See page 9-12

2. This is a piece of data that is stored on the users computer by a company that the user accesses using a web browser? a) Script b) Cookie c) Data-Link File d) DLL File e) Data file Ans: b (Medium) Response: See page 9-13

3 This ethical theory states that “managers are entrusted with a fiduciary responsibility to all those who hold a stake in or a claim on the firm”. a) Stockholder theory b) Stakeholder theory c) Property theory d) Fiduciary theory e) Normative theory Ans: b (Medium) Response: See page 9-6

4. “Who owns information?” and “What are the just and fair prices for its exchange?” are part of this ethical issue? a) Privacy b) Accuracy c) Ownership d) Property e) Accessibility Ans: d (Medium) Response: See page 9-16

5. What principles were developed in 2000 by the US Department of Commerce (DOC) in consultation with the European Commission to allow U.S. companies to be placed on a list maintained by the DOC? a) Safe Harbor framework b) Approved Business framework c) PAPA framework d) Property Harbor framework e) Safe Business framework Ans: a (Medium) Response: See page 9-15

6. Who is responsible for the reliability of information? Who will be accountable for errors? is part of this ethical issue? a) Privacy b) Accuracy c) Authenticity d) Perfection e) Purpose Ans: b (Medium) Response: See page 9-12

7. What information does a person or an organization “have a right or a privilege to obtain, under what conditions and with what safeguards” is part of this ethical issue? a) Privacy b) Accuracy c) Accessibility d) Perfection

e) Property Ans: c (Medium) Response: See page 9-12

8. This area of the control of information would be appropriate to examine for a company wanting to determine what data they have the right to monitor and capture from their employees. a) Privacy b) Accuracy c) Accessibility d) Perfection e) Property Ans: e (Hard) Response: See page 9-16

9. Today's manager must ensure that information about their employees and customers is only available to those who have a right to see it and use it. a) Privacy b) Accuracy c) Accessibility d) Perfection e) Property Ans: c (Medium) Response: See page 9-17

10. A marketing company collects data for several grocery stores in the Phoenix, AZ area. Recently, several customers from the stores have complained that their personal information has gotten to several non-profit companies that they are not familiar with.

The stores are dealing with which control of information issue? a) Privacy b) Accuracy c) Accessibility d) Perfection e) Property Ans: e (Hard) Response: See page 9-16

11. Joanne goes to a dentist’s office in Richmond, VA. She has noticed that recently the dentist’s office has been asking for more and more personal data about herself and her family. What control of information issue is she concerned with? a) Privacy b) Accuracy c) Accessibility d) Perfection e) Property Ans: a (Medium) Response: See page 9-13

12. Making sure that a mortgage payment is properly recorded would be a concern of this component of the control of information. a) Authority b) Property c) Accessibility d) Privacy e) Accuracy Ans: b (Medium) Response: See page 9-16

13. Even though reports of identity theft have declined, there were still about _________ reported cases in 2006. a) 100,000 b) 120,000 c) 150,000 d) 200,000 e) 240,000 Ans: e (Medium) Response: See page 9-18

14. A manager that primarily focuses on the shareholders of the corporation rather than on all of the vested parties in the businesses operations and activities is practicing which theory of normative business ethics?

a) stakeholder theory b) investor theory c) stockholder theory d) shareholder theory e) social contract theory Ans: c (Medium) Response: See page 9-5

15. A manager that focuses on all of the vested parties of a corporation is practicing which theory of normative business ethics? a) stakeholder theory b) investor theory c) stockholder theory d) shareholder theory e) social contract theory Ans: a (Medium) Response: See page 9-6

16. Which ONE of the normative theories for business ethics is least concerned with financial gain? a) stakeholder theory b) investor theory c) stockholder theory d) shareholder theory e) social contract theory Ans: e (Medium) Response: See page 9-8

17. If a company refuses to stop practicing a practice that is not conducive to the customers they can stop buying the company's products. This is an example of which normative theory of business ethics? a) shareholder theory b) investor theory c) stockholder theory d) stakeholder theory e) social contract theory

Ans: d (Medium) Response: See page 9-6

18. This theory of normative business ethics seeks to create value for people in a manner that is just and nondiscriminatory. a) stakeholder theory b) investor theory c) social contract theory d) shareholder theory e) stockholder theory Ans: c (Easy) Response: See page 9-8

19. This act of 1996 is designed to safeguard the electronic exchange of patient records in the health care industry. a) SoX b) HIPAA c) IETF d) COBIT e) PAPA Ans: b (Medium) Response: See page 9-14

20. Information privacy guidelines should come from what level in a company? a) CEO/CIO b) Middle management c) Employees d) Federal regulations e) State laws Ans: a (Medium) Response: See page 9-20

21. What tool is used to “block” information from entering or leaving a company network? a) Network Interface Card

b) Switch c) Firewall d) Anti-virus Software e) Authentication Routines Ans: c (Medium) Response: See page 9-21

22. This agency was created from members of the Treadway Commission on Fraudulent Financial Reporting. a) SoX b) COSO c) COBIT d) EIA-TIA e) CompTIA Ans: b (Medium) Response: See page 9-29

23. The Sarbanes-Oxley Act of 2002 was primarily aimed at which functional unit of a corporation? a) Marketing b) Production c) Sales d) Merchandising e) Finance Ans: e (Medium) Response: See page 9-27

24. Joe works for the IT department at First Federal Savings and Loan. Recently he has noticed some unusual activity coming from one of the employees computers in the loan department. Not wanting to cause a problem he starts looking at the data that is being transmitted from this computer and realizes that it is personal emails that he is sending to a friend outside of the country. The bank does not have a written policy on sending personal emails from the bank but Joe reports these activities to his superior. The employee is confronted and is angry that the bank has been reading his personal emails.

Which control of information concern does this involve? a) Authority b) Property

c) Accessibility d) Privacy e) Accuracy Ans: b (Hard) Response: See page 9-16

25. David works for a local retail pharmacy that has a preferred buyer program for its customers. The pharmacy has issued preferred buyers cards to those customers who have signed up for the program. On the application card there is an "opt-out" check box if the customers do not want to have their information shared or sold to other companies.

Which control of information concern does this address? a) Property b) Authority c) Accessibility d) Privacy e) Accuracy Ans: a (Hard) Response: See page 9-16

26. Which area of managerial concern regarding control of information would apply to a corporation that is having trouble with outdated customer records? a) Authority b) Property c) Accessibility d) Privacy e) Accuracy Ans: e (Medium) Response: See page 9-15

27. What IT Archetype has a rationale of in depth technical knowledge and expertise is needed? a) IT duopoly b) Business monarchy c) IT monopoly d) IT monarchy e) Business duopoly

Ans: d (Medium) Response: See page 9-24

28. Giving employees improper rights to view other employee’s personal data is which type of managerial control concern? a) Authority b) Property c) Accessibility d) Privacy e) Accuracy Ans: c (Medium) Response: See page 9-17

29. This is an IT governance framework that is consistent with COSO controls. a) HIPPA b) COBIT c) SoX d) ISACA e) ISO Ans: b (Medium) Response: See page 9-30

30. This is a set of concepts and techniques for managing IT infrastructure, development and operations that was developed in the United Kingdom. a) COSO b) COBIT c) HIPPA d) ISO e) ITIL Ans: e (Medium) Response: See page 9-36

True/False

31. Privacy is often defined as the right to be left alone.

Ans: True (Medium) Response: See page 9-12

32. The acronym PAPA stands for Privacy, Accessibility, Property, and Authentication.

Ans: False (Medium) Response: See page 9-12

33. Stakeholder theory states that mangers are primarily bound by the stockholders that invest in the corporation.

Ans: False (Medium) Response: See page 9-6

34. In the stockholder theory, the primarily goal is to maximize benefits to all parties vested while weighing costs to competing interests.

Ans: False (Medium) Response: See page 9-5

35. The Sarbanes-Oxley Act of 2002 was enacted in the U.S. to increase regulatory visibility and accountability of public companies and their stock valuation.

Ans: False (Medium) Response: See page 9-27

Short Answer

36. What term is used to describe the privacy issue of managerial concern regarding the information a company has a right to obtain, under what conditions, and with what safeguards?

Ans: Accessibility Response: See page 9-17

37. List the four areas, as outlined in the text, which deals with control of information.

Ans: Privacy, Accuracy, Property, and Accessibility Response: See page 9-12

38. This normative business theory of ethics holds that managers have not only a responsibility to their stockholders, but to anyone else with a vested interest in the corporation?

Ans: Stakeholder Theory Response: See page 9-6

39. What normative theory of business ethics derives the social responsibilities of corporate managers by considering the needs of a society with no corporations or other complex business arrangements?

Ans: Social Contract Theory Response: See page 9-9-8

40. What act was passed in 2002 because of the financial fraud perpetrated by companies like Arthur Andersen?

Ans: Sarbanes-Oxley Act Response: See page 9-27

Essay

41. List and discuss the four areas of information control as discussed in the text.

42. What is the Stakeholder Theory of normative business ethics? What are its positives and negatives?

43. What security and controls should a company use to protect its computer infrastructure? Why do managers need to be involved in the decisions about security and control measures?

44. What is the purpose of the Sarbanes-Oxley Act of 2002? What IT control weaknesses were repeatedly uncovered by auditors?

45. What is the COBIT framework and explain how it is used?

File: chapter10.rtf, Chapter 10, Funding IT

Multiple Choice

1. This type of IT funding is probably the most fair as the costs associated with IT is based on use. a) Allocation method b) Corporate budget method c) Usage method d) Distributed method e) Chargeback method Ans: e (Medium) Response: See page 10-3

2. This type of IT funding will spread costs based on such metrics as number of users, revenues, or login accounts. a) Allocation method b) Corporate budget method c) Usage method d) Distributed method e) Chargeback method Ans: e (Medium) Response: See page 10-3

3. Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss, Joe, wants to know such things as operating costs, support, overhead, etc. for the printers.

What Joe wants is to know is this value? a) RCO b) TCO c) ROI d) NPV e) EVM Ans: b (Hard) Response: See page 10-8

4. Why do most companies not compute the actual cost of hardware and software (support, overhead, etc.)? a) It is difficult to get all real costs. b) May reveal that something is too costly. c) They don’t know how. d) They don’t really want to know. e) They are not interested in such detail.

Ans: a (Hard) Response: See page 10-8

5. This counts the actual activities that go into making a specific product or delivering a specific service. a) Total Activity Costing b) Focused Based Costing c) Activity Based Costing d) Unit Based Costing e) Activity Induced Costing Ans: c (Medium) Response: See page 10-7

6. This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested. a) IRR b) ROI c) Payback d) NPV e) EVA Ans: b (Medium) Response: See page 10-16

7. Scorecards provide summary information gathered over a period of time. Another common MIS management monitoring tool is the IT _____________. a) baseline b) meter

c) option d) dashboard e) monitor Ans: d (Medium) Response: See page 10-19

8. Joe works for a company where the IT department charges him for the number of login accounts that are in his department. What type of IT funding model is his company deploying? a) Allocation method b) Corporate budget method c) Usage method d) Distributed method e) Chargeback method Ans: a (Medium) Response: See page 10-4

9. Denise works for a company where the IT department charges her department for actual use of the IT resources. What type of IT funding model is his company deploying? a) Allocation method b) Corporate budget method c) Usage method d) Distributed method e) Chargeback method Ans: e (Medium) Response: See page 10-3

10. Herman works for a company where the IT department has overall funding of 12% of the entire companies net revenues. What type of IT funding model is his company deploying? a) Allocation method b) Corporate budget method c) Usage method d) Distributed method e) Chargeback method Ans: b (Medium)

Response: See page 10-5

11. TCO was introduced in the late _______ by the Gartner Group when PC-based infrastructures began gaining popularity. a) 1960s b) 1970s c) 1980s d) 1990s e) 2000s Ans: c (Medium) Response: See page 10-8

12. This method for valuing how much IT costs is fast becoming the industry standard. a) RCO b) NPV c) ROI d) TCO e) EVM Ans: d (Medium) Response: See page 10-8

13. Managers want to analyze the costs of informal support of their IT infrastructure for two reasons: the costs and the ____________________________. a) time to fix a problem b) effect the support activity has on morale c) quantity of informal support activity d) the quality of the informal support activity e) relative need across the company Ans: c (Medium) Response: See page 10-10

14. Professor Peter Weill and co-author Sinan Aral describe four asset classes of IT investments that typically make up the company’s portfolio. Which asset class consists of systems that streamline or cut costs on the way business is done? a) Transactional systems

b) Informational systems c) Strategic systems d) Infrastructure systems e) Backoffice systems Ans: a (Medium) Response: See page 10-13

15. Professor Peter Weill and co-author Sinan Aral describe four asset classes of IT investments that typically make up the company’s portfolio. Which asset class consists of the foundation of shared IT services used for multiple applications? a) Transactional systems b) Informational systems c) Strategic systems d) Infrastructure systems e) Backoffice systems Ans: d (Medium) Response: See page 10-13

16. In order to gain support and a go ahead on an IT investment, a manager must often create a ________________. a) system portfolio b) system case c) business case d) organization map e) business plan Ans: c (Medium) Response: See page 10-11

17. Building this is more of an art than a science. a) system portfolio b) system case c) business case d) organization map e) business plan Ans: c (Medium) Response: See page 10-11

18. Critical to the business case is the identification of both _________ and ________. a) costs, risks b) costs, benefits c) advantages, disadvantages d) benefits, risks e) benefits, detriments Ans: b (Medium) Response: See page 10-11

19. What financial calculation for valuing IT investments looks at the actual profit that will be gained from the asset? a) ROI b) NPV c) EVA d) IRR e) FV Ans: a (Hard) Response: See page 10-16

20. A local marketing firm is considering launching a new Internet marketing program using strategically based monitors in subways. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years.

What financial calculation should they use to compute the time value of money? a) ROI b) NPV c) EVA d) IRR e) FV Ans: b (Hard) Response: See page 10-16

21. Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since this is such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should

they use? a) ROI b) NPV c) EVA d) IRR e) FV Ans: c (Hard) Response: See page 10-16

22. This has long been used on financial assets as a method of locking in a price to be paid in the future. a) Future value b) Net Future Value c) Future pricing d) Weighted options e) Options pricing Ans: e (Medium) Response: See page 10-21

23. This financial valuation method offers a risk-hedging strategy to minimize the negative impact of risk when uncertainty can be resolved by waiting to see what happens. a) Future value b) Options pricing c) Future pricing d) Weighted options e) Net Future Value Ans: b (Medium) Response: See page 10-21

24. The Internet is paid for by the following entities. a) Government b) Business c) Education d) Individual users e) All of the above Ans: e (Medium)

Response: See page 10-25

25. This government agency subsidizes part of the Internet. a) NSF b) NSA c) FBI d) DOD e) CIA Ans: a (Medium) Response: See page 10-25

26. This method of evaluating a company’s overall “health” answers such questions as: How do customers see us? At what must we excel? How do we look at shareholders?

Etc. a) Dashboard b) Balanced Scorecard c) Weighted Scoring Method d) Options Pricing e) Corporate Health Scorecard Ans: b (Medium) Response: See page 10-17

27. Which dimension of the balanced scorecard answers the question “What must we excel at?” a) Customer perspective b) Innovating and learning perspective c) Internal business perspective d) Financial perspective e) Supplier perspective Ans: c (Medium) Response: See page 10-18

28. Which dimension of the balanced scorecard answers the question “How do our clients see us?” a) Customer perspective

b) Innovating and learning perspective c) Internal business perspective d) Financial perspective e) Supplier perspective Ans: a (Medium) Response: See page 10-18

29. Which dimension of the balanced scorecard answers the question “Can we continue to improve and create value?” a) Customer perspective b) Innovating and learning perspective c) Internal business perspective d) Financial perspective e) Supplier perspective Ans: b (Medium) Response: See page 10-18

30. Which dimension of the balanced scorecard answers the question “How do we look to shareholders?” a) Customer perspective b) Innovating and learning perspective c) Internal business perspective d) Financial perspective e) Supplier perspective Ans: d (Medium) Response: See page 10-18

True/False

31. The allocation based funding model is the fairest of all the models.

Ans: False (Medium) Response: See page 10-4

32. TCO looks at all of the costs incurred for an IT resource.

Ans: True (Medium) Response: See page 10-8

33. IT portfolio management refers to the process of evaluating and approving IT investments as they relate to bottom line financing.

Ans: False (Medium) Response: See page 10-13

34. A local hospital is considering using business cases to help the organization decide whether an IT investment should be pursued or not. This a good use of the business case method.

Ans: True (Medium) Response: See page 10-11

35. The balanced scorecard focuses primarily on how IT is funded and what it contributes to the bottom line.

Ans: False (Medium) Response: See page 10-17

Short Answer

36. What offers a risk-hedging strategy to minimize the negative impact of risk when uncertainty can be resolved by waiting to see what happens?

Ans: Options pricing Response: See page 10-22

37. Name the three main methods for funding IT. Ans: Chargeback, Allocation, Corporate Budget Response: See page 10-3

38. What costing process counts the actual activities that go into making a specific product or delivering a specific service?

Ans: Activity Based Costing (ABC) Response: See page 10-7

39. Which IT funding model is the fairest method?

Ans: Chargeback Response: See page 10-3

40. List three (3) financial calculations that are used for valuing IT investments.

Ans: Return on Investment, Net Present Value, and Economic Value Added Response: See page 10-16

Essay

41. Compare and contrast the three major types of IT funding. In your opinion, which model is best suited for the IT function?

42. Why is TCO so difficult to define? What are some of the challenges of determining TCO?

43. What is IT portfolio management and how is it used? When would it NOT be appropriate?

44. Define the balanced scorecard perspective? What advantage does the balanced scorecard perspective have over dashboards?

45. Discuss options pricing. In what environment, in your opinion, is it most suited?

File: chapter11.rtf, Chapter 11, Project Management

Multiple Choice

1. This is a temporary endeavor undertaken to create a unique product or service. a) project b) event c) scope d) requirement e) system Ans: a (Easy) Response: See page 11-4

2. Scope may be divided into time and __________ in project management. a) product b) cost c) time d) project e) sequence Ans: b (Medium) Response: See page 11-6

3. The project triangle includes 3 sides - time, scope and ________. a) cost b) sequence c) event d) order e) requirements Ans: a (Medium) Response: See page 11-6

4. This is a project planning and scheduling tool that is similar to PERT but incorporates a capability for identifying relationships between costs and the completion date of the project. a) Gantt b) CASE c) SDLC d) CMM e) CPM Ans: e (Hard) Response: See page 11-11

5. This scheduling tool is by far the most widely used method of tracking deliverables in a timed-sequenced manner. a) CMM b) CASE c) SDLC d) GANTT e) CPM Ans: d (Medium) Response: See page 11-11

6. Which one of the following is NOT one of the project manager’s role? a) Ensure progress of the project according to defined metrics. b) Identifying risks and assessing their probability of occurrence. c) Determining the best fit of the project in the organizations vision. d) Running coordination meetings of the project team. e) Negotiating for resources on behalf of the project in light of its scope.

Ans: c (Medium) Response: See page 11-7

7. This method of systems development is used to “drastically speed up” the creation of an IT system through the process of iteration. a) JAD b) RAD c) SDLC d) SPD e) OOAD

Ans: a (Medium) Response: See page 11-20

8. This method of systems development is expensive and has a low use of technology. a) JAD b) RAD c) SDLC d) SPD e) JDLC Ans: c (Medium) Response: See page 11-15

9. This encapsulates both the data stored about an entity and the operations that manipulate that data. a) cycle b) file c) record d) system e) object Ans: e (Medium) Response: See page 11-21

10. What is at the center of the project triangle? a) Agility b) Quality c) Speed d) Quantity e) Focus Ans: b (Easy) Response: See page 11-6

11. This project cycle plan tends to be used on projects for which direct relationships can be established between time and resources. a) PERT

b) Gantt c) CPM d) NPV e) Flowchart Ans: c (Medium) Response: See page 11-11

12. This project cycle plan tends to be used on projects for which broad estimates about the time needed to complete project tasks, calculating the optimistic, most probable, and pessimistic time requirements for completing each task. a) PERT b) Gantt c) CPM d) NPV e) Flowchart Ans: a (Medium) Response: See page 11-11

13. This project cycle plan chart looks very much like a bar chart and is easy for management to read because of its visual nature. a) PERT b) Gantt c) CPM d) NPV e) Flowchart Ans: b (Medium) Response: See page 11-11

14. Which element of management is concerned with putting structure around the key activities, people, and resources is critical to successful management? a) Planning b) Leadership c) Project control d) Organizing e) Corrective action Ans: d (Medium)

Response: See page 11-12

15. Which element of management is concerned with whether the project is proceeding properly? a) Planning b) Leadership c) Project control d) Organizing e) Corrective action Ans: c (Medium) Response: See page 11-12

16. Which element of management is concerned with innovative actions needed to get back on track with the plan? a) Planning b) Leadership c) Project control d) Organizing e) Corrective action Ans: e (Medium) Response: See page 11-12

17. Which element of management is concerned with creation of team energy to succeed with the plan? a) Planning b) Leadership c) Project control d) Organizing e) Corrective action Ans: b (Medium) Response: See page 11-12

18. What is the major focus of the status element of management? a) Variance control b) Reactive

c) Proactive d) Formulate e) Motivate Ans: a (Medium) Response: See page 11-12

19. What is the major focus of the planning and visibility element of management? a) Variance control b) Reactive c) Proactive d) Formulate e) Motivate Ans: c (Medium) Response: See page 11-12

20. What is the major focus of the leadership element of management? a) Variance control b) Reactive c) Proactive d) Formulate e) Motivate Ans: e (Medium) Response: See page 11-12

21. What is the major focus of the corrective action element of management? a) Variance control b) Reactive c) Proactive d) Formulate e) Motivate Ans: b (Medium) Response: See page 11-12

22. Which development methodology is a more prescriptive agile methodology that

revolves around twelve practices, including pair programming, test-driven development, simple design, and small releases? a) Joint Application Development (JAD) b) Systems Development Life Cycle (SDLC) c) System Application Development (SAD) d) Extreme Programming (XP) e) Rapid System Development (RSD) Ans: d (Medium) Response: See page 11-21

23. What tool allows the team to track each change made to the code? a) Control system definition b) Automated audit trail c) Automated system control d) Variance detection trail e) Control variance system Ans: b (Hard) Response: See page 11-22

24. What is the first determinant of risk on an IT project? a) Complexity level b) Control level c) Problem definition d) Variance detection e) System control level Ans: a (Medium) Response: See page 11-25

25. Which one of the following is not one of the four elements essential for any project? a) Common project vocabulary b) Teamwork c) System evaluation d) Project cycle plan e) Project management Ans: c (Hard) Response: See page 11-8

26. What does PMO stand for? a) Project Maintenance Office b) Project Mission and Objectives c) Product Maintenance Office d) Project Mission Office e) Project Management Office Ans: e (Easy) Response: See page 11-33

27. What type of software is released under a license approved by the Open Source Initiative (OSI)? a) System Architecture Software (SAS) b) Open System Software (OSS) c) Shareware Software (SS) d) Open Source Software (OSS) e) Source System Software (SSS) Ans: d (Medium) Response: See page 11-35

28. Which one of the following software products is NOT an open source software release? a) Perl b) Apache c) Linux d) Mozilla e) Windows XP Ans: e (Medium) Response: See page 11-37

29. What dimension of project success asks the question: “How high are the profits and how long will they last?” a) Resource constraints b) Profit-Time factors c) Customer impact

d) Future preparation e) Business success Ans: e (Medium) Response: See page 11-32

30. What dimension of project success asks the question: “Does the project meet the established time and budget criteria?” a) Resource constraints b) Profit-Time factors c) Customer impact d) Future preparation e) Business success Ans: a (Medium) Response: See page 11-32

True/False

31. Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed the stakeholder.

Ans: True (Easy) Response: See page 11-5

32. A project plan may include a Pert chart of CPM chart to show actual costs of the project.

Ans: False (Medium) Response: See page 11-11

33. The SDLC is used to determine if a project should be pursued and focuses on the investigation and planning aspects only.

Ans: False (Medium) Response: See page 11-15

34. An international engineering firm is considering a significant change to its web site.

However, the CEO has given the CIO only 4 weeks to make the changes. The CIO consults with his developers and states that RAD would be the best method for developing the new web site.

Ans: True (Hard) Response: See page 11-20

35. JAD is like RAD except that JAD more integrally involves the users in the development process.

Ans: True (Medium) Response: See page 11-20

Short Answer

36. What are the three outside elements of the project triangle?

Ans: Time, Cost, and Scope Response: See page 11-6

37. This chart identifies the tasks within the project, orders the tasks in a time sequence, identifies their interdependencies, and estimates the time required to complete the task.

Ans: PERT Response: See page 11-11

38. What development process is the traditional method for all of the steps required to build an information system?

Ans: Systems Development Life Cycle (SDLC) Response: See page 11-15

39. Linux was built using this type of development approach?

Ans: Open Sourcing Response: See page 11-35

40. A small architectural firm needs to build a system with lots of user involvement. The method of development that integrates users throughout the entire project is called?

Ans: Joint Application Development Response: See page 11-20

Essay

41. Explain the systems development life cycle. Where is it primarily used and why?

42. Compare and contrast RAD and JAD. Which one would be most suited for a project that needs to be done in a short time frame?

43. How do companies manage risk? What are the factors that contribute to a high-risk project?

44. What would you do if a project was hopelessly out of control (sometimes referred to as a runaway project)? List some specific things that can be done to avoid this problem.

45. Discuss the purpose of the PMO. When would a company want to implement a PMO within their organization? Why?

File: chapter12.rtf, Chapter 12, Managing Business Knowledge

Multiple Choice

1. What is defined as knowledge that has been identified, captured, and leveraged to produce higher-value goods or services or some other competitive advantage for the firm? a) Information b) Intellectual capital c) Competitive advantage data d) Back-end data e) System data Ans: b (Medium) Response: See page 12-4

2. Informal, self-organizing networks within firms are another source of knowledge generation. They are called? a) networks of knowledge b) communities of practice c) groups of best practice d) informal knowledge centers e) communities of knowledge Ans: b (Medium) Response: See page 12-16

3. This serves as both a guide to where knowledge exists in an organization and an inventory of the knowledge assets available. a) Knowledge map b) Data map c) Knowledge directory d) Data directory e) Data mart Ans: a (Medium) Response: See page 12-20

4. “Knowing that” is which type of knowledge? a) Tacit b) Explicit c) Implicit d) Internal e) External Ans: a (Hard) Response: See page 12-6

5. These are collections of data designed to support management decision making, and sometimes serve as repositories of organizational knowledge. a) Data-mart b) Data container c) Data warehouse d) Data storage center e) RAID Ans: c (Medium) Response: See page 12-25

6. Values and ___________ are also a component of knowledge; they determine the interpretation and the organization of knowledge. a) Ethics b) Experience c) Understanding d) Society e) Beliefs Ans: e (Medium) Response: See page 12-6

7. ________________ are collections of data designed to support management decision making, sometimes serve as repositories of organizational knowledge a) Data warehouses b) Data systems c) System meta-data marts d) System definitions e) Database management systems

Ans: a (Medium) Response: See page 12-25

8. ________________ is hard to structure, hard to transfer, and highly personal to the source. a) Data b) Tacit knowledge c) Implicit knowledge d) Explicit knowledge e) Information Ans: b (Medium) Response: See page 12-6

9. IT traditionally focused on _________________________. a) Data b) Tacit knowledge c) Implicit knowledge d) Explicit knowledge e) Information Ans: d (Medium) Response: See page 12-7

10. __________________ remains an emerging discipline, with few generally accepted standards or definitions of key concepts. a) Knowledge Management b) Knowledge Codification c) Knowledge Maintenance d) Knowledge Creation e) Knowledge Categorization Ans: a (Easy) Response: See page 12-7

11 _________________ is the term used to describe the set of technologies and

processes that use data to understand and analyze business performance a) System Intelligence b) Business Intelligence c) Knowledge Analysis d) Knowledge Determination e) Business Knowledge Ans: b (Medium) Response: See page 12-7

12. This is the representation of knowledge in a manner that can be easily accessed and transferred. a) Knowledge generation b) Knowledge capture c) Knowledge codification d) Knowledge transfer e) Knowledge creation Ans: c (Medium) Response: See page 12-13

13. This includes all activities that discover “new” knowledge. a) Knowledge generation b) Knowledge capture c) Knowledge codification d) Knowledge transfer e) Knowledge creation Ans: a (Medium) Response: See page 12-13

14. This includes all of the activities for transmitting knowledge from one person or group to another. a) Knowledge generation b) Knowledge capture c) Knowledge codification d) Knowledge transfer e) Knowledge creation Ans: d (Easy)

Response: See page 12-22

15. This includes the continuous processes of scanning, organizing, and packaging knowledge after it has been created. a) Knowledge generation b) Knowledge capture c) Knowledge codification d) Knowledge transfer e) Knowledge creation Ans: b (Medium) Response: See page 12-13

16. The two primary ways of generating knowledge are knowledge creation (exploration) and knowledge ___________ (exploitation). a) utilization b) generation c) definition d) sharing e) defining Ans: d (Medium) Response: See page 12-13

17. This is the process of applying existing resources in new and different ways. a) Buy or Rent b) Adaptation c) Shared Problem Solving d) Creating (R&D) e) Communities of Practice Ans: b (Medium) Response: See page 12-14

18. This is the process where a company may support outside research to gain competitive advantage. a) Buy or Rent

b) Adaptation c) Shared Problem Solving d) Creating (R&D) e) Communities of Practice Ans: a (Medium) Response: See page 12-14

19. This is the process where knowledge is created through bringing people together, and is sometimes called creative abrasion. a) Buy or Rent b) Adaptation c) Shared Problem Solving d) Creating (R&D) e) Communities of Practice Ans: c (Medium) Response: See page 12-15

20. This is the process by which knowledge is created by using groups of workers who share common interests and objectives. a) Buy or Rent b) Adaptation c) Shared Problem Solving d) Creating (R&D) e) Communities of Practice Ans: e (Medium) Response: See page 12-16

21. This method for capturing knowledge typically combines electronic and human approaches as a first step. a) Monitoring b) Creating c) Scanning d) Organizing e) Adapting Ans: c (Medium) Response: See page 12-18

22. This method for capturing knowledge typically attempts to take the mass of knowledge accumulated through observing and structure it into accessible form. a) Monitoring b) Creating c) Scanning d) Organizing e) Adapting Ans: d (Easy) Response: See page 12-18

23. Sometimes referred to as “best practices,” this kind of knowledge is useful for increasing efficiency. a) Process Knowledge b) Factual Knowledge c) Catalog Knowledge d) Cultural Knowledge e) Creative Knowledge Ans: a (Hard) Response: See page 12-19

24. Basic information about people and things has been synthesized and placed in context. a) Process Knowledge b) Factual Knowledge c) Catalog Knowledge d) Cultural Knowledge e) Creative Knowledge Ans: b (Medium) Response: See page 12-19

25. People who have this knowledge know how things actually get done within the framework of the organizational informal structure. a) Process Knowledge b) Factual Knowledge

c) Catalog Knowledge d) Cultural Knowledge e) Creative Knowledge Ans: d (Hard) Response: See page 12-19

26. People who have this knowledge know where things are. a) Process Knowledge b) Factual Knowledge c) Catalog Knowledge d) Cultural Knowledge e) Creative Knowledge Ans: c (Medium) Response: See page 12-19

27. ________________ is the process of analyzing data warehouses for “gems”. a) Data combing b) Data translation c) Data mining d) Data searching e) Data manipulation Ans: c (Easy) Response: See page 12-26

28. _______________ includes the movement from tacit knowledge to explicit knowledge. a) Externalization b) Socialization c) Internalization d) Combination e) Appropriation Ans: a (Medium) Response: See page 12-22

29. These are sites for collaboratively creating and managing tags for annotating and categorizing content. a) Collaborative data stores b) Folksonomies c) Data marts d) Socio-content e) Social Networks Ans: b (Medium) Response: See page 12-19

30. Which type of mapping points to information by topic rather than location a) Qualitative b) Process c) Quantitative d) Organizational e) System Ans: a (Medium) Response: See page 12-21

True/False

31. More human contribution goes into creating information than knowledge.

Ans: False (Medium) Response: See page 12-5

32. Intellectual capital is defined as knowledge that has been identified, captured, and leveraged to produce higher-value goods or services.

Ans: True (Medium) Response: See page 12-4

33. Tacit knowledge is easy to formalize.

Ans: False (Medium) Response: See page 12-6

34. Business analytics is the term used to refer to the use of quantitative and predictive models and fact-based management to drive decisions.

Ans: True (Hard) Response: See page 12-7

35. Data mining is used to locate relationships between data or information that would not normally be found through traditional reporting methods.

Ans: True (Hard) Response: See page 12-26

Short Answer

36. This type of knowledge is personal and context specific.

Ans: Tacit Knowledge Response: See page 12-6

37. The taxonomy of knowledge includes what three knowledge area?

Ans: Know-why, Know-what, and Know-how Response: See page 12-6

38. What is the first main process of knowledge management?

Ans: Knowledge Generation Response: See page 12-13

39. These are groups composed of workers who share common interests and objectives, but who are not necessarily employed in the same department or physical location.

Ans: Communities of practice Response: See page 12-16

40. This is a guide to where knowledge exists in an organization.

Ans: Knowledge Map Response: See page 12-20

Essay

41. Define tacit and explicit knowledge and describe the major differences between the two as it relates to knowledge management?

42. What is a knowledge map? How are they used in organizations effectively?

43. How can managers help to alleviate knowledge overload with their workers? What tools would you use to help solve this problem?

44. List the four main processes of knowledge management. Which process is the most difficult to perform? Why?

45. Discuss the importance of business analytics as it relates to knowledge management.

Why is a skilled workforce needed to utilize these tools?