Technology of Information System Mid Term Revision

Essay Questions

1. Show using diagram the basic functions of Information System.

2. List the six important business objectives of information technology.
3. Show using diagram the types of information systems that may be used in each
management level. Illustrate the source of data and type of decisions supported
by each type.
4. What are the main components of an information system?
5. From your study to this course, list some enterprise applications that are essential for any
enterprise
6. What are the major components of CRM?
7. Discuss the business value of Enterprise systems.
8. Discuss the business value of CRM.
9. Discuss the business value of Supply Chain Management Systems .

10.List the Eight unique features of Internet and Web as commercial medium.
11.What are the basic types of e-commerce?
12.What are the principal e-commerce business models?
13.What are the principal e-commerce revenue models?
14.What are different Internet-enabled technologies used in B2B?

MCQ Questions

1. A(n) ------- is typically a major source of data for other systems.

A) transaction processing system
B) management information system
C) executive support system
D) decision-support system
E) knowledge management system
2. To manage relationships with your customers, you would use a(n)
________ system.
A) CRM
B) MIS
C) CLE
D) CLU
E) KMS

3. The three activities in an information system that produce the information

to control operations are

A. information retrieval, research, and analysis.

B. input, output, and feedback.
C. input, processing, and output.
D. data analysis, processing, and feedback.

4. Executive support systems are information systems that support the

A) long-range planning activities of senior management.
B) knowledge and data workers in an organization.
C) decision making and administrative activities of middle managers.
D) day-to-day processes of production.
E) transactional needs of the organization.

5. An example of a business using information systems for customer and

supplier intimacy is
A) Wal-Mart's Retail Link system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) Citibank's ATMs.

6. A firm that must invest in new information systems capabilities in order to

comply with federal legislation can be said to be investing to achieve which
business objective?
A) customer intimacy
B) operational excellence
C) survival
D) improved reporting
E) improved decision making
7. The three principal levels within a business organization hierarchy are

A. senior management, operational management, and service workers.

B. senior management, middle management, and operational management.
C. senior management, operational management, and information systems.
D. senior management, middle management, and service workers.

8. The use of information systems because of necessity describes the business

objective of
A. survival.
B. improved business practices.
C. competitive advantage.
D. improved flexibility.

9. The six important business objectives of information technology are new

products, services, and business models; customer and supplier intimacy;

survival; competitive advantage; operational excellence; and

A. improved flexibility.
B. improved decision making.
C. improved business practices.
D. improved efficiency.

10.Verizon's implementation of a Web-based digital dashboard to provide

managers with real-time information such as customer complaints is an
example of

A. improved flexibility.
B. improved decision making.
C. improved efficiency.
D. customer and supplier intimacy.

11. The move of retail banking to use ATMs after Citibank unveiled its first
ATMs illustrates the use of information systems to achieve which business
objective?
A) improved efficiency
B) customer and supplier intimacy
C) survival
D) competitive advantage
12. The average number of tickets sold daily online is an example of

A. input.
B. raw data.
C. meaningful information.
D. feedback.

13.Output
A. is feedback that has been processed to create meaningful information.
B. is information that is returned to appropriate members of the organization to
help them evaluate the input stage.
C. transfers data to the people who will use it or to the activities for which it will
be used.
D. transfers processed information to the people who will use it or to the
activities for which it will be used.
14.Converting raw data into a more meaningful form is called
A. capturing.
B. processing.
C. organizing.
D. feedback.

15.An example of a business using information systems to create new products

and services is
A) Wal-Mart`s RetailLink system.
B) the Mandarin Oriental hotel`s customer-preference tracking system.
C) Verizon`s Web-based digital dashboard.
D) Apple Inc.`s iPod.

16.An example of a business using information systems to attain operational

excellence is
A) Wal-Mart`s RetailLink system.
B) the Mandarin Oriental hotel`s customer-preference tracking system.
C) Verizon`s Web-based digital dashboard.
D) Apple Inc.`s iPod.
17.An example of a business using information systems for customer and
supplier intimacy is
A) Wal-Mart`s RetailLink system.
B) the Mandarin Oriental hotel`s customer-preference tracking system.
C) Verizon`s Web-based digital dashboard.
D) Apple Inc.`s iPod.

18.In a business hierarchy, the level that is responsible for monitoring the daily
activities of the business is
A) middle management.
B) service workers.
C) production management.
D) operational management.

19.Which of the following are environmental actors that interact with an

organization and its information systems?
A) customers
B) suppliers
C) regulatory agencies
D) all of the above

20.A(n) ------- is typically a major source of data for other systems.

21.A) transaction processing system
22.B) management information system
23.C) executive support system
24.D) decision-support system
25.E) knowledge management system

21.To manage relationships with your customers, you would use a(n) ________
system.

A) CRM
B) MIS
C) CLE
D) CLU
E) KMS
 22. Dell Computer's use of information systems to improve efficiency and
implement "mass customization" techniques to maintain consistent
profitability and an industry lead illustrates which business objective?
A. improved flexibility
B. improved business practices
C. competitive advantage
D. survival

23.Verizon's implementation of a Web-based digital dashboard to provide

managers with real-time information such as customer complaints is an
example of
A. improved flexibility.
B. improved decision making.
C. improved efficiency.
D. customer and supplier intimacy.

24.The move of retail banking to use ATMs after Citibank unveiled its first
ATMs illustrates the use of information systems to achieve which business
objective?
E) improved efficiency
F) customer and supplier intimacy
G) survival
H) competitive advantage

25.The coordination of all supply activities of an organization from its

suppliers and partners to its customers is referred to as:
a) Supply chain management
b) Supply chain value
c) Supply and demand coordination
d) Supply chain network

26 The term supply-push refers to:

A) making products prior to orders being received based on estimated demand.

B) waiting for orders to be received before building a product.
C) channel conflict.
D) multi-channel manufacturers who sell directly online to consumers.

27 A network of organizations and business processes for procuring raw materials,

transforming these materials into intermediate and finished products, and distributing the
finished products to customers is called a
A) distribution channel.
B) supply chain.
C) value chain.
D) marketing channel.
E) information system.

28 A company's suppliers, supplier's suppliers, and the processes for managing relationships
with them is the

A) supplier's internal supply chain.

B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
E) onstream portion of the supply chain.

29 A company's organizations and processes for distributing and delivering products to the
final customers is the

A) supplier's internal supply chain.

B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
E) onstream portion of the supply chain.

30 Supply chain software can be classified as either supply chain ________ systems or supply
chain ________ systems.

A) push; pull
B) demand; continual
C) upstream; downstream
D) planning; execution
E) maintenance; development

31 Supply chain planning systems perform all of the following functions except

A) establish inventory levels for raw materials and finished goods.

B) identify the transportation mode to use for product delivery.
C) determine where to store finished goods.
D) determine how much product to manufacture in a given time period.
E) track the physical status of goods.
32 Which supply chain planning function determines how much product is needed to satisfy all
customer demands?

A) distribution management
B) replenishment planning
C) demand planning
D) order planning
E) customer planning

33 Capabilities of supply chain execution systems would not include

A) identifying the optimal transportation mode.

B) tracking the flow of finished goods.
C) managing materials.
D) managing warehouse operations.
E) managing the financial information involving all parties.

34 A supply chain driven by actual customer orders or purchases follows a ________ model.

A) pull-based
B) build-to-stock
C) push-based
D) replenishment-driven
E) optimized

35 Systems that enable a firm to generate demand forecasts for a product and to develop
sourcing and manufacturing plans for that product best describes supply chain ________
systems.

A. demand
B. delivery
C. planning
D. execution

36 Customer relationship management applications dealing with the analysis of customer data
to provide information for improving business performance best describes ________
applications.

A. operational CRM
B. analytical CRM
C. operational SCM
D. analytical SFA
37 ________ CRM includes customer-facing applications such as tools for sales force
automation, call center and customer service support, and marketing automation.

A. Analytical
B. Employee
C. Operational
D. Partner

38 To manage relationships with your customers, you would use a(n) ________ system.

A. CRM
B. MIS
C. SCM
D. KMS

39 As opposed to an ERP system, CRM systems provide support for ________ functionality
such as marketing, sales, and customer service.

A) database B) front-end C) back-end D) application

40 A suite of integrated software modules for finance and accounting, human resources,
manufacturing and production, and sales and marketing that allows data to be used by
multiple functions and business processes best describes

A) process management software.

B) ERP systems.
C) groupware.
D) application software.
E) supply chain management systems.

41 ________ systems are based on a suite of software models used to support business
activities across the firm.

A) Global
B) Organizational
C) Supply chain
D) Product differentiation
E) Enterprise

42 ________ modules use many of the same data, tools, and systems as CRM to enhance
collaboration between a company and its selling partners.

A) SCM
B) SFA
C) ERM
D) DRM
E) PRM

43 ________ modules deal with issues such as setting objectives, employee performance
management, and performance-based compensation.

A) SCM
B) SFA
C) ERM
D) DRM
E) PRM

44 Customer relationship management systems typically provide software and online tools for
sales, customer service, and

A) marketing.
B) account management.
C) advertising.
D) public relations.
E) human resources.

45 CRM systems help businesses obtain which business objective?

A) survival
B) operational excellence
C) new products and services
D) improved decision making
E) customer and supplier intimacy

46 The measurement of the number of customers who stop using or purchasing products or
services from a company is called

A) switching costs.
B) churn rate.
C) CLTV.
D) switch rate.
E) turnover percentage.
26.Intranets allow firms to work easily with third-party suppliers and vendors.
A) True
B) False

27.An IT infrastructure provides the platform on which the firm can build its
information systems.
A) True
B) False

28.Intranets link different systems and networks within a firm.

A) True
B) False

29.Identifying customers is a business process handled by the human resources

function.
A) True
B) False
C) The upstream portion of the supply chain consists of the organizations and processes for
distributing and delivering products to the final customers.

Answer: FALSE

D) Supply chain execution systems enable the firm to generate demand forecasts for a product
and to develop sourcing and manufacturing plans for that product.
Answer: FALSE

E) In a push-based model of SCM systems, actual customer orders or purchases trigger events
in the supply chain.
Answer: FALSE

F) In a pull-based model of SCM systems, production master schedules are based on forecasts
of demand for products.
Answer: FALSE

G) ERP systems allow organizations to integrate heterogeneous systems into one with an
integrated database system.
ANSWER: True

H) Analytical CRM uses tools to analyze customer data collected from the firm's customer touch
points and from other sources.
ANSWER: True
1. CRM provides support for the front-end customer facing functionality.
ANSWER: True

2. All CRM packages contain modules for PRM and ERM.

Answer: FALSE

3. CRM software can help organizations identify high-value customers for preferential
treatments.
Answer: TRUE

4. Analytical CRM uses tools to analyze customer data collected from the firm's customer touch
points and from other sources.
Answer: TRUE

True/False

1. Intranets allow firms to work easily with third-party suppliers and vendors.
C) True
D) False

2. An IT infrastructure provides the platform on which the firm can build its information

systems.
C) True
D) False

3. Intranets link different systems and networks within a firm.

C) True
D) False

4. Identifying customers is a business process handled by the human resources function.

I) True
J) False
K) The upstream portion of the supply chain consists of the organizations and processes for
distributing and delivering products to the final customers.

Answer: FALSE

5 Supply chain execution systems enable the firm to generate demand forecasts for a product
and to develop sourcing and manufacturing plans for that product.
Answer: FALSE

6 In a push-based model of SCM systems, actual customer orders or purchases trigger events
in the supply chain.
Answer: FALSE
 7 In a pull-based model of SCM systems, production master schedules are based on forecasts
of demand for products.
Answer: FALSE

8 ERP systems allow organizations to integrate heterogeneous systems into one with an
integrated database system.
ANSWER: True

9 Analytical CRM uses tools to analyze customer data collected from the firm's customer touch
points and from other sources.
ANSWER: True
5. CRM provides support for the front-end customer facing functionality.
ANSWER: True

6. All CRM packages contain modules for PRM and ERM.

Answer: FALSE

7. CRM software can help organizations identify high-value customers for preferential
treatments.
Answer: TRUE

8. Analytical CRM uses tools to analyze customer data collected from the firm's customer touch
points and from other sources.
Answer: TRUE

Lecture 4: e-commerce

1. A marketplace extended beyond traditional boundaries and removed from a temporal and
geographic location is called a(n)
A) exchange.
B) online marketplace.
D) e-hub.
E) net marketplace.
Answer: B

2. The integration of video, audio, and text marketing messages into a single marketing
message and consumer experience describes which dimension of e-commerce technology?
A) ubiquity
B) personalization/customization
C) richness
D) interactivity
Answer: C

3. Digital goods are goods that are

A) produced digitally.
 B) sold over digital networks.
C) delivered digitally.
D) used with digital equipment.
Answer: C

4. eBay is an example of
A) C2C e-commerce.
B) B2B e-commerce.
C) B2C e-commerce.
D) M-commerce.
Answer: A

5. Transaction brokers
A) generate revenue from advertising or from directing buyers to sellers.
B) save users money and time by processing online sales transactions.
C) provide a digital environment where buyers and sellers can establish prices for products.
D) sell physical products directly to consumers or individual businesses.
Answer: B

6. In which of the following Internet business models does a merchant create an online digital
environment that enables people with like interests to share information?
A) community provider
B) service provider
C) market creator
D) transaction broker
Answer: A

7. Which of the following best illustrates the sales revenue model?

A) eBay receives a small fee from a seller if a seller is successful in selling an item.
B) Epinions receives a fee after steering a customer to a participating Web site where he or
she makes a purchase.
C) Flickr provides basic services for free, but charges a premium for advanced services.
D) Apple accepts micropayments for single music track downloads.
Answer: D

8. Which of the following best illustrates the affiliate revenue model?

A) eBay receives a small fee from a seller if a seller is successful in selling an item.
B) Epinions receives a fee after steering a customer to a participating Web site where he or
she makes a purchase.
C) Flickr provides basic services for free, but charges a premium for advanced services.
D) Apple accepts micropayments for single music track downloads.
Answer: B

9. Which of the following best illustrates the transaction fee revenue model?
A) eBay receives a small fee from a seller if a seller is successful in selling an item.
 B) Epinions receives a fee after steering a customer to a participating Web site where he or
she makes a purchase.
C) Flickr provides basic services for free, but charges a premium for advanced services.
D) Apple accepts micropayments for single music track downloads.
Answer: A

10. In the ________ revenue models, a firm offers some services for free but charges a
subscription fee for premium services.
A) free/freemium
B) subscription
C) transaction fee
D) affiliate
Answer: A

11. In the affiliate revenue model, firms derive revenue by selling information or services
through partner e-commerce sites.
Answer: FALSE

12. Advertising networks track a user's behavior at thousands of Web sites.

Answer: TRUE

13. EDI is
A) the use of Internet technologies for electronic data transactions.
B) the exchange between two organizations of standard transactions through a network.
C) electronic data invoicing.
D) electronic delivery infrastructure.
Answer: B

14. Geoadvertising sends ads to users based on their

A) GPS locations.
B) home addresses.
C) shopping preferences.
D) web site behaviors.
Answer: A

15. A new social mobile app you are developing allows users to find friends who are logged in
and within a 10-mile radius. This would be categorized as a ________ service.
A) geosocial
B) geoinformation
C) geoadvertising
D) geomapping
Answer: A