Management Information Systems - Managing the Digital Firm Answers Part 1

Management Information Systems: Managing the Digital Firm Building Information Systems 1) The four kinds of structural organizational change enabled by IT, in order from least to most risky, are: A) rationalization, automation, reengineering, and redesigning. B) rationalization, automation, reengineering, and paradigm shift. C) automation, rationalization, redesigning, and paradigm shift. D) automation, redesigning, restructuring, and paradigm shift. E) paradigm shift, reengineering, rationalization, and automation. Answer: C 2) In automation: A) more manual steps are required. B) business processes are reorganized to cut waste and eliminate repetitive, paper-intensive tasks. C) new products are explored first. D) employees are enabled to perform their tasks more efficiently. E) business processes are added. Answer: D 3) Which of the following is more powerful than rationalization of procedures? A) Business process redesign B) TQM C) Automation D) Six sigma E) Systems analysis and design Answer: A 4) A bank has reworked its mortgage application process so that several steps are handled by computer software, and some steps are combined to reduce bottlenecks in processing. The goal is to gradually improve its efficiency over time. This is an example of: A) automation. B) rationalization of procedures. C) paradigm shift. D) TQM. E) six sigma. Answer: B 5) An upscale organic foods grocery store chain is implementing an information system that will enable it to add same-day home delivery of groceries to its customers. This is an example of: A) automation. B) rationalization of procedures. C) paradigm shift. D) business process redesign. E) organizational change. Answer: C 6) The idea that the achievement of quality control is an end in itself describes a main concept of: A) BPM. B) BPR. C) six sigma. D) TQM. E) systems analysis and design. Answer: D 7) ________ provide(s) a methodology and tools for dealing with the organization's ongoing need to revise and optimize its numerous business processes. A) Business process redesign B) Business process management C) CASE tools D) TQM E) Systems analysis and design Answer: B 8) In order, what are the first three steps in BPM? A) 1. identifying processes for change, 2. analyzing existing processes, 3. designing the new process. B) 1. analyzing existing processes, 2. identifying processes for change, 3. designing the new process. C) 1. identifying processes for change, 2. designing the new process, 3. implementing the new process. D) 1. analyzing processes to change, 2. designing the new process, 3. measuring the optimized process. E) 1. designing new processes, 2. analyzing existing processes, 3. identifying processes for change. Answer: A 9) What is the most significant barrier to successful business process change? A) Ineffective project management B) Usability of implemented solution C) Selecting the correct process to change D) Organizational culture E) Poor choice of technology Answer: D 10) Possible functions of BPM tools include all of the following except: A) integrating existing systems to support business processes improvements. B) automating business processes. C) identifying and document business processes. D) completing a systems analysis study. E) designing new processes. Answer: D 11) BPM software provides tools that help business do all of the following except: A) identify and document processes requiring improvement. B) create models of improved processes. C) capture and enforce business rules for performing processes. D) capture and identify information system requirements for a new system. E) integrate existing systems to support new or redesigned processes. Answer: D 12) A(n) ________ is an organizational change that involves rethinking the nature of the business and the nature of the organization itself. A) automation program B) rationalization program C) systems analysis D) paradigm shift E) business process redesign program Answer: D 13) The most common form of IT-enabled organizational change is redesign of processes. Answer: FALSE 14) A paradigm shift involves a radical rethinking of the business model. Answer: TRUE 15) Organizations will adjust to new information systems without any special efforts if the system is a good system to begin with. Answer: FALSE 16) Six sigma describes the measurement of quality as 60 defects per million. Answer: FALSE 17) Describe each type of organizational change enabled by information technology. Give an example of each type of change, as it might be illustrated through the operations of a hotel. Answer: 1. In automation, employees are assisted with performing tasks automatically. In a hotel, this might mean that a system is set up for the reservations desk to record and process customer reservations. 2. In rationalization of procedures, standard operating procedures are streamlined. In a hotel, this might mean that a reservation system that required three or four steps for checking a customer in would be reduced to one or two steps. 3. In business process reengineering, business processes are analyzed, simplified and redesigned. In a hotel, the reservation and check-in system might be designed to allow the customers to reserve rooms and check in themselves, without the need of a hotel employee to confirm the process. 4. In paradigm shift, the very nature of the business is rethought and new business models are defined. In a hotel, this might mean that the idea of renting rooms on a night-by-night basis to clients might be rethought of as an extended stay place, or perhaps even as a condominium or other business type. 18) What is the business importance of managing the quality of business processes? Describe two methods of quality management. Answer: Quality management is one area of continuous process improvement. Quality improvements in business processes can increase efficiency, reduce waste, lower costs, and can raise the level of product and service quality. Two methods for achieving greater quality are Total Quality Management (TQM) and Six Sigma. In TQM, quality is the responsibility of all people and functions within an organization. Everyone is expected to contribute to the overall improvement of quality. Six sigma is a specific measure of quality, representing 3.4 defects per million opportunities. Most companies cannot achieve this level of quality but use six sigma as a goal to implement a set of methodologies and techniques for improving quality and reducing costs. 19) Which conversion process introduces the system first to a limited portion of the organization? A) Pilot study strategy B) Phased approach strategy C) Limited cutover strategy D) Parallel strategy E) Parallel approach strategy Answer: A 20) Which process develops a detailed description of the functions that a new information system must perform? A) Feasibility study B) Requirements analysis C) Systems design D) Test plan development E) Management plan Answer: B 21) Systems design: A) determines whether a solution is feasible from a financial and organizational standpoint. B) shows how the new system will fulfill the information requirements. C) identifies the information requirements for a system. D) is concerned with the logical view of the system solution. E) translates system specifications into software program code. Answer: B 22) Transferring data from a legacy system to the new system would be defined by which category of system design specifications? A) Input B) Database C) Manual procedures D) Conversion E) Implementation Answer: D 23) Unit testing: A) includes all the preparations for the series of tests to be performed on the system. B) tests the functioning of the system as a whole in order to determine if discrete modules will function together as planned. C) involves testing the entire system with real-world data. D) provides the final certification that the system is ready to be used in a production setting. E) tests each program separately. Answer: E 24) System testing: A) includes all the preparations for the series of tests to be performed on the system. B) tests the functioning of the system as a whole in order to determine if discrete modules will function together as planned. C) tests each program separately. D) provides the final certification that the system is ready to be used in a production setting. E) tests the information requirements of a system. Answer: B 25) Acceptance testing: A) includes all the preparations for the series of tests to be performed on the system. B) tests the functioning of the system as a whole. C) tests each program separately in the system. D) provides the final certification that the system is ready to be used in a production setting. E) tests the conversion of legacy data to the new system. Answer: D 26) In a parallel conversion strategy, the new system: A) is tested by an outsourced company. B) replaces the old one on an appointed day. C) and the old are run together for a time. D) is introduced only to a limited area first. E) is slowly converted from the old system. Answer: C 27) In the direct cutover conversion strategy, the new system: A) is tested by an outsourced company. B) replaces the old one on an appointed day. C) and the old are run together. D) is introduced in stages. E) the old and new systems are run in parallel. Answer: B 28) Changes in hardware, software, documentation, or production to a production system to correct errors, meet new requirements, or improve processing efficiencies are termed: A) acceptance. B) production. C) maintenance. D) post-implementation. E) implementation. Answer: C 29) In what stage of systems development are design specifications created? A) Systems analysis B) Systems design C) Testing D) Conversion E) Implementation Answer: B 30) A systems analysis includes a ________ that is used to determine whether the solution is achievable, from a financial, technical, and organizational standpoint. A) feasibility study B) data flow diagram C) logical design D) systems design document E) request for proposal Answer: A 31) ________ provide(s) a detailed statement of the information needs that a new system must satisfy; identifies who needs what information, and when, where, and how the information is needed. A) Systems analysis and design documents B) Information requirements C) A data flow diagram D) A feasibility study E) Requests for proposal Answer: B 32) A(n) ________ is the model or blueprint for an information system solution and consists of all the specifications that will deliver the functions identified during systems analysis. A) feasibility study B) data flow diagram C) systems design document D) information requirements document E) request for proposal Answer: C 33) During the ________ stage of system development, systems tests are evaluated by users and reviewed by management. A) programming B) systems analysis and design C) implementation D) conversion E) acceptance testing Answer: E 34) ________ is the process of changing from the old system to the new system. A) Implementation B) Conversion C) Systems analysis and design D) Programming E) End-user involvement Answer: B 35) The entire system-building effort is driven by: A) six sigma. B) feasibility studies. C) documentation. D) user information requirements. E) available information technology. Answer: D 36) Often there are multiple possible designs for a system. Answer: TRUE 37) Documentation reveals how well a system works from both a technical standpoint, but not an end-user standpoint. Answer: FALSE 38) Systems development activities always take place in sequential order. Answer: FALSE