Quiz #1 (ITM ch 2)

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Questions and Answers

What is one of the primary roles of information technology in business processes?

It eliminates the need for automated transactions.

It automates manual steps to enhance efficiency. (correct)

It increases the number of sequential steps in processes.

It complicates the flow of information.

Which of the following is NOT a characteristic of business processes?

Flows of material, information, knowledge

Sets of activities and steps

May be cross-functional

Strictly limited to one functional area (correct)

Which example illustrates a transaction processing system (TPS)?

Processing payroll for employees (correct)

Developing a marketing strategy

Generating monthly financial reports

Conducting market research for a new product

How does information technology support new business models?

By allowing for flexible and innovative operational approaches Signup and view all the answers

What decision-making feature is associated with transaction processing systems?

Decisions made by lower-level supervisors using predefined criteria Signup and view all the answers

What is the primary goal of the systems that help suppliers, purchasing firms, and logistics companies?

To ensure the correct amount of products is delivered efficiently Signup and view all the answers

What are customer relationship management (CRM) systems designed to optimize?

Revenue, customer satisfaction, and customer retention Signup and view all the answers

How do knowledge management systems (KMS) assist organizations?

By capturing and applying knowledge to improve business processes Signup and view all the answers

Which of the following is NOT a benefit of using CRM systems?

Identifying the least profitable customers Signup and view all the answers

What role do systems for sharing information play in supply chain management?

They enable faster sourcing, production, and delivery Signup and view all the answers

What is the primary purpose of an intranet within a company?

To provide access to company resources and knowledge for employees Signup and view all the answers

How does e-commerce differentiate itself from e-business?

E-commerce specifically deals with buying and selling goods online Signup and view all the answers

What is a key benefit of using an extranet?

It enables collaboration with authorized suppliers and vendors Signup and view all the answers

What does collaboration primarily focus on in a business context?

Achieving shared and explicit goals Signup and view all the answers

Why is teamwork considered more important today than in previous eras?

Work dynamics have shifted towards more interdependent tasks Signup and view all the answers

Which statement accurately describes e-government?

It involves the use of digital technology to enhance public sector interactions Signup and view all the answers

What role do enterprise-wide systems play in knowledge management?

They centralize various types of digital knowledge objects Signup and view all the answers

How are teams typically characterized within a business?

They are formed to accomplish a specific mission assigned by management Signup and view all the answers

What is the primary function of Business Intelligence tools?

To help managers make informed decisions Signup and view all the answers

What type of system focuses on nonroutine decision making and incorporates both internal and external data?

Decision-support system (DSS) Signup and view all the answers

Which system provides reports based on current performance derived from transactional data?

Management information systems (MIS) Signup and view all the answers

What is a primary benefit of Enterprise Resource Planning (ERP) systems?

Integrates business processes into a single software system Signup and view all the answers

What is a characteristic of Executive Support Systems (ESS)?

They support senior management with nonroutine decisions Signup and view all the answers

How do supply chain management (SCM) systems primarily function?

To assist in managing supplier relationships Signup and view all the answers

Which of the following is NOT a benefit of using Enterprise Resource Planning (ERP) systems?

Providing insights from external market analysis Signup and view all the answers

Which type of decision-making does a Model-driven Decision-Support System (DSS) typically target?

Unique and rapidly changing problems Signup and view all the answers

What is a significant characteristic of professional jobs today compared to the industrial age?

They require the sharing of information and collaboration. Signup and view all the answers

How has the organization of work changed in contemporary firms?

Teams are responsible for developing their own methods. Signup and view all the answers

Which of the following best describes the impact of social business?

It encourages transparency and information sharing. Signup and view all the answers

In a traditional command and control firm, what was the typical communication structure?

Instructions were provided in a vertical flow. Signup and view all the answers

What underpins the effectiveness of diverse teams in a collaborative business culture?

Research indicates they produce better outputs faster. Signup and view all the answers

What technological tools facilitate collaboration in modern workplaces?

Virtual meeting systems and cloud collaboration services. Signup and view all the answers

Which of the following describes a key step in evaluating software tools for collaboration?

Assess available solutions after determining collaboration challenges. Signup and view all the answers

What is the primary aim of social networking platforms in a business context?

To engage employees, customers, and suppliers more effectively. Signup and view all the answers

What kind of management style does a collaborative business culture promote?

Collaboration and teamwork as essential elements of the organization. Signup and view all the answers

What change has occurred regarding the scope of modern firms?

Firms are expanding to multiple locations globally. Signup and view all the answers

Study Notes

Business Processes

Definition: The way work is organized, coordinated, and focused to produce a valuable product or service.
Elements: Flows of material, information, and knowledge.
Structure: Sets of activities and steps.
Scope: Can be tied to a specific functional area or be cross-functional.

Information Technology and Business Processes

Efficiency Enhancement: Automates manual steps, improving existing processes.
Examples: Checking client credit, generating invoices.
Process Improvement: Changes information flow, replaces sequential steps with parallel steps, eliminates decision-making delays, and supports new business models.

Transaction Processing Systems (TPS)

Purpose: Performs and records routine transactions necessary for business operations.
Examples: Sales order entry, hotel reservations, payroll, employee record keeping, and shipping.
Management Benefits: Allows monitoring of operational status and external relationships.
Decision Making: Serves predefined, structured goals and decision-making.
Example: Credit approval based on predefined criteria, requiring only a check against those criteria.

Business Intelligence and Management Information Systems (MIS)

Purpose: Provides data and tools for organizing, analyzing, and accessing data to support informed decision-making.
Focus: Serves middle management.
Functionality: Reports on current performance, answers routine questions with predefined procedures, and has limited analytic capability.

Decision Support Systems (DSS)

Purpose: Helps address unique, rapidly changing problems with undefined solutions.
Focus: Serves middle management.
Functionality: Supports non-routine decision-making, utilizes external information, and leverages data from TPS/MIS.
Types:
- Model-driven DSS: Examples include voyage-estimating systems.
- Data-driven DSS: Examples include target marketing systems.

Executive Support Systems (ESS)

Purpose: Supports senior management in addressing non-routine decisions requiring judgment, evaluation, and insight where no standard solution exists.
Functionality: Provides information through portals with integrated and personalized business content.
Sources of Data: Incorporates both internal MIS and DSS data, as well as external information like new tax laws or competitor data.
Example: Digital dashboard with real-time financial performance view.

Enterprise Applications

Scope: Systems that span functional areas, focus on executing business processes across the firm, and involve all levels of management.
Enterprise Resource Planning (ERP): Integrates business processes in manufacturing, finance, sales, and human resources into a single software system.
Benefits: Consolidates fragmented information into a central data repository, enabling coordinated daily activities, efficient customer order responses, and informed decision-making by managers.

Supply Chain Management (SCM) Systems

Purpose: Manages relationships with suppliers.
Functionality: Facilitates information sharing among suppliers, purchasing firms, distributors, and logistics companies regarding orders, production, inventory, and delivery.
Objective: To optimize product delivery from source to consumption by minimizing time and cost.

Customer Relationship Management (CRM) Systems

Purpose: Manages relationships with customers.
Functionality: Coordinates business processes related to customer interactions in sales, marketing, and service.
Benefits: Identifies and attracts profitable customers, enhances existing customer service, and increases sales.

Knowledge Management Systems (KMS)

Purpose: Manages processes for capturing and applying knowledge and expertise.
Functionality: Collects relevant knowledge and experience within the organization and makes it accessible for improving business processes and decision-making.
Scope: Includes enterprise-wide systems for managing documents, graphics, employee expertise directories, and external knowledge sources.

Intranets and Extranets

Intranet: Internal company website accessible only to employees.
Extranet: Company website accessible to authorized vendors and suppliers, used for coordinating supply chain activities.

Electronic Business (E-Business)

Definition: Use of digital technology and the Internet to execute major business processes within the enterprise.
Scope: Includes internal management and coordination with suppliers and business partners.

Electronic Commerce (E-Commerce)

Definition: Buying and selling goods and services over the Internet.
Scope: Encompasses activities supporting market transactions, such as advertising, marketing, customer support, security, delivery, and payment.

E-Government

Definition: Application of Internet and networking technologies to digitally enable government interactions with citizens, businesses, and other government entities.

Collaboration and Teamwork

Definition: Working together towards shared and explicit goals, typically within a business or other organization.
Duration: Can be short-term or long-term, depending on the task and participant relationships.
Team Structure: Groups with specific missions assigned by the business, requiring members to collaborate on tasks and achieve collective goals.
Importance: Driven by changing nature of work, growth of professional work, changing organizational structure, expanding firm scope, emphasis on innovation, and shifting work culture.

Definition: Use of social networking platforms by businesses to engage employees, customers, and suppliers.
Goal: Deepen interactions and expedite information sharing.
Benefits: Strengthens bonds, increases emotional involvement, drives operational efficiency, spurs innovation, and accelerates decision-making.
Requirement: Information transparency for open sharing of opinions and facts.

Collaborative Business Culture

Key Traits: Collaboration and teamwork are vital to the organization.
Implementation: Policies, products, designs, processes, and systems are developed by teams at all levels.
Rewards: Teams are rewarded for collective performance.
Middle Management Role: Builds teams, coordinates their work, and monitors their performance.

Communication: Email, instant messaging.
Knowledge Sharing: Wikis.
Virtual Environments: Virtual worlds, virtual meeting systems (including videoconferencing with telepresence technology), cloud collaboration services (Google Drive, Google Docs, etc.).
Platform Specific: Microsoft SharePoint, IBM Notes, and enterprise social networking tools.

Evaluating Software Tools

Step 1: Identify your firm's collaboration challenges.
Step 2: Identify available solutions.
Step 3: Analyze cost and benefits of available products.
Step 4: Evaluate security risks.
Step 5: Consult users for implementation and training issues.
Step 6: Evaluate product vendors.

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