30 Questions
What is the primary objective of information systems implemented by Kroger, as discussed in the chapter-opening case?
To increase customer satisfaction levels
What is the key characteristic of Apple's creation of the iPod?
Creation of a new product using information systems
What is the primary outcome of Walmart's implementation of information systems?
Achievement of operational excellence
What is the primary distinguishing feature of big data generated by Internet activity?
The enormous volume of data generated
What is the key benefit of Verizon's use of a web-based digital dashboard?
Real-time company information for managers
What is the major factor driving the growth of business use of big data?
The increasing importance of data-driven decision making
What is the primary objective of Mandarin Oriental's use of computers to keep track of guest preferences?
To provide personalized services to guests
According to Thomas Friedman, what is the primary consequence of the 'flattening' of the world?
The reduction of economic and cultural advantages of developed countries
What is the key characteristic of Kroger's use of sensors to monitor cold food storage temperatures?
Monitoring of cold food storage temperatures
What is the primary characteristic that distinguishes the emerging mobile digital platform from other information systems technologies?
The shift towards mobile devices
What is the primary driver of the growth of cloud computing?
The increasing importance of data storage and scalability
What is the primary benefit of business intelligence in the context of information systems?
The ability to make data-driven decisions
What business objective is a firm seeking to achieve when it invests in an information system because it is a necessity of doing business?
Survival
What business objective is illustrated by Mandarin Oriental's use of computer systems to keep track of guests' preferences?
Customer intimacy
What motivated competitors to provide ATMs after Citibank introduced the first ATMs in New York?
To gain competitive advantage
Which of the following business objectives is most closely related to a firm's ability to adapt to changing market conditions?
Operational excellence
What is the primary goal of a firm that seeks to achieve operational excellence through its information system?
To reduce costs and improve efficiency
Which of the following business objectives is most focused on using information systems to better understand and serve customers?
Customer intimacy
What was the approximate amount spent by American businesses on information systems hardware, software, and telecommunications equipment in 2015?
About $1 trillion
What is the primary objective of the department store's new application that analyzes spending levels and cross-references them to popular clothing styles?
To achieve operational excellence
What is the significance of the department store's implementation of the new application?
It optimizes inventory levels and reduces waste
What percentage of U.S. businesses are likely to have a remote work program?
Around 60%
What is the primary driver of the investment in information systems by American businesses?
The need for operational excellence
What is the ultimate goal of the department store's analysis of spending levels and popular clothing styles?
To optimize inventory levels and reduce waste
What percentage of total invested capital did private business investment in information technology account for in 1999?
21 percent
What is the approximate amount of money American businesses spent on business and management consulting and information technology services in 2015?
$500 billion
Why are organizational, management, and cultural changes inside firms essential for deriving business value from IT investment?
Because they are a critical component of IT investment
What is the primary reason for American businesses investing in information systems hardware, software, and telecommunications equipment?
To support business operations
What is the main purpose of business and management consulting for American businesses?
To redesign business operations
How many Americans access the Internet using a smartphone or tablet?
194 million
Study Notes
Information Systems in Business
- In 2015, American businesses invested around $1 trillion in information systems hardware, software, and telecommunications equipment.
- Private business investment in information technology has grown from 21% of total invested capital in 1999 to 37% of all invested capital in 2015.
- Most of the business value of IT investment derives from organizational, management, and cultural changes inside firms.
Business and Technology
- Approximately 194 million Americans access the Internet using a smartphone or tablet.
- Many Fortune 500 U.S. companies have some form of remote work program.
- Big data refers to the enormous volume of data generated by Internet activity, such as web traffic, email, and social media.
Business Objectives
- A firm that invests in an information system because it is a necessity of doing business does so to achieve the business objective of survival.
- The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of customer intimacy.
- Competitors were seeking to achieve competitive advantage when they rushed to provide ATMs after Citibank introduced the first ATMs in New York.
Business Examples
- Apple's creation of the iPod is an example of a business using information systems to create a new product.
- Walmart's RetailLink system and Kroger's use of sensors to monitor cold food storage temperatures are examples of businesses using information systems to improve operations.
- Verizon's use of a web-based digital dashboard to provide real-time company information for managers is an example of improved decision making.
Globalization and Technology
- Thomas Friedman's description of the world as "flat" refers to the flattening of economic and cultural advantages of developed countries.
- The growth of globalization and the ubiquity of global exchange and travel have been facilitated by the Internet and technology.
Test your knowledge of Management Information Systems with this quiz, covering the transformation of business through information systems and its key metrics. Get ready to analyze and think critically!
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