INFORMATION SYSTEMS TODAY MANAGING THE DIGITAL WORLD, 8E JOSEPH – TEST BANK

INFORMATION SYSTEMS TODAY MANAGING THE DIGITAL WORLD, 8E JOSEPH – TEST BANK

1) ________ refers to the process of identifying, quantifying, and presenting the value provided by a system.

1. A) Making a business case
2. B) Testing a process
3. C) Making a prototype
4. D) Deploying a software product
5. E) Refining a prototype

Answer: A

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

2) Which of the following statements best describes the productivity paradox of technology investment?

1. A) The productivity of any technology is directly proportional to the investment in that technology.
2. B) While it is easy to quantify the costs associated with developing an information system, it is often difficult to quantify tangible productivity gains from its use.
3. C) As investment in technology increases, productivity decreases steadily.
4. D) While it is easy to identify and quantify the intangible benefits of an information system, it is not easy to quantify the tangible benefits.
5. E) The productivity of an information system is in no way related to the investment in the technology.

Answer: B

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

3) System efficiency is the extent to which a system ________.

1. A) allows firms to reach their operational targets
2. B) allows people to plan tasks that are achievable
3. C) enables people to accomplish goals or tasks well
4. D) enables people to do things faster or at lower cost
5. E) allows employees to reduce the risks associated with tasks

Answer: D

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

4) Which of the following is true of system effectiveness?

1. A) It is the extent to which a system enables the firm to accomplish goals well.
2. B) It is the extent to which a system allows a firm to plan its tasks.
3. C) It is the extent to which a system enables the firm to do things faster, at lower cost.
4. D) It is the extent to which a system allows a firm to cut operational costs.
5. E) It is the extent to which a system enables people to accomplish tasks with relatively little time and effort.

Answer: A

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

5) A company implemented a new information system two months ago, but it has not resulted in concrete increases in productivity. A similar system has been in place at the company headquarters for the past two years, and this system has resulted in significant, quantifiable benefits. Which of the following reasons is the most likely explanation for the lack of results?

1. A) The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators.
2. B) The new system is being used to redistribute market share rather than make the whole market bigger.
3. C) It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization.
4. D) The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system.
5. E) The new system may be beneficial for individual firms, but not for a particular industry or the economy as a whole.

Answer: C

AACSB: Reflective thinking; Information technology

Difficulty: Moderate

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Application

6) Business case arguments based on ________ focus on beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on.

1. A) faith
2. B) fear
3. C) facts
4. D) fiction
5. E) fallacy

Answer: A

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

7) Business case arguments based on fear are dependent on ________.

1. A) the belief that implementing the new information system can have significant positive consequences for the firm
2. B) beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on
3. C) data, quantitative analysis, and/or indisputable factors
4. D) the notion that if the system is not implemented, the firm will lose out to the competition or go out of business
5. E) the results of a qualitative analysis of employee responses to the new information system

Answer: D

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

8) Business case arguments based on data, quantitative analysis, and/or indisputable factors are known as arguments based on ________.

1. A) fads
2. B) faith
3. C) facts
4. D) fear
5. E) fiction

Answer: C

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept