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Principles Of Information Systems, 10th Edition Solution Manual

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    Principl es of Information Systems, Ten th Edition Solutions – Chapter 1 Information Systems @ Work Hilton Hospitality in the Palm of Your Hand Discussion Questions 1. Student responses will vary. The app is especially useful for travele rs needing a room at a moment’s notice. 2. Many businesses inside and outside the travel industry are increasing revenues by expanding their presence to mobile devices. Providing m - commerce applications to customers anywhere anytime through mobile devices increases customer satisfaction and loyalty with better service and availability . Critical Thinking Questions 1. Student responses will vary. Security would be a major concern. 2. Student responses will vary. Business can invest in both e - commerce and m - commerce. Ethical and Societal Issues Who Is Interested in Your Social Network Updates? Discussion Questions 1. Student responses may vary. Individual privacy is an important social issue. Pe ople can inadvertently disclose personal information while using the Internet. Once private information o r photos have been placed on the Intern et, it can be very difficult to remove them. Selling access to this kind of information may seem unethical. 2. Student response will vary. Companies such as Comcast, a major communications company, hire full - time social media expe rts who interact with customers online to address problems and complaints. For e xample, if you complain about Comcast s ervice on Twitter, you might be contacted by a Comcast employee offering to help you.

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    Principl es of Information Systems, Ten th Edition Critical Thinking Questions 1. Businesses are flocking to social networks to harvest consumer sentiment for use in gu iding product development. They are also watching social networks to confront negative publicity and to develop targeted advertisements. 2. A computer - based information system (CBIS) is a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information. This is similar to the monitoring of social media. Review Questions 1. An information system is a set of interrelated elements or components that collect (input), manipulate and store (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective. Our lives are changed through our business interactions, online commerce, and in a variety of other ways that are impacted by information technology. Information systems can improve our lives in the following ways: a) speed up processes; b) automate redundant tasks; c) reduce information overload; d) present information in graphical, easy - to - understand formats; e) standardize processes; f) provide monitoring mechanisms; g) provide entertainment opportunities; h) enhance communication . 2. Data is the raw material from which information is composed. Information includes a context for the data. Knowledge is an awareness of how to apply the information. 3. Types of data : Data Represented by Alphanumeric data Numbers, letters, and other characters Image data Graphic images and pictures Audio data Sound, noise, or tones Video data Moving images or pictures 4. Efficiency is a measure of what is produced divided by what is consumed. Effectiveness is a measure of the extent to which a system achieves its goals. 5. The components of an information system are: input, processing, and output. 6. Feedback is output that is used to make changes to input or processing activities. Inadequate feedback could lead to an organization not meeting its goals (e.g., loss of profit or poor customer service).

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    Principl es of Information Systems, Ten th Edition 7. System performance is measured in various ways. Efficiency is a measure of what is produced divided by what is consumed. System efficiency can be determined through an assessment of waste. Effectiveness is a measure to the extent to which system goals are achieved. 8. Knowledge management systems are organized collections of people, procedures, software, databases and devices used to create, store, share, and use the organization’s knowledge and experience. Examples will vary. 9. A computer - based information system or CBIS is a single set of components that collect, manipulate, store, and process data into information. The six components of a CBIS are hardware (computer equipment), software (programs), people, telecommunications (link computer systems into effective networks), databases (organized collections of facts and information), and procedures detailing use. 10. A DSS goes beyond a traditional MIS by providing immediate assistance in solving problems. Many of these problems are unique and complex, and key information is often difficult to obtain. A DSS can include a collection of models used to support a decision maker or user (model base), a collection of facts and information to assist in decision making (database), and systems and procedures (user interface or dialogue manager) that help decision makers and other users interact with the DSS 11. Both intranets and extranets are based on Web technologies. An intranet is all internal to an organization while an extranet allows in select outsiders. 12. Mobile commerce (m - commerce) can be used anytime, anywhere. Today, mobile commerce has exploded in popularity with advances in smartphones, including Apple’s iPhone. Customers are using their cell phones to purchase concert tickets from companies such as Ticketmaster Entertainment (www.ticketmaster.com) and Tickets ( www.tickets.com ). In South Korea, cell phones are used 70 percent of the time to pay for digital content, such as digital music. 13. A transaction processing system (TPS) and a management information system (MIS) are both common types of information systems used in business. Both are organized collections of people, procedures, databases and devices used to perform computing functions. The TPS is specifically used to record completed business transactions and store this information in a database. The MIS uses the information collected by the TPS and summarizes it into routine reports used by managers and occasionally decision - makers. A d ecision support system (DSS) is an organized collection of people, procedures, databases and devices used to support the problem - specific decision making

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    Principl es of Information Systems, Ten th Edition function within a firm. An expert system (ES) is a form of artificial intelligence used to capture and use the wisdom of experts and specialists. T he DSS supports the decision making process while the ES suggests a solution derived from its knowledge base. 14. Boeing used virtual reality and computer simulation to help design and build its Dreamliner 787. Boeing used 3 - D models from Dassault Systems to design and manufacture the new ai rcraft. Retail stores like Saks Fifth Avenue and Neiman - Marcus are using virtual reality to help advertise high - end products on the Internet. The Obama campaign paid for in - game advertising in Burnout Paradise. 15. Computer literacy is knowledge of computer systems and equipment and the ways they function. Information systems literacy builds on computer literacy and expands to encompass knowledge of how data and information are used by individuals, groups, and organizations. While knowledge of computers and technology is essential in a corporate environment, the application of this technology to solve business problems is absolutely required to remain competitive. Using information systems to achieve organizational goals can help make an organization successful . 16. Organizations have applied information systems to a variety of applications and have realized a wide array of benefits. Among these are increased market share, increased revenue, reduced costs, increased customer service, enhanced inventory control, more scientific decision - making, and improved communication. 17. The five steps of systems development and related goals are: 1 ) systems investigation – understand the problem to be solved; 2 ) systems analysis – define problems and opportunities of system; 3 ) systems design – determining how a new system is to work; 4 systems implementation – create a system and put it into operation; and 5 ) systems maintenance and review – check and modify the system to keep up with changing business needs. Discussion Questions 1. Regardless of major or interest areas, information systems will play a central role in all business careers. Even now, students use information technology daily ranging from grocery purchases to filing taxes to using the postal system. Information technology is present in all aspects of life and business. Information systems improve planning, communication, data management, report formatting and generation, input collection, and decision - making. A student may respond with a statement similar to this, “By be coming information systems literate, I hope to be competitive in the work force and

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    Principl es of Information Systems, Ten th Edition develop skills that enhance my career and make me an asset to the business I join.” 2. Examples of how information systems can be used by teachers : • Teachers can post lesson plans and grades for parents and other staff to view • Student and teacher information can be kept in a database to be accessed by the county schools 3. Software is invaluable. Software consists of the computer programs that govern the operation of the computer. Just a few e xamples of software used at work or school include: MS Access, MS Word, MS Excel, MS Power Point, ArcView, Adobe Acrobat, Adobe Photoshop, and Norton AntiV irus software. 4. A database is an organized collection of facts and information. It is an important part of a CBIS because it contains information on customers, employees, inventory, competitors’ sales information, online purchases, and much more. 5. E - commerce is any business transaction executed electronically between parties such as companies (business - to - business), companies and consumers (business - to - consumer), consumers and other consumers (consumer - to - consumer), business and the public sector, and consumers and the public sector . M - commerce is mobile commerce - transactions conducted anytime, anywhere. M - commerce is a form of e - commerce. 6. A decision support system (DSS) is a n organized collection of people, procedures, software, databases, and devices used to support problem - specific decision making. A knowledge management system (KMS) is an organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience. 7. Building a model is a less expensive method of finding the problems and shortcomings of a real - world system. First create a narrative, which would provide a better understanding of the functioning of preschoolers. Then, create a schematic model to provide summary details of what was discovered. This schematic model would enable future research. Each model performs a distinct function in the development process so it is important to include both. 8. Student responses will vary. 9. Students could research applications used in the computer lab.

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    Principl es of Information Systems, Ten th Edition 10. Student responses will vary. Note that b usinesses around the globe are enjoying better safety and service, greater efficiency and effectiveness, reduced expenses, and improved decision making and control because of information systems. 11. Student responses will vary. Note that computer and information systems literacy are prerequisites for numerous job opportunities, and not only in the IS field. Problem - Solving Exercises 1. Student should create folders for each chapter and save their problem - solving exercises and computer - based assignments to two disks, one labeled Working Copy and the other Backup. 2. Student s should prepare a one - page summary describing potential social or ethical issues related to the use of an information system. 3. Students should create the table based on their possible career areas and print the table twice. F irst with the table sorted by annual salaries from high to low , and then sorted by most liked to least liked. 4. Students should research the rate growth of sites like MySpace and Facebook and produce a bar chart of that growth over a number of years. The following Website contains a complete history of the rate of growth of the Internet including bar charts as examples : www.zakon.org/robert/internet/timeline/ Team Activities 1. Students should print and hand in a database with team information. 2. Students should write a one page summary of what their team hopes to gain from the course and what they are willing to do to accomplish those goals. Possible gains/goals could include: g ain an understanding of the p rinciples of i nformation systems and gain knowledge of job roles in IS. Web Exercises 1. After accessing the Web site, students could look for information about Course Technology. Note also that there are other IS books available. 2. Students should use the Internet to search for information about artificial intelligence and write a brief re port summarizing their findings.

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    Principl es of Information Systems, Ten th Edition 3. Studen ts should search for information on the use of information systems in a company or organization that interests them and explain h ow the organization use s technology to help it accomplish its goals. Career Exercises 1. Students should write a brief report on their career choice and two additional careers of interest. 2. Students should write a report describing the job opportunities, job duties, and starting sa laries for careers in finance , management, information systems, and two other careers of their interest. Case Studies Case 1: Effectively Managing Resources at Aéroports de Paris Discussion Questions 1. SAÏGA is responsible for directing the 900 passenger flights arriving each day to one of 240 parking stands and gates. Gates are assigned based on considerations such as fuel and luggage handling, departure and arrival times, security concerns, and airline preference. Along with gates, the system allocates all of the primary ground resources. SAÏGA works in real time, managing unexpected constraints such as flight delays, or it can allocate resources in advance to manage long - term scheduling. As a decision support system, SAÏGA provides useful charts that managers review to spot patterns and problems in scheduling and resources. 2. Each flight arriving at Aéroports de Paris requires a long list of resources, including gates, parking stands, fuel trucks, check - in counters, buses, luggage conveyor belts, a variety of ground equipment, and personnel. Orchestrating the efficient delivery of these resources is beyond the skills of any person. Recently, Aéroports de Paris turned to IBM for help. Critical Thinking Questions 1. Student responses will vary. Train travel (rail and subway) could benefit from a system like SAÏGA . 2. Student responses will vary. Case 2 : Information System as an Effective Force Against H1N1 Pandemic

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    Principl es of Information Systems, Ten th Edition Discussion Questions 1. The business intelligence software provided daily reports from the system informing physicians and nurses of the current status in all emergency rooms and of any changes in the status quo. Using its new information system, EMA was the first to spot the outbreak of H1N1 in the Northeast. Doctors knew that about 6 percent of patients complain of flu - like symptoms on any given day. When the EMA BI system reported that 30 percent of patients were arriving with flu symptoms, the doctors warned the country that H1N1 was on the move. 2. Student responses will vary. However, in this case, doctors knew that about 6 percent of patients complain of flu - like symptoms on any given day. When the EMA BI system reported that 30 percent of patients were arriving with flu symptoms, the doctors warned the country that H1N1 was on the move. Critical Thinking Questions 1. Business intelligence or BI systems are designed to extract, or mine, useful information out of the data collected by businesses or organizations into databases. That data may consist of detailed sales information collected at the time of a sale or patient symptom information collected at the time of an examination. Tracking medical statistics across their 21 emergency rooms was similar to tracking sales statistics across retail outlets. 2. Student responses will vary. Questions for Web Case Altitude Online: Outgrowing Systems Discussion Questions 1. The systems need to be able to share information . F our disparate systems make this difficult. 2. Jo n’s first step should be to define the system’s requirements: what the system is required to do. Critical Thinking Questions 1. Jon would need to think about the time required to design the system and the costs involved.

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    Principl es of Information Systems, Ten th Edition 2. While visiting the branch offices, Jon could explain the need for the new system and request suggestions for improvement.

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    Principles of Information Systems, Te n th Edition Solutions – Chapter 2 Ethical and Societal Issues The New Corporate M antra: Social and Environmental Responsibility Discussion Questions 1. E - billing allows companies to streamline the billi ng process, getting invoices to customers more quickly. It reduc es the time required for manual billing, and it saves paper a nd postage, which is especially important because many bus inesses are looking for ways to reduce their use of paper. It’s a move that is good for the environment and good for the corporate budget. Not only does eliminating the use of paper save trees, but it also reduces carbon emissions by eliminating the need to drive vehicles that deliver the paper. 2. Answers will vary. Some companies may not have the expertise to provide e - documents and it may also be cheaper to outsource than to hire staff. Critical Thinking Questions 1. Student responses will vary. A few students may argue that some services will always require the use of paper. 2. Answers may vary. Information Systems @ Work Aldra Manages Workflow to Support Customization Discussion Questions 1. Aldra found that the complexities of building its high - quality products were causing confusion in the order processing system and delays in manufacturing, leading to missed deadlines. Order specifications were sometimes incomplete or incorrect, a nd correcting orders is time consuming. Lack of coordination among departments resulted in additional errors that occasionally resulted in costly idle time on the production line. The l ack of coordination also led to errors in calculating manufacturing costs, which reduced profits. 2. Aldra purchased information systems from Infor Corporation that allowed the company to better coordinate efforts across departments. Using the software,

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    Principles of Information Systems, Te n th Edition Aldra now models its critical core processes (workflows) and then uses the models to improve communication across the value chain. The models define the specific employees involved in the various stages of the process. The system then generates daily activities for each employee displayed in a particular area on the computer desktop. As activities approach their deadline, they are moved to the top of the list. Critical Thinking Questions 1. Responses will vary. 2. Responses will vary. Review Questions 1. A value chain is a series (chain) of events that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service. A s upply chain is a network of supplie r s , distributors, and retailers that participate in the production of a product. 2. Customer relationship management (CRM) programs help companies of all sizes manage all aspects of customer encounters, including marketing and advertising, sales, customer service after the sale, and programs to retain loyal customers. 3. An information system can indirectly add value by summarizing the feedback from value - added processes for use by management and other organizational employees. The monitoring and control capabilities of an IS are excellent support features. A more contemporary view of the IS function holds that this system is an integral part of the value - adding processes and is key to providing input collection, product transformation, and output creation. In this way, an IS system can become a direct, strategic tool used to accomplish organizational goals and objectives. 4. Reengineering is the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results. Sometimes called process redesign, reengineering can reduce product delivery time, increase product and service quality, enhance customer satisfaction, and increase revenues and profits through challenging the fundamental assumptions of how a business process is done. Reengineering involves strong, broad actions to achieve major goals and is often driven by outsiders or upper management. Information system changes can be key components of reengineering. Another change mechanism, continuous improvement, is routine action taken to constantly and incrementally improve specific tasks. Workers direct this effort and rely on the outputs of an information system to assist in measurement.

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    Principles of Information Systems, Te n th Edition 5. User satisfaction is what a user thinks and feels about a product and its quality. 6. Reengineering is radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results. Continuous improvement is constantly seeking ways to improve business processes to add value to products and services. 7. Technology diffusion measures how widely technology is spread throughout an organization. Technology infusion looks at the extent to which technology is deeply integrated into an area or department. 8. Quality is the ability of a product or service to meet or exceed the expectations of a customer. The intent of management to create quality goods or services is often operationalized through a commitment to a total quality management (TQM) approach to business. This means a collection of approaches, tools, and techniques are used throughout the firm to foster higher levels of quality. Key components in this approach are recognition of customer needs, employee empowerment, having a vision for quality, and developing a reward system. Six Sigma is a statistical term that means products and services will meet quality standards 99.9997% of the time. In a normal distribution curve used in statistics, six standard deviations (Six Sigma) is 99.9997% of the area under the curve. 9. Organizational change is the process used by both profit and nonprofit organizations to plan, implement, and handle change. Organizational learning is a concept by which organizations adapt to new conditions or alter their practices over time. 10. The following table summarizes the basic organizational structures: Organizational Structure Definition Traditional Major department heads report to a president or top - level manager Flat Lower - level employees are empowered to make decisions and solve problems without needing permission from mid - level managers Project Centered on major products or services Team Centered on teams or work groups Multidimensional Incorporates a combination of several structures 11. The change model has three basic components -- unfreezing, moving, and refreezing. Unfreezing is the process of ceasing old habits and creating a climate receptive to change. Moving is learning new behaviors. Refreezing is the process of making the new behaviors a normal, accepted part of the job.

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    Principles of Information Systems, Te n th Edition 12. Downsizing is the planned reduction of a workforce used to reduce costs. It is sometimes called rightsizing. Outsourcing, on the other hand, is contracting with outside professional services to meet business needs. This means that organizational resources are focused on the primary business activity. Professionals handle secondary functions with more expertise in a particular area. In theory, the workforce is not reduced but instead reallocated. 13. Organizations employ various strategies to achieve a competitive advantage. Among these are the forming of alliances with other companies, developing a niche market, maintaining competitive costs, and creating product differentiation. 14. Traditional approaches to finding a job in the information systems area include attending on - campus visits from recruiters and referrals from professors, friends, and family members. Many colleges and universities have excellent programs to help students develop résumés and conduct job interviews. Developing an online résumé can be critical to finding a good job. Many companies accept résumés only online and use software to search for keywords and skills used to screen job candidates. Note that students who use the Internet and other nontraditional sources to find IS jobs have more opportunities to land a job. 15. Productivity is a measure of the output achieved divided by the input required (Productivity [in per cent] = [Output/Input] X 100). Companies can best use productivity measurements by well - managing, training, and motivating employees to use the IS in a way that delivers measurable gains in output. 16. On - demand computing, also called on - demand business and utility computing, involves rapidly responding to an organization’s varying workflow. On - demand computing is an advantage to organizations because i nstead of the business purchasing hardware, software, and database systems, the organization only pays a fee for the systems it needs at peak times. The approach can save money because the organization does not pay for systems that it doesn’t routinely need. On - demand computing also allows the organization’s IS staff to concentrate on more - strategic issues. 17. The total cost of ownership (TCO) is a measurement of the total cost of owning computer equipment including desktop computers, networks, and large computers. Refreezing Unfreezing Moving

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    Principles of Information Systems, Te n th Edition 18. The role of the chief information officer (CIO) is to employ an IS department’s equipment and personnel to help the organization attain its goals . Discussion Questions 1. Firms are seeing widespread growth in positions related to the Internet. Among these are W ebmaster (manages Web site related issues), n etwork specialists, h ardware and W ebserver s pecialists, m arketing and e - c ommerce s pecialists, p rogrammers, g raphic a rtists, and c ontent d evelopers. 2. One possible answer: Raw materials Used CDs from students Inbound logistics Prepaid shipping envelopes Warehouse and storage Storage room/containers and inventory system Process control system Ability to provide quotes to buyers and sellers of CDs and process payments Customer service Phone/email support and ordering, tracking of orders Marketing and sales Marketing plan Retrieval system Ability to locate CDs in inventory for outbound shipping Outbound logistics Ability to send/track CDs sold 3. Student a nswers will vary based on their career choice . 4. Today, the trend is to reduce the number of management levels, or layers, in the traditional organizational structure. This type of structure, often called a flat organizational structure, empowers employees at lower levels to make decisions and solve problems without needing permission from midlevel managers. Empowerment gives employees and their managers more responsibility and authority to make decisions, take action, and have more control over their jobs. 5. You can determine the actual usage of an information system by the amount of technology diffusion and infusion. Technology diffusion is a measure of how widely technology is spread throughout an organization. An organization in which computers and information systems are located in most departments and areas has a high level of technology diffusion. Some online merchants such as Amazon.com have a high diffusion and use computer systems to perform most of their business functions, including marketing, purch asing, and billing. Technology infusion, on the other hand, is the extent to which technology permeates an area or department. In other words, it is a measure of how deeply embedded technology is in an area of the organization. Some architectural firms, for example, use computers in all aspects of designing a building, from drafting to final blueprints.

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    Principles of Information Systems, Te n th Edition The design area, thus, has a high level of infusion. Of course, a firm can have a high level of infusion in one part of its operations and a low level of diffusion overall. The architectural firm might use computers in all aspects of design (high infusion in the design area), but not to perform other business functions, including billing, purchasing, and marketing (low diffusion overall). Diffusion and infusion often depend on the technology available now and in the future, the size and type of the organization, and the environmental factors that include the competition, government regulations, suppliers, and so on. 6. The purpose of this question is to encourage students to think about what the forces in Porter’s model translate to in the real world. The following table provides guidelines and sample responses for the discussion. A company called New Wave Multimedia Desktop Computer Corporation was selected to illustrate the analysis. Company: New Wave Multimedia Desktop Computer Corp . Competitive Force Strategic Plan’s Counter to Competitive Force Rivalry among existing competitors Develop new products and new looks to standard products Threat of new entrants Develop strategic alliances with software/hardware producers to dissuade new startup companies Threat of substitute products Differentiate product line so that fewer substitutes are available: integrate high end speakers, monitors, audio and video components into computer system Bargaining power of buyers Develop high quality service reputation and maintain buyer profiles: make buyers desire a relationship with this corporation through high levels of trust and support Bargaining power of suppliers Develop long term relationships with suppliers and integrate inventory systems with information technology

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