September 4, 2013
Chapter 2 Review Questions
1 Operational Level is the day-to-day business processes and interactions with customers occur. Information Systems at this level are designed to automate repetitive activities. Structured Decisions: are those in which the procedures to follow for a given situation can be specified in advance. Since these decisions are so straightforward, they can be programmed into operational information systems to avoid human intervention.
At the managerial level, functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization. They focus on effectively utilizing and deploying organizational resources to achieve the objectives of the organization. Semi-Structured Decisions: some procedures to follow for a given situation can be specified in advance but not to the extent where a specific recommendation can be made. Key Performance Indicators (KPI's): The metrics deemed most critical to assessing progress toward a certain goal. Typically displayed on a performance dashboard
Executive Level is when managers focus on long-tern strategic questions facing the organization. (ex. Which products to make and which countries to compete in.) Executive level decisions deal with complex problems with broad and long-term ramifications for the organization. Unstructured Decisions: few or no procedures to follow for a given situation can be specified in advance.
2. Automating is when someone with an automating mindset thinks of technology as a way to help complete a task within an organization faster, cheaper and with greater accuracy. Learning is the act, process, or experience of gaining knowledge or skill.
3. A learning organization is when someone is skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. A learning approach allows people to track and learn about the types of applications filed by certain types of people at certain times of the year.
4. The five general types of organizational strategy are listed as the following: 1. Overall low-cost leadership strategy 2. Broad differentiation strategy 3. Focused low-cost strategy 4. Focused differentiation strategy 5. Best-cost provider strategy
5. An organization has competitive advantage whenever it has an edge over rivals in attracting customers and defending against competitive forces. In order to be successful, a business must have a clear vision, one that focuses investments in resources such as information systems and technologies to help achieve a competitive advantage. Some sources of competitive advantage included the following:
1. Having the best-made product on the market
2. Delivering superior customer service
3. Achieving lower costs than rivals
4. Having a proprietary manufacturing technology, formula, or algorithm
5. Having shorter lead times in developing and test new products
6. Having a well-known brand name and reputation
7. Giving customers more value for their money
6. The multidomestic business strategy is particularly suited for operations in markets differing widely. This strategy uses a loose federation of associated business units, each of which is rather independent in their strategic decisions.
7. Information systems are often bought from or built by someone else. They are often either purchased from a vendor or developed by a consultant or outsourcing partner. In these situations, the information systems are usually