Question 1

By adding a significant amount of value to their products and services, organizations ensure that they will exceed budgets and generate income losses.

Accepted Answer

By adding value to their products and services, organizations can actually increase their revenue and profitability. This statement suggests that adding value can lead to budget and income losses, which is false.

Question 2

Studies have shown that user satisfaction and technology acceptance are not particularly significant in healthcare, as professionals in this industry are quick to learn and accept new technology.

Accepted Answer

This statement is false. Studies have actually shown that user satisfaction and technology acceptance are significant in healthcare, as healthcare professionals may be resistant to change and require extensive training to effectively use new technology.

Question 3

An organization is a system, which means that it has inputs, processing, outputs, and feedback.

Accepted Answer

An organization is a system that takes in inputs, processes them through a series of activities, and produces outputs. It also receives feedback on its outputs, which can then be used to improve its processing and outputs.

Question 4

Systems analysis defines the problems and opportunities associated with the existing system.

Accepted Answer

Systems analysis generally involves identifying problems and opportunities associated with an existing system, and then proposing ways to improve or enhance it.

Question 5

The primary goal of a for-profit organization is to maximize shareholder value.

Accepted Answer

A for-profit organization's priority is to generate profits and maximize shareholder value.

Question 6

Information systems can help bring new products and services in less time, thus reducing time to market.

Accepted Answer

Information systems can streamline and automate product development processes, allowing organizations to bring new products and services to market faster. This can give them a competitive advantage by being the first to offer new and innovative products.

Question 7

If an organization has a high level of both diffusion and infusion, with computers throughout the organization, information systems are being used to their full potential.

Accepted Answer

The answer of If an organization has a high level...

Question 8

Improved productivity can result in faster customer response, lower costs, and increased customer satisfaction.

Accepted Answer

Improved productivity can lead to faster completion of tasks, which can result in faster customer response times. In addition, improved productivity can lead to lower costs as resources are used more efficiently. This can lead to increased customer satisfaction as businesses are able to provide goods and services more quickly and at a lower cost.

Question 9

Many companies in the computer industry introduce new products and services frequently in an attempt to gain a cost leadership position.

Accepted Answer

Many companies in the computer industry introduce new products and services frequently, but their aim is not always to gain a cost leadership position. They may also be competing on innovation, differentiation, quality, or other factors.

Question 10

According to Porter's five-forces model, the more these forces combine in any instance, the less likely it is that firms will seek competitive advantage and the less obvious the results of such an advantage will be.

Accepted Answer

Porter's five-forces model suggests that the more these forces combine, the more intense the competition and the harder it is for firms to achieve and maintain a competitive advantage.

Question 11

Disruptive change often results in new, successful companies and offers consumers the potential of new products and services at reduced costs with superior performance.

Accepted Answer

Disruptive change can lead to the emergence of new, innovative companies that can provide consumers with better products and services at a lower cost than established companies. This is because disruptive innovation often involves creating new markets or redefining existing ones by introducing new technologies or approaches that fundamentally change how things are done. As a result, startups and entrepreneurial ventures can use disruptive technology to gain a competitive advantage over larger, more established companies.

Question 12

Today, companies are shifting from strategic management to performance-based management of their information systems and carefully consider both strategic advantage and costs.

Accepted Answer

This statement is true. Many companies are now focusing on performance-based management of their information systems, which means they are not only considering strategic advantage but also costs.

Question 13

The degree to which an organization supports the use of an information system is not an important factor that can lead to better attitudes about it.

Accepted Answer

The degree to which an organization supports the use of an information system can have a significant impact on the attitudes of the employees towards it. When an organization invests in providing adequate training, resources and incentives for using the information system, employees are more likely to view it positively and adopt it in their work processes. Conversely, lack of support from the organization can lead to resistance, skepticism and negative attitudes towards the information system.

Question 14

Because of the difficulty in determining all the costs, total cost of ownership is seldom used to plan for and maximize the value of IS investments.

Accepted Answer

Total cost of ownership is a useful tool for planning and maximizing the value of IS investments, but it can be challenging to determine all the costs involved.

Question 15

ROI calculations can be complex, including investment returns over multiple years and the impact of the time value of money.

Accepted Answer

ROI calculations can involve multiple factors like the duration of investment and the effect of inflation on the returns. Therefore, the calculation can be complicated, and it may require detailed analysis for a correct assessment.

Question 16

An organization can have a high level of infusion in one part of its operations and a low level of diffusion overall.

Accepted Answer

Infusion refers to the degree to which a technology is integrated into a specific area of an organization, while diffusion refers to the degree to which it is adopted throughout the organization. Therefore, it is possible for an organization to have a high level of infusion in one area but not have widespread adoption, resulting in a low level of diffusion overall.

Question 17

The systems development component focuses solely on the development of new information systems and seldom becomes involved in the maintenance and review of information systems.

Accepted Answer

The systems development component is also involved in the maintenance and review of information systems, not just the development of new ones.

Question 18

One organization can spend less than another on information systems, but still get better value.

Accepted Answer

The amount of money spent on information systems does not necessarily determine the value received. Factors such as the effectiveness of the system, the level of integration with other systems, and the level of user adoption can all impact the value received from an information system. Therefore, organization A could spend less than organization B, but still get better value if their system is more effective and/or their users are more engaged.

Question 19

Reengineering and continuous improvement mean the same thing.

Accepted Answer

While both reengineering and continuous improvement involve making changes to improve processes, reengineering typically involves more radical and fundamental changes while continuous improvement involves smaller, incremental changes over time.

Question 20

When the threat of new market entrants is high, the desire to seek and maintain competitive advantage to dissuade new entrants is also usually high.

Accepted Answer

This statement is correct. When there is a high threat of new competitors entering the market, existing companies are more motivated to differentiate themselves and establish a competitive advantage to make it more difficult for new entrants to succeed.

Quiz 1: Introduction to Information Systems