Deck 2: Strategic Decision Making

Question 1

_____________________________ result in a product or service that is received by an organization's external customer.

A) Business-facing processes
B) Customer-facing processes
C) Product-facing processes
D) Supplier-facing processes

Answer 1

B

Question 2

What does examining business processes helps an organization determine?

A) Bottlenecks
B) Eliminate duplicate activities
C) Combine related activities
D) All of the above

Answer 2

D

Question 3

The basic building block of data is provided by ______ system which is further used by other systems for deriving analytical information.

A) Transaction Processing System (TPS)
B) Decision Support System (DSS)
C) Executive Information System (EIS)
D) None of the above

Answer 3

A

Question 4

Which of the following is a common example of a TPS operational accounting system?

A) Payroll system
B) Expert system
C) CRM system
D) CAD system

Question 5

The executive information system analyzes information to help executives in making _____ business decisions.

A) operational
B) managerial
C) strategic
D) None of the above

Question 6

Which of the following represents a top-down structure for decision making in a typical organization?

A) Operational, Managerial, and Strategic
B) Managerial, Operational, and Strategic
C) Strategic, Operational, and Managerial
D) Strategic, Managerial, and Operational

Question 7

Operational decisions focus on ____-term objectives.

A) long
B) short
C) medium
D) None of the above

Question 8

_____ objectives are unstructured.

A) Operational
B) Managerial
C) Strategic
D) All of the above

Question 9

_____ objectives are structured.

A) Operational
B) Managerial
C) Strategic
D) All of the above

Question 10

Strategic decisions focus on ____-term objectives.

A) long
B) short
C) medium
D) None of the above

Question 11

What is the primary reason for growth of Decision-Making Information Systems?

A) People need to analyze large amounts of information
B) People must make decisions quickly
C) People must apply sophisticated analysis techniques, such as modeling and forecasting to make good decisions
D) All of the above

Question 12

What does examining business processes helps an organization determine?

A) Bottlenecks
B) Create duplicate activities
C) Separate related activities
D) All of the above

Question 13

Where is the data stored that is often used to source the data and information contained in decision support and executive information systems?

A) Transaction processing systems
B) AI systems
C) Expert systems
D) CRM system

Question 14

Which of the following is an example of a neural network?

A) Banks use neural networks to find opportunities in financial markets.
B) Police use neural network software to fight crime.
C) Fraud detection widely uses neural networks.
D) All are examples of neural networks.

Question 15

When a company is evaluating whether or not to produce a new product, it is typically a(n) _____________ decision.

A) operational
B) managerial
C) strategic
D) All of the above

Question 16

Which system is used for day-to-day business operational decisions?

A) Transaction Processing System (TPS)
B) Decision Support System (DSS)
C) Executive Information System (EIS)
D) None of the above

Question 17

Which feature can a neural network possess?

A) Learning and adjusting to new circumstances on their own.
B) Functioning without complete or well-structured information.
C) Coping with huge volumes of information with many dependent variables.
D) All are features of neural networks.

Question 18

What is a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint?

A) Information process model
B) Leadership process model
C) Business process model
D) Graphic process model

Question 19

An insurance company may use ___ to analyze the amount of risk the company is undertaking when it insures drivers who have a history of driving under the influence of alcohol.

A) Transaction Processing System (TPS)
B) Decision Support System (DSS)
C) Executive Information System (EIS)
D) None of the above

Question 20

_____ objectives are semi-structured.

A) Operational
B) Managerial
C) Strategic
D) All of the above

Question 21

What is the study of the impact that changes in one (or more) parts of the model have on other parts of the model?

A) Drill-down
B) Sensitivity analysis
C) Statistical analysis
D) Goal-seeking analysis

Question 22

What are various commercial applications of artificial intelligence?

A) Drill-down
B) Sensitivity analysis
C) Digital dashboard
D) Intelligent systems

Question 23

What are the capabilities of OLAP?

A) consolidation of data
B) drill-down data
C) slice-and-dice data
D) All of the above

Question 24

What is drill-down capability?

A) Involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information.
B) The ability to look at information from different perspectives
C) Enables users to get details, and details of details, of information
D) Finds the inputs necessary to achieve a goal such as a desired level of output

Question 25

What finds the inputs necessary to achieve a goal, such as a desired level of output?

A) Drill-down
B) Sensitivity analysis
C) What-if analysis
D) Goal-seeking analysis

Question 26

Which of the following is not a measure of effectiveness IS metric?

A) Usability
B) Customer satisfaction
C) Financial Return on Investment
D) System availability

Question 27

What is business process re-engineering?

A) The analysis and redesign of workflow within and between enterprises
B) A standardized set of activities that accomplish as specific task, such as processing a customer's order
C) Integrates all departments and functions throughout an organization into a single TI system so that employees can make decisions by viewing enterprise-wide information on all business operations
D) None of the above

Question 28

Which of the following is an example of transactional data?

A) Trend projection
B) Sales projection
C) Purchasing stock
D) All of the above

Question 29

What encompasses all summarized or aggregated transactional data, and its primary purpose is to support performing analysis tasks?

A) Transactional information
B) Analytical information
C) Timeliness
D) Quality

Question 30

Which of the following is not a measure of efficiency IS metric?

A) Throughput
B) Usability
C) Transaction speed
D) Response time

Question 31

What is consolidation?

A) Involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information.
B) The ability to look at information from different perspectives
C) Enables users to get details, and details of details, of information
D) Finds the inputs necessary to achieve a goal such as a desired level of output

Question 32

What integrates information from multiple components and tailors the information to individual preferences?

A) Drill-down
B) Sensitivity analysis
C) What-if analysis
D) Digital dashboard

Question 33

Which of the following is not a reason for the growth of decision-making information systems?

A) People need to analyze large amounts of information
B) People must make decisions quickly
C) People must apply sophisticated analysis techniques to make good decisions
D) People no longer have to worry about protecting the corporate asset of organizational information

Question 34

Which company used BPR to change its industry by implementing a mobile claims process?

A) Saab
B) Progressive Insurance
C) Trek
D) Charles Schwab

Question 35

A digital dashboard is an example of _______.

A) EIS
B) DSS
C) TPS
D) None of the above

Question 36

What is slice-and-dice capability?

A) Involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information.
B) The ability to look at information from different perspectives
C) Enables users to get details, and details of details, of information
D) Finds the inputs necessary to achieve a goal such as a desired level of output

Question 37

What represents the current state of the operation that has been mapped, without any specific improvements or changes to existing processes?

A) As-Is process models
B) To-Be process models
C) Past process models
D) Future process models

Question 38

What is a business process?

A) The analysis and redesign of workflow within and between enterprises
B) A standardized set of activities that accomplish as specific task, such as processing a customer's order
C) Integrates all departments and functions throughout an organization into a single TI system so that employees can make decisions by viewing enterprise-wide information on all business operations
D) None of the above

Question 39

Which of the following is a quantitative model typically used by a DSS?

A) Sensitivity analysis
B) What-if analysis
C) Goal-seeking analysis
D) All of the above

Question 40

What is the purpose of business process re-engineering?

A) To make all business processes best-in-class
B) To make all employees best-in-class
C) To make all business partners best-in-class
D) All of the above

Question 41

Which system differentiates an executive information system from a decision support system and a transaction processing system?

A) Order processing system
B) Manufacturing system
C) Stock market information system
D) Transportation system

Question 42

Key performance indicators (KPIs) are the measures that are tied to business drivers.

Question 43

What is an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem?

A) Intelligent system
B) Artificial intelligence
C) Neural network
D) Genetic algorithm

Question 44

Which of the following is a type of decision support system?

A) Order processing
B) Inventory tracking
C) Manufacturing
D) All of the above

Question 45

What encompasses all of the information contained within a single business process or unit of work and its primary purpose is to support the performing of daily operational tasks?

A) Transactional data
B) Analytical information
C) Timeliness
D) Quality

Question 46

Which system imitates the reasoning processes of a skilled professional in solving difficult problems?

A) Intelligent system
B) Artificial intelligence
C) Expert system
D) Neural network

Question 47

Which of the following is an example of transactional data?

A) Withdrawing cash from an ATM
B) Making an airline reservation
C) Purchasing stock
D) All of the above

Question 48

Which company offers a strategic business information service using artificial intelligence that enables organizations to track the product offering, pricing policies, and promotions of online competitors?

A) Burlington Northern and Santa Fe Railroad
B) BostonCoach
C) Verizon Communications
D) RivalWatch

Question 49

What is a special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users?

A) Intelligent system
B) Artificial intelligence
C) Neural network
D) Intelligent agent

Question 50

Which of the following is the most commonly used form of AI in the business arena?

A) Intelligent system
B) Artificial intelligence
C) Expert system
D) Neural network

Question 51

Which artificial intelligence system enables telepresence, where users can be anywhere in the world and the system allows them to work alone or together at a remote site?

A) Expert System
B) Intelligent Agent
C) Multi-Agent Systems and Agent-Based Modeling
D) Virtual Reality

Question 52

Which of the following is a type of transaction processing system?

A) Order processing
B) Sales
C) Manufacturing
D) Transportation

Question 53

Strategic decisions focus on short-term objectives whereas operational decisions focus on long-term objectives.

Question 54

Which of the following is the computer simulation software that allows a surgeon from a remote location to perform a surgery operation by using the equipment that can be controlled remotely?

A) Expert System
B) Intelligent Agent
C) Multi-Agent Systems and Agent-Based Modeling
D) Virtual Reality

Question 55

Which company has "The Wall of Shaygan", which is a digital dashboard that tracks 100-plus IT systems on a single screen?

A) Burlington Northern and Santa Fe Railroad
B) BostonCoach
C) Verizon Communications
D) RivalWatch

Question 56

Which of the following represents a mathematical method of handling imprecise or subjective information?

A) Genetic algorithm
B) Fuzzy logic
C) Market basket analysis
D) Statistical analysis

Question 57

Which of the following represents the top-down (executives to analysts) organizational levels of information technology systems?

A) TPS, DSS, EIS
B) DSS, TPS, EIS
C) EIS, DSS, TPS
D) None of these choices are correct; it varies from organization to organization

Question 58

Key performance indicators (KPIs) are the crucial steps companies perform to achieve their goals and objectives and implement their strategies.

Question 59

Which of the following is an incorrect enterprise view of information technology?

A) Processes are analytical for executives and transactional for analysts
B) Granularity is coarse for executives and fine for analysts
C) Processing is OLTP for executives and OLAP for analysts
D) None of the above

Question 60

What is a category of AI that attempts to emulate the way the human brain works?

A) Intelligent system
B) Artificial intelligence
C) Expert systems
D) Neural network

Question 61

A common example of TPS is an operational accounting system such as a payroll system.

Question 62

Data stored in transaction processing systems is rarely used to source the data and information contained in decision support and executive information systems.

Question 63

Critical success factors (CSFs) are the crucial steps companies perform to achieve their goals and objectives and implement their strategies.

Question 64

With information systems, efficiency IS metrics measure the performance of information system itself whereas effectiveness IS metrics measure the impact that IS has on business processes.

Question 65

A genetic algorithm is an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem.

Question 66

"Doing things right" addresses effectiveness whereas "Doing the right things" addresses efficiency.

Question 67

As-Is process models show the results of applying change improvement opportunities to the current (As-Is) process model.

Question 68

Sensitivity analysis, what-if analysis, and market basket analysis are the three quantitative models typically used by a DSS.

Question 69

Consolidation, drill-down, and slice-and-dice are the three most common capabilities offered in an OLAP-based system.

Question 70

Mail-order companies use neural networks to determine which customers are and are not likely to order from their catalogues.

Question 71

Progressive Insurance used CRM to revamp its insurance claims process.

Question 72

Purchasing stocks is an example of analytical information.

Question 73

Benchmarks are baseline values the system seeks to attain.

Question 74

Virtual reality is a computer-simulated environment that can be a simulated world or an imaginary world.

Question 75

The ultimate goal of AI is the ability to build a system that can mimic human intelligence.

Question 76

A shopping bot is one of the simplest examples of an intelligent agent.

Question 77

Key performance indicators (KPIs) are the quantifiable metrics a company uses to evaluate progress toward critical success factors.

Question 78

Companies frequently strive to improve their business processes by performing tasks faster, cheaper, and better.

Question 79

Transactional data is used when performing operational tasks and repetitive decisions such as analyzing daily sales reports and production schedules to determine how much inventory to carry.

Question 80

A business process is the analysis and redesign of workflow within and between enterprises.