Principles of Information Systems, 11th Edition solutions manual and test bank
- Ralph M. Stair Florida State University
- George Reynolds Strayer University
- ISBN-10: 1133629660
- ISBN-13: 9781133629665
- 712 Pages Hardcover
- Previous Editions: 2012, 2010, 2008
- © 2014 | Published
Blackboard 6-7 TestBanks Blackboard 7.1-9.0 TestBanks ExamView Testbanks Figure Files Instructor Manual PowerPoint Presentations Solutions to Exercises Syllabus WebCT 6_Vista 4 TestBanks | Solutions – Chapter 2 |
Ethical and Societal Issues
Electronic Medical Records
Discussion Questions
1. Student responses will vary.
2. EMRs would provide your doctor with:
· Quick access to complete patient record
· Information about life threatening allergies
· Lab results
Critical Thinking Questions
1. Student responses will vary.
- Electronic health records can provide many benefits for providers and their patients, but the benefits depend on how they are used. Meaningful use is the set of standards defined by the Centers for Medicare & Medicaid Services (CMS) Incentive Programs that governs the use of electronic health records and allows eligible providers and hospitals to earn incentive payments by meeting specific criteria. (Source:
Information Systems @ Work
Profile of a CIO: Bringing Technology to Health Care
Discussion Questions
- Student responses will vary.
Critical Thinking Questions
1. Student responses will vary. An organization’s CIO does not manage an organization’s computer information systems. Instead, he/she establishes a strategy for information technology applications, development, and infrastructure and effectively implements all related activities, in alignment with business strategies and goals.
2. Student 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 supply chain is a network of suppliers, distributors, and retailers that participate in the production of a product.
2. Supply chain management (SCM) helps determine what supplies are required for the value chain, what quantities are needed to meet customer demand, how the supplies should be processed (manufactured) into finished goods and services, and how the shipment of supplies and products to customers should be scheduled, monitored, and controlled.
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.
5. Technology diffusion is a measure of how widely technology is spread throughout an organization.
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 culture consists of the major understandings and assumptions for a business, corporation, or other organization. The understandings, which can include common beliefs, values, and approaches to decision making, are often not stated or documented as goals or formal policies. For example, employees might be expected to be clean-cut, wear conservative outfits, and be courteous in dealing with all customers. Sometimes organizational culture is formed over years. Organizational change is the process used by both profit and nonprofit organizations to plan, implement, and handle change.
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.
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. Students who use the Internet and other nontraditional sources to find IS jobs have more opportunities to land a job. Many Web sites, such as Dice.com, CareerBuilder.com, TheLadders.com, LinkedIn.com, Computerjobs.com, and Monster.com, post job opportunities for Internet careers and more traditional careers.
15. Productivity is a measure of the output achieved divided by the input required (Productivity [in percent] = [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 instead 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.
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 Webmaster (manages Web site related issues), network specialists, hardware and Webserver specialists, marketing and e-commerce specialists, programmers, graphic artists, and content developers.
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 answers will vary based on their career choice.
4. To encourage innovation, some IS departments are creating separate groups that explore new, innovative ideas. Innovative companies include Apple, Facebook, Google, Amazon, Twitter, Kickstarter, and PayPal.
5. 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, purchasing, 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. 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 |
7. A strategy that may serve New Wave Multimedia Desktop Computer Corporation well is the development of a niche market. This would help them build and protect their spot as a leading vendor of high-end multimedia computer systems. Students will respond to the discussion with a wide variety of responses. The best approach might be to encourage them to think in terms of strategic alliances, niche markets, competitive cost approaches, and product differentiation used either alone or in combination to protect the ‘turf’ of their example corporation.
8. Students who use the Internet and other nontraditional sources to find IS jobs have more opportunities to land a job. Most large companies list job opportunities on their Web sites. These sites allow prospective job hunters to browse job opportunities, locations, salaries, benefits, and other factors. In addition, some sites allow job hunters to post their résumés.
Note that students are often warned to be careful of what they post on social media sites, including Facebook. Employers often search the Internet to get information about potential employees before they make hiring decisions.
9. The characteristics of the CIO would include virtue, courage, loyalty, honesty, and leadership.
Problem-Solving Exercises
1. Student answers will vary based on their chosen industry and firms.2. Initial spreadsheet with ROI:
| Year | Year | Year | Year | Year | ||
| 1 | 2 | 3 | 4 | 5 | ||
| Increased Revenue | $ - | $ 100.00 | $ 150.00 | $ 200.00 | $ 250.00 | |
| Cost Savings | $ - | $ 50.00 | $ 50.00 | $ 50.00 | $ 50.00 | |
| Depreciation | $ - | $ 75.00 | $ 75.00 | $ 75.00 | $ 75.00 | |
| Initial Expense | $ 500.00 | |||||
| Profit | $ - | $ 75.00 | $ 200.00 | $ 375.00 | $ 600.00 | |
| ROI | 0% | 15% | 40% | 75% | 120% | |
| All amounts in thousands. |
Additional revenue and cost savings model.
| Year | Year | Year | Year | Year | ||
| 1 | 2 | 3 | 4 | 5 | ||
| Increased Revenue | $ 50.00 | $ 100.00 | $ 150.00 | $ 200.00 | $ 250.00 | |
| Cost Savings | $ 25.00 | $ 50.00 | $ 50.00 | $ 50.00 | $ 50.00 | |
| Depreciation | $ - | $ 75.00 | $ 75.00 | $ 75.00 | $ 75.00 | |
| Initial Expense | $ 500.00 | |||||
| Profit | $ 75.00 | $ 150.00 | $ 275.00 | $ 450.00 | $ 675.00 | |
| ROI | 15% | 30% | 55% | 90% | 135% | |
| All amounts in thousands. |
3. Five popular job sites include whttp://ww.monster.com, http://www.careerbuilder.com, http://www.dice.com, http://www.indeed.com, http://www.simplyhired.com.
Team Activities
1. Students should interview one or more instructors or professors about the organizational culture at their college or university.2. Students should research a firm that has achieved a competitive advantage.
Web Exercises
- Students could research companies listed in Chapter 1 and Chapter 2. Below are a few of the company Web sites mentioned:
- http://www.salesforce.com
- http://www.facebook.com
- http://www.myspace.com
- http://www.twitter.com
- http://www.MyFleetAtPenske.com
- http://www.fedex.com
Career Exercises
- Students should submit a business plan that describes how they would create a successful business.
- Students should analyze several Internet sites that can be used to find a job and submit a report that discusses their findings.
Case 1: Gaining the Edge
Discussion Questions
- The loser with the TUI system seems to be the travel company that used to set the prices. The new system is justified as it is more efficient, less time consuming, and increases profits.
- TUI’s system affects rivalry among existing competitors.
Critical Thinking Questions
- Student responses will vary.
- The book store could consider implementing a database system that stores information about their customers’ purchasing habits. It could then inform customers when a book they may be interested is in the store, when they’re eligible for free paperbacks, etc.
Case 2: Listen to Customers with Voice of the Customer Programs
Discussion Questions
- The customer’s experience can be construed as both good and bad. Good, because the customer admits that she “really love going to Fashion Bug.” If the jeans were sorted by size, her experience would significantly improve.
- Recall that quality is “the ability of a product or service to meet or exceed customer expectations.” In other words, it depends on what customers want or expect. If VOC programs are used properly to determine this, and if the company delivers, then it will gain a competitive advantage.
- Student responses will vary.
§ Meals they enjoy and why
§ Cost
§ Customer service
Information from their own records
§ Meals that sell well
§ Expenses
- Student responses will vary. Vendors who provide VOC programs include:
§ Attensity (www.attensity.com/home)
§ EmPower Research (www.empowerresearch.com)
Questions for Web Case
Altitude Online: Addressing the Needs of the Organization
Discussion Questions
- By starting from scratch with a unified platform, the system engineers will be able to craft a system that meets currently neglected business needs. The new system can provide state-of-the-art information management practices that give the company a strong competitive advantage.
- Altitude Online requires industry-specific systems. Those in the online advertising and marketing industry have information system needs that go beyond standard business systems.
- The stakeholders are in twelve locations across the country.
- Altitude Online could benefit from the expertise of a company like SAP in the following areas: supply chain management, financials, project management, human resource, customer relationship management, and a variety of data services.
