Comm 226- Chapter 4

Front 1

VALUE CHAIN

Back 1

series of activities, each of which adds values/supports the addition of value to firms G+S

Front 2

each action an org. takes, from securing the necessary raw mat. (input)-> making goods or serv. (process) -> completing transact. w/ customer (output) is either a ___ or ____ activity.

Back 2

1. primary
2. support

Front 3

Activities directly related to prod. +dist. of org. prod +serv. that create bus. value for the org. and customers.

Back 3

primary act.

Front 4

Obtaining raw mat, creating prod, shipping it , selling are examples of what type of act.

Back 4

primary act.

Front 5

5 components of value chain

Back 5

1. inbound logistics
2. operations
3. outbound logistics
4. mark.&sales
5. service

Front 6

Receiving, warehousing, inventory control of raw mat are part of which component in value chain

Back 6

inbound logistics

Front 7

value- creating/proprietary activ. that transform raw inputs into to final prod. are part of which component of value chain?

Back 7

operations

Front 8

activities that require to get te finished prod to customer(packaging, warehousing, order fulfillment) are part of which component of value chain?

Back 8

outbound logistics

Front 9

activities to get buyers to purchase prod & working w/ distributors, retailers, online channels...are part of which component of value chain?

Back 9

Marketing &sales

Front 10

Activities that maintain and enhance prod.'s value, (customer support, repair service, warranty, recall) are part of which component of value chain?

Back 10

Service

Front 11

Value chain act. that an org. conducts to support creation of bus. value including
1. firm infrastructure
2. tech. devel.
3. HR manag
4. procurement

Back 11

Support activities

Front 12

8 types of IS (MOST common)

Back 12

1. functional (FIS)
2 workflow manag. sys (WMS)
3. TPS
4. manag. info and document man.syst
5. knowledge manag sys
6. DSS
7. Supply chain man.
8. ERP (enterprise resource planning)

Front 13

type of IS divided along lines that corresponds to functional dep't.

Back 13

Functional IS. (FIS)

Front 14

acco IS, mark. IS, HR IS, Financial IS are examples of what type of IS

Back 14

FIS

Front 15

Type of IS that supports activities that several dep'ts of org may carry out and focuses on bus. process from beginning to end.

Back 15

WMS (workflow man. syst)

Front 16

Represents steps, resources, input and output data and tools needed to complete bus. process

Back 16

Workflow

Front 17

statement that defines/constrains some aspect of business

Back 17

Business rule

Front 18

Type of IS that controls flow of both activ. and data involved in transaction.

Back 18

TPS

Front 19

This IS must incorporate
- logic of controlling and enabling transactions
- bus. rules of org.
-necessary error- handling logic

Back 19

TPS

Front 20

A transactions has the following 4 characteristics:

Back 20

(ACID)
Atomicity (completed)
Consistency (preserved)
Isolation (independent)
Durability (permanent)

Front 21

Type of IS that uses captured +stored data to create info for decision making.

Back 21

MIS

Front 22

3 types of reports generated by MIS

Back 22

1. periodic
2. exception
3. demand

Front 23

Report updated/generated after specific time period has passed

Back 23

periodic

Front 24

report to monitor when/why exceptions occur of key values, critical to operation

Back 24

exception

Front 25

report generated based on user request (ex. based on querying)

Back 25

demand

Front 26

IS to provide summary info about bus. performance to those making higher- level strat. decisions

Back 26

Executive info. syst (EIS)

Front 27

IS that enters, tracks, routes, processes many documents used in org.( including all 3 reports as well)

Back 27

Document man. syst. (DMS)

Front 28

DMS can create doc. electronically and convert them to elect. form using ____ technology

Back 28

imaging

Front 29

Type of IS that involves, recognizes, manages, generates, shares knowledge

Back 29

Knowledge man. syst (KMS)

Front 30

form of knowledge manag. that tries to capture and store knowledge of human expert

Back 30

expert syst. (tacit knowledge)

Front 31

Knowledge man. syst are a form of ______that tries to provide computer applications that mimic human intelligence.

Back 31

Artifcial intellignece

Front 32

To support tacit knowledge manag, this software is used fir comm. tools, to form shared workspaces to store common files, conferencing tools..:

Back 32

collaborative software (groupware)

Front 33

Type of IS that help businesses use comm. techno., knowledge, models to orrganize/access date to perform decision-making act.

Back 33

DSS

Front 34

5 types of DSS

Back 34

1. comm. driven
2. data-driven
3. document driven
4. knowledge driven
5. model driven

Front 35

conferencing tools, email chat are ex. of this type of DSS

Back 35

comm. driven

Front 36

Exec. IS, geog. IS, OLAP-enabled data warehouses are ex. of this type of DSS

Back 36

Data driven

Front 37

DMS, search services are ex. of this type of DSS

Back 37

document- driven

Front 38

expert syst., data mining are ex. of this type of DSS

Back 38

knowledge-driven

Front 39

financial, statistics, optimization and stimulation models are ex. of this type of DSS

Back 39

model-driven

Front 40

true/false
more value is created by keeping each component of value chain separate, focusing only on its contribution to bus. value

Back 40

false

Front 41

a ____ allows the data from transact. to be processed and passed on immediately to org. data storage
a. DSS
b. FIS
c. WMS
d. TPS

Back 41

d. TPS

Front 42

___ are computer syst. that support teamwork, comm, and collaboration.
a. DSS
b. groupware
c. TPS
d. WMS

Back 42

b.

Front 43

this type of IS is manages materials, info and finances as they move from supplier to manuf. to wholesaler, to retailer to consumer.

Back 43

Supply chain manag. (SCM)

Front 44

a system involved in moving prod or serv. from supplier to customer

Back 44

Supply chain

Front 45

typical modules in any supply chain manag. include (4)

Back 45

-material man.
- inventory man.
- order man.
- logistics man.

Front 46

This IS is the cornerstone and starting pt. of ERP syst. implementations

Back 46

SCM

Front 47

Software that integrates the dep'ts and functions across an org. , streamlines bus. processes and can support all areas of supply chain

Back 47

ERP

Front 48

Disadvantage of ERP

Back 48

- can become highly complex and difficult to manage when it grows (requires customization)

Front 49

large scale applications that support bus. units or functions (+another way that an org. might apply IT to its value chain)

Back 49

Enterprise syst.

Front 50

Enterprise syst that provides tools to service customers

Back 50

CRM

Front 51

enterprise syst that aims at automating and optimizing admin. processes to reduce costs and ensure efficiency

Back 51

Admin. + finan. syst

Front 52

enterprise syst that support recruiting, hiring, training and compensation

Back 52

HR

Front 53

enterprise syst that supports value-creating act. of the org. (Intranet for eg)

Back 53

techno. develop.

Front 54

raw materials necessary for prod/serv are acquired thru ____syst

Back 54

procurement

Front 55

Ways for IT to create bus. value

Back 55

1. integrating techno (reduce costs)
2. develop specific IT strat. to eneable bus to implement strat.

Front 56

enterprise software that is essentially done by renting

Back 56

Software as a Service (SaaS)

Front 57

services that provide on-demand software, hosted on servers, which can be accessed from anywhere

Back 57

utility computing serv.

Front 58

software can be provided to organ. thru a ____

Back 58

Application service provider (ASP)

Front 59

An online techno company that develops and delivers software tools on Internet

Back 59

ASP

Front 60

true/false
metrics are not necessary when implementing an enterprise syst. because enterprise syst. always improve efficiency of value chain

Back 60

false

Front 61

which of the following is not a source of enterprise syst
a. asp
b. ide
c. custom develop.
d. saas

Back 61

b

Front 62

operations and the IT syst. that support it tend to be ___as it is here that proprietary practives are used to gain comp. adv.

Back 62

unique

Front 63

4 views of how bus. can derive benefits by applying IT(strategically fitting IT to org.)

Back 63

(SAInT)
Support of value chain
Automating
Informating
Transforming

Front 64

process
-effected by an entity's stakeholders
-applied strat. across enterprise
- designed to identify potential events that may affect entity +manage risk to be within risk appetite

Back 64

ERM (enterprise risk management)

Front 65

Adhering to the laws is refered to

Back 65

Compliance

Front 66

___reduces risk thru policies and processes that ensure proper financ. and acco procedures

Back 66

compliance

Front 67

5 risk reduction methods

Back 67

1- risk transfer
2- risk deferral
3- risk reduction
4- risk acceptance
5- risk avoidance

Front 68

risk-reduction method that moves the risk to someonw who's more able to deal w/ it

Back 68

risk transfer

Front 69

risk reduction method that postpones exposure risk until it can be dealt w/ effectively

Back 69

risk deferral

Front 70

risk reduct. method that either reduces probab. of risk or lessen impact

Back 70

risk reduction

Front 71

risk -reduct. method that realize that some risks are unavoidable

Back 71

risk acceptance

Front 72

risk reduct. method that eliminate the possibility of risk occurring

Back 72

risk avoidance

Front 73

3 steps to applying risk framework

Back 73

1. identify and categorize potential risks
2. assess risks and threats (impact and likelihood)
3. determine likelihood of doS attack using data from surveys for eg.

Front 74

the strengthening of internal controls and compliance thru application of IT based controls to bus processes, policies, and procedures

Back 74

control advantage

Front 75

process that runs throughout the org. influencing how people behave at work

Back 75

control

Front 76

specific actions, (policies+procedures) designed to ensure achievement of bus objectives

Back 76

controls

Front 77

preocess designed to provide reasonable assurance regarding:
- effectiveness and efficiency of operations
- reliability of financ. reporting
- compliance w/ applicable laws and regulations
- could be preventive, detective, corrective

Back 77

internal control

Front 78

7 internal control processes

Back 78

1. segregation of duties
2. authorization
3. security
4. ID codes
5. verification
6. control totals
7. supervisory review

Front 79

internal control process that ensures that there are no conflicts of interest

Back 79

segreg. of duties

Front 80

internal control process defining scope of work

Back 80

authorization

Front 81

internal control process definining access rights

Back 81

security

Front 82

internal control process that create an audit trail that org. can follow to ensure proper controls

Back 82

id codes

Front 83

internal control process that can confirm that application is being accomplished

Back 83

verification

Front 84

internal control process that can help detect fraudulent actions

Back 84

control totals

Front 85

internal control process that allows for supervisors to periodically audit and review processes and transactions

Back 85

supervisory review

Front 86

which one of the following is not an organiz. response to risk
a. risk avoidance
b. risk acceptance
c. risk behaviour
d. risk reduction

Back 86

c

Front 87

true / false
corrective controls reduce risk by discovering when preventive controls have failed and providing notification that action must be taken

Back 87

false

Front 88

1. A supply chain is a system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer.
A. True
B. False

Back 88

a

Front 89

The type of decision support system that focuses on retrieval and management of unstructured documents is:
A. communications-driven DSS
B. data-driven DSS
C. knowledge-driven DSS
D. none of the above

Back 89

d

Front 90

In order to streamline a business, software that works across the functions in an organization, using a single database, is called a:
A. supply chain management system
B. enterprise resource planning system
C. decision support system
D. inventory management system

Back 90

b

Front 91

Buying insurance is an example of:
A. risk deferral
B. risk reduction
C. risk acceptance
D. risk transfer

Back 91

d

Front 92

The strengthening of internal controls and compliance through the application of IT-based controls to business processes, policies and procedures is called:
A. control advantage
B. control implementation
C. business continuity plan
D. strategy

Back 92

a

Front 93

1. In the early days, management information systems (MIS) were used specifically to meet the need of storing processed transaction data as reports for managers.
A. True
B. False

Back 93

a

Front 94

Risk is an essential element of business.
A. True
B. False

Back 94

b

Front 95

The core components of a typical value chain include:
A. inbound and outbound logistics
B. marketing and sales
C. operations and service
D. all of the above

Back 95

d

Front 96

_______________ IS includes internal input items such as financial objectives and project needs, and external input items such as competitor and environmental data.
A. Marketing
B. Human resources
C. Financial
D. Manufacturing

Back 96

c

Front 97

A transaction is a unit of work that has the following characteristics:
A. isolation, durability
B. processes, atomicity
C. repeated, simplicity
D. replicable, scheduled

Back 97

a

Front 98

6. A characteristic of a periodic report is:
A. that it is created on demand
B. that it monitors when exceptions occur
C. it is created on a schedule (e.g., monthly)
D. that it incorporates data into a mathematical model of a situation

Back 98

c

Front 99

Which of the following is NOT a disadvantage of ERP systems?
A. They are incredibly complex.
B. They force streamlining of business processes.
C. They can be difficult to manage as they grow.
D. They must be customized for the business processes they support.

Back 99

b

Front 100

Which of the following activities are NOT considered part of “operations”?
A. Administrative processes
B. Creation of product or service
C. Manufacturing
D. Design of new products

Back 100

a

Front 101

Realizing that some risks are unavoidable and making sure that contingency plans are in place is an action associated with which risk response?
A. risk transfer
B. risk acceptance
C. risk reduction
D. risk avoidance

Back 101

b

Front 102

When compared to application service providers (ASP) , software as a service (SaaS) has the following characteristic:
A. client has some control over the system
B. pricing model is either monthly, flat fee, or subscription
C. for a price, can implement major deviations from the core product.
D. none of the above

Back 102

d

Front 103

________ are the value-creating and often proprietary activities that transform the raw inputs into the final product.
A. Inbound logistics
B. Operations
C. Outbound logistics
D. Service activities

Back 103

b

Front 104

__________ are those activities that maintain and enhance a product's value.
A. Inbound logistics
B. Operations
C. Outbound logistics
D. Service activities

Back 104

d

Front 105

An example of a functional information system (FIS) is:
A. accounting IS
B. ERP
C. TPS
D. MIS

Back 105

a

Front 106

Executive information systems are designed to:
A. store processed transaction data as reports
B. provide summary information about business performance to those making higher level strategic decisions
C. enter, track, route, and processes the many documents used in an organization
D. generate reports such as periodic and exception reports

Back 106

b

Front 107

Communications-driven decision support systems (DSS):
A. emphasize access to and manipulation of internal company data
B. focus on retrieval and management of unstructured documents
C. provide special problem-solving tools that help decision making by recommending actions to users
D. focus on collaboration and shared decision making

Back 107

d

Front 108

An example of knowledge-driven DSS is:
A. expert systems (es)
B. financial and statistical models
C. optimization and simulation models
D. conferencing tools

Back 108

a

Front 109

Supply chain management does the following:
A. manages materials, information, and finances as they move from supplier to manufacturer
B. manages materials, information, and finances as they move from manufacturer to wholesaler
C. manages materials, information, and finances as they move from wholesaler to retailer or customer
D. all of the above

Back 109

d

Front 110

Customer relationship management (CRM) systems support:
A. outbound logistics
B. marketing and sales
C. service
D. operations

Back 110

c

Front 111

Point of sale (POS) systems support which value chain component?
A. inbound logistics
B. operations
C. outbound logistics
D. marketing and sales

Back 111

c

Front 112

Software as a service (SaaS) has which of the following characteristics?
A. some ability to customize at a price but major deviations from the core product are discouraged
B. provides clients with some control over the system in the form of administrator tools
C. operates on a flat fee or subscription pricing model
D. offers the option to connect to the system over a dedicated connection

Back 112

a

Front 113

High-level goals, aligned with and supporting its mission, is what type of business objective?
A. reporting
B. strategic
C. operations
D. compliance

Back 113

b

Front 114

In response to risk, organizations may decide to use a strategy of “risk deferral” to:
A. move the risk to someone who is more able to deal with it
B. postpone exposure to the risk until circumstances are more favourable
C. reduce the probability of the risk
D. lessen the impact of the risk

Back 114

b

Front 115

Controls are specific actions, including policies and procedures, designed to ensure the achievement of business objectives. Corrective controls:
A. reduce risk by discovering when preventive controls have failed
B. aim to remedy the situation and try to keep it from recurring
C. are designed to prevent increased exposure to risk by stopping an action or process before it occurs
D. provide notification when action must be taken

Back 115

b

Front 116

An example of a preventative control is:
A. creating a corporate network rule requiring employees to change their passwords every 25 days.
B. notifying an employee that their password has not been changed in 25 days
C. sending an email to an employee asking them to change their password
D. locking an employee out of the system if the password is not changed

Back 116

a

Front 117

A business continuity plan does which of the following?
A. allows an organization to resume operations after a major disruptive event
B. allows an organization to reverse every action that took place to return to its original state
C. addresses problem prevention, response to crises, resumption of business
D. strengthens internal controls and compliance through the application of IT based controls

Back 117

c