Principles Of Information Systems, 10th Edition Solution Manual

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Principles of Information Systems,TenthEditionSolutions–Chapter 1Information Systems @ WorkHilton Hospitality in the Palm of Your HandDiscussion Questions1.Student responses will vary.The app isespecially useful for travelers needing aroom at a moment’snotice.2.Many businesses inside and outside the travel industry areincreasing revenues byexpanding their presence to mobiledevices. Providing m-commerce applicationsto customersanywhere anytime through mobile devices increases customersatisfaction and loyalty with better service and availability.Critical Thinking Questions1.Student responses will vary.Security would be a major concern.2.Student responses will vary. Business can invest in both e-commerce and m-commerce.Ethical and Societal IssuesWho Is Interested in Your Social Network Updates?Discussion Questions1.Student responses may vary.Individual privacy isan important social issue.People can inadvertently disclosepersonal information while using the Internet.Once private information or photos havebeen placed on the Internet, it can bevery difficult to remove them. Selling access to this kind of information may seemunethical.2.Student response will vary.Companies such as Comcast, a major communicationscompany,hire full-time social media experts who interact with customersonlineto address problems and complaints. For example, if youcomplain about Comcastservice on Twitter, you might becontacted by a Comcast employee offering tohelp you.

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Principles of Information Systems,TenthEditionCritical ThinkingQuestions1.Businesses are flocking to social networks to harvestconsumer sentiment for usein guiding product development. Theyare also watching social networks toconfront negative publicityand to develop targeted advertisements.2.Acomputer-based information system (CBIS) is a single set of hardware,software, databases,telecommunications, people, and procedures that areconfiguredto collect, manipulate, store,and process data into information.This issimilar to the monitoring of social media.Review Questions1.An information system is a set of interrelated elements or components thatcollect (input), manipulate and store (process), and disseminate (output) dataand information and provide a feedback mechanism to meet an objective. Ourlives are changed through our business interactions, online commerce, and ina variety of other ways that are impacted by information technology.Information systems can improve our lives in the following ways: a) speed upprocesses; b) automate redundant tasks; c) reduce information overload; d)present information in graphical, easy-to-understand formats; e) standardizeprocesses; f) provide monitoring mechanisms; g) provide entertainmentopportunities; h) enhance communication.2.Data is the raw material from which information is composed. Informationincludes a context for the data. Knowledge is an awareness of how to applythe information.3.Types of data:DataRepresented byAlphanumeric dataNumbers, letters, and other charactersImage dataGraphic images and picturesAudio dataSound, noise, or tonesVideo dataMoving images or pictures4.Efficiency is a measure of what is produced divided by what is consumed.Effectiveness is a measure of the extent to which a system achieves its goals.5.The components of an information system are: input, processing, andoutput.6.Feedback isoutput that is used to make changes to input or processingactivities.Inadequate feedback could lead to an organization not meetingits goals (e.g., loss of profit or poor customer service).

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Principles of Information Systems,TenthEdition7.System performance is measured in various ways. Efficiency is a measure ofwhat is produced divided by what is consumed. System efficiency can bedetermined through an assessment of waste. Effectiveness is a measure to theextent to which system goals are achieved.8.Knowledge management systems are organized collections of people,procedures, software, databases and devices used to create, store, share, anduse the organization’s knowledge and experience.Examples will vary.9.A computer-basedinformation system or CBIS is a single set of componentsthat collect, manipulate, store, and process data into information. The sixcomponents of a CBIS are hardware (computer equipment), software(programs), people, telecommunications (link computer systems into effectivenetworks), databases (organized collections of facts and information), andprocedures detailing use.10.A DSS goes beyond a traditional MIS by providing immediate assistance insolving problems. Many of these problems are unique and complex, andkey information is often difficult to obtain.A DSS can include a collectionof models used to support a decision maker or user (model base), acollection of facts and information to assist in decision making(database), and systems and procedures (user interface or dialoguemanager) that help decision makers and otherusers interact with the DSS11.Both intranets and extranets are based on Web technologies. An intranet is allinternal to an organization while an extranet allows in select outsiders.12.Mobile commerce (m-commerce)can be usedanytime, anywhere.Today,mobile commerce has exploded in popularity with advances in smartphones,including Apple’s iPhone. Customers are using their cell phones to purchaseconcert tickets from companies such as Ticketmaster Entertainment(www.ticketmaster.com) and Tickets (www.tickets.com). In South Korea,cell phones are used 70 percent of the time to pay for digital content, such asdigital music.13.A transaction processing system (TPS) and a management information system(MIS) are both common types of information systems used in business. Bothare organized collections of people, procedures, databases and devices used toperform computing functions. The TPS is specifically used to recordcompleted business transactions and store this information in a database. TheMIS uses the information collected by the TPS and summarizes it into routinereports used by managers and occasionally decision-makers. A decisionsupport system (DSS) is an organized collection of people, procedures,databases and devices used to support the problem-specific decision making

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Principles of Information Systems,TenthEditionfunction within a firm. An expert system (ES) is a form of artificialintelligence used to capture and use the wisdom of experts and specialists.The DSS supports the decision making process while the ES suggests asolution derived from its knowledge base.14.Boeingused virtual reality and computersimulation to help design and buildits Dreamliner 787.Boeing used 3-D models from DassaultSystems to designand manufacture the new aircraft. Retail stores like SaksFifth AvenueandNeiman-Marcus are using virtual reality to help advertise high-end productson theInternet.The Obama campaign paid forin-game advertising in BurnoutParadise.15.Computer literacy is knowledge of computer systems and equipment and theways they function. Information systems literacy builds on computer literacyand expands to encompass knowledge of how data and information are usedby individuals, groups, and organizations. While knowledge of computers andtechnology is essential in a corporate environment, the application of thistechnology to solve business problems is absolutely required to remaincompetitive. Using information systems to achieve organizational goals canhelp make an organization successful.16.Organizations have applied information systems to a variety of applicationsand have realized a wide array of benefits. Among these are increased marketshare, increased revenue, reduced costs, increased customer service, enhancedinventory control, more scientificdecision-making, and improvedcommunication.17.The five steps of systems development and related goals are:1) systemsinvestigation–understand the problem to be solved;2) systems analysis–define problems and opportunities of system;3) systems design–determininghow a new system is to work;4systems implementation–create a system andput it into operation; and5) systems maintenance and review–check andmodify the system to keep up with changing business needs.Discussion Questions1.Regardless of major or interest areas, information systems will play a centralrole in all business careers. Even now, students use information technologydaily ranging from grocery purchases to filing taxes to using the postalsystem. Information technology is present in all aspects of life and business.Information systems improve planning, communication, data management,report formatting and generation, input collection, and decision-making. Astudent may respond with a statement similar to this, “By becominginformation systems literate, I hope to be competitive in the work force and

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Principles of Information Systems,TenthEditiondevelop skillsthatenhance my career and make me an asset to the business Ijoin.”2.Examples of how information systemscan be used by teachers:•Teachers can post lesson plans and grades for parents and other staffto view•Student and teacher information can be kept in a database to beaccessed by the county schools3.Software is invaluable. Software consists of the computer programs thatgovern the operation of the computer.Just a few examples of software used atwork or school include: MS Access, MS Word, MS Excel, MS Power Point,ArcView, Adobe Acrobat, Adobe Photoshop,and NortonAntiVirus software.4.Adatabaseis an organized collection of facts and information. It isanimportant part of a CBISbecause it contains information on customers,employees, inventory, competitors’ sales information, online purchases, andmuch more.5.E-commerce is any business transaction executed electronically betweenparties such as companies (business-to-business), companies and consumers(business-to-consumer), consumers and other consumers (consumer-to-consumer), business and the public sector, and consumersand the publicsector. M-commerce is mobile commerce-transactions conductedanytime, anywhere. M-commerce is a form of e-commerce.6.Adecision support system (DSS)is an organized collection of people,procedures, software, databases,and devices used to supportproblem-specific decision making.A knowledge management system (KMS) isanorganized collection of people, procedures,software, databases, anddevices to create, store, share, and use the organization’s knowledgeandexperience.7.Building a model is a less expensive method of finding the problems andshortcomings of a real-world system. First create a narrative, whichwould provide a better understanding of the functioning of preschoolers.Then, create a schematic model to provide summary details of what wasdiscovered. This schematic model would enable future research. Eachmodel performs a distinct function in the development process so it isimportant to include both.8.Student responses will vary.9.Students could researchapplications used in the computer lab.

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Principles of Information Systems,TenthEdition10.Student responses will vary. Note that businesses around theglobe areenjoying better safetyand service, greater efficiencyand effectiveness,reducedexpenses, and improved decisionmaking and control because ofinformation systems.11.Student responses will vary. Note that computer and information systemsliteracy are prerequisites for numerous job opportunities, and not only inthe IS field.Problem-Solving Exercises1.Student should create folders for each chapter and save their problem-solvingexercises and computer-based assignments to two disks, one labeled WorkingCopy and the other Backup.2.Studentsshouldprepare a one-page summarydescribingpotential socialorethical issues related to the use of an information system.3.Students shouldcreate the table based on their possible career areas andprint the tabletwice. First with the table sorted by annualsalariesfromhigh to low,andthen sorted bymost liked to least liked.4.Students should research the rate growth ofsites like MySpace and Facebookand produce a bar chart of that growth over a number of years. The followingWebsite contains a complete history of the rate of growth of the Internetincluding bar charts as examples:www.zakon.org/robert/internet/timeline/Team Activities1.Studentsshould print and hand inadatabasewith team information.2.Students should write a one page summary of what their team hopes to gain from thecourse and what they are willing to do to accomplish those goals.Possiblegains/goals could include:gain an understanding of theprinciples ofinformationsystems and gain knowledge of job roles in IS.Web Exercises1.After accessing the Web site, students could look for information about CourseTechnology. Note also that there are other IS books available.2.Students should use the Internet to search for information aboutartificial intelligenceand write a brief report summarizing their findings.

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Principles of Information Systems,TenthEdition3.Students should search for information on the use of information systems in acompany or organization that interests them andexplainhow the organization usestechnology tohelp it accomplish its goals.Career Exercises1.Students should write a brief report on their career choice and two additional careersof interest.2.Students should write a report describing the job opportunities, job duties, andstarting salaries for careers in finance,management,information systems, and twoother careers of their interest.CaseStudiesCase 1:Effectively Managing Resources atAéroports de ParisDiscussion Questions1.SAÏGA is responsible for directing the 900 passenger flights arriving each day to oneof 240 parking stands and gates. Gates are assigned based on considerations such asfuel and luggage handling, departure and arrival times, security concerns, and airlinepreference.Alongwithgates,thesystemallocatesalloftheprimarygroundresources. SAÏGA works in real time, managing unexpected constraints such as flightdelays, or it can allocate resources in advance to manage long-term scheduling. As adecision support system, SAÏGA provides useful charts that managers review to spotpatterns and problems in scheduling and resources.2.Each flight arriving at Aéroports de Paris requires a long list of resources, includinggates, parking stands, fuel trucks, check-in counters, buses, luggage conveyor belts, avariety of ground equipment, and personnel. Orchestrating the efficient delivery ofthese resources is beyond the skills of any person. Recently, Aéroports de Paristurned to IBM for help.Critical Thinking Questions1.Studentresponseswill vary.Train travel (rail and subway) could benefit from asystem likeSAÏGA.2.Studentresponseswill vary.Case 2:Information System as an Effective Force AgainstH1N1 Pandemic

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Principles of Information Systems,TenthEditionDiscussion Questions1.The business intelligence software provided daily reports from the system informingphysicians and nursesof the current statusin allemergency rooms and of any changesin the status quo.Using its new information system, EMA was the first to spot the outbreak of H1N1 inthe Northeast. Doctors knew that about 6 percent of patients complain of flu-likesymptoms on any given day. When the EMA BI system reported that 30 percent ofpatients were arriving with flu symptoms, the doctors warned the country that H1N1was on the move.2.Student responses will vary.However, in this case, doctors knew that about 6 percentof patients complain of flu-like symptoms on any given day. When the EMA BIsystem reported that 30 percent of patients were arriving with flu symptoms, thedoctors warned the country that H1N1 was on the move.Critical Thinking Questions1.Business intelligence or BI systems are designed to extract, or mine, usefulinformation out of the data collected by businesses or organizations into databases.That data may consist of detailed sales information collected at the time of a sale orpatient symptom information collected at the time of an examination. Trackingmedical statistics across their 21 emergency rooms was similar to tracking salesstatistics across retail outlets.2.Student responses will vary.Questions for Web CaseAltitude Online: Outgrowing SystemsDiscussion Questions1.Thesystems need to be able toshare information.Four disparate systemsmakethisdifficult.2.Jon’s first step should beto define the system’s requirements: what the system isrequired to do.Critical Thinking Questions1.Jon would need to think about the time required to design the system and the costsinvolved.

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Principles of Information Systems,TenthEdition2.While visiting the branch offices, Jon could explain the need for the new system andrequest suggestions for improvement.

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Principles of Information Systems,TenthEditionSolutions–Chapter 2Ethical and Societal IssuesThe New Corporate Mantra: Social and EnvironmentalResponsibilityDiscussion Questions1.E-billing allowscompanies to streamline the billing process, getting invoices tocustomers more quickly. It reduces the time required for manualbilling, and itsaves paper and postage, which is especiallyimportant because many businessesare looking for ways toreduce their use of paper.It’s a move that is good for theenvironment and good for the corporate budget. Not only does eliminating the useof paper save trees, but it also reduces carbonemissions by eliminating the needto drive vehicles that deliver thepaper.2.Answers will vary.Some companies may not have the expertise to provide e-documents and it may also be cheaper to outsource than to hire staff.Critical Thinking Questions1.Student responseswill vary. A few students may argue that some services willalways require the use of paper.2.Answers may vary.Information Systems @ WorkAldra Manages Workflow to Support CustomizationDiscussion Questions1.Aldra found thatthe complexities of building its high-quality products werecausingconfusion in the orderprocessing system and delays inmanufacturing,leading to misseddeadlines. Order specificationswere sometimes incomplete orincorrect, and correcting orders istime consuming. Lack ofcoordination amongdepartmentsresulted in additional errors that occasionally resulted in costly idletime on the production line. The lack of coordination also led toerrors incalculating manufacturing costs, which reduced profits.2.Aldra purchased information systems from Infor Corporation that allowed thecompany to better coordinate efforts across departments. Using the software,

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Principles of Information Systems,TenthEditionAldra now models its critical core processes (workflows) and then uses themodels to improve communication across the value chain. The models define thespecific employees involved in the various stages of the process.The system thengenerates daily activities for each employee displayed in a particular area on thecomputer desktop. As activities approach their deadline, they are moved to the topof the list.Critical Thinking Questions1.Responses will vary.2.Responses will vary.Review Questions1.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 chainis a network ofsuppliers, distributors, and retailers that participate in the production of a product.2.Customer relationship management (CRM) programs help companies of all sizesmanage all aspects of customer encounters, including marketing and advertising,sales, customer service after the sale, and programs to retain loyal customers.3.An information system can indirectly add value by summarizing the feedbackfrom value-added processes for use by management and other organizationalemployees. The monitoring and control capabilities of an IS are excellent supportfeatures. A more contemporary view of the IS function holds that this system is anintegral part of the value-adding processes and is key to providing inputcollection, product transformation, and output creation. In this way, an IS systemcan become a direct, strategic tool used to accomplish organizational goals andobjectives.4.Reengineering is the radical redesign of business processes, organizationalstructures, information systems, and values of the organization to achieve abreakthrough in business results. Sometimes called process redesign,reengineering can reduce product delivery time, increase product and servicequality, enhance customer satisfaction, and increase revenues and profits throughchallenging the fundamental assumptions of how a business process is done.Reengineering involves strong, broad actions to achieve major goals and is oftendriven by outsiders or upper management. Information system changes can be keycomponents of reengineering. Another change mechanism, continuousimprovement, is routine action taken to constantly and incrementally improvespecific tasks. Workers direct this effort and rely on the outputs of an informationsystem to assist in measurement.

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Principles of Information Systems,TenthEdition5.User satisfaction is what a user thinks and feels about a product and its quality.6.Reengineering is radical redesign of business processes, organizational structures,information systems, and values of the organization to achieve a breakthrough inbusiness results. Continuous improvement is constantly seeking ways to improvebusiness processes to add value to products and services.7.Technology diffusion measures how widely technology is spread throughout anorganization. Technology infusion looks at the extent to which technology isdeeply integrated into an area or department.8.Quality is the ability of a product or service to meet or exceed the expectations ofa customer. The intent of management to create quality goods or services is oftenoperationalized through a commitment to a total quality management (TQM)approach to business. This means a collection of approaches, tools, andtechniques are used throughout the firm to foster higher levels of quality. Keycomponents in this approach are recognition of customer needs, employeeempowerment, having a vision for quality, and developing a reward system.SixSigma is astatistical term that means products and services will meet qualitystandards 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 change is the process used by both profit and nonprofitorganizations to plan, implement, and handle change. Organizational learning is aconcept by which organizations adapt to new conditions or alter their practicesover time.10.The following table summarizes the basic organizational structures:OrganizationalStructureDefinitionTraditionalMajor department heads report to a president or top-level managerFlatLower-level employees are empowered to make decisions and solve problemswithout needing permission from mid-level managersProjectCentered on major products or servicesTeamCentered on teams or work groupsMultidimensionalIncorporates a combination of several structures11.The change model has three basic components--unfreezing, moving, andrefreezing. Unfreezing is the process of ceasing old habits and creating a climatereceptive to change. Moving is learning new behaviors. Refreezing is the processof making the new behaviors a normal, accepted part of the job.

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Principles of Information Systems,TenthEdition12.Downsizing is the planned reduction of a workforce used to reduce costs. It issometimes called rightsizing. Outsourcing, on the other hand, is contracting withoutside professional services to meet business needs. This means thatorganizational 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 aniche market, maintaining competitive costs, and creating product differentiation.14.Traditional approaches to finding a job in the information systems area includeattending on-campus visits from recruiters and referrals from professors, friends,and family members. Many colleges and universities have excellent programs tohelp students develop résumés and conduct job interviews. Developing an onlinerésumé can be critical to finding a good job. Many companies accept résumésonly online and use software to search for keywords and skills used to screen jobcandidates.Note that students who use the Internet and other nontraditionalsources to find IS jobs have more opportunities to land a job.15.Productivity is a measure of the output achieved divided by the input required(Productivity [in percent] = [Output/Input] X 100). Companies can best useproductivity measurements bywell-managing, training, and motivatingemployees 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-demandcomputingis an advantage toorganizationsbecause instead ofthebusinesspurchasing hardware, software, and database systems, the organization only paysa fee for the systems it needs at peak times. The approach can save moneybecause 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 onmore-strategic issues.17.The total cost of ownership (TCO) is a measurement of the total cost of owningcomputer equipment including desktop computers, networks, and largecomputers.RefreezingUnfreezingMoving

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Principles of Information Systems,TenthEdition18.The role of the chief information officer (CIO) is to employ an IS department’sequipmentand personnel to help the organization attain its goals.Discussion Questions1.Firms are seeing widespread growth in positions related to the Internet. Amongthese areWebmaster (manages Website related issues),network specialists,hardware andWebserverspecialists,marketing ande-commercespecialists,programmers,graphicartists, andcontentdevelopers.2.One possible answer:Raw materialsUsed CDs from studentsInbound logisticsPrepaid shipping envelopesWarehouse and storageStorage room/containers and inventorysystemProcess control systemAbility to provide quotes to buyers andsellers of CDs and process paymentsCustomer servicePhone/email support and ordering,tracking of ordersMarketing and salesMarketing planRetrieval systemAbility to locate CDs in inventory foroutbound shippingOutbound logisticsAbility to send/track CDs sold3.Student answers will varybased on their career choice.4.Today, the trend is to reduce the number of management levels, or layers, in thetraditional organizational structure. This type of structure, often called a flatorganizational structure, empowers employees at lower levels to make decisionsand solve problems without needing permission from midlevel managers.Empowerment gives employees and their managers more responsibility andauthority to make decisions, take action, and have more control over their jobs.5.You can determine the actual usage of an information system by the amount oftechnology diffusion and infusion. Technology diffusion is a measure of howwidely technology is spread throughout an organization. An organization in whichcomputers and information systems are located in most departments and areas hasa high level of technology diffusion. Some online merchants such asAmazon.com have a high diffusion and use computer systems to perform most oftheir business functions, including marketing, purchasing, and billing. Technologyinfusion, on the other hand, is the extent to which technology permeates an area ordepartment. In other words, it is a measure of how deeply embedded technologyis in an area of the organization. Some architectural firms, for example, usecomputers in all aspects of designing a building, from drafting to final blueprints.

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Principles of Information Systems,TenthEditionThe design area, thus, has a high level of infusion. Of course, a firm can have ahigh level of infusion in one part of its operations and a low level of diffusionoverall. The architectural firm might use computers in all aspects of design (highinfusion in the design area), but not to perform other business functions, includingbilling, purchasing, and marketing (low diffusion overall).Diffusion and infusionoften depend on the technology available now and in the future, the size and typeof 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 theforces in Porter’s model translate to in the real world. The following tableprovides guidelines and sample responses for the discussion. A company calledNew Wave Multimedia Desktop Computer Corporationwas selected to illustratethe analysis.Company: New Wave Multimedia Desktop Computer Corp.Competitive ForceStrategic Plan’s Counter to CompetitiveForceRivalry among existingcompetitorsDevelop new products and new looks tostandard productsThreat of new entrantsDevelop strategic alliances withsoftware/hardware producers to dissuade newstartup companiesThreat of substitute productsDifferentiate product line so that fewersubstitutes are available: integrate high endspeakers, monitors, audio and videocomponents into computer systemBargaining power of buyersDevelop high quality service reputation andmaintain buyer profiles: make buyers desire arelationship with this corporation through highlevels of trust and supportBargaining power of suppliersDevelop long term relationships with suppliersand integrate inventory systems withinformation technology

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