of customer encounters. This includes sales, marketing, and customer service processes.
33. Which of the following supports the flow of data among different organizations to achieve shared goals?
a. Customer relationship management
b. Product life cycle management
c. Enterprise resource planning system
d. Interorganizational information system
ANS: D
RATIONALE: Interorganizational information systems support the flow of data among different organizations to achieve shared goals. For example, some organizations need to share data for purchase orders, invoices, and payments along with information about common suppliers and financial institutions.
34. Fillkart, an online shopping Web site, needs to share data for purchase orders, invoices, and payments along with information about common suppliers and financial institutions. Which of the following will support these needs of Fillkart?
a. Customer relationship management.
b. Product life cycle management.
c. Interorganizational information system.
d. Enterprise resource planning.
ANS: C
RATIONALE: Interorganizational information systems support the flow of data among different organizations to achieve shared goals. For example, some organizations need to share data for purchase orders, invoices, and payments along with information about common suppliers and financial institutions.
35. Which of the following is true of interorganizational information systems?
a. It speeds up the flow of material and information.
b. It increases the effort of processing a transaction.
c. It increases the cost of processing a transaction.
d. It reduces the flow of payments while concentrating on the flow of material and information.
ANS: A
RATIONALE: Interorganizational information systems support the flow of data among different organizations to achieve shared goals. They speed up the flow of material, payments, and information, while allowing companies to reduce the effort and costs of processing such transactions.
36. Which of the following is a step taken by organizations to ensure efficient and effective sharing of information?
a. Discussing the gist of the information
b. Duplicating the information
c. Increasing the cost of processing the information
d. Using compatible technologies
ANS: D
RATIONALE: To ensure efficient and effective sharing of information, organizations must agree in advance on the nature and format of information to be exchanged, and they must use compatible technologies. The companies must work together to resolve technical issues relating to data definitions and formats, database designs, standards to ensure high data quality, and compatible technology infrastructures.
37. Organizations are concerned about the profits they receive for their investments in information technology (IT) than the amount spent on the investment. This is to done to:
a. ensure smooth introduction and adoption of IT.
b. identify appropriate IT opportunities.
c. ensure that IT risks are mitigated.
d. adopt the section 404 of the Sarbanes-Oxley Act.
ANS: B
RATIONALE: The most important consideration is what organizations are getting out of their investments in information technology (IT), not how much they are investing in IT. This helps to identify the appropriate IT opportunities.
38. Identify the industry that has the highest information technology spending.
a. Agriculture
b. Food
c. Finance
d. Automobile
ANS: C
RATIONALE: Organizations typically spend 1 to 6 percent of their total revenues on information technology (IT); this spending is generally higher for industries in which IT is more critical to success, such as health care and financial services.
39. The Change Management Continuum Model, the Unified Theory of Acceptance and Use of Technology, and the Diffusion of Innovation Theory are the theories that can help:
a. in smooth introduction and adoption of information technology.
b. to identify appropriate information technology opportunities.
c. in ensuring that information technology risks are mitigated.
d. to implement the section 404 of the Sarbanes-Oxley Act.
ANS: A
RATIONALE: Several theories on organizational change management can help smooth the introduction and adoption of information technology. Three such theories are: the Change Management Continuum Model, the Unified Theory of Acceptance and Use of Technology, and the Diffusion of Innovation Theory.