1) Which of the following statements best describes the productivity paradox for technology investment? A) The productivity of any technology is directly proportional to the investment in that technology. B) While it is easy to quantify the costs associated with developing an information system, it is often difficult to quantify tangible productivity gains from its use. C) As investment in technology increases, productivity decreases steadily. D) While it is easy to identify and quantify the intangible benefits of an information system, it is not easy to quantify the tangible benefits. E) The productivity of an information system is in no way related to the investment in the technology. 2) System efficiency is the extent to which a system ________. A) allows firms to reach their operational targets B) allows people to plan tasks that are achievable C) enables people to accomplish goals or tasks well D) enables people to do things faster or at lower cost E) allows employees to reduce the risks associated with tasks 3) Which of the following is true for system effectiveness? A) It is the extent to which a system enables the firm to accomplish goals well. B) It is the extent to which a system allows a firm to plan its tasks. C) It is the extent to which a system enables the firm to do things faster, at lower cost. D) It is the extent to which a system allows a firm to cut operational costs. E) It is the extent to which a system enables people to accomplish tasks with relatively little time and effort. 4) Which of the following scenarios demonstrates system efficiency? A) Barker’s new information system allowed the company to reach its monthly targets. B) Barker’s was able to easily reach its sales goals through the use of its information system. C) Barker’s new information system allowed the company to set achievable targets. D) Barker’s new information system helped employees to achieve their individual goals alongside the company’s goals. E) The new information system at Barker’s helped employees work faster, with less effort. 5) BelAir Tech replaced its outdated information system with a newer version. As a result, its employees reported a significant increase in work speed. Which of the following is most similar to BelAir’s situation? A) Barker’s new information system allowed the company to reach its monthly sales target easily. B) Twining Co. targeted a 5 percent increase in customer acquisition and achieved this with the new information system. C) Employees at Niven Ltd felt that customer satisfaction increased after the new information system was implemented. D) Castle’s new information system helped employees to achieve their individual goals alongside the company’s goals. E) At Sterling Inc, the average number of application forms processed in an hour rose from 4 to 6 as a result of the new system. 6) B&Z Inc. implemented a new information system two months ago but there have been no concrete increases in productivity as a result of the system. A similar system has been in place at the company headquarters for the past two years, and this system has resulted in significant, quantifiable benefits. Which of the following reasons is the most likely explanation for the lack of results? A) The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators. B) The new system is being used to redistribute market share rather than make the whole market bigger. C) It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization. D) The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system. E) The new system may be beneficial for individual firms but not for a particular industry or the economy as a whole. 7) Business case arguments based on ________ focus on beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on. A) faith B) fear C) facts D) fiction E) fallacy 8) Business case arguments based on fear are based on ________. A) the belief that implementing the new information system can have significant positive consequences for the firm B) beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on C) data, quantitative analysis, and/or indisputable factors D) the notion that if the system is not implemented, the firm will lose out to the competition or go out of business E) the results of a qualitative analysis of employee responses to the new information system 9) Business case arguments based on data, quantitative analysis, and/or indisputable factors are known as arguments based on ________. A) fads B) faith C) facts D) fear E) fiction 10) Which of the following is an example of a business case argument based on fear? A) If we do not implement this system, our competitors could gain a significant advantage over us. B) This system has the potential to reduce required effort by 40 percent. C) Using this system will help our employees serve customers more efficiently. D) The system can help us meet both individual as well as organizational goals. E) The new system is user-friendly and can be implemented almost immediately. 1