An organization can achieve a competitive advantage by doing all of the following except: Having the best-made product Reducing costs below competitors Increasing cycle time Having a well-known name Delivering superior customer service
An organization can achieve a competitive advantage by doing all of the following except:
Having the best-made product Reducing costs below competitors Increasing cycle time Having a well-known name Delivering superior customer service
Competitive advantages can be achieved by having the best-made products, superior customer service,
lower costs than rivals, a proprietary manufacturing technology, shorter lead times, a good reputation, or added value.
Businesses like Target and Dell pursue what type of strategy? Overall low-cost leadership strategy Broad differentiation strategy Focused low-cost strategy Focused differentiation Best-cost provider strategy
Businesses like Target and Dell pursue what type of strategy? Overall low-cost leadership strategy Broad differentiation strategy Focused low-cost strategy Focused differentiation Best-cost provider strategy
These two companies offer the best prices in their industries.
Can you think of companies, other than those in the book, that apply each of these strategies? Discuss with your neighbor.
Apple focused on high-quality computers for home and education, which is a(n): Overall low-cost leadership strategy Broad differentiation strategy Focused low-cost strategy Focused differentiation strategy Best-cost provider strategy
Apple focused on high-quality computers for home and education, which is a(n): Overall low-cost leadership strategy Broad differentiation strategy Focused low-cost strategy Focused differentiation strategy Best-cost provider strategy
Information systems need to support an organization’s business strategy, enabling it to gain or sustain a
competitive advantage over rivals.
Managers can identify opportunities to use information systems to achieve a competitive advantage through: Automating Total quality management Computer-based applications Effective use of resources Value chain analysis
Managers can identify opportunities to use information systems to achieve a competitive advantage through:
Automating Total quality management Computer-based applications Effective use of resources Value chain analysis
Manager’s analyze an organization’s activities in orderto determine where value is added to their products
and services, as well as the costs involved. Information systems lower costs by automating processes.
An example of an information system used in both the value chain’s inbound and outbound logistics would be: Web site Customer service response system Computer-aided manufacturing systems Computer-aided engineering systems Internet link with suppliers and dealers
An example of an information system used in both the value chain’s inbound and outbound logistics would be:
Web site Customer service response system Computer-aided manufacturing systems Computer-aided engineering systems Internet link with suppliers and dealers
The value chain consists of inbound logistics, operations,outbound logistics, sales and marketing, and service.
Choose an organization and explain what happens in eachstage. Discuss with your neighbor.
Organizations are using ________ for business-to-business interactions.
Intranets Internets Extranets Arpanet Infonets
Organizations are using ________ for business-to-business interactions. Intranets Internets Extranets Arpanet Infonets
Many organizations are using extranets to connect to otherbusinesses electronically, placing orders, checking available stock at a supplier, and issuing and paying bills. Extranets
are only one way that information systems have added valuedto organizations.
Significant information systems implementation requires commensurate organizational change. What is this radical redesign called?
Business process reengineering Value chain Making the business case Competitive advantage Automation
Significant information systems implementation requires commensurate organizational change. What is this radical redesign called? Business process reengineering Value chain Making the business case Competitive advantage
Automation
In order to maximize the benefits achieved from a new information system, an organization needs to implement
change and improve or redesign the way that it functions.
Making the business case for an information system is achieved by: The process of identifying the value that it provides to
the organization Improving the functioning of the organization Making a good investment Implementing the information system Achieving a competitive advantage
Making the business case for an information system is achieved by: The process of identifying the value that it provides
to the organization Improving the functioning of the organization Making a good investment Implementing the information system Achieving a competitive advantage
Management wants to ensure that capital expenditures on new information systems will be good investments, adding
value to the organization. Additionally, existing systems that are no longer adding value to the organization will need to
be improved or replaced.
Organizations experience difficulty in showing that the expenditures on information technology have led to increased performance. What is this called? Systems effectiveness Productivity paradox Business process reengineering Unintended consequence Decision support system
Organizations experience difficulty in showing that the expenditures on information technology have led to increased performance. What is this called? Systems effectiveness Productivity paradox Business process reengineering Unintended consequence Decision support system
It is often difficult to quantify tangible productivity gains from the use of an information system. Government regulations, the
complexity of products, and unexpected employee behaviorshave negatively affected IS productivity.
The productivity paradox can be explained by all of the following except: Measurement problems Time lags Redistribution Mismanagement Cost-benefit analysis
The productivity paradox can be explained by all of the following except: Measurement problems Time lags Redistribution Mismanagement Cost-benefit analysis
The benefits of an information system are often overlookedbecause the organization is measuring the wrong thing or the system is being mismanaged. There is usually a lapse in time
between when a system is purchased and when gains are recognized by the organization. Finally, systems may bebeneficial only to an individual firm, but not the industry.
Strong organizational impacts of information systems are typically noted within what time frame? 2-3 days 2-3 months 6-7 months 2-3 years 6-7 years
Strong organizational impacts of information systems are typically noted within what time frame?
2-3 days 2-3 months 6-7 months 2-3 years 6-7 years
One explanation for the productivity paradox is that it is not unusual to have time lags of two to three years
between the time an organization makes an investmentin IT and when a strong organizational impact is felt.
An information system may be good for an individual organization, but not for the particular industry or the economy. This is because of business __________.
Redistribution Lag time Systems efficiency Mismanagement Systems effectiveness
An information system may be good for an individual organization, but not for the particular industry or the economy. This is because of business __________.
Redistribution Lag time Systems efficiency Mismanagement Systems effectiveness
Information systems often serve to only redistribute the available market shares instead of creating new markets,
particularly in highly competitive markets.
Managers usually make the business case for information systems based on: Quantitative analysis Faith, fear, and facts Customers’ perceptions Market share The loss of business if they don’t implement it
Managers usually make the business case for information systems based on: Quantitative analysis Faith, fear, and facts Customers’ perceptions Market share The loss of business if they don’t implement it
Management’s strongest and most persuasive business cases are based on arguments grounded in beliefs,
fear, and facts.
What are some examples of each type of argument? Discuss with your neighbor.
The nature of the industry often determines what type of information system would be most effective. Which of the following would not be a factor? Maturity Government regulation Competition Stability Mismanagement
The nature of the industry often determines what type of information system would be most effective. Which of the following would not be a factor? Maturity Government regulation Competition Stability Mismanagement
Management will consider factors like competition and other elements of the industry in which the organization operateswhen making a business case for the information system.
Information systems have many impacts on competitive forces. Which of the following is not a competitive force? Customers’ bargaining power Stage of maturity Threat of new entrants Substitutions Traditional rivals
Information systems have many impacts on competitive forces. Which of the following is not a competitive force?
Customers’ bargaining power Stage of maturity Threat of new entrants Substitutions Traditional rivals
Porter’s five forces include competitors, the threat of new entrants, customers’ and suppliers’ bargaining powers, and
the threat of substitute products from other industries.
Discuss with a classmate the five forces affecting a particular organization.
Information systems can be used to combat customers’ bargaining power. What can an organization do to achieve this? Create a better web site Create inventory control systems Use an extranet Implement customer relationship management Include a decision support system
Information systems can be used to combat customers’ bargaining power. What can an organization do to achieve this? Create a better web site Create inventory control systems Use an extranet Implement customer relationship management Include a decision support system
Organizations can use information systems to counter the competitive force of customers’ bargaining
power by implementing a CRM system to serve them better, or adding a computer-aided design system or a computer-aided
manufacturing system to improve quality.
Web servers and telecommunication equipment are usually one-time costs. What are the costs called? Tangible costs Recurring costs Nonrecurring costs Intangible costs Web costs
Web servers and telecommunication equipment are usually one-time costs. What are the costs called? Tangible costs Recurring costs Nonrecurring costs Intangible costs Web costs
When performing a cost-benefit analysis, costs are usually divided between one-time, nonrecurring costs and
recurring costs.
Think of examples of each of the above types of expenses for a business and compare them with your neighbor.
If it is difficult to quantify the impact of an investment, you can use:
Intangible variables Tangible variables Proxy variables Monetary terms Infrastructure value
If it is difficult to quantify the impact of an investment, you can use: Intangible variables Tangible variables Proxy variables Monetary terms Infrastructure value
Proxy variables are used to measure changes in terms of perceived value to an organization, and can be applied
to show how information systems add value to theorganization.
An organization might decide to implement an enterprise-wide data warehouse to get data faster. This would correspond to what part of the e-business innovation cycle? The assessment phase The execution phase Matching economic opportunities phase The enabling technologies phase Conveying new information technology insights
An organization might decide to implement an enterprise-wide data warehouse to get data faster. This would correspond to what part of the e-business innovation cycle? The assessment phase The execution phase Matching economic opportunities phase The enabling technologies phase Conveying new information technology insights
The e-business innovation cycle allows an organization tobalance the value derived from an information technology
against the element of time, showing how information systems are selected, matched against economic
opportunities, executed, and assessed to support business.
An industry needs to be on the cutting edge in the use of information systems if it: Operates enabling technology Needs economic opportunities Needs business innovation for growth Is continually upgrading its information systems Operates in an environment with strong competitive forces
An industry needs to be on the cutting edge in the use of information systems if it:
Operates enabling technology Needs economic opportunities Needs business innovation for growth Is continually upgrading its information systems Operates in an environment with strong competitive
forces
Competitive environments often require that an organization remain on the cutting edge.
Think of an organization that must keep its informationsystems on the cutting edge. Discuss this with your neighbor.
Management is often looking for innovative ways to use information technology. What is one of the new ways of thinking about information systems? Start with strategy and retrofit technology Promote marketing to the forefront Realize that the process is ongoing Realize that customers are the best resource for
technology information Use every emerging technology
Management is often looking for innovative ways to use information technology. What is one of the new ways of thinking about information systems? Start with strategy and retrofit technology Promote marketing to the forefront Realize that the process is ongoing Realize that customers are the best resource for
technology information Use every emerging technology
In order to use information systems most strategically, management needs to realize that it is an ongoing process,
and that systems should be constantly reevaluated.