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 order
to 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 each
stage. 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 other
businesses electronically, placing orders, checking available
stock at a supplier, and issuing and paying bills. Extranets
are only one way that information systems have added valued
to 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 behaviors
have 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 overlooked
because 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 be
beneficial 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 investment
in 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 operates
when 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 the
organization.
An organization might decide to
implement an enterprise-wide data
warehouse to get data faster. This
would correspond to what part of the ebusiness 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 to
balance 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 information
systems 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.