isys363 ch2 combined

Domestic company

A company operating solely in its domestic market

Functional area information system

A cross-organizational-level information system designed to support a specific functional area. EX: System for planning for personnel training and work assignments

Multidomestic business strategy

A decentralized international business strategy using a federation of associated business units, employed to be flexible and responsive to needs and demands of heterogeneous local markets

Organizational strategy

A firm's plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals

Key Performance Indicator (KPI)

A metric deemed critical to assessing progress toward a certain organizational goal

E-business innovation cycle

A model suggesting that the extent to which modern organizations use information technologies and systems in timely, innovative ways is the key to success

Disruptive innovation

A new technology, product, or service that eventually surpasses the exisiting dominant technology, product, or service in a market

disruptive innovation

A new​ technology, product, or service that eventually surpasses the existing dominant​ technology, product, or service in the market is termed a​ ________.

put technology ahead of strategy

A surprising recommendation from the disruptive innovation cycle​ is:

effectiveness

At the tactical level of the​ organization, managers focus on using organizational resources to increase​ ______________.

Economic opportunities

Opportunities that a firm finds for making more money and/or making money in new ways

Which of the following is NOT one of the general types of organizational strategy?

Cost Maximization

Which of the following perspectives focuses on using information systems to improve business processes based on the analysis of past behavior?

Organizational Learning

disruptive growth engines

Organizations can more effectively respond to disruptive innovations in their industry by following the​ _______________ process.

Strategic necessity

Something an organization must do in order to survive

Differentiation strategy

Strategy in which an organization differentiates itself by providing better products or services than its competitors. EX: Porsche, Nordstrom, IBM

Best-cost provider strategy

Strategy to offer products or services of reasonably good quality at competitve prices. EX: Dell

Low-cost leadership strategy

Strategy to offer the best prices in the industry on goods or services. EX: Walmart offers best prices in its industry on its goods and/or services

Which of the following is NOT one of Porter's five primary competitive forces?

Information

Enabling technology

Information technology that enables a firm to accomplish a task or goal to gain or sustain a competitive advantage in some way

Which of the following challenges of innovative information systems is illustrated by the "format wars" of Blu-Ray versus HD-DVD?

Innovation is often risky

Home-replication strategy

International business strategy that views the international business as an extension of the home business. Focus on core competencies in home market

An e-business revenue model that involves users paying a fee for using protected intellectual property is called _______.

Licensing

_____ decisions are relatively straightforward and usually can be programmed directly into _____ information systems.

Structured;Operational

E-business

Term used to refer to the use of a variety of types of information technologies and systems to support every part of the business

Organizational learning

The ability of an organization to learn from past behavior and information, improving as a result

Informating

The ability of information technology to provide information about the operation within a firm and.or about the underlying work process that the system supports

value chain analysis

The activity of analyzing an organization to determine where value is added to products or services is called​ ________.

Business/IT alignment

The alignment of information systems with a business's strategy

Operational level

The bottom level of an organization, where the routine, day-to-day business processes and interaction with customers occurs

Economic value

The contribution an investment makes toward improving the infrastructure's ability to enhance the profitability of the businesss

Freeconomics

The leveraging of digital technologies to provide free goods and services to customers as a business strategy for gaining a competitive advantage

Managerial level

The middle level of the organization, where functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization

Innovator's dilemma

The notion that disruptive innovations can cause established firms or industries to lose market dominance, often leading to failure

Value chain analysis

The process of analyzing an organization's activities to determine where value is added to products and/or services and the costs that are incurred for doing so

Strategic planning

The process of forming a vision of where the organization needs to head, converting that vision into measurable objectives and performance targets, and crafting a plan to achieve the desired results

Value chain

The set of primary and support activities in an organization where value is added to a product or service

Executive level

The top level of the organization, where executives focus on long-term strategic issues facing the organization

value proposition

The​ ________ component of a business model outlines the utility that the product or service has to offer the customer.

A(n)______ refers to anything that occurs as a part of an organization's daily business for which a record must be kept.

Transaction

The ______ international business strategy has a weakness of being very complex and difficult to manage.

Transnational

increasing consumer swithcing costs

Using information systems to develop extensive knowledge of your​ customers, thereby providing​ high-quality customer​ service, ________.

innovation is often risky

Which of the following challenges of innovative information systems is illustrated by the​ "format wars" of​ Blu-ray versus​ HD-DVD?

transaction

​A(n) _______ refers to anything that occurs as a part of an​ organization's daily business for which a record must be kept.

business processes

​______ is(are) the​ activity(ies) organizations perform in order to reach their business goals.

value chain analysis

​________ can be used to identify opportunities to apply information systems to support activities performed throughout the business and thereby gain a competitive advantage.

structured, operational

​_____________ decisions are relatively straightforward and usually can be programmed directly into​ ____________ information systems.

Business processes

Activities organizations perform in order to reach their business goals, consisting of core processes and supporting processes

An e-business revenue model that involves paying businesses that bring or refer customers to another business is called _______.

Affiliate Marketing

The purpose of a business model is to:

All statements are correct

Global business strategy

An international business strategy employed to achieve economies of scale by producing identical products in large quantities for a variety of different markets

Transnational business strategy

An international business strategy that allows companies to leverage the flexibility offered by a decentralized organization (to be more responsive to local conditions) while at the same time reaping economies of scale enjoyed by centralization; characterized by a balance between centralization and decentralization and interdependent resources. They can achieve benefits of multidomestic and global strategies

Learning organization

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

affiliate marketing

An​ e-business revenue model that involves paying businesses that bring or refer customers to another business is called​ ________.

liscensing

An​ e-business revenue model that involves users paying a fee for using protected intellectual property is called​ ________.

Freemium

Basic services are offered for free, but a premium is charged for special features. EX: Skype

_____ is(are) the activity(ies) organizations perform in order to reach their business goals.

Business Processes

Unstructured decisions

Decisions where few or no procedures to follow for a given situation can be specified in advance

Semistructured decisions

Decisions where problems and solutions are not clear-cut and often require judgement and expertise

Structured decisions

Decisions where the procedures to follow for a given situation can be specified in advance

Architectural value

Derived from an investment's ability to extend the infrastructure's capabilities to meet business needs today and in the future

Operational value

Derived from assessing an investment's impact on enabling the infrastructure to better meet business processing requirements

Regulatory and compliance value

Derived from assessing the extent to which an investment helps to meet requirements for control, security, and integrity as required by a governing body or a key customer

Organizations can more effectively respond to disruptive innovations in their industry by following the _______ process.

Disruptive Growth Engine

A new technology, product, or service that eventually surpasses the existing dominant technology, product, or service in the market is termed a __________.

Disruptive Innovation

At the tactical level of the organization, managers focus on using organizational resources to increase ______.

Effectiveness

Gift economy

Environments are created that allow people to participate and collaborate to create something of value for everyone. EX: Wikipedia

value chains

Establishing electronic connections with suppliers and customers is one way organizations enhance their​ _______ with information systems.

Advertising

Free services are provided to customers and paid for by a third party. EX: Google's pay-per-click

Organizations offering a free basic subscription that can be upgraded to a fee-based, premium subscription offering more features is applying the ______ subscription.

Freemium

Companies that pursue a(n)________ international business strategy attempt to achieve economies of scale by developing products for the global market that can be sold in large quantities.

Global

resource

Having the human capital needed to deploy innovative information systems is associated with​ ________________ requirements.

Using information systems to develop extensive knowledge of your customers, thereby providing high-quality customer service, ________.

Increases customer switching costs

Sources of competitive advantage include all of the following except:

Increasing the time to market

freemium

Organizations offering a free basic subscription that can be upgraded to a​ fee-based, premium subscription offering more features is applying the​ ________ subscription business model.

Which of the following is NOT a valid approach to use in assessing the value of an organization's IS infrastructure.

Predictive Value

Zero marginal cost

Products are distributed to customers without an appreciable cost to anyone. EX: Video content on YouTube

A surprising recommendation from the disruptive innovation cycle is:

Put technology ahead of strategy

Having human capital needed to deploy innovative information systems is associated with ______ requirements.

Resources

Cross subsidies

Sale price of one item is reduced in order to sell something else of value. EX: Free cell phone with two-year contract

Labor exchange

Services are provided to customers; the act of using the services creates value for the company. EX: Google's 411 service

International business strategy

Set of strategies employed by organizations operating in different global markets

Automating

Using information systems to do an activity faster, cheaper, and perhaps with more accuracy and/or consistency

Which of the following statements about using information systems as a strategic innovation is true?

Using information systems to gain competitive advantage in operating efficiencies will be readily imitated by rivals and is not easily sustained.

______ can be used to identify opportunities to apply information systems to support performed throughout the business and thereby gain a competitive advantage.

Value Chain Analysis

Establishing electronic connections with suppliers and customers is one way organizations enhance their_______.

Value Chains

The ______ component of a business model outlines the utility that the product or service has to offer the customer.

Value Proposition

Value proposition

What a business provides to a customer and what the customer is willing to pay for that product or service

predictive value

Which of the following is NOT a valid approach to use in assessing the value of an​ organization's IS infrastructure.

information

Which of the following is NOT one of​ Porter's five primary competitive​ forces?

organizational learning

Which of the following perspectives focuses on using information systems to improve business processes based on the analysis of past​ behavior?

Using information systems to gain competitive advantage in operating efficiencies will be readily imitated by rivals and is not easily sustained.

Which of the following statements about using information systems as a strategic innovation is​ true?

structure

Which type of innovation encourages employees to use their talents in innovative​ ways?

process

Which type of innovation is illustrated by Toyota implementing lean production​ principles?

differentiation

Which type of organizational strategy is used by​ Porsche?

low cost leadership

Which type of organizational strategy is used by​ Walmart?