Ch 3 DSM

The more successfully a firm can align information technology with its business​ goals, the​ ________. A. less successful it will be B. more profitable it will be C. more its data will cost D. more high tech it will be E. more controlled it will be

B. more profitable it will be

The value chain model describes the series or chain of basic activities that add a margin of value to a firm's products or services. Some activities are directly related to an organizations manufacturing process, while other activities are related to an organization's infrastructure. Inbound logistics (receiving and storing materials for distribution to production), operations (transforming inputs into finished products), outbound logistics (storing and distributing finished products), sales and marketing, and service are all __________. A. secondary activities B. support activities C. primary activities D. switching costs

C. primary activities

Information systems exists to support the required activities a firm must carry out in order to transform business inputs into business outputs. Which of the following highlights activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage? A. Primary activities B. Support activities C. The value chain model D. Switching costs

C. the value chain model

In every industry, there's a firm that stands out from others. These firms are said to have a competitive advantage over others: They either have access to special resources that others do not, or they are able to use commonly available resources more efficiently. Firms that stand out often become the metric to which others are compared. __________ involves comparing the efficiency and effectiveness of a business process against strict standards and then measuring the performance against those standards. A. Best practices B. Strategic transition C. Network economics D. Benchmarking

D. Benchmarking

To align IT with the business and use information systems effectively for competitive advantage, managers need to perform a strategic systems analysis. Which of the following questions should managers be able to answer before implementing an IT? A. How fast can the firm adopt an enterprise social network tool? B. How much will the new information system cost? C. What information technologies are our competitors using? D. Where in the value chain will information systems provide the greatest value to the firm?

D. Where in the value chain will information systems provide the greatest value to the firm?

Information systems can be used to create products and services that are personalized to meet a specific​ customer's requirements, termed​ __________. A. product differentiation B. customer intimacy C. product capitalization D. information domination E. mass customization

E. mass customization

Adopting strategic information systems often change the organization as well as its products, services, and operating procedures, driving the organization into new behavioral patterns. Strategic information systems change business goals, relationships with customers and suppliers, and business processes. Which of the following statements best describes a strategic transition? A. A change in an organization's culture and activities as the result of adopting a strategic information system. B. Strategic transitions are business models based on a network that may help firms strategically by taking advantage of network economics. C. Strategic transitions are identified by consulting companies, research organizations, government agencies, and industry associations as the most successful solutions or problem-solving methods for consistently and effectively achieving a business objective. D. A strategic transition involves comparing the efficiency and effectiveness of a business process against strict standards and then measuring the performance against those standards.

A. A change in an organization's culture and activities as the result of adopting a strategic information system.

A​ powerful, current example of a rapidly expanding ecosystem is the mobile Internet platform. In this ecosystem there are four​ industries; select the answer that identifies them. A. Device​ makers, wireless telecommunication​ firms, independent software applications​ providers, and Internet service providers B. Device​ retailers, wireless telecommunication​ firms, independent software applications​ providers, and Internet service providers C. Device​ owners, wired telecommunication​ firms, software​ providers, and​ Wi-Fi providers D. Device​ makers, Wi-Fi​ providers, independent software applications​ providers, and Internet service providers E. Device​ makers, wireless telecommunication​ firms, open source applications​ providers, and Internet service providers

A. Device​ makers, wireless telecommunication​ firms, independent software applications​ providers, and Internet service providers

The following examples show how sometimes innovations radically change a business environment, and other times the innovations simply extend the market albeit with less functionality: The car replaced the horse-drawn carriage, the word processor replaced typewriters, the Apple iPod and streaming music service replaced portable CD players, and digital photography replaced process film photography. Which of the following best describes disruptive technologies? A. Disruptive technologies are substitute products that perform as well as or better than anything currently produced. B. Disruptive technologies is a term for loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers. C. Disruptive technologies refer to the ability to offer individually tailored products or services using the same production resources as mass production. D. Disruptive technologies use information systems to differentiate products, and enables new services and products.

A. Disruptive technologies are substitute products that perform as well as or better than anything currently produced.

What is a disruptive​ technology? A. Disruptive technologies can be substitute products that perform as well as or better than anything currently produced. In other​ cases, disruptive technologies simply extend the​ market, usually with less functionality and much less​ cost, than existing products. B. Technologies that are created by a competitor that are lowering your organizations market share. C. Disruptive technologies simply extend the​ market, usually with unstable functionality and greater cost than existing products. D. Disruptive technologies can be substitute products that perform below the standards of anything currently produced. E. Technologies that do not run on your organizations native app.

A. Disruptive technologies can be substitute products that perform as well as or better than anything currently produced. In other​ cases, disruptive technologies simply extend the​ market, usually with less functionality and much less​ cost, than existing products.

Adopting a strategic information system generally requires changes in business goals and relationships as well as changes in business processes. Which of the following is a movement between levels of sociotechnical systems? A. Strategic transition B. Network economics C. Benchmarking D. Best practices

A. Strategic transition

Porter's competitive forces model, the strategic position of the firm and its strategies are determined by competition with its traditional direct competitors, but they are also greatly affected by new market entrants, substitute products and services, suppliers, and customers. Organizations using information systems to deal with competitive forces __________. A. achieve the lowest operational costs B. lose customers to new entrants C. use manual labor for routine processes D. keep the prices of their products high

A. achieve the lowest operational costs

IT affects the cost and quality of information and changes the economics of information. Information technology helps firms contract in size because it can reduce the costs incurred when a firm obtains external resources. According to __________, firms and individuals seek to spend less on the costs incurred when a firm buys on the marketplace what it cannot make itself. A. agency theory B. transaction cost theory C. Moore's Law D. competitive forces model

B. transaction cost theory

The research on IT and business performance has found that the more successfully a firm can align information technology with its business goals, the more profitable it will be, yet only a one-quarter of firms achieve the alignment. Most businesses make a mistake when it comes to adopting or implementing information technology because ________. A. businesspeople ignore IT instead of taking an active role in shaping it B. managers understand what IT can do and how it works C. businesspeople tolerate failure in the IT area as just a nuisance D. managers take an active role in shaping the role of IT

A. businesspeople ignore IT instead of taking an active role in shaping it

American Airlines' SABRE computer reservation system, Citibank's ATM system, and FedEx's package tracking system benefited by being the first in their industries. Then rival systems emerged. These examples illustrate the __________. A. difficulty of sustaining a competitive advantage B. necessity of aligning IT with business objectives C. challenges of managing strategic transitions D. barriers to entry for start-ups

A. difficulty of sustaining a competitive advantage

Internet sites like eBay (the giant online auction site) and iVillage (an online community for women) can be used by firms to build communities of users—like-minded customers who want to share their experiences. This builds customer loyalty and enjoyment and develops unique ties to customers. This scenario is an example of how information systems help businesses use __________ to achieve competitive advantage. A. network based strategies B. human-focused strategies C. core competencies D. synergies

A. network based strategies

When faced with competitive forces, firms sometimes decide to compete by providing its products and services at the lowest industry prices. In order to use this competitive strategy, firms streamline their operations in order to generate the greatest output using the fewest possible inputs. For example, Walmart does not need to spend much money on maintaining large inventories of goods in its own warehouses. Their information systems enable them to replenish their inventory based on real-time information about its transactions. Which of the following is true of an efficient customer response system? A. An efficient customer response system involves comparing the efficiency and effectiveness of your business processes against strict standards and then measuring performance against those standards. B. An efficient customer response system directly links consumer behavior to distribution and production and supply chains. C. An efficient customer response system refers to the process of making a product different, or seem different, from other products in its range and from competing products. D. The ability to offer individually tailored products or services using the same production resources as mass production is referred to as an efficient customer response system.

B. An efficient customer response system directly links consumer behavior to distribution and production and supply chains.

To align IT with the business and use information systems effectively for competitive advantage, managers need to perform a strategic systems analysis. To identify the types of systems that provide a strategic advantage to their firms, managers should ask the following question. A. Does the new IT require any employee training? B. What are some of the competitive forces in the industry? C. How many employees will resign if the firm adopts a new IT? D. Where will the offices of the CDO be located?

B. What are some of the competitive forces in the industry?

Implementing information systems has economic, organizational, and behavioral effects on firms. For example, information systems make it possible for companies such as Cisco Systems and Dell to outsource their production to contract manufacturers such as Flextronics instead of making their products themselves. In this example, information systems have what kind of an impact on an organization? A. social B. economic C. organizational D. behavioral

B. economic

Information​ technology, especially the use of​ networks, can help firms lower the cost of​ ________, making it worthwhile for firms to contract with external suppliers instead of using internal sources. A. collective bargaining B. market participation​ (transaction costs) C. benefits for employees D. outsourcing management E. freelance outsourcing

B. market participation​ (transaction costs)

Which of the following is the correct classification for an organizational structure characterized as a task force organization that must respond to rapidly changing​ environments? A. Divisionalized bureaucracy B. Entrepreneurial structure C. Adhocracy D. Machine bureaucracy E. Professional bureaucracy

C. Adhocracy

The interaction between information technology and organizations is complex and is influenced by many mediating factors, including the organization's business processes, politics, culture, surrounding environment, and management decisions. Which of the following best describes an organization? A. An organization deals with buying and selling of goods and services over the Internet. B. An organization refers to the use of digital technology and the Internet to execute the major business processes in the enterprise. C. An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs. D. An organization refers to the application of the Internet and networking technologies to digitally enable public sector agencies' relationships with citizens, businesses, and the government.

C. An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs.

There are four generic strategies, each of which often is enabled by using information technology and systems: low-cost leadership, product differentiation, focus on market niche, and strengthening customer and supplier intimacy. Which competitive strategy uses information systems to differentiate products, and enable new services and products? A. Customer and supplier intimacy B. Focus on market niche C. Product differentiation D. Low-cost leadership

C. Product differentiation

To identify the types of systems that provide a strategic advantage to their​ firms, select the list that contains all the questions managers should ask. A. What will the cost be to develop the IS​ system? Will we be able to develop in​ house? Will we use a native app or Web​ app? B. What competition is there in the industry in which the firm is​ located? What are the​ business, firm, and industry value chains for this particular​ firm? Have we aligned IT with our business strategy and​ goals? C. What is the structure of the industry in which the firm is​ located? What are the​ business, firm, and industry value chains for this particular​ firm? Have we aligned IT with our business strategy and​ goals? D. What products does our competitor offer that we​ offer? Can any of our value chains be​ automated? Can we use cloud​ services? E. Can we purchase an​ "off the​ shelf" system? Can we outsource the​ development? What system does our competitor​ use?

C. What is the structure of the industry in which the firm is​ located? What are the​ business, firm, and industry value chains for this particular​ firm? Have we aligned IT with our business strategy and​ goals?

From the point of view of​ economics, IT changes​ ________. A. too rapidly to be correctly included in a yearly budget B. the costs of information but has no effect on relative costs of capital C. both the relative costs of capital and the costs of information D. neither the cost of data acquisition or the cost of information E. both the costs of data acquisition and the costs of information

C. both the relative costs of capital and the costs of information

The value chain model describes the series or chain of basic activities that add a margin of value to a firm's products or services. Some activities are directly related to an organizations manufacturing process, while other activities are related to an organization's capital resources. Support activities consist of _________. A. the expense a customer or company incurs in lost time and expenditure of resources when changing from one supplier or system to a competing supplier or system B. activities for which a firm is a world-class leader C. organization infrastructure, human resources, technology, and procurement D. inbound logistics, operations, outbound logistics, sales and marketing, and service

C. organization infrastructure, human resources, technology, and procurement

Which of the following best describes a business ecosystem? A. It is the idea that when the output of some units can be used as inputs to other units, or two organizations pool markets and expertise, these relationships lower costs and generate profits. B. It uses networks to link people, assets, and ideas, enabling it to ally with other companies to create and distribute products and services without being limited by traditional organizational boundaries or physical location. C. It is any hardware or software used to host an application or service and consists of hardware, an operating system, and coordinating programs that reduce business costs. D. It is loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.

D. It is loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.

Which of the following best defines a value chain model? A. The value chain model consists of organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input). B. The value chain model tracks the primary and support activities of a company when changing from one supplier or system to a competing supplier or system. C. The value chain model is directly related to the production and distribution of the firm's products and services, which create value for the customer. D. The value chain model highlights specific primary and support activities in the business where competitive strategies can best be applied (Porter, 1985) and where information systems are most likely to have a strategic impact.

D. The value chain model highlights specific primary and support activities in the business where competitive strategies can best be applied (Porter, 1985) and where information systems are most likely to have a strategic impact.

Information technology, especially the use of networks, can help firms lower the cost of market participation, making it worthwhile for firms to contract with external suppliers instead of using internal sources. Similarly, technology, by reducing the costs of acquiring and analyzing information, permits organizations to reduce costs because it becomes easier for managers to oversee a greater number of employees. According to agency theory, __________. A. firms and individuals seek to spend less on the costs incurred when a firm buys on the marketplace what it cannot make itself B. firms have tried to reduce transaction costs through vertical integration, by getting bigger, hiring more employees, and buying their own suppliers C. the number of components of a microprocessor chip with the smallest manufacturing cost per component, will double every 2 years D. a firm is viewed as a "nexus of contracts" among self-interested individuals rather than as a unified, profit-maximizing entity

D. a firm is viewed as a "nexus of contracts" among self-interested individuals rather than as a unified, profit-maximizing entity

Procter & Gamble uses an intranet called InnovationNet to help people working on similar problems share ideas and expertise. InnovationNet connects those working in many different departments around the world. It uses a browser-based portal to access data and includes a directory of subject matter experts who can be tapped to give advice or collaborate on problem solving or product development. This scenario is an example of how information systems help businesses use __________ to achieve competitive advantage. A. synergies B. network-based strategies C. human-focused strategies D. core competencies

D. core competencies

IT affects the cost and quality of information and changes the economics of information. Information technology helps firms contract in size because it can reduce the costs incurred when a firm obtains external resources. According to transaction cost theory, __________. A. there are five competitive forces that shape the fate of a firm B. the number of components of a microprocessor chip with the smallest manufacturing cost per component will double every 2 years C. a firm is viewed as a "nexus of contracts" among self-interest individuals rather than as a unified, profit-maximizing entity D. firms and individuals seek to spend less on the costs incurred when a firm buys on the marketplace what it cannot make itself

D. firms and individuals seek to spend less on the costs incurred when a firm buys on the marketplace what it cannot make itself

The value chain model describes the series or chain of basic activities that add a margin of value to a firm's products or services. Some activities are directly related to an organizations manufacturing process, while other activities are related to an organization's infrastructure. Primary activities are the value chain model category that _________. A. refer to the expense a customer or company incurs in lost time and expenditure of resources when changing from one supplier or system to a competing supplier or system B. is another term for loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers C. make the delivery of the activities possible and consist of organization infrastructure, human resources, technology, and procurement D. is most directly related to the production and distribution of the firm's products and services, which creates value for the customer

D. is most directly related to the production and distribution of the firm's products and services, which creates value for the customer

The value chain model describes the series or chain of basic activities that add a margin of value to a firm's products or services. Some activities are directly related to an organizations manufacturing process, while other activities are related to an organization's capital resources. __________ consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input). A. Primary activities B. switching costs C. secondary activities D. support activities

D. support activities