IS BOOK Ch.2 Review questions

2-2) How do disruptive Innovations, government policies, complementary products and services, and environmental events affect how the competitive forces operate?

Disruptive innovations, government policies, complementary products and services, and environmental are "external" forces that affect how the five forces operate. For example, certain innovations can flood through an industry, changing everything in their path, forcing every company to change its strategy.

2-7) How do information systems apply to competitive strategies for nonprofit organizations?

Fundraising can be used to discover potential donors, their preferences, and motivation. Volunteering CRM software used to coordinate positions, keep track of events, manage volunteers.

2-8) How do governments use information systems to improve services and fund research?

Governments use info systems for e-gov initiatives, to increase access and enhance services for the public. Also involved with funding initiatives that offer potential value for the country Research that led to the internet and funding for alternative energy.

2-5) How do information systems apply to competitive strategies for business?

It changes industry structure and, in so doing, alters the rules of competition. It creates competitive advantage by giving companies new ways to outperform their rivals. It spawns whole new businesses, often from within a company's existing operations

2-4) How do managers use benchmarks to analyze the value chain and IT spending?

Organizations use the value chain model to compare their performance to industry benchmarks and identify areas that should be targeted for improvement. For example, an organization may compare its budget allocation to each value chain activity to industry benchmarks (i.e., average expenditures in its industry). IT benchmarks include average IT spending by industry and amount spent on IT per employee.

2-6) How are information systems used to run, grow, and transform a business?

Run computers, laptops, cellphones, and other devices support productivity. Grow specialized software, customer service, loyalty. Transform IT is a strategic enabler that can potentially make a few greater contribution to success compared to its role in keeping the business running.

2-1) What are the five competitive forces that shape industry competition? How are these forces interrelated?

The five forces that influence industry competition are (1) threat of new entrants, (2) power of buyers, (3) power of suppliers, (4) threat of substitutes, and (5) rivalry among existing competitors. The five forces determine industry structure and how profitable companies in the industry will be. The five interrelated forces are "internal" to the industry.

2-3) What are the components of the value chain? Which components comprise the primary activities? Which components comprise the support activities? What is the extended value chain?

The primary activities of a value chain are: (1) bring in raw resources; (2) make the product or service; (3) market the product or service; (4) deliver the product or service; and (5) provide customer support. The support activities are: (1) administration and management; (2) human resources; (3) technology support; and (4) procurement. The extended value chain links the company's value chain with the value chains of its suppliers and its customers.