BIS601 Chapter 3 Study Questions + Terms
Business Ecosystem
A __________ is loosely coupled but inter-dependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers
Efficient Customer Response System
Directly links consumer behavior to distribution and production and supply chains
Best Practices
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
Primary Activities
Inbound logistics, operations, outbound logistics, marketing and sales, service
Network Economics
Model of strategic systems at the industry level based on the concept of a network where adding another participant entails zero marginal costs but can create much larger marginal gains.
Competitive Forces Model
Model used to describe the interaction of external influences, specifically threats and opportunities, that affect an organization's strategy and ability to compete.
Businesspeople ignore IT instead of taking an active role in shaping it
Most businesses make a mistake when it comes to adopting or implementing information technology because ________?
Strategic Transition
Movement between levels of socio-technical systems.
Tighten linkages with suppliers and develop intimacy with customers
Organizations using information systems to deal with competitive forces ___________
Is most directly related to the production and distribution of firms products and services, which creates value for the customer
Primary activities are the value chain model category that ___________
Benchmarking
Process of comparing the efficiency and effectiveness of your business processes against strict standards and then measuring performance against those standards
Organization infrastructure, human resources, technology, and procurement
Support activities consist of __________.
Network-Based Strategies
Taking advantage of network economics, using the model of a virtual company, and creating an ecosystem are all examples of how information systems help businesses use ______________ to achieve competitive advantage
Mass customization
The ability to offer individually tailored products or services using the same production resources as mass production
Product Differentiation
The process of making a product different, or seem different from other products.
What are some of the competitive forces in the industry?
To identify the types of systems that provide a strategic advantage to the firms, managers should ask the following question
Organization
What is a stable, formal social structure that takes resources from the environment and processes them to produce outputs?
Product differentiation
Which competitive strategy uses information systems to differentiate products, and enable new services and products?
The value chain model highlights specific primary and support activities in the business where competitive strategies can be best applied and where information systems are most likely to have a strategic impact
Which of the following best defines a value chain model?
It is loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.
Which of the following best describes a business ecosystem?
Benchmarking involves comparing the efficiency and effectiveness of a business process against strict standards and then measuring the performance against those standards
Which of the following best describes benchmarking?
Disruptive technologies are substitute products that perform as well as or better than anything currently produced
Which of the following best describes disruptive technologies?
The value chain model
Which of the following highlights activities that add a margin of value to a firms products or services were information systems can best be applied to achieve a competitive advantage?
Strategic transition
Which of the following is a movement between levels of sociotechnical systems?
Efficient customer response system
Which of the following options directly links consumer behavior to distribution and production and supply chains?
Where in the value chain will systems provide the greatest value to the firm
Which of the following questions should managers be able to answer before implementing an IT?
Business people claim to not understand IT and ignore it
Why do approximately 25% of businesses fail to align IT with his strategic goals or shareholder interest?
Support Activities
____________ 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)
Agency Theory
a theory that views the firm as a nexus of legal contracts
Transaction Cost Theory
According to ___________, firms and individuals seek to spend less on the costs incurred when a firm buys on the market place what it cannot make it self
Core Competencies
An activity for what your firm is a world-class leader
