Chapter 1 - Multiple Choice

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to A) invest in technology. B) adopt a new business model. C) invest in complementary assets. D) modernize their information value chain.

B) adopt a new business model

Complementary asset: A) make firms investing in them and IT receive lose revenues B) are assets required to derive value from a primary investment c) are the people that make the technology work

B) are assets required to derive value from a primary investment c) are the people that make the technology work

Maintaining the organization's financial records is a central purpose of which main business function? A) manufacturing and accounting B) finance and accounting C) sales and manufacturing D) finance and sales

B) finance and accounting

Psychologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods.

B) how human decision makers perceive and use formal information.

Disciplines that contribute to the technical approach to information systems are A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering.

B) operations research, management science, and computer science.

Which of the following would not be a complementary asset for a solar panel manufacturer? A) international solar equipment certification standards B) government funding for green technology C) centralized hierarchical decision making D) innovation-driven management team

C) centralized hierarchical decision making

Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective? A) improved flexibility B) improved business practices C) competitive advantage D) survival

C) competitive advantage

Business firms are: A) a collection of business processes B) a collection of business routines C) precise rules, procedures, and practices developed to cope with virtually all expected situations

A) a collection of business processes

IT flattens organization: A)Decision making pushed to lower levels B)Fewer managers needed C)IT enables faster decision making and increases span of control

A)Decision making pushed to lower levels B)Fewer managers needed C)IT enables faster decision making and increases span of control

An organization is: A) a formal legal entity with internal rules and procedures as well as a social structure B) Stable, formal social structure that takes resources from environment and processes them to produce outputs C) A collection of rights, privileges, obligations and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution

A B C

In the technical microeconomic definition on an organization: A) Input is the capital and labor B) capital and labor are the primary production factors provided by the environment C) output is only products B) in the feedback loop, additional labor and input is provided from the organization

A and B

In organizations: A) Divergent viewpoints lead to political struggle, competition, and conflict B) Political resistance boosts organizational change C) organizational culture is always powerful and unifying

A) Divergent viewpoints lead to political struggle, competition, and conflict

In fully digital firms: A) Significant business relationships are digitally enabled and mediated B)Core business process are accomplished through digital network and in stores C)Key corporate assets are managed in office

A) Significant business relationships are digitally enabled and mediated

Which is not a features of organizations: A) Use of a non-hierarchical structure B) Accountability, authority in system of impartial decision making C) Adherence to principle of efficiency D) Routines and business processes E)Organizational politics, culture, environments and structures

A) Use of a non-hierarchical structure

An example of a business using information systems to attain operational excellence is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

A) Wal-Mart's RetailLink system

Strategy: A) a series of choices that determine the opportunities company pursue and the market potential of those opportunities B)involves choice concerning products to sell C)it involves choice about markets to enter D)involves ways a company differentiates its offering from other alternatives

A) a series of choices that determine the opportunities company pursue and the market potential of those opportunities B)involves choice concerning products to sell C)it involves choice about markets to enter D)involves ways a company differentiates its offering from other alternatives

Business model strategy audit includes: A) assess business context B)Analyze customers C)Analyze competitors and substitutes D)Assess the business network E)analyze the product

A) assess business context B)Analyze customers C)Analyze competitors and substitutes D)Assess the business network

The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its A) culture. B) environment. C) atmosphere. D) values.

A) culture

From a business model perspective: A) decisions concerning a company's strategy define the revenue drivers of the business and its potential for growth over time. B)Decisions determine proprietary assets to be kept inside the walls of the firm and those to be leveraged outside. C) decisions determine markets to enter

A) decisions concerning a company's strategy define the revenue drivers of the business and its potential for growth over time. B)Decisions determine proprietary assets to be kept inside the walls of the firm and those to be leveraged outside.

Which of the following would NOT be used as an input for an information system? A) digital dashboard B) handheld computer C) bar-code scanner D) cell phone

A) digital dashboard

Sociologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods.

A) how systems affect individuals, groups, and organizations.

Which of the following are key corporate assets? A) intellectual property, core competencies, and financial and human assets B) production technologies and business processes for sales, marketing, and finance C) knowledge and the firm's tangible assets, such as goods or services D) time and knowledge

A) intellectual property, core competencies, and financial and human assets

Disruptive technologies: A) is a technology that brings about sweeping change to businesses, industries, markets B) consist of first movers who adapt the technology C) consist of fast followers who invent the technology

A) is a technology that brings about sweeping change to businesses, industries, markets

Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case? A) operational excellence B) new products and services C) competitive advantage D) customer support

A) operational excellence

A business model forms the foundation for how executive make decisions about: A) opportunities to pursue B)businesses to launch or buy C)talent to hire D)Ways to organize

A) opportunities to pursue B)businesses to launch or buy C)talent to hire D)Ways to organize

Order data for baseball tickets and bar code data are examples of A) raw input. B) raw output. C) customer and product data. D) sales information.

A) raw input

The use of information systems because of necessity describes the business objective of A) survival. B) improved business practices. C) competitive advantage. D) improved flexibility.

A) survival

An example of a social complementary asset is A) technology and service firms in adjacent markets. B) training programs. C) distributed decision-making rights. D) all of the above.

A) technology and service firms in adjacent markets

Thomas Friedman's declaration that the world was now "flat" meant that A) the Internet has reduced the economic advantages of developed countries. B) globalization is starting to offer less advantage to large corporations. C) the global economy is increasingly commanded by fewer and larger corporations. D) global capitalism is homogenizing culture and business practices throughout the world.

A) the Internet has reduced the economic advantages of developed countries

From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called A) the information value chain. B) the IT value chain. C) information processing. D) feedback.

A) the information value chain

Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) the specification of procedures for identifying packages with sender and recipient information B) monitoring service levels C) promoting the company strategy of low-cost, superior service D) the use of handheld computers and networks for managing package delivery

A) the specification of procedures for identifying packages with sender and recipient information

An example of an organizational complementary asset is A) using the appropriate business model. B) a collaborative work environment. C) laws and regulations. D) all of the above.

A) using the appropriate business model

Central organizational factors to consider when planning a new system: A)Environment B)Structure C)Culture and politics D)Type of organization and style of leadership E)Main interest groups affected by system; attitudes of end users F)Tasks, decisions, and business processes the system will assist

A)Environment B)Structure C)Culture and politics D)Type of organization and style of leadership E)Main interest groups affected by system; attitudes of end users F)Tasks, decisions, and business processes the system will assist

Structure of an organization: A)Hierarchy B) specialization C) routines D) business processes E) management F) workers

A)Hierarchy B) specialization C) routines D) business processes

According to the Transaction cost theory today: A)IT lowers market transaction costs for a firm B) Firms choose to hire more employees rather than transact with other firms C) firms grow in size to reduce transaction costs

A)IT lowers market transaction costs for a firm

In business context analysis we: A)Identify relevant regulatory, societal and industry trends and distributors that signals opportunities and threats B)Identify traditional rivals,potential new entrants, and substitutes offerings C)Identify the core activities, resources, and capabilities needed to achieve your goals D)Assess your capabilities and potential supplier and partner capabilities in performing these activities

A)Identify relevant regulatory, societal and industry trends and distributors that signals opportunities and threats

To better take advantage from IT investment organizations need to: A)Invest in complementary assets (organizational and management capital) B)Adopting the right business model C)Completely change their business strategy

A)Invest in complementary assets (organizational and management capital) B)Adopting the right business model

Analyze customers by: A)Market research B) Internal customer information (ex. CRM) C)Get a first-hand perspective by talking with observing customers D)Whenever possible, involve customers in designing and developing products and services. E)Find which firm provide best customer needs

A)Market research B) Internal customer information (ex. CRM) C)Get a first-hand perspective by talking with observing customers D)Whenever possible, involve customers in designing and developing products and services.

Analyzing processes and infrastructure should address core processes that: A)Produce products; B) Deliver services; C) Acquire and serve customers D) Manage relationships with key stakeholders E) Deliver a continuous stream of new products, services, and innovation F) Activities performed by a company and its suppliers, customers, and business partners

A)Produce products; B) Deliver services; C) Acquire and serve customers D) Manage relationships with key stakeholders E) Deliver a continuous stream of new products, services, and innovation F) Activities performed by a company and its suppliers, customers, and business partners

Governance systems include: A)Strategic controls (scanning the environment, defining strategic position, setting goals, and prioritizing projects and investments); B) Operating controls (defining short-term objectives and controlling current business operations and projects); C) Effective risk management (identification and management of key risks); D) Effective development and management of the shared values and culture that guide decisions and actions.

A)Strategic controls (scanning the environment, defining strategic position, setting goals, and prioritizing projects and investments); B) Operating controls (defining short-term objectives and controlling current business operations and projects); C) Effective risk management (identification and management of key risks); D) Effective development and management of the shared values and culture that guide decisions and actions.

The three components of a business model: A) strategy B)capabilities C)Processes D)Value

A)Strategy B) capabilities C)Value

questions to ask when assessing the business network: A)What activities do different players perform and what are the relationships among the various players? B)How powerful are individuals and organizations that control key activities, resources, or capabilities required to execute strategy? C)How is the network organized? D)Do competitors possess proprietary knowledge, assets, or intellectual property that serve as barriers to entry? E)What market share do different competitors have and how are these shares changing over time? F) Are there new entrants that offer radically different business models or offerings?

A)What activities do different players perform and what are the relationships among the various players? B)How powerful are individuals and organizations that control key activities, resources, or capabilities required to execute strategy? C)How is the network organized?

Example of questions to ask when analyzing competitors and substitutes: A)Which firms provide those alternatives? B)What makes one company's product or service offerings different from other offerings? Do these differences matter to customers? C) How much are customers willing to pay? How do prices differ from one competitor to another? D)What activities do different players perform and what are the relationships among the various players? E)How powerful are individuals and organizations that control key activities, resources, or capabilities required to execute strategy?

A)Which firms provide those alternatives? B)What makes one company's product or service offerings different from other offerings? Do these differences matter to customers? C) How much are customers willing to pay? How do prices differ from one competitor to another?

Business models defines how an organization interacts with its environment to: A)define a unique strategy. B)attract the resources and build the capabilities required to execute the strategy. C) create value for all stakeholders.

A)define a unique strategy. B)attract the resources and build the capabilities required to execute the strategy. C) create value for all stakeholders.

Capabilities: A)enable a company to execute current strategy while also providing a platform for future growth B)define the resources needed to execute strategy and, in doing so, define the cost model of an organization. C)define the assets of a firm and the efficiency with which those assets are used D)evaluated together when planning a possible strategy

A)enable a company to execute current strategy while also providing a platform for future growth B)define the resources needed to execute strategy and, in doing so, define the cost model of an organization. C)define the assets of a firm and the efficiency with which those assets are used D)evaluated together when planning a possible strategy

Capabilities: A)enable a company to execute current strategy while also providing a platform for future growth. B)defines "what that move is worth" C)define the resources needed to execute strategy and, in doing so, define the cost model of an organization.

A)enable a company to execute current strategy while also providing a platform for future growth. C)define the resources needed to execute strategy and, in doing so, define the cost model of an organization.

organizations are: A)open to social and physical environment B)independent from its environment C) dependent on the the environment

A)open to social and physical environment C) dependent on the the environment

Implementing information systems has consequences for: A)task arrangements B) structures C)people D)Technology

A)task arrangements B) structures C)people

To assess business context is all of the following except: A)to examine industry and competitive dynamics B)to consider relevant demographics, economic, political, regulatory, and societal factors that influence the business C) analyze the external environment D)identify key trends that will either positively or negatively impact the industry and any disruptors that could be source of opportunity or threat E)Identify specific opportunities to pursue or not

A)to examine industry and competitive dynamics B)to consider relevant demographics, economic, political, regulatory, and societal factors that influence the business C) analyze the external environment D)identify key trends that will either positively or negatively impact the industry and any disruptors that could be source of opportunity or threat E)Identify specific opportunities to pursue or not

Examples of mobile digital platforms are: A)Apple iPhone B) Android C)Blackberry D)Google E)Nexus

A, B and C

Management adopt online collaboration and social networking software to improve: A) Planning, Organizing, Controlling B) Coordination, collaboration, knowledge sharing C) Communication, Planning, decision making

B) Coordination, collaboration, knowledge sharing

which of the following is not a mediating factors of the relationship between organizations and information: A) Culture B) Information system C) Structure D) Business processes E) Politics F) Management Decision G)Environment

B) Information System

Complementary assets include: A)Business model assets B) Organizational assets C) Managerial assets D) Social assets

B) Organizational assets C) Managerial assets D) Social assets

Business processes are: A) a collection of business firms B) a collection of business routines C) precise rules, procedures, and practices developed to cope with virtually all expected situations

B) a collection of business routines

Which main business function is responsible for maintaining employee records? A) sales and marketing B) human resources C) finance and accounting D) manufacturing and production

B) human resources

The six important business objectives of information technology are new products, services and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and A) improved flexibility B) improved decision making C) improved business practices D) improved efficiency

B) improved decision making

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of A) improved flexibility. B) improved decision making. C) improved efficiency. D) customer and supplier intimacy.

B) improved decision making

In a hierarchical organization, the upper levels consist of A) managerial and professional employees. B) managerial, professional, and technical employees. C) professional and operational employees. D) managerial, professional, and operational employees.

B) managerial, professional, and technical employees

Converting raw data into a more meaningful form is called A) capturing. B) processing. C) organizing. D) feedback.

B) processing

The three principal levels within a business organization hierarchy are A) senior management, operational management, and service workers. B) senior management, middle management, and operational management. C) senior management, operational management, and information systems. D) senior management, middle management, and service workers.

B) senior management, middle management, and operational management.

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective? A) customer and supplier intimacy B) survival C) competitive advantage D) improved decision-making

B) survival

An example of a business using information systems for customer and supplier intimacy is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

B) the Mandarin Oriental hotel's customer-preference tracking system

Cloud computing is: A) businesses looking for insight from big volumes of data online B) A flexible collection of computers on the internet that perform tasks traditionally performed on corporate computers C)a digital platform that emerged to compete with the PC as a business system.

B)A flexible collection of computers on the internet that perform tasks traditionally performed on corporate computers

Kinds of organizational structure: A)Bureaucracy B)Entrepreneurial C) Machine bureaucracy D) Divisionalized bureaucracy E) Professional bureaucracy F) Adhocracy

B)Entrepreneurial C) Machine bureaucracy D) Divisionalized bureaucracy E) Professional bureaucracy F) Adhocracy

The internet increases the ......, ........ and ......., of information and knowledge for organizations: A)The flexibility, storage and distribution B)The accessibility, storage and distribution C)The accessibility, storage and process

B)The accessibility, storage and distribution

Strategies: A)enable a company to execute current strategy while also providing a platform for future growth. B)define how a company plans to achieve a distinctive and unique position that "woos customers from established players or draws new customers into the market". C)define the resources needed to execute strategy and, in doing so, define the cost model of an organization.

B)define how a company plans to achieve a distinctive and unique position that "woos customers from established players or draws new customers into the market".

Value: A)define the resources needed to execute strategy and, in doing so, define the cost model of an organization. B)defines "what that move is worth" C)define how a company plans to achieve a distinctive and unique position

B)defines "what that move is worth"

A company's strategic decisions define strategic positioning along four key dimensions: A)Firm positioning B)market positioning C)Product positioning D)Business network positioning E) Boundary positioning

B)market positioning C)Product positioning D)Business network positioning E) Boundary positioning

Boundary positioning determines the following: A)markets, products,businesses that will be pursued B)markets, products,businesses that will not be pursued C)markets and businesses that will not be pursued D) Markets that will be pursued and products and businesses that won't

B)markets, products,businesses that will not be pursued

In the behavioral view of the organization, structure is: A) Rights/obligations B)Values C) Hierarchy D) Business processes

C and D

An example of raw data from a national chain of automobile stores would be A) an average of 13 Toyotas are sold daily in Kentucky. B) 30 percent increase in Toyota RAV 4 sales during September in Kentucky. C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky. D) all of the above.

C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky

Big Data consists of: A) Businesses looking for insights from big numbers of people B) Businesses looking for insight from huge volumes of data from web traffic only C) Businesses looking for insight from huge volumes of data from web traffic, e-mails, social media content, and sensors

C) Businesses looking for insight from huge volumes of data from web traffic, e-mails, social media content, and sensors

Economics impacts of IT: A) IT changes relative costs of information only B)IT costs increase over the years C) IT affects the cost and quality of information and changes economics of information

C) IT affects the cost and quality of information and changes economics of information

Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's A) data management environment. B) networked environment. C) IT infrastructure. D) information system.

C) IT infrastructure

Which of the following is not part of the process of a formal organization: A)Rights/obligations B)Privileges/responsibilities C) Rules and procedures D)Values E) Norms F)People

C) Rules and procedures

Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having A) poor relationships with suppliers. B) poor relationships with customers. C) inadequate information. D) a surplus of information.

C) inadequate information.

The three activities in an information system that produce the information organizations use to control operations are A) information retrieval, research, and analysis. B) input, output, and feedback. C) input, processing, and output. D) data analysis, processing, and feedback.

C) input, processing, and output

Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy? A) middle management B) production workers C) knowledge workers D) data workers

C) knowledge workers

The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called A) information systems literacy. B) information systems architecture. C) management information systems. D) information technology infrastructure.

C) management information systems

The average number of tickets sold daily online is an example of A) input. B) raw data. C) meaningful information. D) feedback.

C) meaningful information

Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium? A) competitive advantage B) improved decision making C) new products and services D) survival

C) new products and services

The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is A) management science. B) MIS. C) operations research. D) utilization management.

C) operations research.

Busienss routines are A) a collection of business firms B) a collection of business processes C) precise rules, procedures, and practices developed to cope with virtually all expected situations D) standard operation procedures

C) precise rules, procedures, and practices developed to cope with virtually all expected situations D) standard operation procedures

A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets? A) managerial B) governmental C) social D) organizational

C) social

Data management technology consists of the A) physical hardware and media used by an organization for storing data. B) detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. C) software governing the organization of data on physical storage media. D) hardware and software used to transfer data.

C) software governing the organization of data on physical storage media

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective? A) customer intimacy B) operational excellence C) survival D) improved reporting

C) survival

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective? A) improved efficiency B) customer and supplier intimacy C) survival D) competitive advantage

C) survival

The costs for firms operating on a global scale have been drastically reduced by A) networking technology. B) investments in organizational complementary assets. C) the Internet. D) the rise of digital content.

C) the Internet.

A managerial element in the UPS tracking system described in the chapter is A) taking inventory. B) providing package status reports to customers. C) the decision to use automation. D) in-house package tracking software.

C) the decision to use automation

Which of the following is not part of the structure of a formal organization: A) hierarchy B) Division of labor C)People D) Business processes E) Culture F) Rules, procedures

C)People

Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time? A) 1 only B) 1 and 2 C) 2 and 3 D) 1, 2, and 3

D) 1,2, and 3

An example of a business using information systems to create new products and services is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

D) Apple Inc.'s iPod

Digital firms offer greater flexibility in organization and management by: A) letting employees work any time they want B) Time Shifting C) Space Shifting D) B and C

D) B and C

Which of the following are environmental actors that interact with an organization and its information systems? A) customers B) suppliers C) regulatory agencies D) all of the above

D) all of the above

Which field of study focuses on both a behavioral and technical understanding of information systems? A) sociology B) operations research C) economics D) management information systems

D) management information systems

The hardware and software used to transfer data in an organization is called A) data management technology. B) networking and data management technology. C) data and telecommunications technology. D) networking and telecommunications technology.

D) networking and telecommunications technology

In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is A) middle management. B) service workers. C) production management. D) operational management.

D) operational management.

Output A) is feedback that has been processed to create meaningful information. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transfers data to the people who will use it or to the activities for which it will be used. D) transfers processed information to the people who will use it or to the activities for which it will be used.

D) transfers processed information to the people who will use it or to the activities for which it will be used

which does not coincide with the Agency theory: A)IT can reduce agency costs B)firms to grow without adding to the costs of supervising, and without adding employees C)A principal (owner) employs "agents" (employees) to perform work on his or her behalf. D)Firm is viewed as a nexus of contracts among self-interested parties who are self-sufficient and do not need supervision

D)Firm is viewed as a nexus of contracts among self-interested parties who are self-sufficient and do not need supervision

Product positioning determines all but : A)the choice of products and services to offer B) the features of the offering C)the price that will be charged. D)The market that will be targeted

D)The market that will be targeted

which of the following is not an organizational culture assumptions to define goals and product: A)What products the organization should produce B)How and where it should be produced C)For whom the products should be produced D)What method should the organization take to reach its market

D)What method should the organization take to reach its market

Market positioning determines all but: A)the choice of customers to serve B)the need and expectations to be met C)the channels that will be used to reach customers. D)the choice of product to offer

D)the choice of product to offer

A business strategy involves all of the following except: A)choices concerning products to sell B) markets to enter C) ways a company differentiates its offering from other alternatives D)ways to manage employees

D)ways to manage employees

Virtual meetings help managers: A) reduce travel time and costs B) improve collaborations C) improve decision making D) improve connection between employees E) A B C

E) A B C

Co-creation of business value consists in: A) the shift of business value from solution to experience B) the shift of business value from internal sources to external sources C) globalization of the supply-chain and product development D) collaboration of customers in the definition of new products and services E) All of the above

E) All of the above

Major Changes in the technology area are: A) The emerging mobile digital platform B) Big Data C) Cloud computing D) The emerging of fully digital firms E) All of the above

E) All of the above

Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below? A) Use IT to increase supplier loyalty. B) Use IT to increase operational efficiency. C) Use IT to create new products and business models. D) Use IT to help survive government reporting requirements. E) Use IT to achieve customer intimacy.

E) Use IT to achieve customer intimacy.