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?
