Chapter 2

Question 1

Network Effect

Answer 1

The value of a network is proportional to its size

Question 2

Business Processes

Answer 2

The activities organizations perform in order to reach their business goals, including core activities that transform inputs and produce outputs, and supporting activities that enable the core activities to take place

Question 3

Operational Level

Answer 3

The routine day to day business processes and interactions with customers occur

Question 4

Transaction

Answer 4

Refers to anything that occurs as part of your daily business of which you must keep a record

Question 5

Structured Decisions

Answer 5

Those which the procedures to follow for a given situation can be specified in advance

Question 6

Managerial Level

Answer 6

• Tactical Level
• Functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization

Question 7

Semistructured Decisions

Answer 7

Some procedures to follow for a given situation can be specified in advance, but not to the extent where a specific recommendation can be made

Question 8

Executive Level

Answer 8

• Strategic Level
• Managers focus on long-term strategic questions facing the organization, such as which products to produce, which countries to compete in, and what organizational strategy to follow

Question 9

Unstructured Decisions

Answer 9

Few or no procedures to follow for a given situation can be specified in advance

Question 10

Functional Area Information Systems

Answer 10

Designed to support the unique business processes of specific functional areas

Question 11

Automating

Answer 11

Thinks of technology as a way to help complete a task within an organization faster, more cheaply, and with greater accuracy

Question 12

Organizational Learning

Answer 12

The ability of an organization to use past behavior and information to improve its business processes, and for change was well as for automation

Question 13

Organizational Strategy

Answer 13

Firm’s plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals-and how it relates to informations systems

Question 14

Strategic Planning

Answer 14

Senior managers form a vision of where the organization needs to head, and convert that vision into measurable objectives and performance targets, and craft a strategy to achieve it

Question 15

Low Cost Leadership Strategy

Answer 15

Offers the best prices in its industry on its goods and/or services

Question 16

Differentiation Strategy

Answer 16

Tries to provide better products or services than its competitors

Question 17

Better Cost Provider Strategy

Answer 17

Offering products or services of reasonably good quality at competitive prices

Question 18

First Mover Strategy

Answer 18

Being the first to enter the Market

Question 19

Resources

Answer 19

Reflect the organization’s specific assets that are utilized to create cost or product differentiation from their competitors

Question 20

Capabilities

Answer 20

Reflect the organization’s ability to leverage these resources in the marketplace

Question 21

Distinctive Competencies

Answer 21

• Innovation, Agility, Quality, Low Cost

- Help to pursue the organizational strategy

Question 22

Value Creation

Answer 22

Occurs when an organization can provide products at a lower cost or with superior benefits to the customer

Question 23

Porter’s Five Primary Competitive Forces

Answer 23

1. Rivalry among competing sellers
2. Threat of potential new entrants
3. Bargaining power that customers have
4. Bargaining powers that suppliers have
5. Potential for substitute products from other industries

Question 24

Value Chain

Answer 24

When employers ad value to the product or service by acquiring supplies in a more effective manner, improving products, and selling more products

Question 25

Value Chain Analysis

Answer 25

Process of analyzing an organization's activities to determine where the value is added to products and or services and what costs are incurred for doing so.

Question 26

Business/IT Alignment

Answer 26

Only add systems that add the most value, those that automate and learn as well as have strategic value

Question 27

Strategic Necessity

Answer 27

Something an organization must do in order to survive

Question 28

Economic Value

Answer 28

The contribution an investment makes toward improving the infrastructure's ability to enhance the profitability of the business

Question 29

Architectural Value

Answer 29

Ability to extend the infrastructure's capabilities to meet business needs today and in teh future

Question 30

Operational Value

Answer 30

Assessing an investment's impact on enabling the infrastructure to better meet business processing requirements

Question 31

Regulatory and Compliance Value

Answer 31

Assessing the extent to which an investment helps to meet requirements for control, security, and integrity as required by a governing body

Question 32

Business Model

Answer 32

Summary of a business's strategic direction that outlines how the objectives will be achieved

Question 33

Revenue Model

Answer 33

Describes how the firm will earn revenue, generate profits, and produce a superior return on invested capitol

Question 34

Administrative Heritage

Answer 34

Corporate Culture that has evolved in the environment of the firm's home country

Question 35

Home Replication Strategy

Answer 35

The most basic form of going global; companies using this strategy view international operations as secondary to their home operations

Question 36

Global Business Strategy

Answer 36

Attempt to achieve economies of scale by producing identical products in large quantities for a variety of different markets

Question 37

Multi-domestic Business Strategy

Answer 37

Operations in markets differing widely; uses a loose federation of associated business units

Question 38

Transnational Business Strategy

Answer 38

Selectively decide which aspects of the organization should be under central control and which should be decentralized

Question 39

Disruptive Innovations

Answer 39

New technologies, products, or services that eventually surpass the existing dominant technology or product in a market

Question 40

Innovator's Dilemma

Answer 40

Refers to how disruptive innovations, typically ignored by established market leaders cause these established firms or industries to lose market dominance, often to failure

Question 41

E-Business Innovation Cycle

Answer 41

Refers to the use of information technologies and systems to support the business

Question 42

E-Business

Answer 42

The use of nearly any information technologies or systems to support every part of the business

Question 43

Enabling Technologies

Answer 43

Information Technologies that enable a firm to accomplish a task or goal or to gain or sustain competitive advantage

Question 44

Fre-economics

Answer 44

The leveraging of digital technologies to provide free goods and services to customers as a business strategy for gaining a competitive edge

Question 45

Value Proposition

Answer 45

What a business provides to a customer and what that customer is wiling to pay for that product or service is larger than simply buyers or sellers