Chapter 2

Question 1

An investment’s ability to extend the IS infrastructure’s capabilities to meet business need today and in the future is referred to as ____.

Answer 1

Architectural value

Question 2

Which of the following statements is true of operational-level decisions?

Answer 2

They are highly structure and recurring.

Question 3

Economic value refers to ____.

Answer 3

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

Question 4

Which of the following is a challenge for organizations when it comes to sustaining a competitive advantage?

Answer 4

Competitors can copy strategic systems

Question 5

Which of the following best describes architectural value?

Answer 5

An investment’s ability to extend the IS infrastructure’s capabilities to meet business needs today and in the future

Question 6

How do key performance indicators help functional managers to enhance business processes

Answer 6

By assessing the organization’s progress toward a certain goal.

Question 7

With the _____ business strategy, the degree of integration is low, and the individual subunits can respond quickly to their respective market demands.

Answer 7

Multi-domestic

Question 8

Companies pursuing a ____ business strategy attempt to achieve economies of scale by developing [products for the global market, which can be sold in large quantities.

Answer 8

Global

Question 9

What is this Tyler of international business strategy called?

Answer 9

Home replication

Question 10

People at the ____ level make structure decisions.

Answer 10

Operational

Question 11

___ is the process of examining an organization’s activities to determine where value is added to products and services and what costs are incurred for doing so.

Answer 11

Value chain analysis

Question 12

This approach to assessing the IS infrastructure can create ____.

Answer 12

Operational value

Question 13

At which level of decision making are information systems are used to obtain aggregate summaries of trends and projections of the future?

Answer 13

Executive

Question 14

___ uses the leveraging of digital technologies to provide free goods and services to customer to gain a competitive advantage.

Answer 14

Freeconomics

Question 15

Porsche, Nordstorm, and IBM are examples of companies that pursue which type of strategy?

Answer 15

a differentiation strategy

Question 16

Regulatory and compliance value refers to ____.

Answer 16

the extent to which an investment helps the IS infrastructure to meet requirements for control, security, and integrity as required by a governing body or a key customer.

Question 17

Which of the following best describes a disruptive innovation?

Answer 17

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

Question 18

how does freeconomics work?

Answer 18

Companies provide free goods and services to customers to gain a competitive advantage.

Question 19

which of the following is a challenge for organizations when it comes to sustaining a competitive advantage?

Answer 19

markets, customer expectations, and technology change

Question 20

At which level of decision making do information systems help to improve a firm’s effectiveness by automating monitoring and controlling activities?

Answer 20

at the managerial level

Question 21

At the ___ level of decision making functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization.

Answer 21

managerial

Question 22

Which of the following is true of the information that executives have to use to make decisions?

Answer 22

It is less structured than the other levels of decision making.

Question 23

At the executive level of decision making, information systems are used to ____.

Answer 23

obtain aggregate summaries of trends and projections of the future.

Question 24

Which of the following best describes a value proposition?

Answer 24

It is what a business provides to a customer and what the customer is willing to pay for that product or service.

Question 25

the home-replication business strategy involves which of the following?

Answer 25

Focusing on domestic customers’ needs and wants and exporting products to generate additional sales.

Question 26

The ____ business strategy uses a loose federation of associated business units, each of which is rather independent about its strategic decisions.

Answer 26

multi-domestic

Question 27

The business intelligence information that executive need to make strategic decisions is ___.

Answer 27

less structured that the other levels of decision making

Question 28

____ refers to the contribution an investment makes toward improving the IS infrastructure’s ability to enhance the profitability of the business.

Answer 28

Economic Value

Question 29

Which of the following is an appropriate way to think about investing in a disruptive innovation?

Answer 29

Put technology ahead of strategy and marketing

Question 30

___ refers to the extent to which an IS infrastructure investment helps to meet requirements for control, security, and integrity as required by a governing body or a key customer.

Answer 30

Regulatory and compliance value