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MIS > Chapter 9 > Flashcards

Chapter 9 Flashcards

1
Q

What does the resource-based view say?

A

The firm is modeled as a bundle of resources
The competitive advantage depends on the characteristics of the resources at its disposal

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2
Q

What are the 3 important characteristics of resources in the resource based view?

A
  1. Valuable
  2. Rarity
  3. Inimitability
  4. Nonsubstitutability
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3
Q

When is a resource considered valuable according to the resource based view?

A

When it underpins a value-adding strategy
When they enable the firm to offer a value proposition superior to competitors or offered at a lower price?

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4
Q

When is a resource considered rare according the the resource based view?

A

When it is distributed in a way that is unique to the firm
When it is scarce and not readily available for acquisition by competitors

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5
Q

When is a resource considered inimitable according to the resource based view?

A

When it is impossible or difficult to duplicate for competitors

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6
Q

When is a resource nonsubstitutable according to the resource based view?

A

When competitors are unable to replicate the value proposition using replacement resources for the ones that are rate, valuable, and inimitable

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7
Q

What is response lag?

A

A measure of the delay in competitive response. The higher the response lag, the more resilient the advantage

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8
Q

What are response lag drivers?

A

Characteristics of the technology, the firm, competitors, and value system that combine to make replication of the strategic initiative difficult and costly

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9
Q

What are the 4 categories of barriers to erosion?

A
  1. IT Resources
  2. Complementary Resources
  3. IT Project
  4. Preemption
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10
Q

What are the two classes of response lag drivers within the IT resources barrier?

A
  1. IT resources/assets
  2. IT capabilities
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11
Q

What is the IT assets response lag driver and how does it contribute to response lag?

A

Subset of the IT resources barrier
Technology available to the organization
They speed up development and introduction of the initiative’s IT core

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12
Q

What are the categories of the IT assets response lag driver?

A
  1. IT Infrastructure: Interconnected IT components to provide standard services
  2. Information repositories: Data stores with extensive information about customers, suppliers, products, or operations
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13
Q

What is the IT capabilities response lag driver and how does it contribute to response lag?

A

Derived from the skills and abilities of the workforce
Contributes to response lag because it facilitates the technology’s design and development

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14
Q

What are the categories of the IT capabilities response lag driver?

A
  1. Technical Skills and Business Understanding: The ability to design and develop effective applications with the ability to relate the IT solutions to business problems
  2. IT Management Skills: Ability to provide leadership and manage IT projects which can reduce development cost and lead time
  3. Relationship Asset: Mutual respect and trust between IS and business managers allowing for effective coordination
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15
Q

What are the three classes of response lag drivers within the complementary resources barrier?

A
  1. Structural resources
  2. Capabilities
  3. External resources
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16
Q

What is the structural resources response lag driver and how does it contribute to response lag?

A

Non-IT related assets used to enact initiatives
Creates response lag by making a strategic initiative difficult, costly, and time consuming to imitate

17
Q

What are the categories of the structural resources response lag driver?

A
  1. Tangible Assets: Competitive scope, scale of operations, organizational structure, governance, slack resources
  2. Intangible Assets: Corporate culture, top management commitment, ability to manage risk
18
Q

What is the capabilities response lag driver and how does it contribute to response lag?

A

Defines how the firm carries out productive activities. Activities that are performed and the steps that make up activities

19
Q

What are the categories of the capabilities response lag driver?

A
  1. Activity System: Configuration of activities that contributes to response lag when the IT core supports activities so that replication of technology alone is not enough
  2. Business Processes: Series of steps the firm performs to complete an activity. Response lag depends on distinctiveness and strategic value
20
Q

What is the external assets response lag driver and how does it contribute to response lag?

A

Assets like brand, reputation, and relationships that don’t exist within the firm
Forces competitors to develop a comparable of external resources before producing an effective response

21
Q

What are the two classes of response lag drivers within the IT project barrier?

A
  1. IT characteristics
  2. Implementation process
22
Q

What are the categories of the IT characteristics response lag driver?

A
  1. IT Complexity: Function of the bundle of skills and knowledge necessary to develop, implement, and use the IT. Raises development lead times for competitive response
  2. IT Uniqueness: Unique IT creates knowledge barriers as competitors need to learn how the IT works in order to implement it
  3. Visibility: Extent to which competitors can observe the competing technology. It is harder to imitate a tech capability that you cannot see
23
Q

What are the categories of the implementation process response lag driver?

A
  1. Complexity: Size and scope of the project, functional units involved. Difficult to integrate needed components into an effective system
  2. Degree of Process Change: Number of departments and organizations that will be impacted by the initiative. More departments and boundaries crossed makes change harder and riskier
24
Q

What are the two classes of response lag drivers within the preemption barrier?

A
  1. Switching costs
  2. Value system characteristics
25
Q

What are the categories of the switching costs response lag driver?

A
  1. Co-specialized tangible investments: Capital outlay necessary for customers to obtain physical assets needed to participate in the initiative
  2. Co-specialized intangible investments: Time and money required to participate in the initiative including setup costs and ongoing costs
26
Q

What are the categories of the value system characteristics response lag driver?

A
  1. Relationship exclusivity: Participants in the value system only want to do business with one firm. Customers face penalties for sourcing the product from multiple firms
  2. Concentrated value-system links: High concentrated link is one where there are few organizations or consumers. As concentration increases, the time necessary to secure a relationship with a substantial portion of the link decreases. The leader has a better chance of capturing the link and establishing switching costs
27
Q

What are the main dynamics for rejuvenating and strengthening barriers to erosion?

A
  1. Capability development
  2. Asset-stock accumulation
28
Q

What is capability development?

A

The ability to engage in learning by using
Firm becomes more effective over time in utilizing and managing and information system

29
Q

What is asset-stock accumulation?

A

Process by which a firm builds up a resource over time

30
Q

What are the 3 questions that should be asked to verify the strategic initiative creates value and is consistent with firm priorities?

A
  1. Is the proposed initiative aligned with firm strategy?
  2. Is the initiative focused on reducing firm cost or increasing customer willingness to pay?
  3. What is the IS design underpinning the proposed initiative?
31
Q

What are the 4 questions that should be asked to refine the initiative, identify potential weaknesses, and find areas to strengthen the initiative?

A
  1. What competitors are appropriately positioned to replicate the initiative?
  2. How long before competitors can offer the same value proposition?
  3. Will replication do competitors any good?
  4. What evolutionary paths does the innovation create?
32
Q

What are the 3 possible outcomes from analyzing the viability of an IT-driven strategic initiative?

A
  1. Develop the initiative independently
  2. Develop the initiative as part of a consortium
  3. Shelve the initiative
33
Q

What are the 3 possible outcomes from analyzing the viability of an IT-driven strategic initiative?

A
  1. Develop the initiative independently
  2. Develop the initiative as part of a consortium
  3. Shelve the initiative

MIS (2 decks)

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