Information Management CH7 Flashcards
What is the productivity paradox?
The productivity paradox is based on Erik Brynjolfsson’s finding, based on research he conducted in the early 1990s, that the addition of information technology to business had not improved productivity at all
Summarize Carr’s argument in “Does IT Matter.”
Information technology is now a commodity and cannot be used to provide an organization with competitive advantage. It should be managed low cost, low risk. So companies should never be the first to try new technologies and let others take the risk.
How is the 2008 study by Brynjolfsson and McAfee different from previous studies? How is it the same?
It is different because it shows that IT can bring a competitive advantage, given the right conditions. It is the same in the sense that it shows that IT, by itself, does not bring competitive advantage.
What does it mean for a business to have a competitive advantage?
A company is said to have a competitive advantage over its rivals when it is able to sustain profits that exceed average for the industry
What are the primary activities and support activities of the value chain?
The primary activities are those that directly impact the creation of a product or service. The support activities are those that support the primary activities. Primary: inbound logistics, operations, outbound logistics, sales/marketing, and service. Support: firm infrastructure, human resources, technology development, and procurement.
What has been the overall impact of the Internet on industry profitability? Who has been the true winner?
The overall impact has been a reduction in average industry profitability. The consumer has been the true winner.
How does EDI work?
EDI is the computer-to-computer exchange of business documents in a standard electronic format between business partners.
Give an example of a semi-structured decision and explain what inputs would be necessary to provide assistance in making the decision.
A semi-structured decision is one in which most of the factors needed for making the decision are known but human experience and other outside factors may still play a role. The student should provide an example of a decision that uses an information system to provide information but is not made by the system. Examples would include: budgeting decisions, diagnosing a medical condition, and investment decisions.
What does a collaborative information system do?
A collaborative system is software that allows multiple users to interact on a document or topic in order to complete a task or make a decision.
How can IT play a role in competitive advantage, according to the 2008 article by Brynjolfsson and McAfee?
The article suggests that IT can influence competitive advantage when good management develops and delivers IT-supported process innovation
what are Business Process Management Systems?
True competitive advantage can be found with information systems that support business processes
What are Decision Support Systems?
These systems are designed to take inputs regarding a known decision-making process and provide the information to make a decision.
What are the two methods of Micheal porter for a competitve advantage
- Cost advantage
2. differentiation advantage
What are the four barriers to erosion?
- IT-Resources Barrier
- Complementary Resources
- IT project Barrier
- Preemption (voorkoop) Barrier
What is response lag?
The time it takes competitors to respond aggressively enough to erode a firm’s competitive advantage
