MIS: Exam 1 Ch 3 Flashcards
A legal entity with a stable, formal, social structure with internal rules and procedures that takes resources from the environment and processes them to produce outputs.
Organization (Technical Definition)
A collection of rights, privileges, obligations, and responsibilities that are balanced through conflict and conflict resolution over a period of time.
Organization (Behavioral Definition)
What factors mediate the complex 2-way relationship between organizations and information technology?
Decisions made or not made by managers, and the organizational culture, politics, structure, environment and business processes.
2 mediating factors between org and IT that can promote and/or restrict change.
Culture and politics
How do the factors that mediate the 2-way relationship between organizations and IT relate to one another?
They are interconnected and influenced by one another
Name some features of an organization:
Accountability, BAU Standard Operating Procedures, business processes, routines and the principle of efficiency
Within an organization, it is often that the most ________ charged solution defeats the best solution.
Politically
What is a “First Mover?”
Inventors of disruptive technologies
What is a “Fast Follower?”
Firms with the size and resource to capitalize on that technology (Google)
What do we call technology that brings about sweeping change to business, industries, and markets?
Disruptive Technologies
Give examples of Disruptive Technologies
Personal Computers, word processing software, the internet, the PageRank Algorithm
What are some economic impacts of IT/IS?
substituted for traditional capital and labor. Since labor cost rises over time, IT/IS solutions reduce # of labor workers (decreasing costs), and less capital investments in bldgs. and machines
Internets impact on Organizations
Increases accessibility, storage, and distribution of info and knowledge for orgs and can greatly lower transaction and agency costs
How has internet provided Competitive Advantages?
Access to special resources, using commonly avail resources for efficiently, Superior Industry Knowledge (IP), and Information Assets.
How does the internets contribution to competitive advantage affect most org?
Revenue growth, profitability, productive growth, efficiency and effectiveness
Which generic strategy for dealing with competitive forces: Produce products and services at a lower price than competitors while enhancing quality and level of service (Examples: Wal-Mart)
Low-cost Leadership
Which generic strategy for dealing with competitive forces: Enable new products or services, greatly change customer convenience and experience (Examples: Google, Nike, Apple)
Product Differentiation (mass customization)
Which generic strategy for dealing with competitive forces: Use information systems to enable a focused strategy on a single market niche; specialize (Example: Hilton Hotels)
Focus on market Niche
Which generic strategy for dealing with competitive forces: Use information systems to develop strong ties and loyalty with customers and suppliers; increase switching costs (Example: Netflix, Amazon)
Strengthen customer and supplier intimacy
- When output of some units used as inputs to others, or organizations pool markets and expertise
- Example: Purchase of YouTube by Google, eBay & PayPal
Synergies
Activity for which the firm is very very good at. Relies on knowledge, experience, and sharing this across business units. Example: Procter & Gamble’s intranet and directory of subject matter experts, SME - Subject Matter Expert
Core Competencies
Takes advantage of firm’s abilities to network with each other. Include use of: Network economics, Virtual company model, and Business ecosystems
Network-Based Strategies
These are examples of what? Marginal cost of adding new participant almost zero, with much greater marginal gain; Value of community grows with size; & Value of software grows as installed customer base grows
Network Economics
In traditional economics, what does the Law of Diminishing Returns say?
The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional outputs
What activities include inbound logistics, operations, sales and marketing, service, and outbound logistics?
Primary Activities
What activities include Human Resources, Technology, and Procurement?
Support Activities
What 2 models are used to achieve or sustain a competitive advantage?
Michael Porters Competitive Forces Model and the Value Chain Model
In Michael Porters Competitive Forces model, name the 5 forces that determine an organizations strategic position and strategies, in addition to competition?
Traditional Competition, New Market Entrants, Substitute Products and Services, Customers, and Suppliers
What does a Business Value Chain Model do?
1) Views firm as series of activities adding value to goods or services. 2) Highlights activities where competitive strategies can best be applied (primary/support Activities), 3) At each stage, determine how IS can improve Operational Efficiency and improve customer supplier intimacy. 4) Utilize benchmarking, industry best practices.
