MIS: Exam 1 Ch 3

Question 1

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.

Answer 1

Organization (Technical Definition)

Question 2

A collection of rights, privileges, obligations, and responsibilities that are balanced through conflict and conflict resolution over a period of time.

Answer 2

Organization (Behavioral Definition)

Question 3

What factors mediate the complex 2-way relationship between organizations and information technology?

Answer 3

Decisions made or not made by managers, and the organizational culture, politics, structure, environment and business processes.

Question 4

2 mediating factors between org and IT that can promote and/or restrict change.

Answer 4

Culture and politics

Question 5

How do the factors that mediate the 2-way relationship between organizations and IT relate to one another?

Answer 5

They are interconnected and influenced by one another

Question 6

Name some features of an organization:

Answer 6

Accountability, BAU Standard Operating Procedures, business processes, routines and the principle of efficiency

Question 7

Within an organization, it is often that the most ________ charged solution defeats the best solution.

Answer 7

Politically

Question 8

What is a “First Mover?”

Answer 8

Inventors of disruptive technologies

Question 9

What is a “Fast Follower?”

Answer 9

Firms with the size and resource to capitalize on that technology (Google)

Question 10

What do we call technology that brings about sweeping change to business, industries, and markets?

Answer 10

Disruptive Technologies

Question 11

Give examples of Disruptive Technologies

Answer 11

Personal Computers, word processing software, the internet, the PageRank Algorithm

Question 12

What are some economic impacts of IT/IS?

Answer 12

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

Question 13

Internets impact on Organizations

Answer 13

Increases accessibility, storage, and distribution of info and knowledge for orgs and can greatly lower transaction and agency costs

Question 14

How has internet provided Competitive Advantages?

Answer 14

Access to special resources, using commonly avail resources for efficiently, Superior Industry Knowledge (IP), and Information Assets.

Question 15

How does the internets contribution to competitive advantage affect most org?

Answer 15

Revenue growth, profitability, productive growth, efficiency and effectiveness

Question 16

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)

Answer 16

Low-cost Leadership

Question 17

Which generic strategy for dealing with competitive forces: Enable new products or services, greatly change customer convenience and experience (Examples: Google, Nike, Apple)

Answer 17

Product Differentiation (mass customization)

Question 18

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)

Answer 18

Focus on market Niche

Question 19

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)

Answer 19

Strengthen customer and supplier intimacy

Question 20

• When output of some units used as inputs to others, or organizations pool markets and expertise
• Example: Purchase of YouTube by Google, eBay & PayPal

Answer 20

Synergies

Question 21

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

Answer 21

Core Competencies

Question 22

Takes advantage of firm’s abilities to network with each other. Include use of: Network economics, Virtual company model, and Business ecosystems

Answer 22

Network-Based Strategies

Question 23

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

Answer 23

Network Economics

Question 24

In traditional economics, what does the Law of Diminishing Returns say?

Answer 24

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

Question 25

What activities include inbound logistics, operations, sales and marketing, service, and outbound logistics?

Answer 25

Primary Activities

Question 26

What activities include Human Resources, Technology, and Procurement?

Answer 26

Support Activities

Question 27

What 2 models are used to achieve or sustain a competitive advantage?

Answer 27

Michael Porters Competitive Forces Model and the Value Chain Model

Question 28

In Michael Porters Competitive Forces model, name the 5 forces that determine an organizations strategic position and strategies, in addition to competition?

Answer 28

Traditional Competition, New Market Entrants, Substitute Products and Services, Customers, and Suppliers

Question 29

What does a Business Value Chain Model do?

Answer 29

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.