Module 3: L2

Question 1

The Prof put forth a typical case of IT adoption in the manufacturing industry. Things then started to change. What were these changes (2pts) and what were features of the first use of IT (3pts)?

Answer 1

Changes:
- Regulatory changes allowed new competitors
- Higher quality, lower cost, shorter delivery

First IT use:
- Applied only to transactions
- No process changes
- No management changes

Question 2

Administrators in the ’90s were excited to implement new IT structures. T/F

Answer 2

False. The attitude was more “if it ain’t broke, don’t fix it”

Question 3

In the ’90s, company administrators were nearing crisis mode. It happened quickly and there was a loss of stable clients. What were 3x points the Professor brought up w/r this feature?

Answer 3

1. Deteriorating competitive position
2. Looking for cost cutting solutions
3. Sense of urgency

Question 4

In the ’90s, company administrators were nearing crisis mode. It happened quickly and there was a loss of stable clients and other remaining challenges. One was slow top management commitment. Name the other 2x.

Answer 4

1. Slow top management commitment
2. Difficult relations of central leadership with line management
3. Lack of by-in by some company end users

Question 5

During the mentioned “crisis mode”, IT implementation came with organizational change. An awareness of need to improve critical processes occurred. What 4x other points were mentioned in the lecture?

Answer 5

1. There was an unclear vision of how to use IT
2. Management changes were necessary
3. Info systems manager needed at high level
4. Education of line managers necessary

Question 6

There were large studies of productivity and IT at the economy level. Eventually, studies were taken down to firm level with more promising results. What were they? (3pts)

Answer 6

1. IT investment contributed positively to output
2. Net contribution positive after depreciation and labor costs
3. Distribution of benefits were bi-modal

Question 7

There were large studies of productivity and IT at the economy level. Eventually, studies were taken down to firm level with more promising results. What happened which led to these results, theoretically? (3pts)

Answer 7

1. Learning may be occurring
2. New measurement approach (quality and variety)
3. Firm level data

Question 8

IT adoption negates the need for organizational change. T/F

Answer 8

False. IT adoption may actually require organizational change.

Question 9

It’s critical to work smarter and not harder. What are 5x results of IT and productivity?

Answer 9

Lucky Ducks Flock Over Boats

1. Long term benefits more important than short term
2. Doing same thing but w/ IT can make things worse
3. Firm level data is critical
4. Organizational changes needed
5. Benefits accrue to those who do both

Question 10

The Professor offered some common wisdom w/r to IT and management. We need improved management to ensure new internal division of labor is appropriate. What are two other points?

Answer 10

1. Need to check appropriate levels of coordination (centralization - decentralization)
2. Evaluate performance to make adjustments