Module 4: L4

Question 1

The use of the integrated model allows answers to questions at each levels. What are the levels (3x)?

Answer 1

1. Individual organization or firm
2. Competitive environment or industry
3. Background economy

Question 2

What is the first question at the organizational level?

Answer 2

DOES IT contribute to improvements?
1. Operational efficiencies
2. Competitive advantage

Question 3

Does IT contribute to improvements is the first question at the organizational level. What is the available evidence’s answer to this question (5x points)?

Answer 3

1. Many examples of operational efficiencies
2. IT human resources creates values
3. Less clear on specific human skills
4. No studies on synergies between the two
5. Positive contributions may be temporary and/or captured by others

Question 4

What is the second question at the organizational level?

Answer 4

HOW does IT contribute to improvements?

Question 5

HOW does IT contribute to improvements is a question asked at the organizational level. What does the available evidence suggest (4x points)?

Answer 5

1. Complementarities have positive effects
2. Complementary resources such as decision process, team management, division of labor, financial condition, culture
3. Complementarities are not automatic (contingent on management and labor skills)
4. Specific complementarities are difficult to imitate

Question 6

What is the first question at the industry level?

Answer 6

What is the role of industry features?
Contribution of industry to business value of IT
Limitation of industry to business value of IT

Question 7

What is the role of industry features is a question at the industry level. What does the available evidence suggest (5x points)?

Answer 7

1. Changes in the environment have great effect
2. Evidence is scattered
3. No general theory
4. Competition leads to IT for efficiency gains
5. Harder to capture competitive advantage

Question 8

What is the second question at the industry level?

Answer 8

What is the role of partners in the value chain?
Electronically linked: business processes and resources

Question 9

What is the role of partners in the value chain is a question at the industry level. What does the available evidence suggest (4x points)?

Answer 9

1. Widespread use of networked environment
2. Reduces transaction and coordination costs
3. Adoption of their business practices and complementarities
4. Not all partners derive same level of value

Question 10

What is the question asked at the economy level?

Answer 10

How do features of the economy shape IT business value?

Question 11

How do features of the economy shape IT business value is a question at the economy level. What does the available evidence suggest (3x pts)?

Answer 11

1. Most evidence applies to US alone
2. Heterogeneity seems to have an effect (regulations, market structures)
3. Most work was done on telecom infrastructure