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Info Systems > REAL INFO TEST 2 SPENCER > Flashcards

REAL INFO TEST 2 SPENCER Flashcards

1
Q

Positive feedback refers to what?
A. An economic condition where the weaker gets stronger and the stronger
get weaker.
B. An economic condition where the stronger gets stronger and the weaker
get weaker
C. An economic condition that is completely unpredictable
D. An economic condition where nothing changes
E. Either C or D

A

An economic condition where the stronger gets stronger and the weaker
get weaker

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2
Q

Which of the following is not an example of a service available on the
internet?
A. IM
B. RSS
C. VOIP
D. WWW
E. DHCP

A

DHCP

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3
Q

Which of the following is a simple definition of the Internet?
A. A user interface
B. A place where network effects happen
C. A network of networks
D. The cable infrastructure used to connect computers
E. A connection between two or more computers

A

A network of networks

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4
Q

What is the relationship between data and information?
A. Information is more precise than data
B. Information is data in context
C. Information is codified raw facts that have to be processed to become data
D. Information only exists in Transaction Processing Systems while data has
to be stored in a Decision Support System
E. Information is what you know, data is what the competition has

A

Information is data in context

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5
Q

On Feb 24 th 2008 Toshiba announced that it would no longer produce HD
DVD and conceded that Sony Blue-Ray has won the competition for

dominance in the high definition DVD market. What can we conclude from
this announcement?
A. The market has tipped in favor of Sony Blu-Ray and Toshiba understood
that continuing to compete would be pointless
B. The high definition DVD market was not a tippy market and the strong
network effects that Toshiba could leverage had dissipated
C. Until the network is saturated there is an opportunity to discover profitable
niches and maintain financial viability
D. Information economics are strong in the high definition DVD market and
Sony Blu-Ray was the first one to achieve critical mass of information
reusability.
E. Impossible to determine from the information given.

A

The market has tipped in favor of Sony Blu-Ray and Toshiba understood
that continuing to compete would be pointless

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6
Q

Which of the following is not an economic characteristic of information?
A. Low production costs
B. Low replication costs
C. low distribution cost
D. There is a high risk involved in producing information goods
E. Information goods are not consumed by use

A

Low production costs

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7
Q

Network effects are associated with:
A. Supply-side economies of scale
B. Demand-side economies of scale
C. Both supply-side and demand-side economies of scale
D. Large manufacturing facilities
E. Word-of-mouth communication

A

Demand-side economies of scale

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8
Q

A market is likely to tip when there are:
A. Strong economies of scale and low need for product variety
B. Weak economies of scale and low need for product variety
C. Weak economies of scale and high need for product variety
D. Strong economies of scale and high need for product variety
E. Entering a period of recession in the dot-com industry as a whole.

A

Strong economies of scale and low need for product variety

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9
Q

Information goods are not:
A. Customizable
B. Reusable
C. Reproducible
D. Easily distributed
E. Easy to produce

A

Easy to produce

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10
Q

In class we have used the example of eBay, Inc. as a firm that has achieved a
dominant position in its market. What is the cause of its dominance?
A. eBay has achieved critical mass and has the strongest brand
B. eBay has achieved critical mass and has the lowest prices
C. eBay has achieved critical mass in a market with strong network effects
D. eBay has gotten lucky since its uses an easily copied website
E. All off the above are reasons for eBay’s dominance

A

eBay has achieved critical mass in a market with strong network effects

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11
Q

A company that finds itself on the losing side of positive feedback has a few
options. These include:
A. Becoming compatible with the dominant network
B. Identifying and specializing in a niche that is different enough to sustain
the organization
C. Producing vaporware
D. None of the above is viable option
E. Only A and B are viable options

A

Becoming compatible with the dominant network

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12
Q

Who owns the Internet?
A. The Internet is owned by the users who browse websites
B. The Internet is owned by the governments
C. The Internet is owned by the web engineers
D. The Internet is owned by millions of entities
E. The Internet is owned by the universities

A

The Internet is owned by millions of entities

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13
Q

How is value created in networks?
A. Value is a function of scarcity of connected nodes
B. Value is a function of the number of connected nodes
C. Value is a function of the number of high-tech devices in the network
D. Value depends on the kinds of users in the networks
E. Value is a function of bandwidth and capital investment

A

Value is a function of the number of connected nodes

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14
Q

When will the positive effect associated with network effects play out?
A. Until one firm dominates the network and all other competitors disappear
B. Until the network is saturated
C. Until a competitor enters the market
D. It will never play out
E. When all competitors are of approximately the same size

A

Until one firm dominates the network and all other competitors disappear

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15
Q

Which of the following companies is/are not in a tippy market?
A. eBay.com
B. Resort Condominiums International, LLC
C. Buy.com
D. Skype
E. LinkedIn.com

A

Buy.com

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16
Q

What is a two-sided network?
A. A network that has two kinds of devices
B. A network that connects a physical network and a virtual network
C. A network that connects the web designers and the web users
D. A network that has two types of members
E. A network with multiple types of node connections

A

A network that has two types of members

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17
Q

With the advent and widespread adoption of a cheaply and easily accessible
information infrastructure, what happens to the “Richness and Reach Trade-
Off”?
A. The trade-off between reach and richness has not been eliminated
B. The trade-off between reach and richness is increasingly being lifted
C. It depends on if the information goods are in a tippy market or not
D. Nothing will happen
E. Balance is reached quickly

A

The trade-off between reach and richness is increasingly being lifted

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18
Q

Tippy markets are associated with strong positive feedback.

True or False?

A

True

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19
Q

The Internet has eliminated the richness-reach trade-off.

True or False?

A

False

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20
Q

A sustaining technology provides the same set of characteristics with superior performance.

True or False?

A

True

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21
Q

A disruptive technology provides the same set of characteristics with radically superior performance.

True or False?

A

False

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22
Q

Managers must understand disruptive technologies by listening to their customers.

True or False?

A

False

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23
Q

Network value is based on the logic of value in plentitude.

True or False?

A

True

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24
Q

Tippy markets are characterized by a strong variety in product needs.

True or False?

A

False

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25
Q

The Internet is the World Wide Web which delivers many services such as
email, instant messaging and etc.

True or False?

A

False

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26
Q

The value of a virtual network for its members is a function of its size;
however, the value of a physical network depends on the scarcity of the devices comprise the physical network

True or False?

A

False

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27
Q

The Internet and the Web are exactly the same concepts

True or False?

A

False

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28
Q

The Internet is primarily using open standards

True or False?

A

True

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29
Q

Network economics is based on the logic of scarce resources

True or False?

A

False

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30
Q

Tippy markets are associated with supply-side economies of scale

True or False?

A

True

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31
Q

Information is data in context

True or False?

A

True

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32
Q

When categorizing eCommerce initiatives by transaction type, which category
does an Online Travel Agency such as Expedia fall into?
A. Business-to-Consumer (B2C)
B. Business-to-Business (B2B)
C. Consumer-to-Consumer (C2C)
D. Consumer-to-Business (C2B)
E. eGovernment

A

Business-to-Consumer (B2C)

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33
Q

When traditional travel agents, like American Express, saw the potential
offered by the Internet and aggressively used the new channel they became an
example of:
A. Brick and Mortar
B. Bricks and Clicks
C. Pure Play
D. Affiliation
E. None of the above

A

Pure Play

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34
Q

Which of the following is not a reason for the rapid growth of eCommerce and
eBusiness applications over the last fifteen years?
A. The availability of open technology standards
B. Increasing access to the Internet by more and more consumers
C. More and more people are able to afford a computer
D. More companies were established during the dot-com era
E. All of the above are the reasons

A

More companies were established during the dot-com era

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35
Q

Which of the following is a Web 2.0 application?
A. Blogging
B. Pod casting
C. Wiki
D. All of the above
E. None of the above

A

All of the above

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36
Q

Your book describes the concepts of disintermediation and re-intermediation.
What is typically meant by the term re-intermediation?
A. A situation where new, typically internet-based, intermediaries
emerge.
B. A situation where a supplier is attempting to decide whether to directly
supply customers or maintain a relationship with traditional
intermediaries.
C. A situation where the value proposition of traditional intermediaries is
undermined and they disappear.
D. Both B and C are facets of re-intermediation.
E. When the manufacturer and the customer are the same entity.

A

A situation where new, typically internet-based, intermediaries
emerge.

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37
Q

What is disintermediation?
A. Shortening the distribution chain by eliminating intermediaries
B. Establishing indirect contacts with customers
C. Creating opportunities for new players in the distribution chain
D. Omitting brick and mortar companies from the distribution chain
E. C & D

A

Shortening the distribution chain by eliminating intermediaries

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38
Q

Which of the following is/are not the reasons(s) for eCommerce and
eBusiness growing rapidly in the last fifteen years?
A. More open technology standards are freely available
B. More people can access the Internet
C. More people can afford a computer
D. More companies established during the dot-com era
E. All of the above are the reasons

A

More companies established during the dot-com era

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39
Q

When categorizing eCommerce initiatives by transaction type, which category
does eBay fall into?
A. Business-to-Consumer (B2C)
B. Business-to-Business (B2B)
C. Consumer-to-Consumer (C2C)
D. Consumer-to-Business (C2B)
E. eGovernment

A

Consumer-to-Consumer (C2C)

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40
Q

Which of the following information is not conveyed in a business model?
A. The firm’s concept and value proposition
B. The product or service the firm offers
C. The organizational capabilities the firm plans to leverage to turn the
concept into reality
D. The strategy the firm will follow to seek a dominant position
E. How the firm intends to draw proceeds from its value proposition

A

How the firm intends to draw proceeds from its value proposition

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41
Q

When a firm generates revenue from a third-party based on customer traffic to
the firm’s web site, which of the following revenue model is the firm using?
A. Affiliate
B. Advertisement support
C. Subscription
D. Pay for service
E. There is not enough information to identify which revenue model is it

A

Affiliate

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42
Q

What is the revenue model of Bestbuy.com?
A. Advertisement support
B. Online retailing
C. Pay for service
D. Subscription
E. Exchanges

A

Online retailing

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43
Q

Which of the following is the main advantage of M-commerce?
A. The ability to establish direct relationship with customers
B. The ability to provide easier-to-use user interfaces
C. The ability to support personalized and uninterrupted communications
and transactions.
D. The ability to reach consumers in real-time, at the point of service,
based on their current location
E. None of the above

A

The ability to reach consumers in real-time, at the point of service,
based on their current location

44
Q

What is the revenue model of NetFlix.com?
A. Advertisement support
B. Online retailing
C. Pay for service
D. Subscription
E. Exchanges

A

Subscription

45
Q

Which of the following is not an example of a business model that has emerged in the network economy?
A. Online Retailing
B. Infomediaries
C. Content Providers
D. Stock Exchanges
E. Infrastructure Providers

A

Stock Exchanges

46
Q

What is the revenue model of Google?
A. Advertisement support
B. Online retailing
C. Pay for service
D. Subscription
E. Exchanges

A

Advertising Support

47
Q

Electronic business is equivalent to electronic commerce.

True or False?

A

False

48
Q

Open standards is one of the enablers of electronic commerce

True or False?

A

True

49
Q

The network economy has not enabled any new business models.

True or False?

A

False

50
Q

The revenue model of online retailing is based on pay per service.

True or False?

A

True

51
Q

Infomediaries take ownership of information goods and sell them at a profit.

True or False?

A

False

52
Q

One of the benefits of the online grocery channel is scalability.

True or False?

A

True

53
Q

The business model of MyWebGrocer.com could be characterized as a case of
infrastructure provider.

True or False?

A

True

54
Q

Amazon.com is a pure play company which, has no stores, no physical
operations and provide their services through the Internet.

True or False?

A

False

55
Q

Affordable computing technology is an enabler of electronic commerce.

True or False?

A

True

56
Q

The revenue model of Internet retailing is based on subscriptions

True or False?

A

False

57
Q

Content providers must develop their own content

True or False?

A

False

58
Q

Online communities bring together people with common interests and goals

True or False?

A

True

59
Q

Infrastructure providers use the pay for service revenue model.

True or False?

A

True

60
Q

Barnes and Noble’s can be described as a “bricks and clicks” company.

True or False?

A

True

61
Q

Mobile commerce is the next stage in the evolution of ubiquitous commerce

True or False?

A

True

62
Q

Companies that manage websites that administer user-generated content
would be an example of infrastructure providers

True or False?

A

False

63
Q

The iPod’s entrance into the music player-industry has caused the increased threat
of which of the following:
A. Threat of substitutes or services for other music players
B. Increased bargaining power of other suppliers
C. Decreased rivalry amongst existing competitors
D. Decreased rivalry amongst all competitors – old and new

A

Threat of substitutes or services for other music players

64
Q

Which of the following is not an example of a primary activity in the value chain?
A. Inbound logistics
B. Service
C. Procurement
D. Marketing and sales

A

Procurement

65
Q

Which of the following is an example of mirroring capabilities?
A. Amazon.com monitoring customer behavior while shopping
B. Amazon.com’s suggestive selling initiative
C. Your university library electronic reserves
D. Vending machines embedded with microchips

A

Your university library electronic reserves

66
Q

At what stage in the process of identifying data-driven strategic initiatives should
an analysis of the upside potential and data availability occur?
A. Prioritize initiatives
B. Conceptualize initiatives
C. Identify relevant transaction processing systems
D. Inventory data currently available

A

Prioritize initiatives

67
Q

Which of the five competitive forces is related to whether or not a company can
begin competing in a market different from the one they currently compete in?
A. Availability of substitutes
B. Threat of new entrants
C. Bargaining power of suppliers
D. Bargaining power of buyers
E. Rivalry among existing competitors

A

Threat of new entrants

68
Q

Which of the five competitive forces is related to an automotive company being
forced to change to a different tire supplier just to meet customer demands?
A. Availability of substitutes
B. Threat of new entrants
C. Bargaining power of suppliers
D. Bargaining power of buyers
E. Rivalry among existing competitors

A

Availability of substitutes

69
Q

Which of the five competitive forces is related to the inability of a clothing
manufacturer to influence the details of the contracts for their raw materials, such
as denim or zippers?
A. Availability of substitutes
B. Threat of new entrants
C. Bargaining power of suppliers
D. Bargaining power of buyers
E. Rivalry among existing competitors

A

Bargaining power of suppliers

70
Q

Which of the five competitive forces is related to price wars between two gas
stations on opposite sides of an intersection?
A. Availability of substitutes
B. Threat of new entrants
C. Bargaining power of suppliers
D. Bargaining power of buyers
E. Rivalry among existing competitors

A

Rivalry among existing competitors

71
Q

Which of the following is a primary activity?

A. Inbound logistics
B. Outbound logistics
C. Producement
D. Infrastructure Development
E. Technology Development

A

Inbound logistics

72
Q

Which of the following is a support activity?
A. Mounting a tire on a new vehicle
B. Unloading new tires at the receiving dock of an automotive factory
C. Purchasing tires to be mounted on new vehicles
D. Loading vehicles with a new type of tire on a railcar for shipment
E. Replacing a tire on a vehicle under warranty

A

Purchasing tires to be mounted on new vehicles

73
Q

Considering the role of information systems in value chain analysis requires
which of the following?
A. Assuming that the value chain is comprised of only the movement and
processing of material
B. Assuming that the value chain is comprise of only the movement of
information, which can be accomplished with technology
C. Assuming that the value chain is comprised of both the movement and
processing of material, which enables the firm’s activities related to
technology.
D. Assuming that the value chain is comprised of both the movement and
processing of material, and the processing of information, which together
enable the firm’s activities
E. Assumes nothing, except that information can be used to track the
movement of material in a value chain and has nothing to do with its
process, nor with the information itself being of any intrinsic value.

A

Assuming that the value chain is comprised of both the movement and
processing of material, and the processing of information, which together
enable the firm’s activities

74
Q

The CSLC should be viewed from which viewpoint?
A. Suppliers
B. Customers
C. The firm
D. Competitors
E. Any non-participant

A

Customers

75
Q

What is the first stage of the CSLC?
A. Acquisition
B. Ownership
C. Requirements
D. Retirement
E. Recycling

A

Requirements

76
Q

The CSLC is broken down into thirteen stages. One of these involves making
sure that the goods or services that have been purchased actually meet the
applicable specifications. Which stage is this?
A. Specify
B. Select Source
C. Establish Requirements
D. Acquire
E. Evaluate and Accept

A

Evaluate and Accept

77
Q

Of the five forces, rivalry amongst competitors is the most important because it represents the best determinant of profitability for an average company within an
industry.

True or False?

A

False

78
Q

Hypercompetition refers to industries in which fierce rivalries exist between existing competitors and innovation occurs at such a pace that any competitive advantage that may exist often disappears quickly.

True or False?

A

True

79
Q

The two main parts of the Customer Service Life Cycle are the primary and support activities, which are then supported by the four stage of cycle

True or False?

A

False

80
Q

The most innovative ideas are the most costly and resource-intensive, because they are based on the best understanding of how customer needs can effectively
be satisfied.

True or False?

A

False

81
Q

The virtual value chain (VVC) model is designed to map the set of sequential
activities that enable a firm to transform data in input into some output information that, once distributed to the appropriate user, has higher value than
the original data.

True or False?

A

True

82
Q

How can IT resources help to create a sustained competitive advantage?
A. Because competitors who seek to replicate the initiative must first develop
or acquire the needed IT resources
B. Because competitors who seek to replicate the initiative must overcome
the preemptive mechanisms, such as complementary resources, enacted by
the leader
C. Because IT resources are highly visible yet complex and unique, and those
projects take more time to complete
D. Because the people that implement IT solutions are difficult to find and,
when found, tend to stay with one employer.
E. There are no sustained competitive advantages, other than relationships
between consumers that the company can capitalize on.

A

Because competitors who seek to replicate the initiative must first develop or acquire the needed IT resources

83
Q

The sustainability of a competitive advantage grounded in an IT-dependent
strategic initiative is measured by:
A. An estimate of the likely time delay competitors will face in replicating the leader’s initiative
B. The inverse of the number of response lag drivers associated with the
barrier
C. An estimate of the amount of money competitors will lose before
beginning to replicate the advantage
D. The amount of profit a firm loses in creating the advantage in the first
place
E. Competitive advantages do not last long in hypercompetitive industries.

A

An estimate of the likely time delay competitors will face in replicating
the leader’s initiative

84
Q

The risks associated with an IT-enabled initiative are:
A. IT complexity, IT uniqueness, IT Visibility
B. Project size, technology experience, and organizational change
C. IT technical skills, IT management skills, and relationship assets
D. IT assets and IT capabilities
E. IT technical skills, IT management skills, and relationship assets

A

Project size, technology experience, and organizational change

85
Q

Which are the five sub-dimensions of the IT project barrier?
A. Tangible Resources, Intangible Resources, Activity System, Business
Process, and External Resources
B. IT complexity, IT uniqueness, IT Visibility, Process Complexity, &
Process Change
C. IT infrastructure, Information Repositories, IT technical skills, IT
management skills, and relationship assets
D. Co-specialized tangible investments, Co-specialized intangible
investments, relationship exclusivity, value system structure, and
concentrated value-system links
E. Firm infrastructure, HR management, technology development,
procurement, IT support

A

IT complexity, IT uniqueness, IT Visibility, Process Complexity, &
Process Change

86
Q

The two major components of the IT resources barrier are:
A. IT technical skills and IT management skills
B. IT technical skills, IT management skills, and relationship assets
C. IT assets and IT capabilities
D. IT infrastructure and information repositories
E. Software, Hardware, and Networks

A

IT assets and IT capabilities

87
Q

According to the class discussion of “IT doesn’t matter,” IT managers should:
A. Spend less in IT investment because it is difficult to gain competitive
advantage though IT as the commoditization of IT continues
B. Not invest in new IT as waiting will decrease the risk of buying something
technologically flawed or doomed to rapid obsolescence
C. Focus their attention on IT-dependent strategic initiatives rather than IT
investments.
D. Focus on vulnerabilities, not opportunities, when contemplating IT
investments
E. All of the above

A

Focus their attention on IT-dependent strategic initiatives rather than IT investments.

88
Q

Is IT an indistinct commodity?
A. Yes, because IT is a transportation mechanism, which carries digital
information just as railroads carry goods
B. No, because IT ranges from extremely complex technology (e.g., large
data warehouses, infrastructure projects), to small applications (e.g., a
personal web site)
C. Yes, because information technology is just one of the support activities in
creating value
D. No, because companies are spending more and more money in IT
investment

A

No, because IT ranges from extremely complex technology (e.g., large data warehouses, infrastructure projects), to small applications (e.g., a
personal web site)

89
Q

Response lag is
A. A measure of the delay of competitive response to an IT-dependent
strategic initiative
B. The time and cost it takes to identify whether IT investments can be used
to generate added value
C. One of the four barriers to erosion of IT-dependent competitive advantage
D. All of the above
E. Only A and B

A

A measure of the delay of competitive response to an IT-dependent strategic initiative

90
Q

Why can IT resources help to create a sustainable competitive advantage?
A. Developing IT infrastructure generally takes more than five years
B. The trust and respect between the IS function and business managers take
time to be accumulated
C. A firm’s brand and reputation usually develop over time
D. Only A and B
E. Only A and C

A

Only A and B

91
Q

Which of the following are response-lag drivers associated with the
complementary resources barrier?
A. Structural resources, such as a great location or a great property for a hotel
company
B. The characteristics of the IT core, such as IT uniqueness or visibility
C. IT assets, such as an infrastructure or a data repository
D. IT technical skills and IT management skills
E. None of the above

A

Structural resources, such as a great location or a great property for a hotel company

92
Q

The complexity of the technology is:
A. The extent to which competitors can observe the enabling technology of
an IT-dependent strategic initiative
B. A function of the size and scope of the IT project
C. A function of the bundle of skills and knowledge necessary to effectively
design, develop, implement, and use it
D. All of the above
E. None of the above

A

A function of the bundle of skills and knowledge necessary to effectively
design, develop, implement, and use it

93
Q

When you have been successful in generating competitive advantage with an
IT-dependent strategic initiative what must you, as a manager, do in order to
try and maintain such advantage?
A. Plan to continuously remain ahead of competition by looking to
reinvigorate and reinforce the barriers to erosion associated with your initiative
B. Consider if it is possible for your firm to sustain the competitive advantage
as a binary condition and invest only when it is possible to sustain
C. Invest in proprietary IT so that nobody can imitate
D. All of the above
E. Only A and B

A

Plan to continuously remain ahead of competition by looking to
reinvigorate and reinforce the barriers to erosion associated with your initiative

94
Q

The process by which a firm accrues or builds up a resource over time is
important for you to recognize as it is often the basis for rejuvenating barriers
to erosion. Such process is called:
A. Asset-stock accumulation
B. Value-system link concentration
C. IT infrastructure investing
D. Capability development
E. None of the above

A

Asset-stock accumulation

95
Q

The process by which an organization is able to improve its performance over
time by developing its ability to use available resources for maximum
effectiveness is known as:
A. Asset-stock accumulation
B. Value-system link concentration
C. IT infrastructure investing
D. Capability development
E. None of the above

A

Capability development

96
Q

Switching costs are a fundamental response lag driver of which barrier to erosion?
A. IT project
B. Preemption
C. IT resources
D. Complementary Resources
E. Presumption

A

Preemption

97
Q

The complexity of the technology is a function of the bundle of skills and
knowledge necessary to effectively design, develop, implement, and use it.

True or False?

A

True

98
Q

The two major aspects of sustainable competitive advantages are time and money.

True or False?

A

True

99
Q

The three major components of the complementary resources barrier are structural
resources, external resources, and capabilities.

True or False?

A

True

100
Q

The two dynamics of sustainability are capability development and asset-stock
accumulation.

True or False?

A

True

101
Q

When the IT initiative will not likely create strong barriers to erosion and
retaliation by competitors will degrade average industry profits, it must be
shelved.

True or False?

A

True

102
Q

In the Land’s End case study, the complementary resources barrier for
competitors were their established distribution chains.

True or False?

A

True

103
Q

Search costs, learning costs, and loyalty costs are examples of preemption
barriers.

True or False?

A

True

104
Q

Reproducing IT is equivalent to reproducing an IT-dependent strategic initiative.

True or False?

A

False

105
Q

When the IT initiative is unlikely to yield a sustainable competitive advantage,
but it will improve overall profitability of the industry, it must be developed as
part of a consortium.

True or False?

A

True

Info Systems (7 decks)

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