An organization can achieve a competitive advantage by doing all of the following except:

1. An organization can achieve a competitive advantage by doing all of the following except: • Having the best-made product • Reducing costs below competitors • Increasing cycle time • Having a well-known name • Delivering superior customer service

2. An organization can achieve a competitive advantage by doing all of the following except: • Having the best-made product • Reducing costs below competitors • Increasing cycle time • Having a well-known name • Delivering superior customer service Competitive advantages can be achieved by having the best-made products, superior customer service, lower costs than rivals, a proprietary manufacturing technology, shorter lead times, a good reputation, or added value.

3. Businesses like Target and Dell pursue what type of strategy? • Overall low-cost leadership strategy • Broad differentiation strategy • Focused low-cost strategy • Focused differentiation • Best-cost provider strategy

4. Businesses like Target and Dell pursue what type of strategy? • Overall low-cost leadership strategy • Broad differentiation strategy • Focused low-cost strategy • Focused differentiation • Best-cost provider strategy These two companies offer the best prices in their industries. Can you think of companies, other than those in the book, that apply each of thesestrategies? Discuss with your neighbor.

5. Apple focused on high-quality computers for home and education, which is a(n): • Overall low-cost leadership strategy • Broad differentiation strategy • Focused low-cost strategy • Focused differentiation strategy • Best-cost provider strategy

6. Apple focused on high-quality computers for home and education, which is a(n): • Overall low-cost leadership strategy • Broad differentiation strategy • Focused low-cost strategy • Focused differentiation strategy • Best-cost provider strategy Information systems need to support an organization’s business strategy, enabling it to gain or sustain a competitive advantage over rivals.

7. Managers can identify opportunities to use information systems to achieve a competitive advantage through: • Automating • Total quality management • Computer-based applications • Effective use of resources • Value chain analysis

8. Managers can identify opportunities to use information systems to achieve a competitive advantage through: • Automating • Total quality management • Computer-based applications • Effective use of resources • Value chain analysis Manager’s analyze an organization’s activities in order to determine where value is added to their products and services, as well as the costs involved. Information systems lower costs by automating processes.

9. An example of an information system used in both the value chain’s inbound and outbound logistics would be: • Web site • Customer service response system • Computer-aided manufacturing systems • Computer-aided engineering systems • Internet link with suppliers and dealers

10. An example of an information system used in both the value chain’s inbound and outbound logistics would be: • Web site • Customer service response system • Computer-aided manufacturing systems • Computer-aided engineering systems • Internet link with suppliers and dealers The value chain consists of inbound logistics, operations, outbound logistics, sales and marketing, and service. Choose an organization and explain what happens in each stage. Discuss with your neighbor.

11. Organizations are using ________ for business-to-business interactions. • Intranets • Internets • Extranets • Arpanet • Infonets

12. Organizations are using ________ for business-to-business interactions. • Intranets • Internets • Extranets • Arpanet • Infonets Many organizations are using extranets to connect to other businesses electronically, placing orders, checking available stock at a supplier, and issuing and paying bills. Extranets are only one way that information systems have added valued to organizations.

13. Significant information systems implementation requires commensurate organizational change. What is this radical redesign called? • Business process reengineering • Value chain • Making the business case • Competitive advantage • Automation

14. Significant information systems implementation requires commensurate organizational change. What is this radical redesign called? • Business process reengineering • Value chain • Making the business case • Competitive advantage • Automation In order to maximize the benefits achieved from a new information system, an organization needs to implement change and improve or redesign the way that it functions.

15. Making the business case for an information system is achieved by: • The process of identifying the value that it provides to the organization • Improving the functioning of the organization • Making a good investment • Implementing the information system • Achieving a competitive advantage

16. Making the business case for an information system is achieved by: • The process of identifying the value that it provides to the organization • Improving the functioning of the organization • Making a good investment • Implementing the information system • Achieving a competitive advantage Management wants to ensure that capital expenditures on new information systems will be good investments, adding value to the organization. Additionally, existing systems that are no longer adding value to the organization will need to be improved or replaced.

17. Organizations experience difficulty in showing that the expenditures on information technology have led to increased performance. What is this called? • Systems effectiveness • Productivity paradox • Business process reengineering • Unintended consequence • Decision support system

18. Organizations experience difficulty in showing that the expenditures on information technology have led to increased performance. What is this called? • Systems effectiveness • Productivity paradox • Business process reengineering • Unintended consequence • Decision support system It is often difficult to quantify tangible productivity gains from the use of an information system. Government regulations, the complexity of products, and unexpected employee behaviors have negatively affected IS productivity.

19. The productivity paradox can be explained by all of the following except: • Measurement problems • Time lags • Redistribution • Mismanagement • Cost-benefit analysis

20. The productivity paradox can be explained by all of the following except: • Measurement problems • Time lags • Redistribution • Mismanagement • Cost-benefit analysis The benefits of an information system are often overlooked because the organization is measuring the wrong thing or the system is being mismanaged. There is usually a lapse in time between when a system is purchased and when gains are recognized by the organization. Finally, systems may be beneficial only to an individual firm, but not the industry.

21. Strong organizational impacts of information systems are typically noted within what time frame? • 2-3 days • 2-3 months • 6-7 months • 2-3 years • 6-7 years

22. Strong organizational impacts of information systems are typically noted within what time frame? • 2-3 days • 2-3 months • 6-7 months • 2-3 years • 6-7 years One explanation for the productivity paradox is that it is not unusual to have time lags of two to three years between the time an organization makes an investment in IT and when a strong organizational impact is felt.

23. An information system may be good for an individual organization, but not for the particular industry or the economy. This is because of business __________. • Redistribution • Lag time • Systems efficiency • Mismanagement • Systems effectiveness

24. An information system may be good for an individual organization, but not for the particular industry or the economy. This is because of business __________. • Redistribution • Lag time • Systems efficiency • Mismanagement • Systems effectiveness Information systems often serve to only redistribute the available market shares instead of creating new markets, particularly in highly competitive markets.

25. Managers usually make the business case for information systems based on: • Quantitative analysis • Faith, fear, and facts • Customers’ perceptions • Market share • The loss of business if they don’t implement it

26. Managers usually make the business case for information systems based on: • Quantitative analysis • Faith, fear, and facts • Customers’ perceptions • Market share • The loss of business if they don’t implement it Management’s strongest and most persuasive business cases are based on arguments grounded in beliefs, fear, and facts. What are some examples of each type of argument? Discuss with your neighbor.

27. The nature of the industry often determines what type of information system would be most effective. Which of the following would not be a factor? • Maturity • Government regulation • Competition • Stability • Mismanagement

28. The nature of the industry often determines what type of information system would be most effective. Which of the following would not be a factor? • Maturity • Government regulation • Competition • Stability • Mismanagement Management will consider factors like competition and other elements of the industry in which the organization operates when making a business case for the information system.

29. Information systems have many impacts on competitive forces. Which of the following is not a competitive force? • Customers’ bargaining power • Stage of maturity • Threat of new entrants • Substitutions • Traditional rivals

30. Information systems have many impacts on competitive forces. Which of the following is not a competitive force? • Customers’ bargaining power • Stage of maturity • Threat of new entrants • Substitutions • Traditional rivals Porter’s five forces include competitors, the threat of new entrants, customers’ and suppliers’ bargaining powers, and the threat of substitute products from other industries. Discuss with a classmate the five forces affecting a particular organization.

31. Information systems can be used to combat customers’ bargaining power. What can an organization do to achieve this? • Create a better web site • Create inventory control systems • Use an extranet • Implement customer relationship management • Include a decision support system

32. Information systems can be used to combat customers’ bargaining power. What can an organization do to achieve this? • Create a better web site • Create inventory control systems • Use an extranet • Implement customer relationship management • Include a decision support system Organizations can use information systems to counter the competitive force of customers’ bargaining power by implementing a CRM system to serve them better, or adding a computer-aided design system or a computer-aided manufacturing system to improve quality.

33. Web servers and telecommunication equipment are usually one-time costs. What are the costs called? • Tangible costs • Recurring costs • Nonrecurring costs • Intangible costs • Web costs

34. Web servers and telecommunication equipment are usually one-time costs. What are the costs called? • Tangible costs • Recurring costs • Nonrecurring costs • Intangible costs • Web costs When performing a cost-benefit analysis, costs are usually divided between one-time, nonrecurring costs and recurring costs. Think of examples of each of the above types of expenses for a business and compare them with your neighbor.

35. If it is difficult to quantify the impact of an investment, you can use: • Intangible variables • Tangible variables • Proxy variables • Monetary terms • Infrastructure value

36. If it is difficult to quantify the impact of an investment, you can use: • Intangible variables • Tangible variables • Proxy variables • Monetary terms • Infrastructure value Proxy variables are used to measure changes in terms of perceived value to an organization, and can be applied to show how information systems add value to the organization.

37. An organization might decide to implement an enterprise-wide data warehouse to get data faster. This would correspond to what part of the e-business innovation cycle? • The assessment phase • The execution phase • Matching economic opportunities phase • The enabling technologies phase • Conveying new information technology insights

38. An organization might decide to implement an enterprise-wide data warehouse to get data faster. This would correspond to what part of the e-business innovation cycle? • The assessment phase • The execution phase • Matching economic opportunities phase • The enabling technologies phase • Conveying new information technology insights The e-business innovation cycle allows an organization to balance the value derived from an information technology against the element of time, showing how information systems are selected, matched against economic opportunities, executed, and assessed to support business.

39. An industry needs to be on the cutting edge in the use of information systems if it: • Operates enabling technology • Needs economic opportunities • Needs business innovation for growth • Is continually upgrading its information systems • Operates in an environment with strong competitive forces

40. An industry needs to be on the cutting edge in the use of information systems if it: • Operates enabling technology • Needs economic opportunities • Needs business innovation for growth • Is continually upgrading its information systems • Operates in an environment with strong competitive forces Competitive environments often require that an organization remain on the cutting edge. Think of an organization that must keep its information systems on the cutting edge. Discuss this with your neighbor.

41. Management is often looking for innovative ways to use information technology. What is one of the new ways of thinking about information systems? • Start with strategy and retrofit technology • Promote marketing to the forefront • Realize that the process is ongoing • Realize that customers are the best resource for technology information • Use every emerging technology

42. Management is often looking for innovative ways to use information technology. What is one of the new ways of thinking about information systems? • Start with strategy and retrofit technology • Promote marketing to the forefront • Realize that the process is ongoing • Realize that customers are the best resource for technology information • Use every emerging technology In order to use information systems most strategically, management needs to realize that it is an ongoing process, and that systems should be constantly reevaluated.