EBTM 337 EXAM 1 VERIFIED STUDY GUIDE
Management Information Systems (MIS) - Answers - planning for development,
management, and use of information technology to help people preform tasks related to
information processing management
3 Most Important Resources - Answers - 1. People- most important and in order to be
successful with technology people must be Technology Literate and Information Literate
2. Information-in various forms (data, knowledge, BI) is data that has meaning within a
specific context
3. Information Technology (IT)- is any computer based tool that people work with
information and support the info and information processing needs of an organization
Technology Literate and Information Literate Workers - Answers - Tech: knows how and
when to apply technology
-know which tech to purchase
-how to exploit benefits
-what tech infrastructure is required
Info:
-can define what info is needed
-knows how and where to obtain info
-understands info once it is received (can transform into BI)
-can act appropriately based on info to help the organization achieve greatest
advantage
Data - Answers - raw facts that describe a particular phenomenon such as current temp,
movie price or age
Business Intelligence (BI) - Answers - is collective info about customers, competitors,
business partners, competitive environment, and internal operations that gives you the
ability to make effective, important and strategic decisions.
Breakeven Analysis - Answers - -Considers and charts 3 pieces of financial information
(Fixed cost, Variable cost, Revenue)
-Used to determine the financial impact of information technology by assessing:
1. How tech can help reduce fixed costs
2. How tech can help reduce variable costs
3. How tech can increase revenue
, -each of those ultimately focuses on how tech can be used to impact the Breakeven
Point which is the point where it has covered fixed costs and begins to make profit
Porters 5 Forces: evaluate the relative attractiveness and competition pressures by
analyzing.... - Answers - 1) Buyer Power: High when buyers have many choices. Low
when few choices
2) Supplier Power: High when buyers have few choices. Low when many choices
3) Threat of Substitute Products/ Services: high when many alternatives. Low when few
alternatives.
4) Threat of New Entrants: High when it is easy to enter market. Low when hard to
enter.
5) Rivalry among Existing Competitors: High when competition is fierce. Low when
comp is complacent.
Porters 3 Generic Strategies - Answers - 1. Overall Cost Leadership: the same or better
quality products at a price less than that of competitors
2. Differentiation: a product or service that is perceived as being unique
3. Focus: products or services for a particular buyer group, within a segment of a
product line and/or a specific geographic market
RGT Framework: requires that you allocate in terms of percentages how you will spend
your IT dollars among Running, Growing and Transforming the Organization - Answers
- RUN= Overall Cost Leadership
Grow= Differentiation or Focus
Transform= (NEW) Differentiation
Supply Chain Management(SCM): is an IT system that supports supply chain
management by automating the tracking of inventory and information among business
processes and across companies - Answers - Strategic/ Competitive Strategies of SCM
-Overall Cost Leadership (porter), running the organization (RGT framework)
-Fulfillment: right quantity of parts or products at the right time
-Logistics: low cost of transporting materials
-Production: ensuring production lines run smoothly
-Revenue and Profit: no sales are lost
-Cost and Price: Keeping part costs down and product prices at acceptable level
Management Information Systems (MIS) - Answers - planning for development,
management, and use of information technology to help people preform tasks related to
information processing management
3 Most Important Resources - Answers - 1. People- most important and in order to be
successful with technology people must be Technology Literate and Information Literate
2. Information-in various forms (data, knowledge, BI) is data that has meaning within a
specific context
3. Information Technology (IT)- is any computer based tool that people work with
information and support the info and information processing needs of an organization
Technology Literate and Information Literate Workers - Answers - Tech: knows how and
when to apply technology
-know which tech to purchase
-how to exploit benefits
-what tech infrastructure is required
Info:
-can define what info is needed
-knows how and where to obtain info
-understands info once it is received (can transform into BI)
-can act appropriately based on info to help the organization achieve greatest
advantage
Data - Answers - raw facts that describe a particular phenomenon such as current temp,
movie price or age
Business Intelligence (BI) - Answers - is collective info about customers, competitors,
business partners, competitive environment, and internal operations that gives you the
ability to make effective, important and strategic decisions.
Breakeven Analysis - Answers - -Considers and charts 3 pieces of financial information
(Fixed cost, Variable cost, Revenue)
-Used to determine the financial impact of information technology by assessing:
1. How tech can help reduce fixed costs
2. How tech can help reduce variable costs
3. How tech can increase revenue
, -each of those ultimately focuses on how tech can be used to impact the Breakeven
Point which is the point where it has covered fixed costs and begins to make profit
Porters 5 Forces: evaluate the relative attractiveness and competition pressures by
analyzing.... - Answers - 1) Buyer Power: High when buyers have many choices. Low
when few choices
2) Supplier Power: High when buyers have few choices. Low when many choices
3) Threat of Substitute Products/ Services: high when many alternatives. Low when few
alternatives.
4) Threat of New Entrants: High when it is easy to enter market. Low when hard to
enter.
5) Rivalry among Existing Competitors: High when competition is fierce. Low when
comp is complacent.
Porters 3 Generic Strategies - Answers - 1. Overall Cost Leadership: the same or better
quality products at a price less than that of competitors
2. Differentiation: a product or service that is perceived as being unique
3. Focus: products or services for a particular buyer group, within a segment of a
product line and/or a specific geographic market
RGT Framework: requires that you allocate in terms of percentages how you will spend
your IT dollars among Running, Growing and Transforming the Organization - Answers
- RUN= Overall Cost Leadership
Grow= Differentiation or Focus
Transform= (NEW) Differentiation
Supply Chain Management(SCM): is an IT system that supports supply chain
management by automating the tracking of inventory and information among business
processes and across companies - Answers - Strategic/ Competitive Strategies of SCM
-Overall Cost Leadership (porter), running the organization (RGT framework)
-Fulfillment: right quantity of parts or products at the right time
-Logistics: low cost of transporting materials
-Production: ensuring production lines run smoothly
-Revenue and Profit: no sales are lost
-Cost and Price: Keeping part costs down and product prices at acceptable level
