IS 301 Lecture 11 Exam Questions and
Correct Answers.
digital firms offer greater flexibility in organization and management
Six Strategic Business Objectives
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
operational excellence
Improvement of efficiency to attain higher profitability
- walmart/ amazon
New products, services, and business models
-Business model: describes how company produces, delivers, and sells product or service
to create wealth
-Information systems and technology a major enabling tool for new products, services, business
models
-Examples: Apple's iPad, Google's Android OS, and Netflix
Customer and supplier intimacy
- high end hotels that use computers to track customer preferences and used to monitor and
customize environment
Improved decision making
-Without accurate information:
Managers must use forecasts, best guesses, luck
, Results in:
Overproduction, underproduction
Misallocation of resources
Poor response times
Poor outcomes raise costs, lose customers
-Example: Verizon's Web-based digital dashboard to provide managers with real-time data
on customer complaints, network performance, line outages, and so on
competitive advantage
A product or service that an organization's customers place a greater value on than similar
offerings from a competitor
Investing in IS does not guarantee good returns
-considerable variation in returns firms receive from systems investments
Factors to consider: adopting the right business model, investing in complementary assets
(organizational and management capital)
Complementary assets
organizational assets, managerial assets, social assets
organizational assets
-Appropriate business model
-Efficient business processes
managerial assets
-people to make technology work properly
-incentives for management innovation
-teamwork and collaborative work environments
social assets
The Internet and telecommunications
infrastructure Technology standards
Correct Answers.
digital firms offer greater flexibility in organization and management
Six Strategic Business Objectives
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
operational excellence
Improvement of efficiency to attain higher profitability
- walmart/ amazon
New products, services, and business models
-Business model: describes how company produces, delivers, and sells product or service
to create wealth
-Information systems and technology a major enabling tool for new products, services, business
models
-Examples: Apple's iPad, Google's Android OS, and Netflix
Customer and supplier intimacy
- high end hotels that use computers to track customer preferences and used to monitor and
customize environment
Improved decision making
-Without accurate information:
Managers must use forecasts, best guesses, luck
, Results in:
Overproduction, underproduction
Misallocation of resources
Poor response times
Poor outcomes raise costs, lose customers
-Example: Verizon's Web-based digital dashboard to provide managers with real-time data
on customer complaints, network performance, line outages, and so on
competitive advantage
A product or service that an organization's customers place a greater value on than similar
offerings from a competitor
Investing in IS does not guarantee good returns
-considerable variation in returns firms receive from systems investments
Factors to consider: adopting the right business model, investing in complementary assets
(organizational and management capital)
Complementary assets
organizational assets, managerial assets, social assets
organizational assets
-Appropriate business model
-Efficient business processes
managerial assets
-people to make technology work properly
-incentives for management innovation
-teamwork and collaborative work environments
social assets
The Internet and telecommunications
infrastructure Technology standards
