LSUS ISDS 705
Module 2
1. 1991 Erik Brynjolfsson - Communications of the ACM, "The
Productivity Para- dox of Information Technology: Review and
Assessment": the addition of information technology to business had not improved
productivity at all
2. Explanations of productivity paradox: 1. Measurement of outputs and inputs
2. Lags due to learning and adjustment 3. Redistribution and dissipation of profits 4. Mismanagement
of information and technology
3. 1998 Brynjolfsson and Lorin Hitt "Beyond the Productivity Paradox":
IT did indeed provide a positive result for businesses; sometime the true advantage were not directly
relatable to higher productivity, but to "softer" measures - impact on organization structure
4. Year the Internet stock market bubble burst: 2001
5. When Nicholas Carr wrote "IT Doesn't Matter" for Harvard Business
Review-
: 2003
6. "IT Doesn't Matter" said: IT had become less of a ditterentiator and more of a commodity -
should be managed like one - low cost, low risk
7. Best thing to come out of "Does IT Matter" article and book: opened
up discussion on the place of IT in a business strategy
8. Michael Porter "Competitive Advantage: Creating and Sustaining
Superior Performance": A company is said to have a competitive advantage over its rivals when it
is able to sustain profits that exceed average for the industry.
9. Porter - 2 primary methods for obtaining competitive advantage: 1.
cost advantage
2. ditterentiation advantage
10. 2 of Porter's analysis tools: 1. the value chain 2. the 5 Forces model
11. Porter's 2001 article "Strategy and the Internet": examines the impact
of the Internet on business strategy and competitive advantage
12. value chain: a series of activities undertaken by the company to produce a product or
service
13. 2 set of activities of a value chain: 1. primary activities 2. support activities
14. Primary activities in the value chain: 1. inbound logistics
2. operations
3. outbound logistics
, LSUS ISDS 705
Module 2
4. marketing and sales
5. service
15. inbound logistics: The area of logistics that involves bringing raw materials,
packaging, other goods and services, and information from suppliers to producers; supply chain
management
, LSUS ISDS 705
Module 2
16. Operations: transforms raw materials or inputs into goods and services; manufacturing to
business process management
17. outbound logistics: the functions required to get the product out to the customer; IT
can be a delivery mechanism itself
18. Sales/Marketing: the functions that will entice buyers to purchase products; IT can
be used to innovate product design and reach customer like never before; the company website
can be a sales channel itself
19. Service: the functions a business performs after the product has been purchased to maintain
and enhance the product's value
20. Support activities: the functions in an organization that support, and cut across, all of
the primary activities
21. Support Activities in the Value Chain: firm infrastructure, human resource
management, tech- nology development, procurement
22. firm infrastructure: the accounting, finance, legal, and general administration
activities that allow an organization to function; ERP systems
23. Human Resource Management: consists of the activities managers perform to
plan for, attract, develop, and retain an ettective workforce; IT can increase their reach and provide for
a more flexible work environment
24. technology development: technological advances and innovations that support the
primary activities; Information Technology falls specifically under this activity
25. procurement: activities involved in acquiring the raw materials used in the creation of
products and services; IT impact - business-to-business e-commerce
26. Porter's Five Forces Model: analyzes the competitive forces within the environment in
which a company operates to assess the potential for profitability in an industry
27. 5 forces in Porter's Five Forces Model: 1. Threat of substitution 2. Bargaining
power of suppliers
3. Bargaining power of customers 4. Barriers to entry 5. Rivalry among existing competitors
28. Threat of substitute products or services: the more types of products or
services there are that can meet a particular need, the less profitability there will be in an industry
29. Bargaining power of suppliers: When a company has several suppliers to
choose from, it can demand a lower price. When a sole supplier exists, then the company is at
the mercy of the supplier
30. Bargaining power of customers: the Internet has given customers many more
Module 2
1. 1991 Erik Brynjolfsson - Communications of the ACM, "The
Productivity Para- dox of Information Technology: Review and
Assessment": the addition of information technology to business had not improved
productivity at all
2. Explanations of productivity paradox: 1. Measurement of outputs and inputs
2. Lags due to learning and adjustment 3. Redistribution and dissipation of profits 4. Mismanagement
of information and technology
3. 1998 Brynjolfsson and Lorin Hitt "Beyond the Productivity Paradox":
IT did indeed provide a positive result for businesses; sometime the true advantage were not directly
relatable to higher productivity, but to "softer" measures - impact on organization structure
4. Year the Internet stock market bubble burst: 2001
5. When Nicholas Carr wrote "IT Doesn't Matter" for Harvard Business
Review-
: 2003
6. "IT Doesn't Matter" said: IT had become less of a ditterentiator and more of a commodity -
should be managed like one - low cost, low risk
7. Best thing to come out of "Does IT Matter" article and book: opened
up discussion on the place of IT in a business strategy
8. Michael Porter "Competitive Advantage: Creating and Sustaining
Superior Performance": A company is said to have a competitive advantage over its rivals when it
is able to sustain profits that exceed average for the industry.
9. Porter - 2 primary methods for obtaining competitive advantage: 1.
cost advantage
2. ditterentiation advantage
10. 2 of Porter's analysis tools: 1. the value chain 2. the 5 Forces model
11. Porter's 2001 article "Strategy and the Internet": examines the impact
of the Internet on business strategy and competitive advantage
12. value chain: a series of activities undertaken by the company to produce a product or
service
13. 2 set of activities of a value chain: 1. primary activities 2. support activities
14. Primary activities in the value chain: 1. inbound logistics
2. operations
3. outbound logistics
, LSUS ISDS 705
Module 2
4. marketing and sales
5. service
15. inbound logistics: The area of logistics that involves bringing raw materials,
packaging, other goods and services, and information from suppliers to producers; supply chain
management
, LSUS ISDS 705
Module 2
16. Operations: transforms raw materials or inputs into goods and services; manufacturing to
business process management
17. outbound logistics: the functions required to get the product out to the customer; IT
can be a delivery mechanism itself
18. Sales/Marketing: the functions that will entice buyers to purchase products; IT can
be used to innovate product design and reach customer like never before; the company website
can be a sales channel itself
19. Service: the functions a business performs after the product has been purchased to maintain
and enhance the product's value
20. Support activities: the functions in an organization that support, and cut across, all of
the primary activities
21. Support Activities in the Value Chain: firm infrastructure, human resource
management, tech- nology development, procurement
22. firm infrastructure: the accounting, finance, legal, and general administration
activities that allow an organization to function; ERP systems
23. Human Resource Management: consists of the activities managers perform to
plan for, attract, develop, and retain an ettective workforce; IT can increase their reach and provide for
a more flexible work environment
24. technology development: technological advances and innovations that support the
primary activities; Information Technology falls specifically under this activity
25. procurement: activities involved in acquiring the raw materials used in the creation of
products and services; IT impact - business-to-business e-commerce
26. Porter's Five Forces Model: analyzes the competitive forces within the environment in
which a company operates to assess the potential for profitability in an industry
27. 5 forces in Porter's Five Forces Model: 1. Threat of substitution 2. Bargaining
power of suppliers
3. Bargaining power of customers 4. Barriers to entry 5. Rivalry among existing competitors
28. Threat of substitute products or services: the more types of products or
services there are that can meet a particular need, the less profitability there will be in an industry
29. Bargaining power of suppliers: When a company has several suppliers to
choose from, it can demand a lower price. When a sole supplier exists, then the company is at
the mercy of the supplier
30. Bargaining power of customers: the Internet has given customers many more
