LSUS MBA 703 Module 2 UPDATED ACTUAL Questions and
CORRECT Answers
1991 Erik Brynjolfsson - Communications of the ACM, "The the addition of information technology to business had not improved productivity
Productivity Paradox of Information Technology: Review at all
and Assessment"
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
1998 Brynjolfsson and Lorin Hitt "Beyond the Productivity IT did indeed provide a positive result for businesses; sometime the true
Paradox" advantage were not directly relatable to higher productivity, but to "softer"
measures - impact on organization structure
Year the Internet stock market bubble burst 2001
When Nicholas Carr wrote "IT Doesn't Matter" for 2003
Harvard Business Review
"IT Doesn't Matter" said IT had become less of a differentiator and more of a commodity - should be
managed like one - low cost, low risk
Best thing to come out of "Does IT Matter" article and opened up discussion on the place of IT in a business strategy
book
Michael Porter "Competitive Advantage: Creating and A company is said to have a competitive advantage over its rivals when it is able
Sustaining Superior Performance" to sustain profits that exceed average for the industry.
Porter - 2 primary methods for obtaining competitive 1. cost advantage 2. differentiation advantage
advantage
2 of Porter's analysis tools 1. the value chain 2. the 5 Forces model
Porter's 2001 article "Strategy and the Internet" examines the impact of the Internet on business strategy and competitive
advantage
value chain a series of activities undertaken by the company to produce a product or service
2 set of activities of a value chain 1. primary activities 2. support activities
, Primary activities in the value chain 1. inbound logistics
2. operations
3. outbound logistics
4. marketing and sales
5. service
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
Operations transforms raw materials or inputs into goods and services; manufacturing to
business process management
outbound logistics the functions required to get the product out to the customer; IT can be a delivery
mechanism itself
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
Service the functions a business performs after the product has been purchased to
maintain and enhance the product's value
Support activities the functions in an organization that support, and cut across, all of the primary
activities
Support Activities in the Value Chain firm infrastructure, human resource management, technology development,
procurement
firm infrastructure the accounting, finance, legal, and general administration activities that allow an
organization to function; ERP systems
Human Resource Management consists of the activities managers perform to plan for, attract, develop, and retain
an effective workforce; IT can increase their reach and provide for a more flexible
work environment
technology development technological advances and innovations that support the primary activities;
Information Technology falls specifically under this activity
procurement activities involved in acquiring the raw materials used in the creation of products
and services; IT impact - business-to-business e-commerce
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
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
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
CORRECT Answers
1991 Erik Brynjolfsson - Communications of the ACM, "The the addition of information technology to business had not improved productivity
Productivity Paradox of Information Technology: Review at all
and Assessment"
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
1998 Brynjolfsson and Lorin Hitt "Beyond the Productivity IT did indeed provide a positive result for businesses; sometime the true
Paradox" advantage were not directly relatable to higher productivity, but to "softer"
measures - impact on organization structure
Year the Internet stock market bubble burst 2001
When Nicholas Carr wrote "IT Doesn't Matter" for 2003
Harvard Business Review
"IT Doesn't Matter" said IT had become less of a differentiator and more of a commodity - should be
managed like one - low cost, low risk
Best thing to come out of "Does IT Matter" article and opened up discussion on the place of IT in a business strategy
book
Michael Porter "Competitive Advantage: Creating and A company is said to have a competitive advantage over its rivals when it is able
Sustaining Superior Performance" to sustain profits that exceed average for the industry.
Porter - 2 primary methods for obtaining competitive 1. cost advantage 2. differentiation advantage
advantage
2 of Porter's analysis tools 1. the value chain 2. the 5 Forces model
Porter's 2001 article "Strategy and the Internet" examines the impact of the Internet on business strategy and competitive
advantage
value chain a series of activities undertaken by the company to produce a product or service
2 set of activities of a value chain 1. primary activities 2. support activities
, Primary activities in the value chain 1. inbound logistics
2. operations
3. outbound logistics
4. marketing and sales
5. service
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
Operations transforms raw materials or inputs into goods and services; manufacturing to
business process management
outbound logistics the functions required to get the product out to the customer; IT can be a delivery
mechanism itself
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
Service the functions a business performs after the product has been purchased to
maintain and enhance the product's value
Support activities the functions in an organization that support, and cut across, all of the primary
activities
Support Activities in the Value Chain firm infrastructure, human resource management, technology development,
procurement
firm infrastructure the accounting, finance, legal, and general administration activities that allow an
organization to function; ERP systems
Human Resource Management consists of the activities managers perform to plan for, attract, develop, and retain
an effective workforce; IT can increase their reach and provide for a more flexible
work environment
technology development technological advances and innovations that support the primary activities;
Information Technology falls specifically under this activity
procurement activities involved in acquiring the raw materials used in the creation of products
and services; IT impact - business-to-business e-commerce
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
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
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
