IT 360T – Exam 1 Study Guide (Chapters 1–3) – Old Dominion
University –2025/2026– Core Information Technology Concepts
Business Drivers of Information Systems (Study in Detail) - correct answer ✔✔ Businesses invest
in IT to achieve 6 important business objectives and describe six reasons information systems
are so important for business today.
1. Operational Excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
1. Operational Excellence - correct answer ✔✔ Information systems are important tools for
managers to achieve higher profitability and improve business operations. An example of this is
when a customer buys a product, the supplier monitors the items, and then they know to get a
replacement item for the one purchased.
2. New Products, Services, and Business Models - correct answer ✔✔ Information systems are
major tools for companies to innovate their products, services, and business models. An
example of this is how Apple changed their old business model based on their iPod technology
into their iPhones.
3. Customer and Supplier Intimacy - correct answer ✔✔ Information systems help businesses
with their engagement between customers and suppliers. An example of this is when a
company uses computers to track their customers' satisfaction and preferences. This will help
suppliers provide a better experience for their customers.
University –2025/2026– Core Information Technology Concepts
Business Drivers of Information Systems (Study in Detail) - correct answer ✔✔ Businesses invest
in IT to achieve 6 important business objectives and describe six reasons information systems
are so important for business today.
1. Operational Excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
1. Operational Excellence - correct answer ✔✔ Information systems are important tools for
managers to achieve higher profitability and improve business operations. An example of this is
when a customer buys a product, the supplier monitors the items, and then they know to get a
replacement item for the one purchased.
2. New Products, Services, and Business Models - correct answer ✔✔ Information systems are
major tools for companies to innovate their products, services, and business models. An
example of this is how Apple changed their old business model based on their iPod technology
into their iPhones.
3. Customer and Supplier Intimacy - correct answer ✔✔ Information systems help businesses
with their engagement between customers and suppliers. An example of this is when a
company uses computers to track their customers' satisfaction and preferences. This will help
suppliers provide a better experience for their customers.
