BMGT 301 EXAM 1 UMD QUESTIONS
WITH COMPLETE SOLUTIONS
Explain how the value chain model can be used to identify opportunities for information
systems. - ANSWER----can be used at each stage of the value chain to improve
operational efficiency, lower costs, improve profit margins, and forge a closer
relationship with customers and suppliers
---help examine how value-adding activities are performed at each stage of the value
chain.
---can improve the relationship with customers (customer relationship management
systems) and with suppliers (supply chain management systems) who may be outside
the value chain but belong to an extended value chain and can help businesses track
benchmarks in the organization and identify best practices of their particular industries.
---After analyzing various stages in the value chain, an organization can devise a list of
candidate applications for information systems.
Define the value web and show how it is related to the value chain. - ANSWER----a
collection of independent firms that use information technology to coordinate their value
chains to collectively produce a product or service.
---It is more customer driven and operates in a less linear fashion than the traditional
value chain.
---a networked system that can synchronize the business processes of customers,
suppliers, and trading partners among different companies in an industry or in related
industries.
Powerful resources - ANSWER-1. Imitation-Resistant Value Chains: Others find hard to
replicate
2. Brand: Proxy for quality and inspires trust
3. Scale: Advantages related to size; economies of scale
4. Switching Costs and Data: Costs consumer incur by switching providers
5. Differentiation: Be different; move away from being commoditized
6. Network Effects: When the value of a product or service increases as its number of
users expands.
7. Distribution Channels: The path through which products or services get to customers
8. Patents.
Technology can play a key role in creating and reinforcing assets for sustainable
advantage. This includes: - ANSWER-a. Enabling an imitation resistant value chain
b. Strengthening a firm's brand
c. Collecting useful data
d. Establishing switching costs
e. Creating a network effect
f. Creating or enhancing a firm's scale advantage
, g. Enabling product or service differentiationh. Offering an opportunity to leverage
unique distribution channels.
Transaction Processing Systems (TPS) - ANSWER-Information Inputs: Transactions;
daily events
Information Outputs: Detailed reports; lists; summaries
Users: Operations personnel; first-line supervisors
Management Information Systems (MIS) - ANSWER-Information Inputs: Summary
transaction data; high-volume data; simple models
Information Outputs: Summary and exception reports
Users: Middle managers
Decision Support Systems (DSS) - ANSWER-Information Inputs: Optimized for data
analysis, analytic models and data analysis tools.
Information Outputs: Interactive; simulations; analysis
Users: Professionals, staff managers
Executive Support Systems (ESS) - ANSWER-Information Inputs: Aggregate data;
external, internal
Information Outputs: Projections; responses to queries
Users: Senior managers
Define and describe the value chain model. - ANSWER----highlights specific activities in
the business where competitive strategies can best be applied and where information
systems will most likely have a strategic impact and identifies specific, critical leverage
points where a firm can use information technology most effectively to enhance its
competitive position..
---views the firm as a series of basic activities that add a margin of value to a firm's
products or services. The activities are categorized as either primary or support
activities.
---Primary activities are most directly related to production and distribution of the firm's
products and services, which create value for the customer.
---Support activities make the delivery of primary activities possible and consist of
organization infrastructure
---linked to the value chains of its suppliers, distributors, and customers.
Sustainable Competitive Advantage - ANSWER-Financial performance that consistently
outperforms industry averages
Operational Effectiveness - ANSWER-Performing the same tasks better than rivals
perform them.
Fast Follower Exists when? - ANSWER-1. Savvy rivals watch a pioneer's efforts
2. Learn from their successes and missteps
WITH COMPLETE SOLUTIONS
Explain how the value chain model can be used to identify opportunities for information
systems. - ANSWER----can be used at each stage of the value chain to improve
operational efficiency, lower costs, improve profit margins, and forge a closer
relationship with customers and suppliers
---help examine how value-adding activities are performed at each stage of the value
chain.
---can improve the relationship with customers (customer relationship management
systems) and with suppliers (supply chain management systems) who may be outside
the value chain but belong to an extended value chain and can help businesses track
benchmarks in the organization and identify best practices of their particular industries.
---After analyzing various stages in the value chain, an organization can devise a list of
candidate applications for information systems.
Define the value web and show how it is related to the value chain. - ANSWER----a
collection of independent firms that use information technology to coordinate their value
chains to collectively produce a product or service.
---It is more customer driven and operates in a less linear fashion than the traditional
value chain.
---a networked system that can synchronize the business processes of customers,
suppliers, and trading partners among different companies in an industry or in related
industries.
Powerful resources - ANSWER-1. Imitation-Resistant Value Chains: Others find hard to
replicate
2. Brand: Proxy for quality and inspires trust
3. Scale: Advantages related to size; economies of scale
4. Switching Costs and Data: Costs consumer incur by switching providers
5. Differentiation: Be different; move away from being commoditized
6. Network Effects: When the value of a product or service increases as its number of
users expands.
7. Distribution Channels: The path through which products or services get to customers
8. Patents.
Technology can play a key role in creating and reinforcing assets for sustainable
advantage. This includes: - ANSWER-a. Enabling an imitation resistant value chain
b. Strengthening a firm's brand
c. Collecting useful data
d. Establishing switching costs
e. Creating a network effect
f. Creating or enhancing a firm's scale advantage
, g. Enabling product or service differentiationh. Offering an opportunity to leverage
unique distribution channels.
Transaction Processing Systems (TPS) - ANSWER-Information Inputs: Transactions;
daily events
Information Outputs: Detailed reports; lists; summaries
Users: Operations personnel; first-line supervisors
Management Information Systems (MIS) - ANSWER-Information Inputs: Summary
transaction data; high-volume data; simple models
Information Outputs: Summary and exception reports
Users: Middle managers
Decision Support Systems (DSS) - ANSWER-Information Inputs: Optimized for data
analysis, analytic models and data analysis tools.
Information Outputs: Interactive; simulations; analysis
Users: Professionals, staff managers
Executive Support Systems (ESS) - ANSWER-Information Inputs: Aggregate data;
external, internal
Information Outputs: Projections; responses to queries
Users: Senior managers
Define and describe the value chain model. - ANSWER----highlights specific activities in
the business where competitive strategies can best be applied and where information
systems will most likely have a strategic impact and identifies specific, critical leverage
points where a firm can use information technology most effectively to enhance its
competitive position..
---views the firm as a series of basic activities that add a margin of value to a firm's
products or services. The activities are categorized as either primary or support
activities.
---Primary activities are most directly related to production and distribution of the firm's
products and services, which create value for the customer.
---Support activities make the delivery of primary activities possible and consist of
organization infrastructure
---linked to the value chains of its suppliers, distributors, and customers.
Sustainable Competitive Advantage - ANSWER-Financial performance that consistently
outperforms industry averages
Operational Effectiveness - ANSWER-Performing the same tasks better than rivals
perform them.
Fast Follower Exists when? - ANSWER-1. Savvy rivals watch a pioneer's efforts
2. Learn from their successes and missteps
