ITEC Exam 1 Questions and Answers4
People, Processes and Systems - ANSWERS-People on their own have to do work. Process helps
people do better work. Technology helps people do faster, more innovative work.
Data vs Information - ANSWERS-Data are raw, unprocessed facts. Information is processed and
organized data that is made useful.
Porter's 5 Force Model - ANSWERS-Explains industry competitive analysis: how competitive you
are within the industry, how competitive that industry is. The forces are:
- Potential New Entrants
- Power of Buyers
- Power of Supplies
- Threat of Substitutes
- Competition
Fast Follower Problem - ANSWERS-When a new product comes into the market, others can
quickly come out with new and improved versions of it.
Zara - ANSWERS-Has a competitive advantage because of its centralized supply chain. All
manufacturing is done in Spain, and they do not advertise, which cuts costs by a lot. Also uses
Personal Digital Assistant and POS System which keeps track of customer data.
Vertically Integrated - ANSWERS-When a single firm owns several layers in its value chain.
Moore's Law - ANSWERS-Chip performance per dollar doubles every 18 months. Possible
because distance between pathways inside silicon cups gets smaller with each successive
generation. In 18 months, computer will be worth 50% more than what it's worth today.
People, Processes and Systems - ANSWERS-People on their own have to do work. Process helps
people do better work. Technology helps people do faster, more innovative work.
Data vs Information - ANSWERS-Data are raw, unprocessed facts. Information is processed and
organized data that is made useful.
Porter's 5 Force Model - ANSWERS-Explains industry competitive analysis: how competitive you
are within the industry, how competitive that industry is. The forces are:
- Potential New Entrants
- Power of Buyers
- Power of Supplies
- Threat of Substitutes
- Competition
Fast Follower Problem - ANSWERS-When a new product comes into the market, others can
quickly come out with new and improved versions of it.
Zara - ANSWERS-Has a competitive advantage because of its centralized supply chain. All
manufacturing is done in Spain, and they do not advertise, which cuts costs by a lot. Also uses
Personal Digital Assistant and POS System which keeps track of customer data.
Vertically Integrated - ANSWERS-When a single firm owns several layers in its value chain.
Moore's Law - ANSWERS-Chip performance per dollar doubles every 18 months. Possible
because distance between pathways inside silicon cups gets smaller with each successive
generation. In 18 months, computer will be worth 50% more than what it's worth today.
