IInformation
Technology for
Management
Advancing
Sustainable, Profitable
Business Growth, 11e
Efraim Turban, Carol
Pollard, Gregory
Wood (All Chapters)
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?
,CHAPTER 1
Disruptive IT Impacts Companies, Competition and Careers
IT at Work
IT at Work 1.1
1. How did Fitbit manage to take the title of biggest selling manufacturer of wearable
technology tech and sustain it?
Fitbit disrupted the health and fitness industry when they brought to market a smart-
connected wearable activity tracker that fits effortlessly into users’ life styles and thus
launched an industry and propelled themselves to market leader. Within five years, Fitbit
managed to take the title of biggest selling manufacturer of wearable tech when it sold 21
million devices in one year.
2. What could other companies who produce fitness trackers do to challenge Fitbit in the
marketplace?
Answers may vary. Other companies may focus on cost to target a low-end market with
inexpensive products while others may focus on product development to enhance the
capability and features of their device to maintain or grow respective market shares.
3. What other features do you think consumers would like Fitbit to incorporate into its’
fitness tracker to further improve it? How would consumers and Fitbit benefit from
these improvements?
Answers may vary. Features could include feedback on movements to improve
performance (as with time-motion studies) and alerting workers when they have had too
much repetitive movement or not enough movement for good health (as in a sedentary
job). Additional features might include the ability to monitor heart rate and sleep activity,
waterproof devices that can be worn in the shower or pool, advanced personal training
features, relaxation tools and integration with social networks.
IT at Work 1.2
1. What are two reasons why Zulpo had trouble finding qualified IT talent?
First, finding the talent and determining if they have the necessary skills and experience
and second, finding the qualified talent at a time when very few IT workers are out of
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?
, work. The unemployment rate for tech workers is about 2%, according to reports on
recent data from the U.S. Bureau of Labor Statistics (Bureau of Labor Statistics 2016).
2. What type of position(s) was Zulpo trying to fill?
A senior project manager, a network analyst and a help desk worker.
3. What methods would you recommend to Zulpo help him in his efforts to recruit new IT
personnel?
Answers may vary. Provided competitive benefits such as a signing bonus, additional paid
time off, flexible work schedule or work-from-home days.
Review Questions
1.1 Doing Business in the On-Demand Economy
1. What precipitated the on-demand economy?
Answers may vary. Years of technological innovation and a change in consumer behavior
laid the foundation for an on-demand economy. As technology companies have become
more digitized, they are looking for ways to bring together consumers and providers of
products and services focusing on speed, ease and convenience. A low barrier to enter the
on-demand economy enables competition and growth.
2. How is IT contributing to the success of the on-demand economy?
Answers may vary. The proliferation of smartphone-connected consumers, simple and
secure purchase flows and location-based services are market conditions and
technological innovations that propel the on-demand economy forward. Companies are
focused on the strategic use of technology platforms that consist of hardware, software,
and networks that provide connectivity for diverse transactions, such as ordering,
tracking, user authentication, and payments.
3. List the six IT business objectives.
1) Product development
2) Stakeholder integration
3) Process improvement
4) Cost efficiencies
5) Competitive advantages
6) Globalization
4. What are the key strategic and tactical questions that determine an organization’s
profitability and management performance?
• Strategic direction:
o What do we do?
o What is our direction?
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?
, o What markets and customers should we be targeting and how do we prepare
for them?
• Business model:
o How do we do it?
o How do we generate revenue & profits to sustain ourselves and build our
brand?
• Business processes, procedures and technology
o How well do we do it?
o How can we be more efficient?
5. What is a business model?
A business model is the way an organization operates to generate revenue or to sustain
themselves. Elements of a business model can include identifying customer base(s),
establishing business processes and identifying business resources, as examples.
6. What is a digital business model?
A digital business model defines how a company makes money or sustains themselves by
using digital technology. This is how a company engages customers digitally to create
value via websites, social channels and mobiles devices. Companies that can adopt digital
business models are better positioned to take advantage of business opportunities, adapt
to changes in the market, and adjust to competitive forces and future trends.
7. Give two examples of how companies are transitioning to digital business models.
Answers may vary. NBA talent scouts no longer have to review player statistics on
spreadsheets and review hours of tapes. The NBA now relies on STATS’ SportVU
technology using cameras to tracks the movement of every player on the court, record
ball movement and convert the movement to statistics in order to help make trading
decisions. The adoption of analytics to enable decision-making is transforming the NBA
from a traditional business model to a digital business model.
Casinos are moving to digital business models by using dashboards to keep casino floor
staff informed of player demand and to increase the profitability of blackjack, craps, and
other table games. Casinos are adopting predictive analytics to determine consumer
behavior that can identify ways to increase market share and profits. The data analytics is
also used to enhance the customer experience (CX) which is directly tied to customer
loyalty and increases revenue.
8. What factors are driving the move to digital business models?
Answers may vary. The on-demand economy is driving traditional business models to
digital business models to serve customers what they want when they want it. Business
leaders are realizing that in order to move their business forward and to enable on-
demand business models, they must know what steps to take to get the most out of
mobile, social, cloud, big data, analytics, visualization technology and the Internet of
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?