Exam 3: Information Systems, Organizations, and Strategy

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An organization is a

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How is Internet technology useful from a network economics perspective? Give examples.

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In network economics, the cost of adding a participant in the network is negligible, while the gain in value is relatively much larger. The Internet itself is an example of a successful implementation of network economics-the more people participate, the more valuable and essential a commodity it is. If a company were to provide a service through the Internet such as a project management application, the costs to the company of adding another user are small (as the software infrastructure or application is already built), and the more users are signed up, the more profit is made.

________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.

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Product differentiation

A(n) ________ activity is a part of the organization's infrastructure, human resources, technology, and procurement that makes the delivery of the firm's products or services possible.

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Mintzberg's classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n)

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Which of the following would not be considered a disruptive technology?

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In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries.

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Mass customization is a form of mass production.

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________ are the expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system.

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An information system can enhance core competencies by

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The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage?

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Strong linkages to customers and suppliers decrease switching costs.

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In the strategy of product differentiation, information systems are used to enable new products and services.

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As described in the chapter case, the competitive force of ________ resulted in Starbuck's downturn in 2008, and it employed information systems in a strategy of ________ to combat this force.

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A virtual company

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The interaction between information systems and organizations is influenced

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Which of the following industries has not been disrupted by the Internet?

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Research has shown that only 25% of firms are able to align their information technology with their business goals.

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Business processes are collections of

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The competitive forces model can be used to analyze today's digital firm as well as traditional firms.

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