Exam 3: Strategy and Information Systems

Porter defines value as the amount of money that a customer is willing to pay for a resource, product, or service.

To determine if an information system delivers a net savings in costs, the cost of developing and operating the information system will need to be offset against the gains in reduced errors and paper, ink, and printing costs.

________ argues that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.

Business processes that span value-generating activities determine the scope and requirements of each organization's information systems.

Which of the following principles of competitive advantage is associated with product implementations?

Information systems create competitive advantage by providing support to a product rather than by becoming a part of the product.

Huen Software, an application provider to the gaming industry, decided to increase its portfolio by developing 3-D graphics-enabled games for the mobile gaming industry.By doing this, which competitive strategy is Huen Software implementing?

A telecom service provider focusing on high-end users is following an industry-wide differentiation strategy.

Which of the following factors determines the structure, features, and functions of an information system used in a company?

Providing the lowest cost across an industry can be referred to as focused cost-leadership.

A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.

Which of the following principles of competitive advantage is related to process implementations?

An organization is using product implementation to achieve competitive advantage when it tries to reduce operational costs.

Which of the following value chain activities involves collecting, storing, and physically distributing the product to buyers?

According to Porter's five forces model, which of the following would be most affected by the threat of substitutes?

The difference between the value that an activity generates and the cost of the activity is called the ________.

Each stage of the generic value chain accumulates costs and adds value to the product.The net result of this process is the total margin of the chain.

The cost of the business process is the sum of the cost of the inputs and the ________.

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

What are the areas that provide opportunity for technological growth in the next 10 years?