Exam 9: Appropriating It-Enabled Value Over Time

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The characteristics of the technology, the firm, its competitors, or the value system in which the firm is embedded, that combine to make replication of the IT-dependent strategic initiative difficult and costly is called the ________________.

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Response lag

Why is it important to be able to reduce uncertainty about the potential success of IT-dependent strategic initiatives?

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It is important to understand when to avoid investing in expensive projects that will not enable the firm to appropriate the value it has created.

How do IT-resources help to create a sustainable competitive advantage?

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IT-dependent strategic initiatives rely on access to the assets and capabilities necessary to produce and use the technology at the core. As an initiative becomes more reliant on pre-existing IT resources and capabilities, it becomes increasingly difficult to copy.

Is IT an indistinct commodity?

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How do management skills create obstacles for competitors?

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Reproducing IT is equivalent to reproducing an IT-dependent strategic initiative.

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To create and maintain a sustainable competitive advantage, what must you, as a manager do? What is an example of a firm creating and maintaining this advantage?

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The two major aspects of sustainable competitive advantages are time and money.

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When the IT initiative is unlikely to yield a sustainable competitive advantage, but it will improve overall profitability of the industry, it must be developed as part of a consortium.

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When you have been successful in generating competitive advantage with an IT-dependent strategic initiative what must you, as a manager, do in order to try and maintain such advantage?

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Which are the five sub-dimensions of the IT project barrier?

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The sustainability of a competitive advantage grounded in an IT-dependent strategic initiative is measured by:

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Which of the following are response-lag drivers associated with the complementary resources barrier?

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Response lag is

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The complexity of the technology is a function of the bundle of skills and knowledge necessary to effectively design, develop, implement, and use it.

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When the IT initiative will not likely create strong barriers to erosion and retaliation by competitors will degrade average industry profits, it must be shelved.

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The risks associated with an IT-enabled initiative are:

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In the Land's End case study, the complementary resources barrier for competitors were their established distribution chains.

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The complexity of the technology is:

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Search costs, learning costs, and loyalty costs are examples of preemption barriers.

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