Professional Documents
Culture Documents
3. What is
o
Type
Selling Party
Buying Party
B2C
Consumer (eg. Me
buying a tv)
B2B
Business
Business
Eg. Sony
Eg. Kmart-distributor
Consumer
Consumer
C2C
o
o
distributor Walmart
B2C= Me buying a computer or refrigerator from Conns
C2C= Ebay- A person selling a pair of NineWest Shoes on ebay
Early days E-commerce focused on B2C relations, but in recent times, focus
has shifted towards B2B relationships
Benefits of the e-world:
Shrinkage of information asymmetry
Changing relationships
Business conducted 24/7
Extended global reach of corporation
Can reduce transaction costs
Clicks and bricks (click and mortar): company integrates both offline (bricks) and
online (clicks)presence
Pure play- businesses that exist solely on the internet
During the early days of e-commerce, predominated by pure-play; now
shifting toward clicks and mortar or pure-play aligning with clicks-and-bricks
E-firms have made technology the basis of their organization; have shown that
technology can help to dramatically change marketplaces and the nature of
competition; have made traditional firms change the way they compete for
business; have made technology a basis for competition
Todays economy characterized by: immediate access -right now; no physical
boundaries global economy; IT has changed commerce- the economy;
Information moves electronically- digital economy
9. What are the four powerful worldwide changes that have altered the business
environment? (Lecture 1a-1c)
a. Globalization
b. Rise of information technology
c. Emergence of the digital firm
i. Characterized by digitally enabled relationships with customers,
suppliers, and employees
ii. Core business processes are accomplished via networks
iii. Digital management of key corporate assets
iv. Rapid sensing and responding to environmental changes
d. Transformation of business enterprise
i. Characterized by flattening, decentralization, flexibility, location
independence; low transaction and coordination costs; empowerment;
collaborative work and teamwork
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10.
13.
14.
Know the elements of socio-technical systems theory: finding FIT in
organization
The technology must be changed and designed in such a way as to fit
organizational and individual needs (tech, organization, mgmt)
o Organizational structure
o Tasks
o Technology
o People
15.
What is the central and productive asset for firms today? (Lecture 1a)
o Knowledge is the central and productive asset for firms today
16.
What are the 4 rules governing the digital economy? (Lecture 1b)
o Wealth flows from innovation, not optimization
Wealth is not gained by perfecting the known, but by imperfectly seizing the
unknown.
o The ideal environment for cultivating the unknown is to nurture the supreme agility
and nimbleness of networks.
o The domestication of the unknown inevitably means abandoning the highly
successful known - undoing the perfected.
o The cycle of "find, nurture, destroy" happens faster and more intensely than ever
before.
17.
18.
What is the difference between primary and support activities? (Lecture 3a)
o Primary: most directly related to production & distribution of product/service
60% value adding activities
Most value added activities of firm are related to production (40.3%) and
distribution of the product (6.6%)
o Support: make delivery of firms primary activities possible; 40% value-adding
activities
19.
20.Know the difference between technologies that work in the tactical level, the operational
level, and the strategic level. **LECTURE 3B**
o Operational Level:
Deciding how to carry out specific tasks specified by upper and middle
management and establishing criteria for completion and resource allocation
Monitors elementary activities and transactions of the firm
TPS: Transaction Processing Systems
computerized systems that perform and record daily routine
transactions necessary to conduct the business
Input: transactions, events
Processing: Sorted, listed, merged, updated
Output: Detailed reports, lists, summaries
Users: Operations personnel, supervisors
Examples: A/P, A/R , Payroll order tracking & processing
o Tactical Level
(Knowledge workers): system supports knowledge and data workers
Evaluating new ideas for products, services, ways to communicate new
knowledge, and ways to distribute information throughout the organization
OAS: Office automated systems
o Designed to increase the productivity of data workers
Work processing (eg. Microsoft Word),
desktop publishing (eg. Microsoft Publisher);
Document imaging systems
KBS: Knowledge based systems
o Intended to capture knowledge of human beings
o 2 varieties:
(ES) Expert systems-captures the expertise of a human in
limited domains of knowledge; similar to a DSS, but is
built upon human knowledge
Rationale: all individuals contain tacit knowledge
knowledge in their heads
Components =
o Knowledge base: stores the rules of the
expert system
o Inference engine: takes the problem facts
and searches the knowledge base for rules
that fit
o Explanation module: explains why the
system made the decision
(KMS)Knowledge management systems
Try to use computers to model human
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31.What is bandwidth?
o The typical measure used in conversation is the difference between the highest and
lowest frequencies that can be transmitted ---- known as the bandwidth
o The higher the bandwidth, the quicker the transmission (eg. increase the
bandwidth, increase the speed of the internet???)
Fiber Optic = fastest
Microwave = slowest
32.
What is the difference between LAN and WAN? (Lecture 6b)
o Local Area Network (LAN): network that encompasses a limited distance, usually
one building or several buildings in close proximity (eg. C&Gs internet prob uses
LAN)
o Wide Area Network (WAN): Spans a large geographical distance (eg. network on ULL
campus)
o There are two types of computers on a network
Client: the user-point-of-entry for the required function
Typically a desktop, workstation, or laptop computer
Server: A computer that stores and processes shared data and performs
back-end functions not visible to users, such as managing network activities
o These two devices communicate with one another using communication channels
over networks
33.
What is the difference between infrastructure and architecture?
o Architecture:
Provides the blueprint for translating business strategy into a plan for IS
Strategic in nature; there must be a high level technology strategy for
sharing data
Creation of architecture requires communication between IT and business
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Infrastructure:
Everything that supports the flow and processing of information in an
organization, including hardware, software, data and network components
Consists of components, chosen and assembled in a manner that best suits
the plan and enables the overarching business strategy
Refers to specific technology that is used to enable architecture
A collection of compatible hardware and software arranged to communicate
information from one location to another
Specific routers, hubs, servers used to implement architecture
Five primary characteristics of a solid infrastructure architecture:
o Flexibility
o Scalability
o Reliability
o Availability
o Performance
Cannot be all of the above, can only pick one
IT creates infrastructure plan after architecture strategy is created
34.
What is enterprise application integration? And what are your options for
enabling EAI? (Lecture 5b)
o Enterprise Application Integration (EAI) is software that ties together multiple
applications to support enterprise integration; similar to ERPs but EAI is a
commercial attempt to do the same
o Middleware solutions: stand inside of organization or integrate applications through
the internet
o Web services: enable two web based applications to exchange data
Set of standards using Internet technology for integrating applications from
different sources without coding; used for linking systems within the same
organization
The social nature of the organization is crucial
Power and politics play a role in implementation
Users want the innovation to liberate them and set them free from the
constraints of their job
Upper management support is crucial
35.
Development Options:
o Application software packages: set of prewritten, pre-coded
application software packages commercially available for sale or
lease
o Customization: modification of software package to meet the
firms unique requirements without destroying the softwares
integrity
o Write from Scratch: writing and coding software using standard
programming tools and databases; not the best strategy
Software alone does not give a competitive advantage; need a
sustainable competitive advantage
Test Goal: verify that the system works and meets all of the business
requirements defined in the analysis phase
o Develop a test plan- what needs to work
o Implement the test plan
o If the testing is successful, proceed to implementation
Two broad options for testing:
o Unit testing: test each module in the program individually; aka
deep testing; what Cisco did- not the best option when used
alone;
o System testing: test the whole program
Implement
Goal: to place the proposed system in the organization
Activities:
o Define the distribution approach
o Carry out the conversion
o Train the users (can happen during conversion)
o Provide users with documentation (highlights how to use the
system)
Deliverable: the system is being used by every user
Maintain
Goal: monitor and support the new system to ensure that it continues
to meet business goals
o Activities:
debugging/solving problems (help desk): 20%
Upgrades/changes: 20%
Adding new functionality: 60%
39.
Why is systems development so challenging? And what are the challenges with
implementation?
o
40.
What are the different choices for implementation (e.g. pilot testing, parallel,
direct cover, and phased)?
o Parallel strategy: safe and conservative; both systems are used for a time; the old
system may stop running as soon as the new system is installed; the safest way to
convert from a new to an old system b/c if the new system fails, users easily can
revert to the old system
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Direct cutover: risky; one system replaces the other on a given day; the new system
may be installed in stages across locations or in phases; the riskiest approach b/c
there is no backup system to turn to in the event of problems with the new system
o Pilot testing: system is brought into individual BUs and operates until system is
successful
o Phased: system is brought in one functional unit at a time
41.
What are the factors that dictate whether an IS project will be successful or not?
(Lecture 7b)
o User involvement and influence
o Management support
o Complexity/risk
o Management of implementation process
42.
What is project management?
o Project manager: makes sure the entire project is executed appropriately and
coordinated properly; defines the project scope realistically and then manages the
projects so that it can be completed on time and within budget
43.
What is extreme programming and why is it advantageous?
o Extreme programming (XP) methodology breaks a project into tiny phases,
and developers cannot continue on to the next phase until the first phase is
complete
Faster than the waterfall method with 7 steps
Smaller projects are delivered quickly in steps
Users are the drivers of the success of this method
Typically allows for delivery of parts every quarter
Allows IT to keep the user engaged and involved at each step
44.
What are the drawbacks for software customization?
o Customization: Modification of software package to meet organizations unique
requirements without destroying the softwares integrity
Software by itself does not provide competitive advantage; it is how you use
and leverage IT gives competitive advantage
The more customization present, the higher it will cost
Most firms try to do ERP without making any changes
Uses up capital unnecessarily that can be used to obtain more sustaining
competitive advantage
Upgrades
Software integrity
Best practices
Cost
45.
During the maintenance phase of SDLC, where does IT spend most of its time?
o Monitor and support the new system to ensure that it continues to meet business
goals
Debugging 20%
Upgrades 20%
Adding new functionality 60%
o
46.
Cost issues: Who is paying for the project? And what happens when it is over
budget?
o More knowledge is required: Must interface with all functional areas in the
organization and speak their language
47.
Why do IT projects fail? (Lecture 8a)
o 2/3 of all IT projects fail (KPMG)
o Ignorance (eg. ppl dont know how to run a cost-effective, quality project)
o Bad management (eg. poor control, improper planning)
Poor control
Not relying upon proper planning
o Failure to communicate
o Not understanding sociotechnical view
o Mythical man-month
Man month: the amount of work a person can be expected to complete in a
month
More people Less time
Project managers believe that when the project falls behind, just need more
people; WRONG-- 2/3 of all IT projects fail
Most IT people dont have project management skills; former programmers or
analysts with no formal project training
48.
What is the difference between an analyzer, defender, prospector, and reactor
corporation?
o According to the Miles & Snow: Corporate Strategy Taxonomy, there are 4 types of
corporate strategies
o Strategy: an elaborate and systematic plan of action; high level statement of what
the firm intends to do; Typically set by the CEO and other top executives; Tool-
SWOT analysis
o Defender
Locates and maintains a secure niche in a relatively stable product or service
area
Offers limited range of products or services
Protects domain by offering higher quality, superior service and lower prices
Not usually at the forefront of developments in the industry
Tends to ignore industry changes that have no direct influence on
current areas of operations
Concentrates on doing the best job possible in a limited area
Not as aggressive; like a soldier that stands its ground and maintains
position (eg. a clothing boutique)
Has the mentality that it wont move or change; focus is on what it
does best
o Prospector
Operates within a broad product-market domain that undergoes periodic
redefinition
Values first in in new-product and market areas
Even if efforts are not highly profitable
Organization responds rapidly to early signals concerning areas of
productivity
Responses often leads to a new round of competitive actions
Organization may not maintain market strength in all areas it enters
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o
49.
What are the different stages in Nolans stages of growth? (Lecture 9b)
o Initiation: Initial introduction of computers to the organization. Batch processing
to automate clerical operations to achieve cost reduction, operational systems
focus, lack of management interest, and centralized development
o Contagion (expansion): Centralized rapid growth as users demand more
applications based on high expectations of benefits, move to online systems, trying
to satisfy user demands. Little control if any. IT expenses increase rapidly.
o Control: In response to management concern about cost vs. benefits, systems
projects are expected to show a return, plans are produced, and
methodologies/standards enforced. Planning controls are introduced.
o Integration: Considerable expenditure on integrating (via telecommunications and
databases) existing systems. User accountability for systems established and IT
provides a service to users. At this time, there is a transition to supporting
knowledge workers and from data processing
o Data administration: Information requirements rather than processing drive the
applications portfolio and information is shared within the organization. Database
capability is exploited as users understand the value of the information and are
willing to share it
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50.
What is outsourcing? What are the different choices? And why do firms
outsource?
o IT outsourcing - Describes a process whereas an organization decides to contractout or sell the firms IT assets, people and/or activities to a third party vendor, who
in exchange provides and manages these assets and services for an agreed fee and
over an agreed time period.
o Outsourcing Options
Total: Outsource all IT
Selective: Outsource some aspect of IT
Transitional: Outsource legacy systems while working on new systems
o Why Firms Outsource
Reduced IT costs
Improved technology and services
Business focus
Downsizing and rightsizing
Access to knowledge
Reduced capital expenditure
Vendor value proposition
51.
How do firms gain a competitive advantage?
o An advantage gained over competitors by offering consumers value
Either by lower price or greater benefits and service that justifies higher
service
52.
Know the model that describes competitive parity versus a
temporary/sustainable competitive advantage:
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53.
o
Know about the case studies that we discussed in class
o Cisco
o CVS
o Kodak
o Mrs Fields
o Zara
Textbook Questions
The textbook questions will be pulled from the questions that you have already seen during the
four quizzes. Familiarize yourself with the chapters and be prepared for questions similar to what
you have previously seen.
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First
Generation
Second
Generation
Third
Generation
Fourth
Generation
Fifth
Generation
Natural &
Object-Oriented
DBMS
User-WrittenPackaged Operating
Languages
Fourth-Generation
Programs Programs Systems
Multipurpose
Languages
Machine
Symbolic
High-Level
Graphic- Interface
Microcomputer
Languages Languages Languages
Network-Enabled
Packages
Expert-Assisted
Packages
Trend: Toward Visual or Conversational Programming Languages and
Tools
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