978-0132437158 Chapter 3

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The Importance of Information Systems Management, 8e (McNurlin/Sprague/Bui)

Chapter 3 Strategic Uses of Information Technology

1) Reengineering business processes is an outward focused strategy.

2) The strategic use of IT has transitioned from an outward focus to its current state, an inward

focus.

3) The Internet can no longer be viewed as a strategic use of Information Technology because

of the demise of the dot coms.

4) According to Porter, the only way to sustain advantage through the Internet is to create a

distinct value chain that offers unique value.

5) An intranet is a closed system that utilizes Internet technologies to service employees and

customers of an organization.

6) Corporate portals are difficult to implement because of the additional desktop software

required for access.

7) It is possible to use an intranet to foster a sense of community within an organization.

8) Electronic tenders are an extension of the computational capabilities of a computer.

9) An electronic tender is an electronic communication capability in a product or service that

allows that product or service to be paid for by another computer.

10) The Internet has allowed increased focus on CRM.

11) The importance of the Internet is its support for a sale to a customer - not the servicing of the

product.

12) Close integration is when one party provides another party with ad hoc access to its internal

information.

13) In tight integration, two parties share at least one business process.

14) A demand-pull business model is a customer-centric model that initiates activities after a

customer's order has been placed.

15) The Internet has eliminated the problem of manufacturers and suppliers needing the same

infrastructure.

16) End-user computing is an example of strategic information systems use that works inward.

17) Since the 1990’s, strategic use of information systems has emphasized linking companies to

suppliers, customers, and other parties in one’s value chain.

18) In a private exchanges, information passes through the chain in a burst and is available to

all parties at the same time, rather than sequentially over time.

19) One disadvantage to demand-pull, business-to-business e-business is the infrastructure.

20) In tight business-to-business e-business integration, two parties exchange information in a

formal manner.

21) Which strategic use of the Internet is no longer in use?

A) business-to-employee

B) business-to-consumer

C) business-to-business

D) All of the above are still in use.

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22) According to Michael Porter, the way to sustain advantage through the Internet is to:

A) create a distinct value chain.

B) create a distinct demand chain.

C) create a distinct knowledge chain.

D) None of the above

23) According to Carr, which of the following is a reason why IT has reached the end of its

buildout?

A) IT prices have dropped.

B) The capacity of the Internet has caught up with demand.

C) There are many computer vendors.

D) All of the above

24)

Which of the following is not true of intranets?

A) They utilize standard protocols.

B) They result in open systems using nonproprietary technologies.

C) They result in wider access to company information.

D) All of the above

25) A(n) ________ is an electronic communication capability in a product or service that allows

that product or service to be tended.

A) electronic transmission

B) EDI

C) electronic tender

D) None of the above

26) Which of the following is an advantage of B2C e-business?

A) elimination of geographic boundaries

B) automated order processing

C) Manufacturers can bypass retailers.

D) All of the above

27)

Which of the following is not a potential B2C problem?

A) The information systems are not always reliable.

B) global competition

C) capability for personalized customer attention

D) must deal with multiple legal systems

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28) An example of B2B e-business is:

A) collaborating with competitors to set prices.

B) collaborating with non-competitors to achieve efficiencies.

C) acquiring suppliers.

D) Both A and C

29) Which of the following is part of a company's value chain?

A) the upstream supply chain

B) the downstream demand chain

C) retailers

D) All of the above

30) Decentralizing control over a company intranet:

A) encourages more timely and relevant content.

B) discourages development of sites with company information.

C) minimizes problems with data redundancy and security.

D) Both A and C

31) A unique aspect of a company intranet is:

A) fostering a sense of alienation by employees.

B) promoting company culture.

C) creating a sense of belonging for employees.

D) Both B and C

32) According to Carr, IT management should focus on which of the following?

A) managing risks

B) keeping costs down

C) staying ahead of the technology curve

D) Both A and B

33) A challenge associated with implementing a company intranet is:

A) implementing proprietary Internet technology.

B) difficulty integrating the intranet with existing legacy systems.

C) encouraging people to put information on the intranet.

D) All of the above

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34) Strategic Uses of Information Systems include:

A) Working Outward, Working Inward, and Working Across.

B) Working Outward, Working Inward, and Working Between.

C) Working Outward, Working Inward, and Working Around.

D) Working Between, Working Across and Working Around.

35) In ________ business-to-business e-business integration, two parties share at least one

business process as partners.

A) loose

B) merged

C) close

D) tight

36) In ________ business-to-business e-business integration, two parties exchange information in

a formal manner.

A) loose

B) merged

C) close

D) tight

37) When e-business applications run over a public network:

A) access costs are drastically reduced.

B) communications costs are drastically reduced.

C) application costs are drastically reduced.

D) training costs are drastically reduced.

E) All of the above

38)

IT’s economic impact comes from:

A)

incremental improvements.

B)

wholesale improvements.

C)

“big bang” IT projects.

D) None of the.above

39)

Which of the following is not considered a strategic uses of IT in business?

A) business-to-employee

B) business-to-government

C) business-to-customer

D) business-to-business

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40) In the 1990s, strategic use of IT in most businesses turned inward to:

A) intranets.

B) reengineering business processes.

C) ERP systems.

D) Both B and C

E) Both A and C

41) Distinguish between three types of strategic uses of IT in business.

42) According to Porter, how can the Internet be used to sustain a competitive advantage?

43) Distinguish between e-enablement, e-business, and e-commerce.

44) Briefly describe the three lessons that the past has taught about how to use IT strategically,

according to Brown and Hagel.

45) What is an Intranet? Identify several key benefits of intranets.

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46) Distinguish between loose, close and tight integration of B2B e-business.

47) List the advantages of B2B e-business.

48) List and describe three key components provided by the Internet that has allowed

companies to accelerate online business activity.

49) How do companies use the technology of the internet for competitive advantage?

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50) According to Carr, long term successful IT management hinges on defense, not offense. Carr

further indicates that the Management of IT should focus on which three areas?

Information Systems Management 8th Edition