Chapter 2 HW

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Slippery Rock University of Pennsylvania *

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265

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Information Systems

Date

Feb 20, 2024

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pdf

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MIS 265 Management Information Systems Chapter 2 Questions – Spring 2024 To help prepare for chapter 2, watch the following short videos. The first one is ‘Competitive Advan tage and Business Strategy’ the second one is ‘Porter’s Generic Strategies’ and the third one is ‘ Using Information Systems to Achieve Competitive Advantage ’. All three topics are covered in the chapter. Viewing the videos will put you in a better position to understand chapter 2. I did not create any questions for the videos. I would suggest taking notes as you watch the videos. Competitive Advantage and Business Strategy - https://www.youtube.com/watch?v=qxmcwScY1ls Porter’s Generic Strategies - https://www.youtube.com/watch?v=i66HWNCwUTs Using Information Systems to Achieve Competitive Advantage - https://www.youtube.com/watch?v=Tgxkes3xKWU The questions below can be answered from reading the chapter. 1. Information systems exist to help organizations achieve their strategies. 2. An organization’s goals and objectives are determined by its competitive strategy . 3. Study figure 2-1. GAH 4. According to Porter, what five competitive forces determine industry structure? Bargaining power of customers, threat of substitutions, bargaining power of suppliers, threat of new entrants, rivalry Study the examples of a strong force and a weak force on page 41. GAH 5. An organization responds to the structure of its industry by choosing a competitive strategy . Study figure 2-4 summarizing the five forces at eHermes. Be sure and read about eHermes at the start of the chapter first. GAH 6. Identify the four competitive strategies defined by Porter. Cost, differentiation, industry wide, and focus Define the following terms: 7. Value: The amount of money that a customer is willing to pay for a resource, product, or service. 8. Margin: The difference between the value an activity generates and the activity's cost. 9. Value chain: A network of value-creating activities. 10. Linkages: Interactions across value activities. 11. Business process: A network of activities that generate value by transforming inputs into outputs. 12. List five primary activities of the value chain. Inbound logistics, operations and manufacturing, outbound logistics, sales and marketing, and customer service. 13. What is the process improvement in figure 2-8 over figure 2-9? In figure 2-9, the employees performing the purchase-drone-parts activity need to learn to adjust their ordering processes to use customer purchase patterns. They also have the complication that data stored in the finished goods database likely will need to be redesigned to keep track of customer demand data. Figure 2-8 uses similar processes but doesn’t complicate them as much as 2 -9 does. They Just follow the procedures as stated.
14. Study the operations value chains in figure 2-10 for 2 different types of bicycle rental companies. Which type of business would you tend to develop? I would probably develop the High-service rental to business executives at a conference resort. It seems more personal and connected with the customers and that the customers want to bike and be involved in the activities. 15. Identify two methods information systems can provide competitive advantages and give an example of each. 16. Distinguish between first mover advantage and second mover advantage. First mover advantage is the benefit of gaining market share by being the first to develop a new technology in a market segment, whereas second mover advantage is the benefit of gaining market share by following a pioneering company into a market segment and imitating their product or service, therby reducing costly research and development expenditures. 17. What is meant by switching costs? Switching costs is the business strategy of locking in customers by making it difficult or expencive to change to another product or supplier. 18. How does the system in place for company ABC, Inc. create a competitive advantage? (6 ways) The system enhances an existing service, helps to differentiate their service from competitors, reduces the amount of customer work, are considered a new service, raises the barriers to market entry, and reduces costs. 19. Read the security guide. Answer question 4. When businesses use internet connected gadgets for stuff like tracking inventory or managing operations, it can be super helpful. Benefits include making things smoother and faster. But it could lead to privacy issues or data breaches if not used correctly. Read Case Study 2 and answer questions 2-5, 2-6, 2-7, 2-8, and 2-9. 20. Q2-5: Business process is a network of activities that generate value by transforming inputs into outputs. The cost of the business process is the cost of the inputs plus the activities. A margin is the difference between the value an activity generates and its cost. Each activity is a business function that receives inputs and produces outputs. A repository is a collection of something; a database is a repository of data, and a raw material repository is an inventory of raw materials. Changing business processes is not easy to do. Most process design requires people to work in new ways and to follow different procedures, and employees often resist such change. 21. Q2-6: Competitive strategy is like a game plan for businesses, determining how they want to win in the market. This strategy influences the way a company carries out its actions or business processes. If the focus is on being fast, processes become efficient; if it's on high quality, processes ensure top-notch products or services. The structure of information systems, which includes tools like software and databases, aligns with the strategy. For example, customer-focused strategies need tools for managing relationships, while innovation-driven ones require systems that support research and development. So, competitive strategy shapes how a company plays the game, impacting its moves and the tools it uses to succeed. 22. Q2-7: Information systems give companies a competitive edge by helping them do things better and smarter than their rivals. These systems organize and process data, making it easier for businesses to make quick and informed decisions. For instance, they streamline operations, making processes more efficient and saving time and money. Information systems also enhance customer interactions, keeping them satisfied and loyal. Plus, they assist in spotting market trends and opportunities, allowing companies to stay ahead of the game. Essentially, by using information systems wisely, companies can outperform competitors, be more agile, and ultimately succeed in the competitive business arena. 23. Q2-8: Over the past decade, technological innovations have skyrocketed, changing the way we live and do business. We've seen the rise of powerful smartphones, advanced artificial intelligence, and the widespread use of cloud computing. Looking forward, exciting developments like 5G technology, augmented reality, and advancements in quantum computing are on the horizon. These innovations are likely to reshape business strategies by enabling faster communication, immersive experiences, and more powerful data processing. Self-driving cars and robotics present strategic challenges for traditional companies. As these technologies become more prevalent, companies in transportation or manufacturing may need to adapt their business models, workforce skills, and safety protocols. While embracing these innovations can lead to efficiency gains and cost savings, companies also face the need to retrain employees and navigate regulatory changes to stay competitive in the evolving technological landscape.
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