Chapter 2: Organizational strategy, information systems, and competitive advantage Flashcards
What are the necessary data characteristics for quality information?
- Accurate
- Timely
- Relevant
- Just barely sufficient
- Worth its cost
Define ‘Accurate’ in the context of data characteristics.
Correct data that can be trusted for research and decision-making.
For example, data from a Gartner article is more accurate than that from a Wikipedia page.
What does ‘Timely’ refer to in data characteristics?
Data must be available in time for its intended use.
For example, inventory data must reflect real-time stock levels.
What does ‘Relevant’ mean in terms of data characteristics?
Data must be appropriate to context and subject.
For instance, a pediatrician’s records should focus on children’s healthcare.
What does ‘Just barely sufficient’ imply regarding data?
Data must be sufficient just enough for its purpose.
A shipping company may only need to track product name and quantity.
What does ‘Worth its cost’ mean in data characteristics?
The cost of data collection, operation, and storage must be justified.
What are the levels of management in a business?
- Executive/Strategic
- Management
- Operational
What is the goal of Executive/Strategic management?
Improve strategy and set long-term goals.
How can information systems help at the Executive/Strategic level?
- Strategic planning
- Decision-making support
- Risk management
- Financial management
What are the five forces that determine industry structure?
- Competitive forces
- Bargaining power of suppliers
- Bargaining power of customers
- Threat of new entrants
- Threat of substitutes
What is ‘Cost leadership’ in competitive strategies?
A strategy focused on becoming the lowest-cost producer in an industry.
What are the primary activities in the value chain?
- Inbound Logistics
- Operations/Manufacturing
- Outbound Logistics
- Sales and Marketing
- Customer Service
What defines a business process?
A network of activities that generate value by transforming inputs into outputs.
How can business processes generate value?
- Adding value
- Reducing costs
- Adding value and reducing costs
True or False: The way something is done (the business process) is just as important as what is done.
True
What are support activities in the value chain?
- Procurement
- Technology
- Human Resources
- Firm Infrastructure
What is the significance of streamlining business processes?
It is key to gaining competitive advantage.
What does the term ‘Margin’ refer to in value chain concepts?
Value of activity minus the cost of the activity.
How do information systems provide competitive advantages?
- Enhancing products
- Streamlining processes
- Supporting decision-making
What is the role of risk management in information systems?
To prepare for potential attacks and respond effectively.
Fill in the blank: Amazon’s business lines include _______.
[Online retailing, Cloud services, Order fulfillment]
What is the impact of FBA on companies?
Allows companies to outsource order fulfillment to Amazon.
What is the goal of operational management?
Increase efficiency in day-to-day operations.
