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16 Cards in this Set

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What is Productivity paradox?
there is no evidence of an increase in worker productivity associated with the massive increase in investment in information technology.
How can value of IT be realized?
Productivity increases, Structure of competition, Savings for customer.
How can productivity in organizations be increased?
Efficiency 'doing things right", effectiveness "doing the right things"
What is Value Chain?
is a network of activities that improve the effectiveness (or value) of a good or service. i.e. Turning intermediate goods into finished goods.
What is margin?
the difference between the price the customer will pay and cost the company incurs through the value chain. The greater the margin, the greater the profit per unit.
What are Primary Activities? What are some examples?
They are activities where value is added directly to the product. Ex. Designing, raw materials, shipping
- In-bound logistics, Operations, Out-bound logistics, Marketing and Sales, service.
What are Supporting Activities? What are some examples?
They are activities that support the primary activities.

i.e. People who work to make those things come together to produce the product. Firm infrastructure, HR, Technology devolvement, Procurement
How are organizational strategy and industry structure related?
Porter's five force model- organizational strategy. Industry structure - align with Porter's Four Competitive Strategies model.
What is Porter's five force model?
A model that determines industry profitability.
What are the components of Porter's five force model?
1. Bargaining power of customers
2. Threat of substitutions
3. Bargaining power of suppliers
4. Threat of new entrants
5. Rivalry
Define competitive strategy.
The strategy an organization choses to succeed in its industry.
What is the difference between sustaining technologies and disruptive ones?
Sustaining- changes techonology that maintain the rate of improvement in customer value. More effective.
Disruptive - that introduce a new package of attributes to accepted mainstream products.
What are Product Implementations? (Competitive Advantages)
Create, Enhance, and
Differentiate product/services
What are System Implementations?
(Competitive Advantages)
Lock in customers/buyers and suppliers.
Establish alliances
Reduce Costs.
What are Switching costs?
Costs incurred when switching from one company\s products/services to another's.
Is there competitive advantage from IT?
No. Because IT is easily seen and becomes readily available. However. when intregrated into IS, there is a long-term competitive advantage.