Chapter 2: Strategic Uses of Information Systems Flashcards Preview

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Flashcards in Chapter 2: Strategic Uses of Information Systems Deck (22)
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1
Q

_______ is a framework, or approach, to obtaining an advantageous position.

A

Strategy

2
Q

_________ is a plan to help an organization outperform its competitors. Often done by creating new opportunities instead of beating rivals.

A

Business strategy

3
Q

_______ is an information system that helps seize opportunities.

A

Strategic information system (SIS)

4
Q

________ is achieved by a company by using strategy to maximizes its strength.

A

Strategic advantage

5
Q

________ is gained when an organization’s maximized strengths is used to beat its rivals.

A

Competitive advantage

6
Q

________ is the best way to lower prices, in order to gain market share.

A

Reduce costs

7
Q

_________ is another strategy whereby competitive advantage is gained by making it difficult, or impossible, for other organizations to produce the product or service it provides.

A

Raise barriers to entrants

8
Q

_______ are expenses incurred when a customer stops buying a product or service from one business and starts buying it from another.

A

Switching costs

9
Q

The ability to ______________ that many organizations and individuals need gives an organization a great competitive advantage.

A

create new products or services

10
Q

________ is an organization that is first to offer a new product or service.

A

First mover

11
Q

A _______ is a body of clients that is large enough to attract many other clients.

A

critical mass

12
Q

Product ________ is achieved by persuading customers that your product is better than competitors’. Usually done by advertising and customer experience.

A

differentiation

13
Q

__________ means to add to the product to increase its value for consumers.

A

Enhance existing products or services

14
Q

An ______ is two companies combining services. This makes product more attractive, reduces cost, and provides one-stop shopping.

A

alliance

15
Q

________ is an example of alliances on the web. It links to other companies and rewards the linker for click-throughs.

A

Affiliate program

16
Q

If organization are powerful enough to ______ suppliers to their mode of operation or buyers to their product, they can achieve competitive advantage. This is accomplished by achieving bargaining power.

A

lock in

17
Q

_______ is the leverage to influence buyers and suppliers.

A

Bargaining power

18
Q

Another way to lock in clients other than high switching costs is to _________. Software industry pursue this strategy vigorously.

A

create a standard

19
Q

_______ means to eliminate and rebuild operations from the ground up. It often involves IT, new machinery and elimination of management layers. The goal is to achieve huge efficiency improvements.

A

Reengineering

20
Q

A system can only help a company sustain competitive advantage if the company continuously modifies and enhances the system, creating a ______ for competitors.

A

moving target

21
Q

A _______ enters the market later than other competitors. It can be an advantage as firms are not burdened with legacy systems and can implement the latest available technologies.

A

late mover

22
Q

When failure occurs because an organization tries to be on the technological leading edge, observers call it the ________.

A

bleeding edge