Wiley Chapter 2 – Flashcards
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Business process has inputs and outputs.
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True
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The activities of a business process can be measured.
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True
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BPR is a strategy for improving the efficiency of an organization's data collection.
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False
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BPM is an implementation of BPR.
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False
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The business environment refers to the industry that a company is in.
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False
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Globalization is the integration and interdependence of many facets life made possible by rapid advances in information technology.
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True
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Competitive advantage helps a company function effectively within a market and generate larger-than-average profits.
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True
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An information system that helps an organization gain a competitive advantage is called a competitive information system.
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False
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Which of the following processes involves the warehouse, sales, and accounting functional areas?
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Fulfillment
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Which of the following is not a role that information systems play in businesses processes?
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Establish standards
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Which of the following statements is false?
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Business activity monitoring is a type of scheduled reporting
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The workforce in developed countries is exhibiting all of the following trends except:
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It includes fewer persons with disabilities
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Today's customers have ____.
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Higher expectations
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Which of the following is not a Section 1 reference by organizations to business pressures?
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Delay releases of innovated products
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Information-based industries are most susceptible to which of Porter's five forces?
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Threat of substitute products
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Competitive advantage for an organization manifests itself as all of the following except:
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Increased time to market
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When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage?
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Customer-orientation
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Which of the following is not an example of business - IT alignment?
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The company views IT as a way to support the business but not as a way to create new revenue streams.
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Which of the following is not a cause of inadequate alignment between IT and business?
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Lack of funds
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Refer to Closing Case - IBM's Watson: IBM Watson differs from other information systems' capabilities in the following manner:
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It can process large amounts of information in response to a query and assign confidence measures to a set of possible solutions
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85% of Business and IT executives agree that their companies have adequate alignment between IT and the functional areas within their business units.
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False
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Business environment pressures typically stem from which of the following?
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Politically-motivated changes
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How many characteristics of effective Business-IT Alignment does the textbook identify?
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6
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Information systems can be used strategically by companies to gain competitive advantage.
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True
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The acronym "BPR" commonly refers to Business Process Recovery.
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False
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The phrase "Business Process" is defined as an ongoing collection of related activities that create a product and/or service to an organization.
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True
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The term "digital divide" refers to the gap between individuals who have access to information and communication technologies and those who do not.
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TRue
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The textbook provides a number of viable I.T. responses to the three eras of globalization defined by Thomas Friedman.
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True
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When comparing BPI initiatives to BPR projects, which of the following statements are not true?
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- BPI takes more time - BPI delivers greater performance gains
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Which of the following is an example of a business process commonly supported by an information system?
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All of the above
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Which of the following strategies can a company use to gain a competitive advantage?
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Customer-Orientation and Operational Effective Strategy
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Business process reengineering (BPR)
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Strategy for making an organization's business processes more productive and profitable--top-down
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Business process improvement (BPI)
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Focuses on reducing variation in process outputs by searching for root causes of variation in process or process inputs
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Business process management
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Management system that includes methods and tools to support the design, analysis, implementation, management, and continuous optimization of core business processes throughout the organization
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Competitive advantage
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Any assets that provide an organization with an edge against its competitors in some measure such as cost, quality, or speed
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Business process
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An ongoing collection of related activities that create a product or a service of value to the organization, its business partners, and/or its customers
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Fundamental elements of business processes
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- Inputs - Resources - Outputs
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Cross-functional business process
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No single functional area is responsible for their execution. Rather, multiple functional areas collaborate to perform the process
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Procurement process
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All tasks involved in acquiring needed materials external from a vendor
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Fulfillment process
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Processing customer orders
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Competitive advantages
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- Customer satisfaction - Cost reduction - Cycle and fulfillment time reduction - Quality - Differentiation - Productivity
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Five phases of BPI
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DMAIC
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Business environment
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Combination of social, legal, economic, physical, and political factors in which businesses conduct their operations
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Globalization
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Integration and interdependence of economic, social, cultural, and ecological facets of life, made possible by rapid advances in independent technology
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Strategic information systems (SISs)
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Help organization implement its strategic goals and improve its performance and productivity
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Porter's Competitive Forces
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- Threat of entry of new competitors - Bargaining power of suppliers - Bargaining power of buyers - Threat of substitute products or services - Rivalry among existing firms in the industry
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Value chain
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Sequence of activities through which the organization's inputs are transformed into more valuable outputs
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Value chain model
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Identifies points where an organization can use information technology to achieve competitive advantage
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Strategies for competitive advantage
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- Cost leadership - Differentiation - Innovation - Operational effectiveness - Customer-orientation
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Business-IT alignment
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Tight integration of the IT function with the organization's strategy, mission, and goals
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Characteristics of excellent alignment
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- View IT as engine of innovation that continually transforms the business, often creating new revenue - View internal and external customers and their customer service function as supremely important - Rotate business and IT professionals across departments and job functions - Provide overarching goals that are completely clear to each IT and business employee - Ensure that IT employees understand how the company makes or loses money - Create a vibrant and inclusive company culture
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% achieved alignment
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16% adequacy
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% achieved alignment
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16% adequacy
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% achieved alignment
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16% adequacy
