IT Lecture 2

  1. Role of IT in the three types of economy: industrial, information, and digital
    • Industrial: Used to perform existing information work more quickly and efficiently
    • Information: Used to manage work better
    • Digital: Makes pervasive changes in the structure and operation of work, business practices, organizations, industries, and the global economy
  2. What determines market power for a firm?
    The point within a value chain where maximum economies of scale and scope
  3. Why is globalization a two-way street?
    • Internet allows small firms to have global reach, but local tastes still matter
    • Ex. Walmart going into Germany
  4. What is decapitalization
    • Power of intangibles (ideas and knowledge) are now more important than tangibles (buildings, capital, equipment)
    • Managing talent is as important as managing finances
  5. Internal organization has gone from __-__ to __-__
    • Supply-Push, Demand-Pull
    • Customers now shape products
  6. How are outsourcing and strategic alliances important in the internal organizational environment?
    • Firms should focus on core competency
    • Don't waste resources on things the firm doesn't do well
  7. What is causing the demise of hierarchy?
    • Cannot cope with rapid change
    • It takes too long to communicate up and down the chain
  8. IT competitive advantage is created by?
    IT competitive advantage isn't in the technology itself, but what is done with it
  9. ERP
    • Enterprise Resource Planning
    • ERP systems consolidate all business operations into a uniform and enterprise-wide system environment.
    • Expensive and troublesome, especially for companies wanting to modify the ERP software to fit their "unique" processes
    • A fundamental organizational change
    • Ex. SAP, PeopleSoft
  10. Proprietary vs Open software systems
    • Proprietary - Microsoft - all programs require windows
    • Open - IBM - want a standard that all applications can use - the push now is for open systems
Card Set
IT Lecture 2
BADM 7050 Lecture 2 cards