Information Systems Study Guide for exam 1

The five short essay questions would be selected from the list below:


  • Describe the relationship between business processes and value chain analysis.


Business process is a standardized set of activities that accomplish a specific task, such as processing a customer’s order. And, the value chain analysis is used to identify if those processes are adding values for the customers.


Multiple Choice Question topics from the textbook

Chapter 1

IT Basics

Roles and responsibilities in IT:

  • Chief information officer (CIO) – Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives
  • Chief knowledge officer (CKO) – Responsible for collecting, maintaining, and distributing the organization’s knowledge
  • Chief privacy officer (CPO) – Responsible for ensuring the ethical and legal use of information
  • Chief security officer (CSO) – Responsible for ensuring the security of IT systems
  • Chief technology officer (CTO) – Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT

Managers use 3 common tools to analyze competitive intelligence and develop competitive advantages including:


  • Porter’s five forces model
  • Buyer Power: ability of buyers to affect the price they must pay for an item. Also, BP is the power of customers to drive down prices. Buyer power can be reduced by manipulating switching costs and with loyalty programs.
  • Supplier Power: is the suppliers’ ability to influence the prices they charge for supplies. If supplier power is high, the supplier can influence the industry by charging higher prices, limiting quality or services. Also, SP is The power of suppliers to drive up prices of materials.
  • Threat of substitute Products or Services: The power of customers to purchase alternatives. It is high when there are many alternatives and low when there are few alternatives.
  • Threat of New Entrants: The power of competitors to enter a market. It is high when it is easy for new competitors to enter a market and low when there are significant entry barriers.
  • Rivalry among Existing Competitors: The power of competitors. It is high when competition is fierce in a market and low when competitors are more complacent. Product differentiation helps here.
  • Three generic strategies
  • Broad cost leadership: Cost Leadership can benefit either by gaining market share through lowering prices below those of competitors (whilst maintaining profitability) or by maintaining average prices and therefore increasing profits.
  • Differentiation: Differentiation strategy win market share by offering unique features that are valued by their customers.
  • Focus strategies: involve achieving Cost Leadership or Differentiation within niche markets in ways that are not available to more broadly-focused players. For instance, Payless offers shoes at lower prices, and Tiffany & Co. offers jewelry at high prices.
  • Value Chain model
  • Business process – A standardized set of activities that accomplish a specific task, such as a specific process
  • Value chain analysis – Views a firm as a series of business processes that each add value to the product or service


The value chain groups a firm’s activities into 2 categories: Primary value activities and Support value activities.

    • Primary value activities acquires raw materials and manufacture, deliver, market, sell, and provide after-sales services:
      • Inbound logistics – Acquires raw materials and resources, and distributes to manufacturing as required
      • Operations – Transforms raw materials or inputs into goods and services
      • Outbound logistics – Distributes goods and services to customers
      • Marketing and sales – Promotes, prices, and sells products to customers
      • Service – Provides customer support after the sale of goods and services


  • Support value activities include:


    • Firm infrastructure – Includes the company format or departmental structures, environment, and systems
    • Human resource management – Provides employee training, hiring, and compensation
    • Technology development – Applies MIS to processes to add value
    • Procurement – Purchases inputs such as raw materials, resources, equipment, and supplies




Tags: No tags

Add a Comment

Your email address will not be published. Required fields are marked *