2.

How does the use of the Internet, intranets, and extranets by companies
today support their business processes and activities?
Internet: organization can connect directly with the general public.
Opportunities range from giving away basic product information to
automatically updating or patching retail software. Many businesses also
conduct retail operations online.
Intranets: organizations often use internet technologies to facilitate operations
within the organization. Such systems might include product support
knowledge bases, training systems, and access to the organisation's benefits
system.
Extranet: organizations may use these same internet technologies to connect
with their business partners to facilitate supply chain management, help
manage projects, manage accounts, or provide advanced technical support.
Organizations use internet technologies to connect with both customers and
suppliers. These technologies allow customers to generate and track their
own orders as well as manager their accounts. They also enable significant
supply chain automation
3. Refer to the Real Word Case on eCourier, Cablecom, and Bryan Cave in the
chapter. Jay Bregman, CTO and cofounder of eCourier, notes that the
company hopes their innovative use of technology will become a
differentiator in their competitive market. More generally, to what extent do
specific technologies help companies gain an edge over their competitors?
How easy or difficult would it be to imitate such advantages?
Advantage: at best, most technology innovations provide only a temporary
edge over competitors. Even in the unusual case of patented technologies,
the patent runs out after 17 years. If the advantage comes from how a
technology is used, then competitors need only copy these successful
implementations. Often, competitors have the opportunity to learn from
hard won efforts and improve on them to their advantage.
Imitation limitations: economies of scale, proprietary technology, brand image,
and high switching costs can all work to make imitations less successful.
Xerox brand photocopiers benefited from the first three, and it took
competitors decades to catch up. In eCourier's case, competitors need only
make the capital investment in off- the-shelf technology in order catch up.
eCourier should now focus on increasing switching costs by web- enabling
their account management system.

1. Understanding the Information System A library makes an excellent
information systems model. It serves as a very large information storage
facility with text, audio, and video data archives. Look up the definitions for
each term listed below and briefly explain a library's equivalents. Students
will more easily grasp advanced concepts once they learn to think in terms
of the basic information systems structures. This exercise takes a familiar
system and breaks it down into an information system's components. This
exercise makes an excellent in-class discussion topic where students can
expand each other's ideas. Consider substituting any common information
system in place of a library. Alternative examples might include video rental
stores, class registrations systems, and voting systems.
a) Input A library's inputs consist of the items it receives for its collection.
These items may consist of books, periodicals, maps, microfiche, DVDs, CDs,
and many others. Inputs also consist of creating and maintaining patron's
accounts. b) Processing A library's main processes revolve around checking
out and checking in items from its collection. Additional processes include
adding new items into the collection, purging dated, duplicate, or damaged
items from the collection, photocopying or reproducing materials, facilitating
inter-library loans, sending overdue notices, assisting patron's accounts, and
repairing damaged items. c) Output A library's outputs consist of any
information that leaves the library. This may take the form of item loans,
photocopies, and even hand-written notes. d) Storage A library's storage
systems include shelves for books, stacks for periodicals, file drawers for
microfiche, hard drives for databases, and racks for CD's and DVD's.
e) Control A library's control systems include periodic inventories, anti-theft
devices, and security cameras.
f) Feedback A library's feedback systems include circulation, patronage, and
loss statistics. Librarians use this information to help identify popular items,
plan staffing levels, and develop strategies to reduce loss. In short,
librarians use this information to help the library run more effectively and
efficiently.







2) How does the use of internet, Intranets and extranets by companies today
support their business processes and activities?

Directly or indirectly organizations have been using intranets and extranets
in order to support their business activities since so long. Intranet is the
communication network inside the organization, which provides information
about what is happening inside the organization. Its about knowing
yourself.Extarnet is about communication network among various
stakeholders who are not exactly in the organization but are related to
organization in some ways. Extranet provides information about suppliers,
customers and competitors which facilitates the process of planning and
decision making. Organizations used to decide and perform as per the
information collected through these two different networks. And now, past
10 years internet has been one of the most important sources of information
for the organization to operate in this global environment. Internet has
made it possible to know about everything going around the globe, sitting in
the couch. Internet has made the business easier. Websites, blogs, email
and many more, collecting information was never so easy before. Today to
know about Microsoft Inc. you shouldnt visit America. Besides, because of
use of internet we are able to know about what are the recent business
trends, what are our competitors doing ,wheres our business heading and
lot more so that we can manage and plan our activities as per all these
things. Organizations are using internet in their every aspect, from
production to promotion.
3) Refer to the real world case on sew what? In the chapter. In the companys
early years, Megan Duckett lost a major contract because a prospective
client said that without a web site, her business lacked credibility.Does this
hold true today for all business? Why or why not?

Business is not just about buying and selling of a product. Moreover its
about trust. Costumer should be able to trust you if you are to sell your
product. Costumer trusts you as per the information you provide about
yourself and the way you show responsibility towards them. If your company
has a website, it shows that you are up-to-date with changing time and you
are responsible towards your costumer so that you are considering the
convenience of your costumer .This sense of responsibility can be the basis
of trust among you and your costumer resulting the business relation among
the parties.
Today people have many choices. They have many options to go for. The
only reason they will choose you from the many is the trust they have in
you. The more they know about you, more it becomes easy for them to trust
you. So, definitely in todays complex business environment it matters a lot
to have credibility in order to be successful. If people dont know about you
they wont be able to trust you. Also Internet is very convenient that a
costumer can use it from anywhere to get the detail information. So in order
to explain yourself and be familiar to people along with moving with peoples
perception and changing technological advances, it is important to have
website today in all business.
2. How does the use of the Internet, intranets, and extranets by companies today,
support heir business processes and activities?

In order to succeed today, organizations are increasingly competing in global
markets. The increased use of technologies such as the Internet, intranets, and
extranets will definitely revolutionize how businesses will operate and how they will
use computers to compete.

3. Refer to the Real World Case on Amazon.com in the chapter. What advice
could you five Jeff Bezos about the business use of information technology at
Amazon that might help them continue to prosper during the next five years?
Explain your recommendations.

Recommendations could include:
Continue the investment in newer technologies to enable Amazons ability to be very competitive.
Develop new strategies with companies in additional industries that will enable Amazon to enter
new markets for additional products and services.
Develop better applications using an open system environment that will enable Amazon to further
reduce costs and/or increase revenues.
3. How could a business leverage its investment in information
technology to build strategic IT capabilities that serve as a
barrier to entry by new entrants into its markets?

The cost of building and maintaining a strategic IT platform can be
very expensive. Businesses may look to leverage some of these costs
to their customers, thereby building IT platforms that can be utilized
by their customers and suppliers. Initially, both the company and the
customer are experiencing mutual benefits from the new system;
however, as time goes by the customers become dependent on using the
platform. In the long run, the companys investment in IT results in
locking in their customers and suppliers, creates switching costs, and
creates barriers to entry from competitors.
7. How could a business use the Internet technologies to form a
virtual company, or become an agile competitor?

Companies can use the Internet to publish information about themselves
and their products. Through their presence on the Internet,
organizations can seek quick access to new markets, and allows them to
create virtual companies and to be agile competitors. The Internet
promises to be a cost-efficient way for companies to develop strategic
collaboration, operations, marketing, and alliances in global markets.
Through the Internet, organizations can break time, geographic, cost,
and structural barriers.
9. Information Technology cant really give a company a strategic
advantage, because most competitive advantages dont last more
than a few years and soon become strategic necessities, which just
raise the stakes of the game. Discuss.

Students responses will vary. However, information technology for
early innovators certainly can give a company a competitive
advantage. Although technology is changing at a rapid pace, the
first company to gain acceptance stand to capture a substantial
market share before the competitors can catch up. By the time that
other organizations catch up, the originator has potentially
realized a large market share, and captured substantial customer
loyalty.
3) How could a business leverage its investments in information technology to build strategic IT
capabilities that serve as a barrier to new entrants into its markets? (AJ)
Businesses can leverage its investments in information technology (IT) to build strategic IT capabilities
that serve as a barrier to new entrants into its markets by developing new products and services that
would not be possible without strong IT capability. Companies without strong established IT capabilities
cannot afford the investment it would take to compete with the established company. Without strong IT
capabilities smaller companies wont be able to produce and sell products and services at a competitive
price. The risk of going bankrupt is not worth the reward of the opportunity to compete with an established
well known company.
For example Cabelas is the most successful outdoor recreation retailer in the market. Cabelas not only
offers great products, but a great experience when going to one of their stores. They display fish and
game mounts along with a live fish tank in most stores. Cabelas recently diversified into the video game
market and are now developing hunting and fishing video games. Cabelas customers can shop in the
store, online, and through their outdoors magazine. I do my outdoors shopping at Franks Great Outdoors
located in Linwood MI. Because Cabelas has already established so many mediums for their customer to
do their shopping in order for Franks to compete with Cabelas on a global scale they would have to make
massive investments into their website along with other investments to their stores, publications, inventory
network, suppliers, and marketing.
Another barrier a strong IT network brings is the complexity of the product itself. If Company A creates a
very complex product or system that does amazing things and Company B is looking into getting into the
market and competing with Company A. Company A has a Strong IT department and can start creating
and selling these products right away with minimal investments. Company B is also an established
company but it just doesnt have the capability or the technology to produce or sell this product. Because
the product is too complex for Company B they decide to pass on the opportunity.

9) Information technology can't really give a company a strategic advantage, because most competitive
advantages don't last more than a few years and soon become strategic necessities that just raise the
stakes of the game. Discuss. (Anna)

While Information technology can give a company a strategic advantage for a few years, updates need
to be made in order to keep up with the changing economy. Just by staying up to speed with what the
consumer wants and looks for both financially and service wise you can remain competitive in the
business world. For example, say you have a website that assists customers looking for your
services/products. After three years you are going to want to refresh the page with different pictures,
ideas, prices (discounts may apply), promotions or new products/services that you are offering to keep
up with the competition of other businesses.
There are other aspects that also need to be considered when looking to keep a strategic advantage. For
example, O'Brien and Marakas mention that it is important to "gain competitive advantages, reduce a
competitive disadvantage, or meet other strategic enterprise objectives." In addition they talk about five
competitive forces:
The rivalry of competitors within its industry, the threat of new entrants into an industry and its markets,
the threat posed by substitute products that might capture market share, the bargaining power of
customers and the bargaining power of suppliers.
There are several ways in which a company can avoid a competitive disadvantage and in turn keep up to
date with their technology. By simply becoming and remaining aware of what other businesses they
have to compete with, prices can be adjusted and new products/services can be introduced to
counteract competition while keeping current employees satisfied and possibly bringing new customers
in.
Some may argue that doing the above just raise the stakes of the game by making radical changes in the
business itself. But in fact these changes are considered innovative and help to build a better foundation
to compete while dealing with new entrants. Improving in ways such as cutting costs and becoming
more efficient when it comes to better quality, customer service and getting the products to market in a
much quicker matter. By focusing on improving the current business this helps to "raise barriers to
entry," which decreases the excessive amount of competition. By keeping additional competitors out
you can continue to focus on other businesses that pose a threat.
Another factor that is crucial when it comes to strategic advantages is provided in "Real World Case 2,"
and discusses the business GE (General Electric) and how their services have changed over the years to
better accompany its customers (both individuals and businesses alike). One of their main points in this
case can be summarized by an analogy that describes their services. It simply states,"...imagine not
buying or leasing the car of your choice but instead paying for its use by the mile." In a nutshell this is
what GE provides to its customers when it comes to electricity. But by altering the way the provide their
service, customers may go one of two ways, they may think that this new pricing will be much more
expensive (in which case an example bill should be set up for that customer, or for an example to show
how much better it truly is), or they will be intrigued and anxious to try this new system. Either way
there are always trade offs when trying to make your business more marketable. So by keep up with
information technology and keeping your customers informed you should overall decrease the
competition and hopefully increase your clientele.
4. Are Textbooks History? Many students are familiar with both Google and Wikipedia. This exercise will
help bring the remaining students up to speed and enable thoughtful classroom discussion. It will also
increase student's exposure to this chapter's vocabulary.
a) Go to http://www.google.com and use the search box to look up "End-user." Were any of Google's
first five search results useful with respect to this course? At the time of this writing, Google returns
Wikipedia links, dictionary definitions, a MySpace page, information about end-user licensing
agreements, and so on.
Note: seven years ago the results were generally useless with respect to this course.
b) Go to http://www.wikipedia.com/ and use the search box to look up "Knowledge worker." Compare
Wikipedia's article to the information provided within this textbook. Which source did you find easiest
to use? What advantages did Wikipedia provide? What advantages did this textbook provide? Ease of
use: The article was neatly laid out and easy to navigate. Links to related terms at the bottom of the
article made exploring the topic in further detail simple. Wikipedia's advantages: Free Detailed
Easy to print out, not heavy to carry Textbook's advantages: Fact checked by professionals Concise
Contains up to date real-world examples and illustrations Includes useful case studies and exercises
Available off-line and without batteries
c) Did Google, Wikipedia, or this textbook provide the most useful information about "Intranets"? Why?
Google: Google provided Wikipedia's link first, so it was useful in that way. It's simpler to type in a one
word query than to navigate to Wikipedia and repeat the query. Other links included intranet building
resources, intranet evaluations, and links to subject-matter journals. Wikipedia: Wikipedia's article
addressed the subject in detail. It contained hyperlinks to online sources and internal links to related
articles. Textbook: The textbook contains the term in its index along with numerous page references
spread across many chapters. The book is far more cumbersome to use, but the information is concise,
vetted for accuracy, and available offline.
1. As stated in the case, the New York Times chose to deploy their innovation support group as a shared
service across business units. What do you think this means? What are the advantages of choosing this
approach? Are there any disadvantages? Shared service A shared service means that it's a resource
available to all the organization's business units. Typically, shared services operate as a "profit center".
This means they generate internal charges (bills) for their work. The charge-back system helps IT to
quantitatively justify its existence to the organization. Advantages Pooled expertise Shared overhead
costs Easier to enforce software, hardware, technology, process, and policy standards across an
organization Easier to share best practices across an organization Disadvantages Creates an extra
layer of management between IT and end-users which may result in some loss of responsiveness or
accountability to individual business units Reduced flexibility
2. Boston Scientific faced the challenge of balancing openness and sharing with security and the need
for restricting access to information. How did the use of technology allow the company to achieve both
objectives at the same time? What kind of cultural changes were required for this to be possible? Are
these more important than the technology-related issues? Develop a few examples to justify your
answer. Technology Boston Scientific accomplished its objective by implementing an automated
workflow application to help them manage information access. Cultural changes Boston Scientific's
managers had to eliminate their "information silo" mentality and perceive the value in sharing their
information in a controlled and accountable fashion. Its managers also had to learn the new technology
and incorporate it into their daily processes. Importance Since a project will fail without both cultural
and technology changes, neither one is more important. Sample examples Some cultures operate under
a strict social hierarchy. Enabling workers to participate in quality improvement initiatives by providing
them with production data and analysis tools would run counter to this culture. Unless the
implementation team manages to overcome this cultural barrier, managers would resist sharing
information or simply deny their employees access to the system.
3. The video rental map developed by the New York Times and Netflix graphically displays movie
popularity across neighborhoods from major US cities. How would Netflix use this information to
improve their business? Could other companies also take advantage of these data? How? Provide some
examples. Possible business improvements Netflix could use this data to identify affinities between
movies and ensure that its regional distribution centers are appropriately stocked to meet anticipated
demand. External use Netflix might consider selling its data to consumer trend-tracking organizations.
Netflix need not divulge individual customer data but instead group movie rental data by postal code.
Postal codes would give marketers the ability to tie Netflix' data in with data from other marketing
systems to help create more useful regional, demographic profiles.
3. How could a business leverage its investment in information technology to build strategic IT
capabilities that serve as a barrier to new entrants into its markets? Businesses may leverage its IT
platforms by connecting them with their customers and suppliers to provide better communications.
Initially, both the company and the customer benefit from the new system. However, as time goes by
the customers will tend to integrate these systems into their own core processes thereby becoming
dependent on the platform. In the long run, the companys investment in IT results in locking in their
customers and suppliers and creating switching costs. The high costs associated with developing these
systems serve as barriers to entry for competitors.

7. How could a business use Internet technologies to form a virtual company or become an agile
competitor? Virtual company: Example: a person or company could use the Internet to acquire
customers and then farm out the work to suppliers. A simple example of this can be found managing
contractors. A company solicits customers for contract work (customers) and then solicits reliable
contractors who can do this work (suppliers). In exchange for a share in the contractor's earnings, the
virtual company handles the billing and customer relations. It manages its reputation by monitoring the
quality of the contractor's work. High performing contractors retain a larger percentage of their
earnings, and low performing contractors are not invited to work on future contracts. Some software
vendors now lease (or provide for free) web enabled business software to manage accounting, customer
relations management, and office automation tasks (word processing, spreadsheets, calendaring, and e-
mail). As a result, a truly virtual company need only a computer connected to the Internet and a web
browser. Visit rentacoder.com for a reverse auction site version of this enterprise.

9. Information technology cant really give a company a strategic advantage because most competitive
advantages dont last more than a few years and soon become strategic necessities that just raise the
stakes of the game. Discuss. Information technology for early innovators can give a company a
temporary competitive advantage. Although technology changes at a rapid pace, the first company to
gain acceptance stands to capture a substantial market share before its competitors can catch up.
Apple's iPod serves as a good example. By the time that other organizations caught up, the Apple had
realized a large market share and captured substantial customer loyalty. On the other hand, competitors
can learn from the leader's mistakes at very little cost other than running the risk that their competitor
will succeed brilliantly. With these cheaply acquired insights, competitors can introduce their own
products into an already primed marketplace and take it over with a superior product and/or a lower
price.


1. End-User Computing: Skill Assessment Note that students tend to overestimate their computing skills
when self-reporting. a. Word processing: About how many words per minute can you type? Do you use
styles to manage document formatting? Have you ever set up your own mail merge template and data
source? Have you created your own macros to handle repetitive tasks? Have you ever added branching
or looping logic in your macro programs?
Most students feel they are competent at word processing if they can type, save, and print their papers.
Today's knowledge workers also use document styles, mail merge, and macros to create shortcuts to
repetitive tasks.
b. Spreadsheets: Do you know the order of operations your spreadsheet program uses (what does
_5*2^2- 10 equal)? Do you know how to automatically sort data in a spreadsheet? Do you know how
to create graphs and charts from spreadsheet data? Can you build pivot tables from spreadsheet data?
Do you know the difference between a relative and a fixed cell reference? Do you know how to use
functions in your spreadsheet equations? Do you know how to use the IF function? Have you created
your own macros to handle repetitive tasks? Have you ever added branching or looping logic in your
macro programs?
Students should be able to calculate the answer to the equation provided without programming it into a
spreadsheet. The correct order of operations for this equation is power, multiplication, addition, and
the answer is 10. Basic users must understand order of operations, fixed and relative cell references,
how to apply functions, and how to create graphs. Intermediate users can use pivot tables to rapidly
cross-tabulate data, the IF function to create conditional answers, and create basic macros.
c. Presentations: Have you ever used presentation software to create presentation outlines? Have you
added your own multimedia content to a presentation? Do you know how to add charts and graphs
from spreadsheet software into your presentations so that they automatically update when the
spreadsheet data change?
Students should be able to prepare presentation outlines that include graphics imported from or linked
to spreadsheet applications. Advanced users will be able to include audio and video elements into their
presentations as well as set slide timing to automate stand-alone or kiosk presentations.
d. Database: Have you ever imported data into a database from a text file? Have you ever written
queries to sort or filter data stored in a database table? Have you built reports to format your data for
output? Have you built forms to aid in manual data entry? Have you built functions or programs to
manipulate data stored in database tables?
Most students will have very little database experience. Yet, managers can take great advantage of a
database system's built-in report generating features. To do this, users need basic table design, data
import, and query writing skills. Intermediate desktop database users will have basic form design skills.

1. In which ways do smartphones help these companies be more profitable? To what extent are
improvements in performance coming from revenue increases or cost reductions? Provide several
examples from the case. Profitability: Reduced time it takes to close a purchasing deal Reduced
inventory levels Increased customer satisfaction Increased employee satisfaction Reduced service
call time and costs Improvement source: Performance improvements primarily stem primarily from cost
savings. However, we might also infer revenue increases from satisfied customers and fewer lost
opportunities.
Examples: Better communications enable improved field support with fewer personnel required to fix a
problem and the reduced time it takes to close a service call Better communications reduced the time it
takes to close procurement deals. This has resolved in lower inventory levels and reduced inventory
holding costs. We could also infer that this results in fewer lost sales opportunities and better
purchasing terms, too. Improved employee satisfaction employees have access to the resources they
need to do good work. Improved customer satisfaction service calls are resolved more quickly thus
reducing the impact on their business.
2. The companies described in the case encountered a fair amount of resistance from employees when
introducing smartphone technologies. Why do you think this happened? What could companies do to
improve the reception of these initiatives? Develop two alternative propositions. Employee resistance -
CPS: management could not visualize the value these devices would provide. Employee resistance
Lloyd's Construction: employees were not technically savvy and required significant training. Though
not directly mentioned, the case also implied that employees may have resisted these devices because
they performed like workplace monitoring tools. Resistance causes CPS: without first-hand experience
or a clear vision, it's easy for management to discount the benefits and magnify the risks. Resistance
causes Lloyds Construction: the case does not explicitly state that Lloyd's employees likely have very
low levels of formal education. However, students can reasonably infer this from their job titles. It's
also against human nature to welcome new restrictions on one's freedom. Potential solutions: given
the successes experienced by both CPS and Lloyd's Constructions, students should learn from their
example: Implement small, low cost, low risk pilot projects to demonstrate the technology's value
Provide a full range of employee training programs Employ a parallel implementation strategy to give
employees time to learn the new systems while minimizing the impact of any failures Other feasible
recommendations: Adjust the employee evaluation system to include a section on technology use
Adjust the compensation system so employees benefit from cost savings Provide "coaches" or
"mentors" in addition to a help-desk during implementation Advertise/recognize early successes
3. CPS Energy and Lloyds Construction used smartphones to make existing processes more efficient.
How could they have used the technology to create new products and services for their customers?
Include at least one recommendation for each organization. The main point of this question is "how",
but students may well focus on "what" instead. On the "how" side, both organizations may create new
products by providing their customers with access to these systems. This access may take the form of
"read" access. FedEx installed a "read" access system for its customers. This system allowed customers
to track a package's delivery status. These organizations may also provide read/write access. Example
applications might include order entry, account management, or even collaborative interaction. CPS
Energy might consider making its experts (or just their expertise) available online. This would enable
their customers to attempt to solve their own problems or escalate a request to CPS' own experts.
These experts could then access and assess the request's entire history. This may allow them to help
solve the problem online or at least better prepare for the onsite service call.

Lloyd's work is done on a project by project basis. Lloyd's could use their systems to provide their
general contractor (the contractor responsible for managing all the individual contractors) with project
status information (site surveys, various permits, etc), schedule coordination, and expense reporting.
These systems might also be used to demonstrate compliance with local and federal regulations such as
hazmat handling or equal opportunity employment directives.
Real World Activities 1. In addition to the companies featured in the case, others like FedEx and UPS,
which have large mobile workforces, heavily use mobile communication technologies. What other
companies could benefit from these innovations? Search Terms: "mobile workforce automation" +
"case studies" A few examples: Full service car rental agencies such as Alamo, Avis, Hertz, and
National. Utility companies (meter readers) The trucking industry (any shipping and delivery
company) The U.S. Census bureau Onsite market researchers Hospitals
2. Go online and research uses of smartphones in industries different from the ones reviewed here.
Prepare a report to share your findings. Search Terms: "mobile workforce automation" + "case studies"
3. Use the Internet to research the latest technological developments in smartphones, and discuss how
those could be used by companies to deliver value to customers and shareholders. Search Terms:
"smartphone" + "case studies". Searching a news aggregator like Google News would provide the most
current developments.7 Current developments include: Security and mobile banking Mobile
journalism's impact Android O/S Competitor/product analysis