Information Resource Management week 1 Essay

862 Words Jan 26th, 2014 4 Pages
Week 1 Homework

1. In what respect does business strategy resemble military strategy? Obtaining an advantageous position on the opposition is a tactic that is similar in both business and military strategy.
2. Refer to Chapter 1's discussion of different types of information systems. Which types of ISs can gain strategic advantage and which cannot? Why?
Transaction Processing systems are merely used for recording transactions and thus are not used for gaining strategic advantage. Customer Relationship Management systems can be used to improve customer service quality, thus making it a key strategic advantage tool. Supply Chain Management systems (or Enterprise Resource Planning systems) are used to gain strategic advantage
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13. Referring to the list of strategic moves, classify the initiatives of Jet Blue.
JetBlue aimed to reduce costs, offer differentiating products and services, and enhance products and services.
14. What were the reasons for the failure of the original purpose of FordDirect.com? Who eventually gained from the system and what were the gains?
The company didn't consider state laws and alliances with dealerships. Ultimately Ford dealerships won in the development of the system, since it now allows customers to locate them easily.
15. The executives of well-established airlines are not less smart than those at JetBlue, and yet, their larger airlines have not done what JetBlue has done. Why?
JetBlue was willing to take risks that the other airlines were not willing to take, including the use of beta software in production environments. It is also likely that the other airlines have not reached a refresh cycle point in their system life and they were unwilling to pay substantial costs to “rip and replace”.
16. What does the term “first mover” mean?
A “first mover” is an organization that is the first to offer a new product or service.
17. Can a late mover have any strategic advantage with IT? What is the risk that a late mover takes?
Late movers can implement the latest technology and not be burdened with legacy systems. The risk is that a late mover may enter a market far too late to make any

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