Instructions for Midterm Exam:

The following study guide for the midterm lists questions (including those submitted by your classmates in CIS601) related to the material in chapters 1-5, and the short cases and long cases we have covered to date. The articles presented by students and the Group Projects ( I and II) will not be included in the midterm.

Items to be included on the midterm will be taken from the questions on this study guide. Some items on the exam may consist of a combination of several of the questions.

Study Guide for CIS601 Midterm Exam—Fall, 2006

Questions from the Textbook

Chapter 1:

  1. What are the key components of a business model? What does the text mean by a virtuous cycle and a vicious cycle, in regard to a business model?
  2. Strategic positions result from choices in 4 areas. What are they?
  3. What are the two dimensions along which McFarlan suggests that assessment of organizational IT portfolios should be assessed in order to measure the alignment of IT with strategic goals?
  4. What are five questions execs can use in the search for opportunities to use IT to support and drive strategy in the search for value-creating opportunities?
  5. What are the four key questions for analyzing the strategic risk of IT?

Student-generated Questions:

  1. Outline the process involved in conducting a Strategic Audit. In particular, discuss the four components of a Strategic Audit, define sustainable advantage, and discuss the strategic positions that result from decision made in four areas. Name the four areas.
  2. Explain the differences between a competitor audit approach and a value network audit approach.
  3. Explain the four quadrants of McFarlin’s Strategic Grid.
  4. What 4 key approaches can executives take to evolve an organization’s strategy?
  5. Discuss the 5 audits used in building a company’s business model and give suggestions for questions to be used.

Chapter 2:

  1. In what three major ways did the new Network Economy paradigm impact on firms?
  2. What did the text mean by the expression, “the hierarchy is far from dead.”
  3. Why did the matrix concept fail?
  4. What four types of controls do authority systems include?
  5. What is the difference between a compliance model of control and a learning model of control?
  6. What kinds of problems can occur when execs decentralize decision making to increasingly more focused, autonomous profit centers?
  7. What suggestions does the text suggest for rethinking the Nature of Authority?

Student-generated Questions:

  1. What are some consequences that stem from execs making changes to portions of their IT without considering the impact on others in the organization?
  2. Summarize the 3 important lessons the text explains for designing organizations with the sense and respond capabilities needed in today’s fast-paced/complex/volatile business environment.
  3. Explain the hybrid enterprise concept.
  4. Explain the basic concepts of the hierarchical organizationand decentralized organization structures. What are the inherent advantages and disadvantages of each. How have companies using the decentralized organization structure utilized information systemsto enhance the strengths of a decentralized structure while alsocorrectingsignificant weaknesses. What have these IT enabled companies' organizational structures evolved into.

Chapter 3:

  1. What are the two overarching design goals that must be considered in the design of business networks?
  2. What are the three key decisions to be made in determining network differentiation and unit groupings?
  3. Describe the three inter-organizational governance models that emerged in the 20th century to meet the integration, coordination, and control challenges associated with different contexts?
  4. Describe and give examples of the two primary categories of network business models?
  5. What are four lessons from the field regarding building a “collaborative community, as described by the text?”

Student-generated Questions:

  1. Discuss the primary differences and pros and cons between hierarchy and entrepreneurial enterprises and what may be necessary to make the move towards an extended enterprise.
  2. Discuss the three types of network ownership and the pros and cons of each (corporation, alliance, and community)

Chapter 4:

  1. What were the premises upon which Nicholas Carr’s judgment of the value of IT was built?
  2. What were some of the arguments against his idea?
  3. What is the Business on Demand concept?
  4. In the 1990s, why did execs still have trouble in trying to interwine business operations and strategy with IT?
  5. What was the “tipping point,” and why?
  6. What 3 categories of benefits does the IT Value Framework identify that can be used to define the business case for IT?
  7. What is wrong with IT infrastructure in many companies?
  8. What solutions are many firms now using to address these problems?
  9. When firms consider the options value of investments in IT infrastructure, what advantages can they anticipate?
  10. What are the 3 categories of benefits identified in the IT Value Framework that can be used to define the business case for IT?
  11. What are some things that IBM, under Lou Gerstner, did to achieve each of these 3 categories of benefits?
  12. What capabilities of IT infrastructure did Nicholas Carr not recognize?

Student-generated Questions:

  1. When making the case for IT, expected benefits should be compared against expected costs to decide whether or not the technology offers value. From class discussion, think of a situation where a company must consider a proposed IT expenditure. Lay out the opportunities or benefits the technology offers and, in contrast, explain potential costs or risks associated with the technology. For balance, consider three of each.
  2. The text talks about leveraging infrastructures and creating options. Explain what these two terms mean as related to IT infrastructure within a company.
  3. Explain the “tipping point” concept, as discussed in the text.
  4. What is the IT Value Framework? How does IT benefit a company?
  5. Describe the path to achieving proprietary advantage and difficulties faced along the way.

Chapter 5:

  1. Why is changing IT infrastructure such as challenge?
  2. What are the four stages in the evolution of corporate IT infrastructure?
  3. What are the three main categories of internetworking infrastructures?
  4. How are internetworking technologies different from other information technologies?
  5. What are some potential benefits of real-time infrastructures?
  6. What are the potential dangers of using computerized systems like automatic trading systems?
  7. Why are selecting strong partners and managing relations with them increasingly important?
  8. What kinds of problems do legacy systems pose?
  9. What is the biggest challenge identified by the text for the future of internetworking infrastructure

Student-generated Questions:

  1. Discuss Moore’s Law and Metcalf’s Law.

11. Describe the evolution of corporate IT infrastructure, including the cause for the changes that occurred at each stage of the evolution. How does this compare to network bandwidth growth (from file transfer to streaming video)?

Questions from the Short Cases

Dollar General(study questions at the end of the case--on Blackboard)

The Next Economy (study questions included with the case--on Blackboard)

Albertson’s vs. Wal-Mart(study questions at the end of the case--on Blackboard)

Can the Music Industry Change its Tune?(study questions at the end of the case--on Blackboard)

Questions from the Long Cases

Charles Schwab

  1. What was Charles Schwab’s Value Proposition, as described in the text?
  2. How did Schwab adapt to serve the needs of baby boomers?
  3. How did the Gramm-Leach-Bliley Act affect the financial services industry?

LeapFrog

  1. How did shifting demographics impact the toy industry—and how did LeapFrog adapt to these shifts?
  2. How did LeapFrog successfully partner with retailers?
  3. Discuss 5 of the strategies LeapFrog used to sustain the company’s growth.

Wyndham

  1. In what ways did the lack of IT standardization plague the hotel industry?
  2. How did Wyndham use Internet technology to compete for guests?
  3. What is commoditization, and why was it a problem for the hotel industry? What was seen as a solution to this threat?
  4. How was Wyndham ByRequest different from other recognition programs?

Student-generated Question:

Choose one company to discuss—Charles Schwab,LeapFrog, or Wyndham International.

How was the company’s strategy impacted by the use of information technology? Did they use it effectively?

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