Questions and Answers
What is a business model?
What is an example of a complex business model?
What is a type of digital age business model?
What are the three types of business pressures?
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What is a business critical response activity?
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Why do business models need to change?
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What is an example of a business pressure?
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What supports business critical response activities?
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What is essential for career effectiveness in the IT field?
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What is the digital economy also known as?
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What is an example of a digitizable product?
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What is electronic business (E-business) also known as?
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What is the primary function of digital infrastructures?
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What is the result of developing computer literacy?
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Which of the following is a characteristic of the digital economy?
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According to the US Bureau of Labor Statistics, what is the trend in IT-related occupations?
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What is the main difference between the Old Economy and New Economy in buying and selling textbooks?
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What is a characteristic of photography in the New Economy?
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What replaced tokens for bus and subway transportation in New York City in the New Economy?
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What is a characteristic of checkout in the Old-old Economy?
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What technology is used in the New Economy for paying for goods, checkout?
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What is a characteristic of the Old Economy in photography?
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What is a characteristic of the New Economy in buying and selling textbooks online?
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What is a characteristic of checkout in the Old Economy?
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What are the three types of business pressures discussed in the text?
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Which of these is NOT a societal pressure?
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Which of these is an example of a market pressure?
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What is the goal of strategic systems?
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What is a key difference between 'Make-to-Order' and 'Mass Customization'?
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Which of these is NOT a strategy for responding to business pressures?
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What does 'E-business and E-commerce' refer to?
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Why is it important to study information systems?
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What type of business pressure relates to the changing demographics of workers?
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Which of the following is NOT an example of a Societal Pressure?
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Which organizational response is characterized by producing customized goods?
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What is the main goal of Strategic Systems in organizations?
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Which of the following is an example of a technology pressure that businesses face?
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What is the key difference between 'Make-to-Order' and 'Mass Customization'?
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Which of the following is NOT a benefit of learning about Information Technology (IT)?
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Which organizational response focuses on creating a positive experience for customers?
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Study Notes
Business Models
- A business model is a method of doing business by which a company can generate revenue to sustain itself.
- The model spells out how the company adds value to create a product or service.
- Examples of business models:
- Nokia makes and sells cell phones.
- A TV station provides free broadcasting, its survival depends on a complex model involving advertisers and content providers.
- Internet portals, such as Yahoo, also use a complex business model.
Digital Age Business Models
- Name-Your-Own Price
- Reverse Auctions
- Affiliate Marketing
- E-Marketplaces and Exchanges
- Electric aggregation (buying groups)
Drivers Forcing Changes In Business Models
- Business Pressures:
- Environmental
- Organizational
- Technological factors
- A response can be a reaction to a pressure already in existence, an initiative intended to defend an organization against future pressures, or an activity that exploits an opportunity created by changing conditions.
The Drivers of Change
- Business Pressures, Organizational Responses, and IT Support:
- Business Pressure - The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.
- Significant changes in any of these factors are likely to create business pressure on the organization.
Three Types of Business Pressures
- Market Pressures:
- The Global Economy and Strong Competition
- The Changing Nature of the Workforce
- Powerful Customers
- Technology Pressures:
- Technological Innovation and Obsolescence
- Information Overload
- Societal Pressures:
- Social Responsibility
- Government Regulation and Deregulation
- Protection Against Terrorist Attacks
- Ethical Issues
Organizational Responses
- Strategic Systems:
- Enable organizations to increase market share and/or profits.
- Customer Focus:
- Enable organizations to provide superb customer service and prevent losing customers to competitors.
- Make-to-Order:
- Producing customized products and services.
- Mass Customization:
- Producing a large quantity of items, but customizing them to fit the desire of each customer.
- E-business and E-commerce:
- The strategy of doing business electronically.
Why Study Information Technology (IT)?
- You will be more effective in your chosen career if you understand how successful information systems are built, used, and managed.
- You also will be more effective if you know how to recognize and avoid unsuccessful systems and failures.
- According to the US Bureau of Labor Statistics, the top seven fastest growing occupations fall within IT or computer related field.
- Developing "Computer" Literacy will only enhance your "Information" Literacy.
Doing Business in the Digital Economy
- The digital economy is an economy based on digital technologies, including communication networks, computers, software, and other related technologies.
- Also called the Internet economy, the new economy, or the Web economy.
- Digital infrastructures provide a global platform over which people and organizations interact, communicate, collaborate, and search for information.
New Economy vs. Old Economy
- Examples:
- Buying and Selling Textbooks
- Photography
- Paying for Transportation in New York City
- Paying for Goods, Checkout
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Description
Learn about business models, how they generate revenue, and add value to create products or services. Examples of business models include Nokia, TV stations, and internet portals.