Digital Equipment's Artificial Intelligence System XCON
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Questions and Answers

Why was there a demand for services like Western Union’s EasyLink?

  • To reduce the overall competitive advantage
  • To utilize excess capacity in companies
  • Because of the development of information technology (correct)
  • Due to an increase in postal services

What is the purpose of Western Union’s EasyLink service?

  • To deliver physical mail internationally
  • To send messages between electronic devices worldwide (correct)
  • To provide internet services
  • To facilitate in-person communication

How did Sears benefit from its skills in processing credit card accounts?

  • By developing new products
  • By closing down its credit services division
  • By providing similar services to other companies (correct)
  • By focusing solely on retail operations

What strategy did A.O.Smith adopt to meet the needs of its traditional businesses?

<p>Developing data-communications expertise (D)</p> Signup and view all the answers

How did Eastman Kodak expand its offerings?

<p>Introducing long-distance telephone and data-transmission services (D)</p> Signup and view all the answers

In what way can a company improve its competitive advantage related to information technology?

<p>By increasing the scale of information processing and lowering costs (D)</p> Signup and view all the answers

What is the primary role of an IS manager in coordinating information technology?

<p>Coordinating architecture and standards of applications (A)</p> Signup and view all the answers

What is the potential consequence of information technology applications not being compatible within a company?

<p>Loss of many benefits (D)</p> Signup and view all the answers

How can information systems aid in the implementation of strategies within a company?

<p>Track progress toward milestones (B)</p> Signup and view all the answers

What distinguishes companies that anticipate the power of information technology from those that do not?

<p>Control over events (B)</p> Signup and view all the answers

In what way does the text suggest companies that do not respond to information technology changes will be affected?

<p>They will be at a competitive disadvantage. (B)</p> Signup and view all the answers

What does the text imply about the importance of the information revolution?

<p>It will significantly impact a company's competitive position. (A)</p> Signup and view all the answers

What is an example of the merging of computer and telecommunications technologies mentioned in the text?

<p>AT&amp;T using its telecommunications position to enter the computer industry (B)</p> Signup and view all the answers

How is Intermodal Transportation Services, Inc. differentiating from its past practices in quoting prices?

<p>By utilizing microcomputers to calculate prices centrally (A)</p> Signup and view all the answers

In what way has information technology impacted the financial services industry according to the text?

<p>Causing a merger among banking, insurance, and brokerage industries (D)</p> Signup and view all the answers

What is an example of the interrelationships created by the information revolution in the office equipment sector?

<p>Linking typing, photocopying, and data/voice communications (A)</p> Signup and view all the answers

How are broad-line companies able to segment their offerings differently now compared to before?

<p>By segmenting offerings in ways previously feasible only for focused companies (C)</p> Signup and view all the answers

What is the primary advantage of Digital Equipment's XCON system mentioned in the text?

<p>It reduces the time and increases accuracy in filling custom computer orders. (D)</p> Signup and view all the answers

According to the passage, how can embedding information systems in physical products benefit a company?

<p>It allows the company to differentiate its products from competitors. (B)</p> Signup and view all the answers

What is the example given in the text of a company using information technology to differentiate itself?

<p>A magazine distributor offering processing credits for unsold items. (D)</p> Signup and view all the answers

How has information technology affected the competitive scope of companies, according to the passage?

<p>It has increased their ability to coordinate activities regionally and globally. (B)</p> Signup and view all the answers

Which industry is given as an example of using information technology for a global strategy?

<p>The newspaper industry, with Dow Jones' page transmission technology. (A)</p> Signup and view all the answers

Based on the information provided, what can be inferred about the impact of information technology on competitive advantage?

<p>It enables companies to differentiate their products and services. (C)</p> Signup and view all the answers

What is the main purpose of the text?

<p>To discuss how companies can use information technology to gain a competitive advantage (A)</p> Signup and view all the answers

How have some companies used information technology to their advantage?

<p>All of the above (D)</p> Signup and view all the answers

What is the role of a company in regards to industry structure changes?

<p>Companies should look for ways to lead change in the industry structure (D)</p> Signup and view all the answers

What is the starting assumption about how information technology might affect a company?

<p>All of the above (D)</p> Signup and view all the answers

What should a company do to identify ways in which information technology might create competitive advantage?

<p>Both b and c (C)</p> Signup and view all the answers

Which of the following is NOT mentioned in the text as an example of a company using information technology to alter industry structure?

<p>Microsoft and its office productivity software (C)</p> Signup and view all the answers

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