Digital Equipment's Artificial Intelligence System XCON

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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?

Developing data-communications expertise Signup and view all the answers

How did Eastman Kodak expand its offerings?

Introducing long-distance telephone and data-transmission services Signup and view all the answers

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

By increasing the scale of information processing and lowering costs Signup and view all the answers

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

Coordinating architecture and standards of applications Signup and view all the answers

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

Loss of many benefits Signup and view all the answers

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

Track progress toward milestones Signup and view all the answers

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

Control over events 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?

They will be at a competitive disadvantage. Signup and view all the answers

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

It will significantly impact a company's competitive position. Signup and view all the answers

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

AT&T using its telecommunications position to enter the computer industry Signup and view all the answers

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

By utilizing microcomputers to calculate prices centrally Signup and view all the answers

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

Causing a merger among banking, insurance, and brokerage industries Signup and view all the answers

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

Linking typing, photocopying, and data/voice communications Signup and view all the answers

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

By segmenting offerings in ways previously feasible only for focused companies Signup and view all the answers

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

It reduces the time and increases accuracy in filling custom computer orders. Signup and view all the answers

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

It allows the company to differentiate its products from competitors. Signup and view all the answers

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

A magazine distributor offering processing credits for unsold items. Signup and view all the answers

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

It has increased their ability to coordinate activities regionally and globally. Signup and view all the answers

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

The newspaper industry, with Dow Jones' page transmission technology. Signup and view all the answers

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

It enables companies to differentiate their products and services. Signup and view all the answers

What is the main purpose of the text?

To discuss how companies can use information technology to gain a competitive advantage Signup and view all the answers

How have some companies used information technology to their advantage?

All of the above Signup and view all the answers

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

Companies should look for ways to lead change in the industry structure Signup and view all the answers

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