POE2 Lecture 4
50 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What percentage is considered best practice for linking business strategy with IT decisions focused on generating optimal business value?

  • 20-30%
  • 55-65% (correct)
  • 70-80%
  • 35-45%

    • What is the primary aim of shifting from reactive crisis management to proactive IT leadership?

  • To develop new initiatives (correct)
  • To cut costs effectively
  • To improve employee monitoring
  • To maintain existing systems

    • What is the norm percentage for maintenance activities categorized as 'Keep-The-Lights-On'?

  • 55-65%
  • 35-45%
  • 70-80% (correct)
  • 20-30%

    • In the context of technology acceptance, which of the following issues has gained more relevance post-Covid?

    <p>Employee ethics and privacy</p> Signup and view all the answers

    Which tactical focus area is highlighted for ensuring resources are spent on the right things in IT decisions?

    <p>Optimal business value generation</p> Signup and view all the answers

    What is a defining characteristic of best practice in terms of overall IT spending versus the norm as discussed?

    <p>Best practice aligns closely with the norm.</p> Signup and view all the answers

    What transformation does 'Grow/Transform the business' refer to in relation to IT leadership?

    <p>Emphasizing technology adoption and proactive strategies.</p> Signup and view all the answers

    Which of the following is NOT highlighted as a focus area for modern IT leadership?

    <p>Reactive crisis management</p> Signup and view all the answers

    What is the primary focus when understanding IS success?

    <p>Identifying the dependent variable of IS success</p> Signup and view all the answers

    Which of the following frameworks focuses on individual-level acceptance of new technology?

    <p>Technology Acceptance Model (TAM)</p> Signup and view all the answers

    Which aspect is NOT considered a factor in IS success?

    <p>Market competitiveness</p> Signup and view all the answers

    What does the 'adoption' factor emphasize in the context of IS success?

    <p>The intention to use at an individual or organizational level</p> Signup and view all the answers

    How do firm-level adoption decisions differ from individual-level acceptance models?

    <p>Firm-level decisions involve collective input, while individual-level focuses on personal preference.</p> Signup and view all the answers

    What framework relates to privacy considerations in IS acceptance?

    <p>Privacy Calculus</p> Signup and view all the answers

    Which model uses both firm-level and individual-level diffusion principles?

    <p>Rogers' Diffusion of Innovation (DoI)</p> Signup and view all the answers

    What key component is examined to determine the impact of IS technologies?

    <p>Individual and organizational value</p> Signup and view all the answers

    What year was the DeLone & McLean IS Success model originally introduced?

    <p>1992</p> Signup and view all the answers

    What is the main focus of Rogers' Diffusion of Innovation model?

    <p>The spread of new ideas and technologies</p> Signup and view all the answers

    Which concept is associated with the idea of 'crossing the chasm'?

    <p>Gartner's Hype Cycle</p> Signup and view all the answers

    What are the years associated with Rogers' Diffusion of Innovation that indicate its revisions?

    <p>1962, 1995</p> Signup and view all the answers

    How does Gartner's Hype Cycle relate to Rogers' Diffusion of Innovation model?

    <p>They share similarities in explaining technology adoption trends</p> Signup and view all the answers

    Which of the following is NOT a focus area of the DeLone & McLean IS Success model?

    <p>Market penetration</p> Signup and view all the answers

    What type of model is Rogers' Diffusion of Innovation primarily considered?

    <p>A communication theory</p> Signup and view all the answers

    In which year was the updated version of DeLone & McLean IS Success released?

    <p>2003</p> Signup and view all the answers

    Which capability is essential for a company to turn digital technology into business advantage?

    <p>Digital capability and leadership capability</p> Signup and view all the answers

    What is the key advantage of network effects in relation to a product or service?

    <p>Enhanced value as more users join</p> Signup and view all the answers

    How do digital platforms create value according to Ozalp et al. (2022)?

    <p>Connecting users through enhanced matchmaking and facilitating transactions</p> Signup and view all the answers

    Why do digital platforms need to leverage massive demand-side economies of scale?

    <p>Because digital products are characterized by low revenue margins</p> Signup and view all the answers

    What aspect facilitates digital platforms in defending their market position?

    <p>Network effects</p> Signup and view all the answers

    Which of the following is NOT a benefit of having a growing user base for a product?

    <p>Increased production costs</p> Signup and view all the answers

    What is typically a characteristic of digital products that influences their pricing strategy?

    <p>Low variable costs leading to competitive pricing</p> Signup and view all the answers

    What challenge do companies face when trying to innovate on digital platforms?

    <p>Balancing demand and supply efficiently</p> Signup and view all the answers

    What is the primary focus of the discussion regarding IT success in businesses?

    <p>Identifying the return on IT investments and their impact</p> Signup and view all the answers

    What paradox is mentioned regarding IT productivity?

    <p>The IT productivity paradox indicating lag in measurement</p> Signup and view all the answers

    What did Nicholas Carr argue about the state of IT in his 2003 paper?

    <p>IT is becoming increasingly irrelevant and is now a commodity</p> Signup and view all the answers

    What has been suggested about firm-level versus industry-level pay-offs of IT spending?

    <p>Only firm-level pay-offs are visible, not industry-wide</p> Signup and view all the answers

    Which of the following is an example of how banks have improved their services through IT?

    <p>Online transactions and 24/7 availability</p> Signup and view all the answers

    What does the IT productivity paradox primarily address?

    <p>The inability to see a return on IT spending in national metrics</p> Signup and view all the answers

    How did subsequent studies view the IT productivity paradox according to the content?

    <p>It shows the difference between individual firm performance and overall industry metrics</p> Signup and view all the answers

    Which aspect of IT success does the quest for a 'dependent variable' involve?

    <p>Quantifying the overall impact of IT on business functions</p> Signup and view all the answers

    What challenge is faced when moving from early adopters to the early majority in the adoption curve?

    <p>The perceived value is low during the trough of disillusion</p> Signup and view all the answers

    Which metaphor is used to describe the challenge of transitioning between early adopters and the early majority?

    <p>The chasm</p> Signup and view all the answers

    What does the 'hype' in the context of the adoption curve refer to?

    <p>The initial excitement around a new technology</p> Signup and view all the answers

    What is the primary focus of the TAM model developed by Davis?

    <p>Evaluating technology acceptance</p> Signup and view all the answers

    What additional aspect does UTAUT introduce compared to the TAM model?

    <p>Inclusion of moderators and additional variables</p> Signup and view all the answers

    Why is it particularly challenging to move upwards in adoption during the trough of disillusion?

    <p>Users become overly critical and skeptical</p> Signup and view all the answers

    Which year was the UTAUT model developed?

    <p>2003</p> Signup and view all the answers

    What is one of the primary objectives of the TOE framework introduced by DePietro, Wiarda, & Fleischer in 1990?

    <p>To examine the impact of technology on business contexts</p> Signup and view all the answers

    Crossing the chasm primarily deals with which phase of technology adoption?

    <p>From early adopters to the early majority</p> Signup and view all the answers

    What role does the 'trough of disillusion' play in the adoption cycle?

    <p>It indicates a drop in perceived value</p> Signup and view all the answers

    Study Notes

    Course Outline

    • The Digital Firm course covers IT and strategy, the winner-takes-all effect, AI, and future of work, and IT success
    • This is a POEB course (possibly Principles of Economics of Business), offered by the University of Amsterdam, Amsterdam Business School
    • The course is titled "The Digital Firm"
    • The professor is Dr. Hans Borgman

    What is IT Success?

    • IT investments are more than 50% of capital expenditure in most industries
    • The dependent variable—what drives IT success remains a quest
    • Key questions include the return on investment, return on assets, profit, and rate of change

    IT Productivity Paradox

    • IT productivity paradox is a lag or mismeasurement in productivity numbers from IT
    • Firm level pay-offs are visible, but industry level, or national level results are less clear
    • IT/AI productivity puzzle is post 2000

    Defining IT Success

    • Success is not easy to define
    • Success indicators include technical quality, functional quality, adoption, impact on individuals, and impact on the organization

    Good IT Outcomes vs Good Business Outcomes

    • While good IT outcomes are important, focusing on business outcomes is crucial
    • Business outcomes like increased competitive advantage, faster time to business benefits, improved user experience, reduced risk, and reduced costs are examples to consider
    • Factors that make IT outcomes successful include Project milestones being met, servers and network being available, databases being accessible, having fixed defects in development, help desk support, change processes, and documented incidents

    Impact and Control

    • This involves the business value of IT, increasing business agility, and ensuring services are efficient and available
    • This is concerned with the right things being done, and whether they are done right

    Running vs Growing/Transforming the Business

    • Focus is shifting to pro-active IT leadership and linking business strategy with IT decisions—spending efficiently on the right things
    • This is contrasted with reactive crisis management
    • An important shift to generating optimal business value

    Example Exam Questions (Digital Goods)

    • Digital goods are non-rivalrous, meaning one person using them does not reduce the availability to others
    • Digital goods also have low production costs and zero reproduction costs

    Example Exam Questions (Revolutionary Transformations)

    • Automating tasks, linking tasks, and streamlining processes are not considered revolutionary transformations
    • Linking multiple tasks together into an internal process can be seen as revolutionary because it makes a different impact on the whole system

    Example Exam Questions (Business Model Canvas)

    • Shareholder interest is not one of the nine building blocks of the Business Model Canvas
    • Instead, the components include customer segments, value propositions, revenue streams and others

    Example Exam Questions (Digital Capability)

    • According to Bonnet and Westerman (2020), digital capability, including leadership capability, is key for companies to use digital technology to create business advantage

    Example Exam Questions (Network Effects)

    • The biggest benefit of network effects in a product or service is the enhanced value as more users join

    Example Exam Questions (Digital Platforms)

    • Digital platforms excel at connecting users for enhanced matching and efficient supply-demand, facilitating transactions, flexible organizations, and quickly generating new business models
    • They also facilitate the use of AI, get into winner-take-all positions, and defend these positions with network effects

    Example Exam Questions (Digital Platform Economies of Scale)

    • Digital platforms rely on massive demand-side economies of scale, because products and services are characterized by low revenue margins, imitation, and reproduction.

    Technology Acceptance Models

    • The course covers technology acceptance models like those by Rogers, DeLone & McLean, Davis, and Venkatesh et al.
    • These models are tools to understand and predict user acceptance of new technology

    Additional Cases

    • Acceptance of social distancing technologies is explored in a case study context
    • Students need to apply the models for acceptance (like Davis, TAM) to this scenario

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    PoEB The Digital Firm 4 2024-2025 PDF

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser