Question 1

There is much debate about whether or not the technology itself generates a competitive advantage for a company.

Accepted Answer

The argument about technology providing a competitive advantage for a company is a debated topic among experts. Some argue that it's not the technology itself, but the innovative use of technology that creates an advantage, while others argue that technology can give a company a distinct competitive edge.

Question 2

The IT function has always been valued by the business for its unique perspective on both the corporation and technology and its ability to use this perspective to facilitate strategy development.

Accepted Answer

Historically, the IT function was often viewed primarily as a support or operational role rather than a strategic partner. It has taken significant evolution in both technology and business mindset for IT to be broadly recognized for its strategic value in facilitating corporate strategy development.

Question 3

The year 2000 marked the zenith of the dot.com "hype-cycle."

Accepted Answer

The year 2000 is widely recognized as the peak of the dot.com boom, where investors poured billions of dollars into internet-based companies with the expectation of massive returns. However, many of these companies proved to be unsustainable and the bubble eventually burst in the early 2000s.

Question 4

IT managers know that throwing enough technology and financial resources at a business problem is likely to deliver business results.

Accepted Answer

Simply throwing technology and financial resources at a problem does not guarantee success; strategic planning, understanding the problem, and aligning solutions with business goals are crucial for delivering effective business results.

Question 5

Prior to 2000, many organizations had developed a significant amount of internal and external connectivity but were not completely aware of the potential of the Web for transforming business.

Accepted Answer

The answer of Prior to 2000, many organizations had developed...

Question 6

IT represents more than 80 percent of most organizations' current capital expenditures.

Accepted Answer

IT represents a significant portion of capital expenditures for many organizations, but it generally does not exceed 80 percent. Capital expenditures often include a wide range of investments beyond IT, such as buildings, machinery, and equipment.

Question 7

Information is often not the basis for competitive advantage.

Accepted Answer

Information is often the basis for competitive advantage as it can provide insights into market trends, customer preferences, and competitive strategies, enabling businesses to make informed decisions and gain an edge over competitors.

Question 8

In future IT initiatives most organizations will require more emphasis on the use of information, rather than on the use of technology.

Accepted Answer

With the increasing amount of data available, organizations will need to focus on effectively using and analyzing that information to drive decision-making and improve outcomes, rather than simply adopting new technologies.

Question 9

Many IT managers believe that the IT function will continue to change, gradually morphing into an enterprise wide entity responsible for ensuring the organization's investments in technology and processes.

Accepted Answer

Many IT managers believe that the IT function will evolve and expand to become a more strategic and integral part of the overall business, with a focus on ensuring the organization's technology investments align with its goals and objectives.

Question 10

IT can be used to destroy another company's competitive advantage.

Accepted Answer

IT can be used to gain insights into a company's operations and processes, which can then be leveraged to develop similar or better processes and strategies, undermining the competitive advantage of a rival company. Additionally, IT can be used to directly attack or sabotage a rival's systems or data, further eroding their advantage.

Question 11

The IT function automatically delivers competitive advantage.

Accepted Answer

While the IT function can certainly support and enable competitive advantage, it does not inherently deliver it automatically. Other factors such as strategy, innovation, and marketing also play important roles in achieving and maintaining a competitive edge.

Question 12

Utility computing and Strategic IT use is dramatically changing how organizations function.

Accepted Answer

The answer of Utility computing and Strategic IT use is...

Question 13

Even though IT is recognized as essential to the business's survival, many IT managers
still face some credibility problems around the strategic use of IT.

Accepted Answer

Despite the recognition of IT as essential for business survival, many IT managers still struggle with establishing credibility around the strategic use of IT.

Question 14

The interoperability provided by the Web has been a huge force driving the development of open standards.

Accepted Answer

The Web's interoperability has helped in the development of open standards as it enables different systems and devices to communicate with each other seamlessly, regardless of their underlying technologies or platforms. This has led to the emergence of open standards that enable data sharing, content distribution, and other forms of collaboration across the Web. Overall, the Web's interoperability has been a major catalyst for innovation and progress in many fields, including science, education, and business.

Question 15

The transformative nature of IT can be viewed as a threat to the business, destroying stable markets and undermining current business models.

Accepted Answer

IT has disrupted and transformed many industries and business models, creating new opportunities but also threatening the stability of existing businesses.

Question 16

The divisional presidents at RR Communications resisted efforts to create a centralized IT because it meant increased bureaucracy and much less freedom to pursue business opportunities relative to their individual divisions.

Accepted Answer

The statement explicitly states that the divisional presidents resisted the creation of a centralized IT, citing concerns about increased bureaucracy and decreased freedom for their divisions.

Question 17

The biggest customer complaint at RR Communications was the receipt of multiple bills because of the inability of the IT infrastructure to generate one bill for multiple services.

Accepted Answer

The statement mentions that the biggest customer complaint at RR Communications was the receipt of multiple bills, indicating that customers were receiving more than one bill. This suggests that the IT infrastructure was not set up to generate one bill for multiple services.

Question 18

The transformative nature of IT is viewed as both an opportunity to save money through streamlining and/or outsourcing traditional business activities and as a threat that new, more nimble competitors.

Accepted Answer

This statement is true, as IT can be seen as both an opportunity and a threat to traditional businesses. On one hand, IT can help businesses save money by streamlining processes or outsourcing certain activities. On the other hand, IT can also enable new, more agile competitors to enter the market and disrupt traditional business models.

Question 19

The value of any technology is indivisible from the data it stores, calculates, and transports.

Accepted Answer

The value of technology comes from the data it processes, stores, and transfers. The technology itself is just a tool to handle that data. Therefore, the two are indivisible in terms of value.

Question 20

IT standard interoperability is driving down the cost of IT and facilitating the development of new business models.

Accepted Answer

IT standard interoperability allows different technologies and systems to work together seamlessly, reducing the need for expensive custom integrations and facilitating the adoption of new technologies. This can help drive down costs and create new opportunities for businesses.

Quiz 9: IT in 2010