Solutions Manual Information Technology for Management, 12th Edition by Efraim Turban.
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Course
Info Technology
Institution
Info Technology
Solutions Manual For Information Technology for Management, Driving Digital Transformation to Increase Local and Global Performance, Growth and Sustainability, 12th Edition by Efraim Turban, Carol Pollard, Gregory Wood.
ISBN: 9781119702900.
Solutions for Information Technology for Management 12e...
SOLUTIONS MANUAL Information Technology for Management 12/E
CHAPTER 1
Digital Transformation Disrupts Companies, Competition and
Careers Locally and Globally
IT at Work
IT at Work 1.1
1. Kroger is using digital technology to enhance the customer experience. Do you believe the
technologies detailed will improve the customer experience? Customer loyalty and
revenues? Do increased revenues automatically lead to increased profits? Why or why not?
Answers may vary but should generally address the risks and costs of developing and
launching new customer technologies and specifically address the digital solutions employed
by Kroger.
2. Using ideas presented in this chapter, what other digital technologies could Kroger institute
to gain competitive advantage?
Answers may vary but could offer cost efficiencies, business growth, enhanced customer data
security measures.
IT at Work 1.2
1. Why did Coca Cola acquire 4,000-store Costa Coffee? What coffee company rival is cited in
the case?
Coca Cola acquired Costa Coffee to enter into the global coffee market. Starbucks.
2. What is meant by a “greenfield opportunity?” Contrast “greenfield” with the term,
“brownfield.” Why wouldn’t all IT structures in new acquisitions be constructed as
“greenfields?”
An IT greenfield opportunity refers to an IT configuration that is started from scratch,
abandoning the currently used technology structure. A brownfield project is one that
modifies or upgrades the existing IT structure (a legacy system).
Costs of instituting entirely new IT systems may be prohibitive, and some legacy systems can
be well-integrated with newer technologies.
3. Coca Cola will need to employ more IT professionals worldwide. How would you approach
acquiring and placing this must-have talent?
Answers may vary but should consider the human resource management challenges of global
recruiting. Students may reference cloud technologies as a way to locate and employ skilled
IT employees wherever they reside, thereby expanding the available labor pool of IT
professionals.
,IT at Work 1.3
1. How did Netflix initially disrupt the business of delivering video content to users?
Initially, Netflix customers rented DVDs delivered by mail and did not charge customers late
fees on delayed rental returns. This was disruptive to Blockbuster Video and other video
rental stores which required store visits to rent content and did charge high late fees for late
returns. Later, Netflix added subscription video streaming to its business model and
disrupted itself.
2. Describe how Netflix continues to both disrupt competitors and itself?
Netflix disrupted traditional television broadcasting networks by streaming content to
customers using a subscription business model. Streaming by subscription was disruptive
because traditional broadcasting networks earned, and still earn, revenues via advertisements
running during television programming. To compete with Netflix and replace lost advertising
revenue, networks also began offering video-on-demand and web delivery of content.
Netflix continues to disrupt itself by operating two business models simultaneously:
continuing to offer first-run movie rental offerings and a model that streams high quality,
award-winning, original content.
,Review Questions
1.1Doing Business in On-Demand and Sharing Economies
1. Name four disruptive business models and describe what they offer to their customers.
Answers may vary. Technology innovations such as: cloud services, big data, mobility,
digitization, and the IoT are likely to disrupt many industries and shake up competitive
positions. Disruptive business models include: `
*On demand – products and services only as needed. For example, Netflix.
*Sharing – products and services shared within community of customers, used only as
needed. Airbnb.
*Digital Subscription – repeated delivery of products and services offered to consumers at
reduced cost or premium quality. Customers are billed periodically. Amazon.
*Digital marketplace – buyers and sellers are connected on common platform. Ebay.
On demand and sharing models reduce consumer investment (buy vs. share, for example)
and reduce ownership of underutilized assets.
2. How is IT contributing to the success of the on-demand and shared economies?
Answers may vary. The proliferation of smartphone-connected consumers, simple and secure
purchase flows and location-based services are market conditions and technological
innovations that propel the on-demand economy forward. Companies are focused on the
strategic use of technology platforms that consist of hardware, software, and networks that
provide connectivity for diverse transactions, such as ordering, tracking, user authentication,
and payments.
Strong digital supply chains and data analytics that enable businesses to quickly and
accurately match supply of their product or service with customer demand are essential to
successful shared economies.
, 3. List the six IT business objectives.
1) Product development
2) Stakeholder integration
3) Process improvement
4) Cost efficiencies
5) Competitive advantages
6) Globalization
4. What are the key strategic and tactical questions that determine an organization’s
profitability and management performance?
Strategic direction:
o What do we do?
o What is our direction?
o What markets and customers should we be targeting and how do we prepare for them?
Business model:
o How do we do it?
o How do we generate revenue & profits to sustain ourselves and build our brand?
Business processes, procedures and technology
o How well do we do it?
o How can we be more efficient?
5. What is a business model?
A business model is the way an organization operates to generate revenue or to sustain
themselves. Elements of a business model can include identifying customer base(s),
establishing business processes and identifying business resources, as examples.
6. What is a digital business model?
A digital business model defines how a company makes money or sustains themselves by
using digital technology. This is how a company engages customers digitally to create value
via websites, social channels and mobiles devices. Companies that can adopt digital business
models are better positioned to take advantage of business opportunities, adapt to changes in
the market, and adjust to competitive forces and future trends.
7. Give two examples of how companies are transitioning to digital business models.
Answers may vary. NBA talent scouts no longer have to review player statistics on
spreadsheets and review hours of tapes. The NBA now relies on STATS’ SportVU
technology using cameras to tracks the movement of every player on the court, record ball
movement and convert the movement to statistics in order to help make trading decisions.
The adoption of analytics to enable decision-making is transforming the NBA from a
traditional business model to a digital business model.
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