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Chapter 12 ANSWERS TO DISCUSSION QUESTIONS

1. What has been the impact of e-business technologies on the work relationships, activities, and
resources of managers?
Information technology is a major force for organiational and managerial change. !ue to
telecommunications networks and personal computers, computing power and information
resources are now more readily available to more managers than ever before. "anaging the
information systems resources of a business is no longer the sole province of information
systems specialists. Instead, information resource management has become a major
responsibility of managers.

#. What can business unit managers do about performance problems in the use of information
technology and the development and operation of information systems in a business?
$%tensive and meaningful management involvement in information systems is important.
"anagement can get involved through e%ecutive information services committees, management
steering committees, and through end user management of I&.
'. (efer to the (eal World )ase on "ellon *inancial )orp. in the chapter. What should determine
whether a company uses a dot.com or dotcorp strategy for its e-commerce initiatives? +se an
e%ample of companies you know from the real world to support your answer.
Whether or not a company uses a dot-com or dotcorp strategy for its e-commerce initiatives may
be based on how they plan to conduct future business. )ertainly some up-start companies may
choose only to conduct business using a dot.com strategy. &hey may not re,uire a traditional
brick and mortar presence, and their products may not re,uire a physical storage place.
-maon.com is a hybrid of a dot.com and a dot.corp company. -maon does have some
warehouses, but they also offer many products that they never actually carry in a physical
inventory. "any more companies will adopt this type of strategy as they compete in the new
economy. - dot-com strategy is one where you take an e%isting e%pertise, put it on the Internet,
and try to build a new line of business around it. In a dotcorp, you derive the benefits of e-
commerce through strategies that are profitably attached to the Internet. !ell )omputers used a
dotcorp strategy to offer their products directly to the customer.
.. /ow are Internet technology affecting the structure and work roles of modern organiations?
*or e%ample, will middle management wither away? Will companies consist primarily of self-
directed project teams of knowledge workers? $%plain your answer.
)omputer-based information systems can encourage either centraliation or decentraliation.
&he philosophy of top management, the culture of the organiation, the need to reengineer its
operations, and its use of aggressive or conservative competitive strategies all play major roles
in how I& is shaping the firm0s organiational structure. Work roles are rapidly changing as we
find more effective ways to communicate and collaborate with our customers, suppliers,
,
partners, alliance members, employees, and so on. We are e%periencing major changes in the
way in which work is done as we are working more and more in environments that foster
workgroups and team effort.
1. 2hould the I2 function in a business be centralied or decentralied? What recent developments
support your answer?
&he development of minicomputers and microcomputers accelerated a trend back toward
decentraliation. !istributed processing networks and the creation of information centers to
support end user computing came about. 3ately, the trend has been to establish tighter control
over the information resources of an organiation, which has resulted in a re-centraliing trend at
some organiations, and the development of hybrid structures at others. 2ome organiations
have spun off their I2 functions into I2 subsidiaries, and some organiations have resorted to
outsourcing, i.e. have turned over their I2 operations to outside system integrators.
4. (efer to the (eal World )ase on !/3 Worldwide $%press and -pplianceWare in the chapter.
!/3 finds a better fit to their business needs in developers outside of the +nited 2tates because
they have less of a 5flavor-of-the-month technologism.6 What does this mean? !o you agree
with !/30s conclusion? Why or why not?
+nited 2tates is a hotbed for technology development. )ompanies and developers are pushing
the development of newer technology in order to be the first to market. &hese firms and
developers have a great desire to be on what is referred to as the 5bleeding edge technology6.
7ot all firms wish to risk the chance of being the first to market, and many are actually adverse
to taking such risks. In the +nited 2tates there is a tendency toward keeping up with others,
combat style strategies, and the need for market competitiveness 8 thus we do have a tendency
towards working with the 5flavor-of-the-month technology96 !/3 :s conclusion on this
environment is that they prefer to work on a more stable environment and as such are ,uite
content to work with others who also believe that it is a safer and more stable environment to
work in.
;. /ow will the Internet, intranets, and e%tranets affect each of the components of global e-business
technology management as illustrated in *igure 1#.1'? <ive several e%amples.
&he Internet, intranets, and e%tranets will certainly affect each of the components of global e-
business technology management as illustrated in *igure 1#.1'. -s organiations move rapidly
towards the use of these types of technologies, they must ensure that their business strategy
coincides with their I& strategy. =usinesses are no longer restricted to their local markets, or
even their national markets. <lobal markets are unfolding, and competition is heating up. >nly
by developing effective and appropriate e-business and I& strategies, which companies be able
to compete effectively in these markets. )ompeting in the international business communities0
offer major challenges not only with technology but also with challenges such as cultural,
political, and geoeconomic issues. >nce a company recognies these challenges, they can
develop strategies to deal with the other strategies as outlined in *igure 1#.1'.
,
?. /ow might cultural, political, or geoeconomic challenges affect a global company0s use of the
Internet? <ive several e%amples.
&hrough the use of the Internet, companies are now able to offer their goods and services
throughout the world. &he traditional methods of doing business at home in domestic markets
has changed dramatically. 7ot only has the Internet opened up the floodgates of International
marketing, it has also brought with it many other challenges such as cultural, political, and
geoeconomic challenges. In order to be successful in these global markets, companies must be
very diligent in ensuring that they take note of the many aspects involved in these three
challenges. &hey must be able to develop global e-business I& strategies and mange global e-
business application portfolios, Internet technologies, platforms, databases, and systems
development projects.
@olitical challenges involve rules regulating or prohibiting transfer of data across national
boundariesA restrictions laws restrict, ta%, or prohibit imports of hardware and softwareA local
content lawsA and reciprocal trade agreements.
<eoeconomic challenges involve dealing with physical distancesA #. time onesA telephone and
telecommunications servicesA job skillsA and differences in the cost of living and labor costs.
)ultural challenges include differences in languages, cultural interests, religions, customs, social
attitudes, and political philosophies, differences in work styles and business relationships.
B. Will the increasing use of the Internet by firms with global e-business operations change their
move toward a transnational business strategy? $%plain.
&here appears to be no doubt that the increasing use of the Internet by firms with global
operations will result in changing their move toward a transnational business strategy. -s firms
increasingly e%tend their product offerings into the global marketplace they will have little
choice but to develop a transnational business strategy in order to survive.
1C. /ow might the Internet, intranets, and e%tranets affect the business drivers or re,uirements
responsible for a company0s use of global I&, as shown in *igure 1#.14? <ive several e%amples
to illustrate your answer.
&he Internet, intranets, and e%tranets will affect the business drivers or re,uirements responsible for a
company0s use of global I& in a number of ways. &hese business drivers will depend on the nature of
the industry and its competitive or environmental forces. $%amples include airlines and hotel chains
with global customers, that is, customers who travel widely or have global operations. 2uch companies
will need global e-business capabilities for online transaction processing so they can provide fast,
convenient service to their customers or face losing them to their competitors. &he economies of scale
provided by global e-business operations are another business driver that re,uires the support of global
I& applications. =usiness drivers include global customers, products, operations, resources, and
,
collaboration. >ther e%amples include companies who have products that are available worldwide,
and that re,uire telecommunications capabilities to coordinate global marketing campaigns