MIS 6713- ECU- FINAL EXAM- RAVI
PAUL QUESTIONS AND ANSWERS 2026
VERIFIED.
Economic Value - ANS something that your customers will be willing to pay for, it's generated
when worthwhile things that did not exist before are created
SOC- supplier opportunity costs - ANS the minimum amount of money suppliers are willing to
accept to provide the firm with the needed resources. This could be based on costs or ability to
sell to others
FC- firm cost - ANS the actual amount of money the firm disbursed to acquire the resources
needed to create its product or service
WTP or CWP- willingness to pay or customer willingness to pay - ANS the max amount of
money the firms customers are ready to spend in order to obtain the firms product
TVC- total value created - ANS is the difference between customer willingness to pay and
supplier opportunity costs
Added Value - ANS the portion of the total value created that would be lost if the firm did not
take part in the exchange
@2026/2027 ALLRIGHTS RESERVED.
, IT Dependent Strategic Initiatives Tactical vs Strategic Information Systems - ANS consist of
identifiable competitive moves designed to lead to sustained improvements in the firms
competitive position that depend on the use of IT to be enacted
Tactical information systems are those systems that do not position the firm to create added
value, even thought they are crucial for the business' operation
objective of producing new value that the firm can appropriate, creates competitive advantage
through the initiative
Increasing Customer Willingness to Pay - ANS The strategy is to drive customer willingness to
pay as high as we possibly can and then try to price low enough so that people perceive that
they are appropriating significant value when they buy the product so they buy in large volumes
(ex. Apple)
Decreasing Supplier Opportunity Cost - ANS There is the great potential to create value by
working with the firms supplier and creating incentives for them to supply you with needed
resources for less money (ex. Walmart's continuous replenishment technique)
Industry Analysis (Porter's 5 forces, know them all, be prepared to identify relevant forces from
scenarios) Customer Service Life Cycle and Phases - ANS Threat of New Entrants
Threat of substitute products or services
The bargaining power of buying
The bargaining power of suppliers
The rivalry among existing competitors
Value Chain Analysis (definition and purpose) - ANS Managers need to identify, understand,
and analyze the activities the firm performs so that they can be enhanced or transformed using
IS resources
@2026/2027 ALLRIGHTS RESERVED.
PAUL QUESTIONS AND ANSWERS 2026
VERIFIED.
Economic Value - ANS something that your customers will be willing to pay for, it's generated
when worthwhile things that did not exist before are created
SOC- supplier opportunity costs - ANS the minimum amount of money suppliers are willing to
accept to provide the firm with the needed resources. This could be based on costs or ability to
sell to others
FC- firm cost - ANS the actual amount of money the firm disbursed to acquire the resources
needed to create its product or service
WTP or CWP- willingness to pay or customer willingness to pay - ANS the max amount of
money the firms customers are ready to spend in order to obtain the firms product
TVC- total value created - ANS is the difference between customer willingness to pay and
supplier opportunity costs
Added Value - ANS the portion of the total value created that would be lost if the firm did not
take part in the exchange
@2026/2027 ALLRIGHTS RESERVED.
, IT Dependent Strategic Initiatives Tactical vs Strategic Information Systems - ANS consist of
identifiable competitive moves designed to lead to sustained improvements in the firms
competitive position that depend on the use of IT to be enacted
Tactical information systems are those systems that do not position the firm to create added
value, even thought they are crucial for the business' operation
objective of producing new value that the firm can appropriate, creates competitive advantage
through the initiative
Increasing Customer Willingness to Pay - ANS The strategy is to drive customer willingness to
pay as high as we possibly can and then try to price low enough so that people perceive that
they are appropriating significant value when they buy the product so they buy in large volumes
(ex. Apple)
Decreasing Supplier Opportunity Cost - ANS There is the great potential to create value by
working with the firms supplier and creating incentives for them to supply you with needed
resources for less money (ex. Walmart's continuous replenishment technique)
Industry Analysis (Porter's 5 forces, know them all, be prepared to identify relevant forces from
scenarios) Customer Service Life Cycle and Phases - ANS Threat of New Entrants
Threat of substitute products or services
The bargaining power of buying
The bargaining power of suppliers
The rivalry among existing competitors
Value Chain Analysis (definition and purpose) - ANS Managers need to identify, understand,
and analyze the activities the firm performs so that they can be enhanced or transformed using
IS resources
@2026/2027 ALLRIGHTS RESERVED.
