Automating, Informating, and Strategizing

Paper description: Short and precise answer to each questions below, no introduction paragraph?

1. Why is it usually difficult to develop an accurate cost-benefit analysis for new information systems?
What factors tend to be difficult to quantify? What are some possible solutions?

2. The textbook identifies three types of business values from information systems: automating, informating, and strategizing. Which one do you think is the most important in today?s business environment? Why?

3. How can information systems be used to support different value chain activities? Discuss them briefly.

Below is chapter overview, chapter 3 and web cites link if needs.
CHAPTER OVERVIEW

This chapter will examine how organizations evaluate information systems investments and how these investments can be used strategically, enabling firms to gain or sustain competitive advantage over their rivals. As described in Chapter 1?Managing in a Digital World, a firm has competitive advantage over rival firms when it can do something better, faster, more economically, or uniquely. We will show why it is vital, but sometimes difficult, for people to determine the value of an information systems investment. Presenting the ?case? for an information system is necessary for making good investment decisions; these decisions are particularly difficult given the pace of technological innovations.

One of the key models that can be discussed at greater length is the Porter competitive forces model. QuickMBA has a good primer on Porter’s 5 forces. http://www.quickmba.com/strategy/porter.shtml

There are many other models ? here are just a few:

An extended discussion of the value chain is also advisable. On value chain – here is a basic description that can be used.

http://www.wordiq.com/definition/Value_chain

And here is a great example of the applications

http://www.netmba.com/strategy/value-chain/