CIS 2200 - Final Exam (2025)

What is operational effectiveness?

Performing the same tasks better than rivals. However, it does not usually lead to sustainable competitive advantage because competitors can quickly imitate.

What is a strategic positioning?

Performing different activities than rivals, or the same activities in a different way. It is more sustainable than operational effectiveness.

What is a sustainable competitive advantage?

Financial performance that consistently outperforms industry averages, difficult to maintain due to fast-paced competition and tech imitation.

What is the fast follower problem?

When rivals quickly replicate a first mover's innovations, often with improvements, before the original firm can establish dominance.

Why did TiVo fail to maintain dominance in the DVR market?

Its technology was based on commodity components and lacked strong distribution channels; cable firms had easier customer access.

What are the four criteria of the resource-based view of competitive advantage?

Resources must be: Valuable, Rare, Imperfectly imitable, and Nonsubstitutable.

What is an imitation-resistant value chain?

A way of doing business that competitors struggle to replicate, often due to unique technology integration.

What is the value chain?

A set of interrelated activities that bring a product or service to market, including inbound logistics, operations, and support.

What are switching costs?

Costs that consumers incur when switching from one product or service to another. High switching costs can protect a firm from competitors.

How can data create competitive advantage?

By improving demand forecasting, personalizing services, and enhancing customer experience—making it harder for customers to leave.

What are network effects?

When a product or service becomes more valuable as more people use it (e.g., Facebook, Windows, eBay).

What is viral marketing?

Leveraging consumers to promote a product or service, often through social media or word of mouth.

What are distribution channels?

The paths through which products or services reach customers. Technology can help firms build new or more efficient channels (e.g., affiliates).

What is the five forces model by Michael Porter used for?

To analyze industry competitiveness by examining: Rivalry among competitors, Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, and Threat of substitute products/services.

How does the Internet affect buyer power?

It increases buyer power in commodity markets by improving price transparency, making it easier for buyers to compare options.

What is product-market fit?

The degree to which a product satisfies market demand. A product with strong product-market fit is both desired by customers and scalable into a profitable business.

What made FreshDirect more successful than earlier online grocers like Webvan?

FreshDirect had better product-market fit, addressed NYC-specific needs, and used tech to create efficiency, lower prices, and improve the customer experience.

Name two reasons FreshDirect's model worked in NYC.

Customers were time-strapped and lacked cars; FreshDirect offered convenient, fresh options with delivery tailored to urban living.

What are some of the tech-driven features FreshDirect uses to improve customer experience?

Personalized recommendations, freshness ratings, one-click menus, and meal kits.

How do switching costs benefit FreshDirect?

Customers who store preferences and past orders in FreshDirect's system are less likely to switch to a competitor due to the hassle of reentering everything.

What is an example of how FreshDirect uses its data asset?

To offer targeted promotions, recommendations, and improve operations via machine learning, and an overall personalized experience

What are inventory turns and how do FreshDirect’s compare to traditional grocers?

Inventory turns measure how often inventory is sold; FreshDirect's turns are 197 per year vs. 40 for traditional grocers—indicating fresher goods and quicker cash flow.

How does FreshDirect's direct supplier model benefit both parties?

FreshDirect eliminates middlemen, gets better terms, and gives suppliers benefits like faster payment, data sharing, and co-branding.

What went wrong during FreshDirect's move to the Bronx facility?

They launched new systems without proper testing or a phased rollout, leading to delivery and quality issues.

How did FreshDirect fix its Bronx rollout issues?

Used Splunk to track problems, prioritized customer service, repackaged orders with care, and even used Uber for urgent redeliveries.

What opportunity did COVID-19 present to FreshDirect?

Huge surge in demand; became an essential service, supported community food drives, and hired laid-off food workers.

What is straddling, and how does it affect traditional grocers trying to copy FreshDirect?

Straddling is trying to operate multiple business models without excelling at either—traditional grocers can't match FreshDirect without compromising their own operations.

Why is FreshDirect's business hard for new competitors to copy?

It has proprietary systems, long-term supplier relationships, and customer data that give it a durable advantage.

What makes Zara's business model unique in the fashion industry?

Zara uses a technology-enabled, vertically integrated strategy with minimal advertising, in-house production, and fast fashion cycles to respond quickly to customer demand.

What is vertical integration and how does Zara use it?

When a company owns multiple stages of its value chain. Zara designs, produces, and distributes most products in-house to reduce lead times and maintain control.

What is a point-of-sale (POS) system and how does Zara use it?

A system that captures sales data at checkout. Zara uses it to track bestsellers and inform designers and supply chain teams of what's selling in real-time.

How does Zara use customer data to improve products?

Store managers use mobile apps to collect customer feedback, helping designers and planners create products customers actually want.

What is RFID and how does it benefit Zara?

Radio-frequency identification allows Zara to track inventory in real time, optimize stock levels, and streamline e-commerce fulfillment.

What is omnichannel retailing?

An integrated approach that merges online and offline sales experiences. Zara uses it so returns can happen in-store and orders can be picked up from physical locations.

How does Zara's supply chain contribute to its competitive advantage?

Zara ships new styles to stores in ~15 days using just-in-time manufacturing, in-house production, and smart logistics, enabling faster turnover and fewer markdowns.

What is the greige concept in Zara’s production?

Zara produces unfinished fabric (greige) that can be dyed and tailored based on real-time sales data, allowing for responsive design changes.

How does Zara reduce the risk of product failure?

By using small production batches, gathering real-time customer input, and delivering new items frequently to test demand quickly.

How did Zara's omnichannel and RFID systems help during COVID-19?

Allowed the firm to shift inventory from closed stores to meet e-commerce demand, reducing losses compared to competitors.

What are the five components of an information system (IS)?

Hardware, software, data, procedures, and people.

What was the lesson from Prada's failed tech implementation?

Investing in tech without proper testing and integration can result in disaster. Successful information systems must balance all five IS components.

What are some environmental or operational risks Zara faces?

Centralized operations vulnerable to disruption, rising transportation costs, currency fluctuation, and competitive pressure from rivals.

How are competitors trying to copy Zara's success?

By increasing fashion turnover rates, moving production closer to market, and improving e-commerce and logistics strategies.

What is Moore’s Law?

The number of transistors on a chip doubles approximately every 18 months, doubling chip performance per dollar.

What is the difference between volatile and nonvolatile memory?

Volatile memory (like RAM) is erased when power is lost; nonvolatile memory (like flash storage) retains data without power.

What is price elasticity in tech markets?

It describes how demand increases when prices fall. Faster, cheaper tech leads to broader adoption and new markets.

What is pervasive computing?

Embedding computing into everyday devices, creating "smart" products (e.g., thermostats, refrigerators, wearables).

What is the Internet of Things (IoT)?

A network of embedded devices using sensors, processors, and connectivity to collect and exchange data automatically.

How are AI and machine learning advancing compared to Moore's Law?

Faster than Moore's Law—training times and costs for AI models have dropped dramatically between 2017 and 2020.

What are microcontrollers?

pecial-purpose chips with processing, memory, and input/output on one chip, often used in IoT devices.

What are multicore microprocessors?

Chips with multiple processor cores that can perform tasks simultaneously, improving performance and energy efficiency.

What are some challenges that limit Moore's Law?

Issues with size, heat, and power as chips get smaller, and quantum tunneling when paths become too tiny.

What are some alternatives being explored beyond traditional silicon chips?

Carbon nanotubes, optical chips, and quantum computing.

What is grid computing?

Using software to combine multiple computers into a single system to solve large-scale problems collaboratively.

What is the difference between grid and cluster computing?

Cluster computing uses tightly connected servers; grid computing connects distributed systems via software.

What is latency in networking?

The delay before data begins transferring. Lower latency means faster communication.

What is e-waste and why is it a concern?

Discarded electronic devices; it contains toxic materials and is difficult to recycle responsibly.

How can firms responsibly manage e-waste?

Work with certified e-waste recyclers (e.g., e-Stewards, ISO 14001 certified firms) and plan for end-of-life disposal.

What is Disney’s MagicBand and what does it do?

A wearable device that links ticketing, hotel access, ride reservations, and purchases—streamlining guest experiences.

What are the business benefits of Disney's MyMagic+ system?

Reduced wait times, better staffing, increased customer satisfaction, and higher guest spending.

What were some costs and challenges of deploying MyMagic+?

$1 billion investment, over 100 systems integrated, Wi-Fi infrastructure, new hardware, and employee retraining.

What is the difference between hardware and software?

Hardware is the physical tech (e.g., computer, keyboard); software is a set of instructions that tells the hardware what to do.

What is an operating system (OS)?

Software that controls hardware and provides a platform for application software (e.g., Windows, iOS).

What is firmware?

Software stored on nonvolatile memory chips, often embedded in hardware to control basic functions.

What are embedded systems?

Special-purpose software included inside physical products (e.g., cars, photocopiers, thermostats).

What is enterprise resource planning (ERP) software?

software package that integrates business functions like sales, inventory, HR, and finance.

What are the three main categories of enterprise software?

CRM (Customer Relationship Management), SCM (Supply Chain Management), and BI (Business Intelligence).

What is a database management system (DBMS)?

Software used to create, maintain, and manipulate databases (e.g., Oracle, MySQL).

What is distributed computing?

Systems in different locations communicate and work together to complete a task.

What are Web services and APIs?

Web services are software pieces accessed via a server; APIs are published instructions for accessing services or data.

What is the purpose of messaging standards like XML and JSON?

To enable machine-to-machine data sharing in a standard format, often used in APIs.

What is a platform in software?

A product or service that allows the development and integration of complementary software (e.g., iOS, Android).

What is the difference between desktop and enterprise software?

Desktop software is for individual users; enterprise software serves multiple users across an organization.

What is the waterfall software development method?

A linear and sequential approach with clearly defined phases. Rigid and slow but good for clear documentation.

What is agile development?

An iterative approach focused on speed and flexibility, delivering smaller updates frequently.

What is scrum in agile development?

A framework for managing agile projects with sprints (1-6 weeks), defined roles, artifacts, and ceremonies.

What is total cost of ownership (TCO)?

All costs over a software system's lifecycle: design, development, testing, implementation, training, and maintenance.

Name three common reasons why tech projects fail.

Poor goal setting, weak leadership, scope creep, inadequate resources, and lack of testing.

What was a major lesson from the failed HealthCare.gov rollout?

Clear leadership, coordination, and experienced technologists are essential for large-scale system success.

What is open source software (OSS)?

Software that is free, with source code available for anyone to view, modify, and redistribute.

What is cloud computing?

Replacing computing resources—hardware and software—with services delivered over the Internet.

What is virtualization?

Software that allows a single computer to behave like many separate computers, helping consolidate resources and reduce costs.

What is software as a service (SaaS)?

Cloud-delivered software that firms subscribe to (e.g., Google Workspace, Salesforce).

What is the LAMP stack?

Linux (OS), Apache (web server), MySQL (database), and Python/Perl/PHP (programming)—a common open source bundle.

What are the benefits of open source software?

Lower cost, improved reliability and security (due to more eyes on the code), scalability, and faster time to market.

What is the Heartbleed bug, and why is it significant?

A major security flaw in OpenSSL (open source), showing the risks of neglected OSS—even widely used ones.

How do companies make money from OSS?

Through support, consulting, hosting, and premium features.

What is total cost of ownership (TCO) in software?

Includes design, development, testing, implementation, training, and ongoing maintenance costs

What are the 3 main cloud computing service models?

SaaS: Apps delivered over the internet

PaaS: Platform for developing and deploying apps

IaaS: Infrastructure resources like servers and storage

What are the advantages of SaaS for users?

Lower upfront cost, quick deployment, scalability, remote access, and automatic updates.

What are risks of SaaS?

Vendor dependency, data security, limited customization, and reliance on internet connectivity.

What is cloudbursting?

Using cloud resources to handle overflow during demand spikes.

What are black swan events in computing?

Rare, unpredictable events with major impact—cloud scalability can help firms respond.

What is a server farm?

A massive network of computers used to power cloud computing and SaaS services.

What are containers in virtualization?

Lightweight virtual environments that share an OS but allow isolated app execution (e.g., Docker).

What are virtual desktops?

Remote-hosted PC environments accessed through a device, simplifying updates and security.

How do app stores change software delivery?

They lower distribution costs, encourage tighter OS integration, and shift user expectations.

What are key factors in the "make, buy, or rent" decision for software?

Competitive advantage, cost, time, security, legal compliance, internal expertise, and vendor reliability.

What is a database?

A structured collection of data stored electronically and accessible via a database management system (DBMS).

What is a table in a database?

A collection of related data entries arranged in rows and columns.

What is a primary key?

A unique identifier for each record in a database table.