Activity for It Management

Part 1: Answer the Module Review Questions listed below. These questions were chosen to demonstrate your understanding and help you assess your progress.

* How could a business use information technology to increase switching costs and lock in its customers and suppliers? Use business examples to support your answers.

A business could use information technology to increase switching costs and lock in its customers and suppliers by having the most benefits and making the transition simple. The question is what are some benefits that IT brings to your company that can make a customer switch and stay loyal to your company? Use IT for strategic purposes like eBay.com that use Cost leadership strategies in the form of; online build to order, online seller biding, and online auctions. What that gives their clients is the business benefits of lower cost producers, buyer set pricing, and auction set prices which the end consumer will only benefit from and would be put in a situation in which they have no choice but to save money and increase profit with ease. The transition for the client who wants to sell their goods it is very simple they could stay at home save the money of a office and no installation is needed so this is a huge advantage eBay has over lets say Office Depot who does not offer the same benefits. This is how you lock a client to use your IT, for the extensive list of benefits, savings, and ease of transition.

* How could a business leverage its investment in information technology to build strategic IT capabilities that serve as a barrier to new entrants into its markets?

A business could leverage its investment in information technology to build strategic IT capabilities that serve as a barrier to new entrants into its markets with tools like commercial off-the-shelf. COTS software is a system developed with the intention of selling software in multiple copies. This software has several important capabilities, but the one...