Managing the Information Technology Resource 1st Edition Luftman Test Bank
Managing the Information Technology Resource 1st Edition Luftman Test Bank
Managing the Information Technology Resource 1st Edition Luftman Test Bank
Managing the Information Technology Resource 1st Edition Luftman Test Bank
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5. Chapter 7 Managing the Information Technology Resource 1
Chapter 7
Managing Emerging Technologies
True-False Questions
1. A traditional description of the Technology Life Cycle describes technologies as passing
through five phases.
Answer: False Reference: p. 180
2. In the Emerging Technology phase of the Technology Life Cycle, a technology is considered
an innovation and is still developing in terms of capability and capacity.
Answer: True Reference: p. 180
3. In the Key Technology phase of the Technology Life Cycle, a technology is considered
required in order for an organization to remain viable.
Answer: False Reference: p. 180
4. Emerging technologies are defined as those technologies that are just coming out of research
and development labs and are becoming available for implementation in an organizational
setting.
Answer: True Reference: p. 180
5. The Innovators adopter type of the Innovation Diffusion Theory model can be characterized
as organizations or people that are true skeptics, adopting technology mainly to stay in the
market.
Answer: False Reference: p. 182
6. The Laggards category of the Innovation Diffusion Theory model can be characterized as
organizations or people that are true skeptics, adopting technology mainly to stay in the
market.
Answer: True Reference: p. 182
7. The majority of organizations belong to the Laggards adopter type of the Innovation
Diffusion Theory model, whereby they adopt technology mainly to stay in the market.
Answer: False Reference: p. 182
6. 2 Managing the Information Technology Resource
8. A primary reason why organizations focus on technology change is to maintain competitive
advantage.
Answer: True Reference: p. 183
9. Moore’s Landscape of Technology Adoption Life Cycle model looks at technology
innovation from a product provider point of view, rather than from a technology user’s point
of view.
Answer: True Reference: p. 183
10. Implementing a given technology during the Early Adopters phase offers the greatest relative
benefit versus the cost of implementing the technology.
Answer: True Reference: p. 185
11. Organizations that tend to place a greater emphasis on system design and engineering are
much more likely to adopt new technologies during the initial stages of its application.
Answer: False Reference: p. 185
12. The normal distribution curve can be used to describe the rate of adoption of technologies.
Answer: True Reference: p. 186
13. The S-curve can be used to describe the cumulative adoption of technologies.
Answer: True Reference: p. 186
14. Sunsetting refers to the time period during which a new technology is considered emerging.
Answer: False Reference: p. 186
15. An assimilation gap occurs when emerging technologies never become viable or accepted
as mainstream.
Answer: False Reference: p. 191
7. Chapter 7 Managing the Information Technology Resource 3
Multiple Choice Questions
16. The Technology Life Cycle phase whereby implementing a specific technology becomes
required in order for an organization to remain viable is best described as:
a. emerging technology.
b. pacing technology.
c. key technology.
d. base technology.
Answer: d Reference: p. 180
17. The Innovation Diffusion Theory adopter type which categorizes organizations or people as
true skeptics who adopt technology mainly to stay in the market, is best described as:
a. laggards.
b. early majority.
d. innovators.
e. late majority.
Answer: a Reference: p. 182
18. Each of the following are technology diffusion categories in Moore’s Landscape of
Technology Adoption Life Cycle except:
a. technology enthusiasts.
b. thrill seekers.
c. visionaries.
d. skeptics.
Answer: b Reference: p. 183
19. The greatest implication of not keeping pace with technology is best described as:
a. loss of competitive edge.
b. lack of control in running the business.
c. increased cost of production.
d. decreased customer satisfaction.
Answer: a Reference: p. 184
20. The Innovation Diffusion Theory adopter type which offers the greatest relative benefit
versus cost to implement is best described as:
a. laggards.
b. early majority.
c. innovators.
d. early adopters.
Answer: d Reference: p. 185
8. 4 Managing the Information Technology Resource
21. The S-curve is best described by which of the following?
a. Rate of adoption of technologies
b. Cost and benefits by phase
c. Cumulative adoption of technologies
d. Time to market of emerging technologies
Answer: c Reference: p. 186
22. Which of the following best describes the technology lifecycle stage whereby an
organization is most likely to implement a new technology if the organization emphasizes
R&D, has the tightest coupling between R&D and systems, has state of the art technical
capabilities, and are considered technical enthusiasts?
a. Innovator “pioneer”
b. Early adopter
c. Late majority
d. Laggards “me to”
Answer: a Reference: p. 186
23. Which of the following best describes the discontinuous change that comes about as a result
of dramatic changes in the roles of the end user of a technology?
a. Paradigm shock
b. Application breakthrough
c. Learning by using
d. Competitive differential
Answer: b Reference: p. 188
24. The process by which an innovation is communicated, over time, through certain channels to
members of a social system best describes:
a. standards.
b. diffusion.
c. convergence.
d. scanning.
Answer: b Reference: p. 189
25. Which of the following best describes the lag between the acquisition of a product and its
actual deployment by an organization?
a. Diffusion
b. Chasm
c. Assimilation gap
d. Convergence
Answer: c Reference: p. 191
9. Chapter 7 Managing the Information Technology Resource 5
26. Each of the following is a factor that can slow the adoption of new technologies except:
a. the technical standards in the industry are not clearly set.
b. the offering needs to undergo a significant regulatory approval process.
c. the offering does not provide substantial performance advantages over current solutions..
d. the offering was not forecasted as becoming an emerging technology.
Answer: d Reference: p. 194
27. Which of the following best describes the phenomenon whereby more than one technology is
combined to create a new technology?
a. Speciation
b. Application
c. Convergence
d. Diffusion
Answer: c Reference: p. 196
28. Which of the following best describes the process of keeping abreast of developments and
potential developments in the technology arena?
a. Technology convergence
b. Technology scanning
c. Technology evaluation
d. Technology forecasting
Answer: b Reference: p. 197
29. Each of the following are common sources of information that can be used to facilitate
technology scanning except:
a. vendors and consultants.
b. universities.
c. early adopters.
d. parapsychologists.
Answer: d Reference: p. 197
30. Each of the following are components of the Technology Assessment process that can be
applied to reducing the uncertainties that arise out of traditional static approaches to
evaluating emerging technology except:
a. scoping.
b. searching.
c. committing.
d. disposing.
Answer: d Reference: p. 199
10. 6 Managing the Information Technology Resource
Fill In the Blanks
31. Emerging technologies are defined as those technologies that are just coming out of research
and development labs and are becoming available for implementation in an organizational
setting.
Reference: p. 180
32. Sunsetting refers to the time period during which a technology is earmarked to be
discontinued but exists alongside the new technology.
Reference: p. 186
33. Once a technology enters the obsolescence phase, there is a decline in the available
knowledge as people move on to the next new technology.
Reference: p. 188-189
34. Paradigm shock refers to the inhibiting discontinuity experienced by end users, or the
infrastructure supporting them, as a result of implementing a new technology.
Reference: p. 188
35. Application breakthrough refers to the enabling discontinuity experienced by end users as a
result of a dramatic change in their roles due to implementing a new technology.
Reference: p. 188
36. Diffusion is defined as the process by which an innovation is communicated, over time,
through certain channels to members of a social system.
Reference: p. 189
37. Learning by using refers to the increase in the benefit a technology brings as the community
of adopters accumulates experience and knowledge of its use.
Reference: p. 190
38. Positive network externalities refer to the benefits brought by the number of users of
technology; the greater the number of users, the greater the benefit of the technology.
Reference: p. 190
39. Interrelatedness refers to the existence of compatible products that serve to increase the
likelihood of a larger base of adopters..
Reference: p. 190
11. Chapter 7 Managing the Information Technology Resource 7
40. Shelf-ware refers to technology products which are purchased by an organization but not
implemented.
Reference: p. 190
41. The lag between the acquisition of a product and its actual implementation,
whether it is a temporary lag or a permanent difference, has been described as the
assimilation gap.
Reference: p. 191
42. The phenomenon whereby more than one technology is combined to create a new technology
best describes convergence.
Reference: p. 196
43. Technology scanning refers to the process of keeping abreast of developments and potential
developments in the technology arena.
Reference: p. 197
44. Two methodologies used to assess possible future developments include the scenario
planning method and the Delphi method.
Reference: p. 197
45. The scenario planning method examines a proposed situation and evaluates the probability
of it occurring versus the impact the development would have on an organization.
Reference: p. 198
12. 8 Managing the Information Technology Resource
Essay Questions
46. Give an example of a company that used an emerging technology and describe how it
provided them with a competitive advantage.
Citibank first introduced Automatic Teller Machine technology, which gave them the ability
to provide banking services 24 hours a day. This initial introduction as a customer service
technology was subsequently adopted by other banks and quickly moved into the key
technology phase as customers used the availability of an ATM as a reason for choosing their
bank. Citibank gained short-term competitive advantage as other banks scrambled to acquire
this technology.
Reference: p. 179
47. List and briefly describe the four phases of the Technology Life Cycle.
1. Emerging Technology. In this phase, a technology is considered an innovation
and is still developing in terms of capability or capacity. Its potential marketplace
has not yet accepted it as a technology that will be useful, useable, cost effective,
or a viable substitute for a technology (or service) it could replace.
2. Pacing Technology. In this phase, the technology is beginning to grow in acceptance.
Multiple competing organizations may be implementing or evaluating the
technology. The technology has been identified as having benefits that exceed its
cost, or is viewed as one that has a competitive advantage that cannot be ignored.
3. Key Technology. Once a technology reaches this phase, it has become a technology
that provides a competitive differential, i.e. the use of this technology
enables/drives the business and/or is a major reason the organization is more successful
than its competitors.
4. Base Technology. This final phase of a technology’s life cycle is reached when
the technology becomes a required technology for an organization. If an organization
is to remain viable, it cannot avoid using the technology.
Reference: p. 180
13. Chapter 7 Managing the Information Technology Resource 9
48. List and briefly describe the five adopter types from the Innovation Diffusion Theory model.
1. Innovators: Organizations or people that are willing to take higher risk, have
“deeper pockets” (i.e., are able to finance projects more readily), or have
experience in evaluating/piloting projects based on emerging technologies.
2. Early Adopters: Organizations or people that are more visionary. There is some
assurance of the potential returns from adopting a technology, but its visibility is
not yet widespread, or only these adopters see its application.
3. Early Majority: Adopters who waited until there was more assurance for the
success of the technology. Other firms, perhaps competitors, have already
proven that the technology can be successful and there is an understanding that
the technology will eventually become a key and base technology.
4. Late Majority: This category includes the organizations that have realized they
will have to adopt the technology to stay competitive. These are the conservative
organizations, which prefer low risk or have low investment capability. The pressure
to adopt the technology to remain competitive has risen to a level where the
technology cannot be ignored.
5. Laggards: These are the true skeptics. The technology is likely to have become
a base technology and the main benefit to adopting it is to stay in the market. The
risk in being a laggard is that the cost of implementation may now be greater than
the economic benefit.
Reference: p. 182
49. Discuss a human resource consideration when evaluating and implementing new
technologies.
A human resource issue to consider when evaluating and implementing new technologies
is the availability of talent. This needs to be considered because an organization must acquire
the personnel who can best implement the technology. Before the technology is acquired, the
organization must determine whether they have the best talent to evaluate the technology and
its fit. In the event an emerging technology is selected for pursuit, it requires obtaining the
right human resources with the right skill set, whether cultivated in-house or obtained
outside. The skill level of existing human resources needs to be evaluated and the cost of
acquiring the skills needs to be weighed against the timing of implementation so that a
decision can be made whether to learn the skill in-house or bring in skill from outside.
Reference: p. 195
14. 10 Managing the Information Technology Resource
50. List and briefly describe two sources of information that can be used for technology
scanning.
There are many sources of information available for use in technology scanning.
Two methods that are available to assess possible future developments include the
Delphi method and the scenario planning method. The Delphi method uses a multiround
survey approach with feedback. Experts in a particular field or area are utilized and through
the feedback within the group, a consensus is reached after several rounds of questions and
survey iterations carry the highest probability of being correct.
The scenario planning method examines a given scenario (possible new technology,
environmental change, etc.) and evaluates the probability of it occurring versus the impact
the development would have on an organization. Scenarios that have both a high impact and
a high probability of occurring become high priority issues.
Reference: p. 197
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