Part A:

1. Suppose you are a manager being asked to develop computer-based applications to gain a competitive advantage in an important market for your company. What reservations might you have about doing so? Why?

2. 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.

Part B:

a. Word processing: Approximately how many words per minute can you type? Do you use styles to manage document formatting? Have you ever set up your own mail-merge template and data source? Have you created your own macros to handle repetitive tasks? Have you ever added branching or looping logic in your macro programs?

b. Spreadsheets: Do you know the order of operations your spreadsheet program uses (what does "=5'2^2-10" equal)? Do you know how to automatically sort data in a spreadsheet? Do you know how to create graphs and charts from spreadsheet data? Can you build pivot tables from spreadsheet data? Do you know the difference between a relative and a fixed cell reference? Do you know how to use functions in your spreadsheet equations? Do you know how to use the IF function? Have you created your own macros to handle repetitive tasks? Have you ever added branching or looping logic in your macro programs?

Part C: Case Study- How to Win Friends and Influence Business People: Quantify IT Risks and Value

1. By changing the way his group talks about IT investments, CIO Tim Schaefer is trying to change the way the rest of the company sees IT. Why do you think this is necessary? What would be the prevailing mindset about IT in his company, such that he needs to do something about it? Provide some examples of how IT may be regarded in this organization.

2. Chip Gliedman of Forrester Research breaks down IT risks into implementation and impact considerations. Why do you think these are so difficult to manage? What makes IT investments different from investments in other areas of a company?