Short Case Scenario 13-1

question 145

Essay

Short Case Scenario 13-1
Bill Chung is the recently appointed Vice President of Information Systems for Worldwide Corporation. This is a newly created position. Bill joins the preexisting management team of Vice Presidents for Operations, Finance, and Marketing. Bill is determined to make himself useful and to improve the way Worldwide does business. Very quickly, Bill observes that Worldwide has collected rooms full of data but rarely use it to make decisions. During his first week of work, he comments to the company's president, Cindy Stevens, that the company has plenty of data but very little information. Cindy looks puzzled.
-As Bill proposes increased spending on network technology,Cindy is concerned that Bill is driving the company towards bankruptcy.Bill assures her that this is not the case.How can increased technology improve productivity and performance?

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Definitions:

Purchasers of Resources

Individuals or entities that buy or acquire resources for the purpose of production of goods and services.

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity, emphasizing decisions at the margin.

Scarce

A term describing the limited availability of resources relative to the wants and needs for them, leading to the necessity of making economic choices.

Additional Benefit

An additional benefit refers to extra advantages or perks that come from using a product or engaging in an activity, beyond the primary gains.