27. Why
outsourcing?
Outsourcing
helps
organizations
that
are
struggling
trying
to
keep
up
with
unfamiliar
areas
of
expertise.
28. What
is
the
effect
of
the
Internet
on
television
and
radio
content?
Today
is
that
it
has
to
be
on
the
Internet
before
we
will
ever
hear
or
see
something
either
on
the
radio
or
on
the
TV.
29. With
revenues
from
advertising
in
traditional
channels
diminishing,
how
can
television
and
radio
stations
continue
to
produce
high-‐quality
content?
They
rely
on
what
they
can
sell
from
their
Internet
sites.
Review
Questions:
1. Describe
the
productivity
paradox.
The
observation
that
productivity
increases
at
a
rate
that
is
lower
than
expected
when
new
technologies
are
introduced.
2. Describe
how
to
make
a
successful
business
case,
contrasting
faith-‐,
fear-‐,
and
fact-‐based
arguments.
Faith
based
arguments
are
based
on
beliefs
about
organizational
strategy,
competitive
advantage,
industry
forces,
customer
perceptions,
market
share,
and
so
on.
Fear
based
arguments
are
based
on
the
notion
that
if
the
system
is
not
implemented,
the
firm
will
lose
out
to
the
competition
or
worse,
go
out
of
business.
Fact
based
arguments
are
based
on
data,
quantitative
analysis,
and/or
indisputable
factors.
3. Compare
and
contrast
tangible
and
intangible
benefits.
Tangible
benefits
are
relatively
easily
to
determine.
They
can
be
estimated
or
proven
in
numbers.
Intangible
benefits
are
the
real
benefits,
but
they
are
harder
to
quantify
with
confidence.
You
have
to
use
your
perception
for
these.
4. Contrast
the
perspectives
of
different
shareholders
involved
in
making
information
systems
investment
decisions.
Management’s
perspective
is
to
be
representatives
or
managers
from
each
of
the
functional
areas
within
the
firm.
Steering
committee’s
perspective
is
to
be
representatives
from
various
interest
groups
within
the
organization
(they
may
have
their
own
agendas
at
stake
when
making
investment
decisions).
User
department’s
perspective
is
to
be
representatives
of
the
intended
users
of
the
system.
The
IS
executive’s
perspective
is
have
overall
responsibility
for
managing
IS
development,
implementation,
and
maintenance
of
selected
systems.
5. Define
a
proxy
variable
and
give
an
example.
Proxy
variables
can
be
used
to
measure
changes
in
terms
of
their
perceived
value
to
the
organization. H0