信息资源管理_ch06Information Systems for Competitive Advantage

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,1-,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Information Systems for Competitive Advantage,Information Management Chapter,6,This chapter focuses on how information,systems (IS),support competitive strategy and how,information systems,can create competitive advantages.,Chapter Preview,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3,What is the competitive,strategy?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Study Questions,Organization goals and objectives are determined by competitive strategy.,Competitive strategy determines information system structure, features, and functions.,How Does Organizational Strategy Determine Information Systems Structure?,Fig 3-1 Organizational Strategy Determines Information Systems,Organizational Strategy Determines Information Systems,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3,What is the,competitive strategy?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Study Questions,Five competitive forces determine industry profitability:,bargaining power of customers,threat of substitutions,bargaining power of suppliers,threat of new entrants,rivalry among existing firms.,Five,Forces,Model,Intensity of each force determines characteristics of the industry, how profitable it is, and how sustainable that profitability will be.,Assessing an industry structure based on five questions:,How much bargaining power do customers have?,How much of a threat do substitution products or services pose?,How much bargaining power do suppliers have?,How great is the threat of new competitors entering the marketplace?,How great is the rivalry among existing firms?,Five,Forces,Model,Porters Five,Forces,Model of,Industry Structure,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3,What is the,competitive strategy,?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Study Questions,Firms engage in one of four competitive strategies:,Cost leader across a wide industry,Differentiate its products across a wide industry,Cost leader in a focused industry segment,Differentiate its product in a focused industry segment,Porters Competitive Strategy Model,To be effective, organization goals, objectives, culture, and activities must be consistent with organization strategy.,Porters Four Competitive Strategies,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3,What is the,competitive strategy?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Study Questions,Competitive strategy implemented by creating value,Value,amount of money a customer is willing to pay for a resource, product, or service,Margindifference between value an activity generates and cost of activity,Value chaina network of value-creating activities,Primary activities,Support activities,Value Chain,Bicycle Makers Value Chain,Inbound logistics,receiving, handling raw materials and other inputs,Value in parts, time required to contact vendors, maintaining relationships with vendors, ordering parts, receiving shipment, and so,forth,Operationstransform or assemble materials into finished,products,Outbound logisticsdeliver finished products to,customers,Marketing and salescreate marketing strategies and sell products or services to,customers,Servicesafter-sale customer support,Primary Activities in the Value Chain,Summary of Value Chain Primary Activities,Contribute indirectly to production, sale, and service of product,Procurement,finding vendors, setting up contractual arrangements, and negotiating prices,Technology developmentresearch and development, developing new techniques, methods, and procedures,Human resourcesrecruiting, compensation, evaluation, and training of full-time and part-time employees,Firm infrastructuregeneral management, finance, accounting, legal, and government affairs,Support Activities in the Value Chain,Linkages are the interactions across the value activities.,Ex: Manufacturing systems use linkages to reduce inventory costs, sales forecasts to plan production; production plan to determine raw materials needs; material needs to schedule purchases. End result is just-in-time inventory, which reduces inventory sizes and costs.,Business process design,Organizations should not automate or improve existing functional systems. Rather, they should create new, more efficient business processes that integrate activities of all departments involved in a value chain.,Value Chain Linkages,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3,What is the,competitive strategy?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Study Questions,Business process,network of activities that generate value by transforming inputs into outputs.,Cost,of a business process is cost of inputs plus the cost of activities.,Margin,of the business process equals the value of the outputs minus the cost.,Activity,transforms input resources into output resources.,Resources,flow between or among activities.,Facilities,store resources; some facilities, such as inventories, store physical items.,How,Do Business Processes Generate Value?,An Alternate Process for Bicycle Manufacturer,Notice that activities get data resources from databases and put data into databases,Business processes vary in cost and effectiveness. In fact, the streamlining of business processes to increase margin (add value, reduce costs, or both) is key to competitive advantage.,Example of using a linkage across business processes to improve process margin:,Querying both databases allows purchasing department to make decisions on raw materials quantities and customer demand.,By using this data, purchasing can reduce size of raw materials inventory, reducing production costs and thus adding margin to the value chain.,Compare,Two,Business Processes For Bicycle Manufacturer,Improved Material Ordering Process,Key to a companys competitive advantage is to increase the margin of its products by adding value, reducing costs, or both.,Business process redesign helps a business streamline its activities in order to increase its margins.,Most difficult part of process redesign is associated with employee resistance.,Business Process Summary,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3,What is the,competitive strategy?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Study Questions,Operations Value Chainsfor Bicycle Rental Companies,High-Service Business Bike Rental,Organizations analyze their industry and choose a competitive strategy.,Given that strategy, they design business processes that span value-generating activities.,Those processes determine scope and requirements of each organizations information systems.,summary,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3How does analysis of industry structure determine competitive strategy?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Study Questions,Competitive Techniques,Competitive,advantage via products:,Creating,new,products or services,Enhancing,existing products or services,Differentiating,their products and services from those of their competitors.,Information systems can help create a competitive advantage by being part of the product or by providing support to the,product.,Two Ways to Respond to the Five Competitive Forces,Information Systems Create Competitive Advantages as Product or Support,Lock in customers,via,high switching costs,make it too expensive for customer to switch to a competitor.,Lock in suppliers,be easy to connect to and work with,Create entry barriers,make it difficult and expensive for new competition to enter the market.,Establish alliances,with other organizationsestablish standards, promote product awareness and needs, develop market size, reduce purchasing costs, and provide other benefits,Reduce costs,enables reducing prices and/or to increasing profitability. Increased profitability means more cash to fund further infrastructure development and greater competitive advantage.,Gaining Competitive Advantage by Using Business Processes,ABC, Inc, an actual company, created a competitive advantage in shipping industry by:,Superior customer service,Making it easy for customers to business with,minimizing,data entry:,Drop-down lists, automatic fill-ins, contact lists for customers,Minimizing data-entry,errors,Following slide shows some of the Web pages of ABCs information system.,How Does an Actual Company Use IS to Create Competitive Advantages?,ABC, Inc Web Page to Select Recipient from Customer Records,ABC, Inc Web Page to Select Contact from Customer Records,Figure 3-17,Preparation of Shipping Labels,ABCs information system helps the company create a competitive advantage:,Enhances its existing servicesmaking it easy for the customer to use its system, and reducing errors.,Differentiates its service from its competitors who dont have a similar service to provide to customers.,Provides new services for customers that competitors dont provide.,Locks in customers into its system based on the benefits they receive from it.,Raises barriers to market entry,Reduces costs,How Does This System Create a Competitive Advantage?,Q1How does organizational strategy determine information systems structure?,Q2What five forces determine industry structure?,Q3How does analysis of industry structure determine competitive strategy?,Q4How does competitive strategy determine value chain structure?,Q5How do business processes generate value?,Q6How does competitive strategy determine business processes and the structure of information systems?,Q7How do information systems provide competitive advantages?,Review,Digital divide segregates “haves” and “have-nots”,Using the Internet is a matter of access to knowledge,Advantages accrue to those who have easy access,Digital divide between those who have Internet access and those who dont,Divide deepens education, income, social differences,Internet access might be available at public places, but:,Not everyone served,Not as convenient as home access,Guide: Digital divide,Intellectual capital resides on Internet readily available,Benefits for businesses,Cheaper product customer support,Reduces warehousing costs,Reduces mailings costs,Benefits of Access,Knowledge grows exponentiallyjust like capital,Digital divide can create or worsen social problems,Businesses and government should explore their responsibilities for with respect to the digital divide,Take Away from Guide,Who will be your competitors when you seek a job after you graduate from college?,What will be your competitive advantages in the job market?,What can you do before you graduate to develop your competitive advantage?,Guide: Your Personal Competitive Advantage,How could the following concepts help you get and keep a job?,Switching costs?,Differentiating products?,Creating barriers?,Establishing alliances?,Reducing costs, increasing revenues?,Guide: Your Personal Competitive Advantage,Find a electronic commerce site:,Analyze the five competitive forces for her market.,What appears to be her competitive strategy?,Review the principles of competitive,advantage.,What information systems can she create to enhance her product or differentiate it from existing and emerging competition?,What information systems can she develop to create barriers to entry to the competition?,What information systems can she develop to lock in customers?,What information systems can she develop to establish alliances?,Exercise:,