Systems Chapter 3 How Would We Do That Wheres the Data Buyers dont communicate with operations when negotiating with vendors Buyers need data to look at prices and costs of dealing with individual vendors ID: 674711
Download Presentation The PPT/PDF document "Strategy and Information" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Strategy and InformationSystems
Chapter 3Slide2
“How Would We Do That? Where’s the Data?”
Buyers don’t communicate with operations when negotiating with vendors
Buyers need data to look at prices and costs of dealing with individual vendors
Need more data and people involved in negotiating deals
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide3
Study Questions
QI: How does organizational strategy determine information systems structure?
Q2: What five forces determine industry structure?
Q3: How does analysis of industry structure determine competitive strategy?Q4: How does competitive strategy determine value chain structure?
Q5: How do business processes generate value?
Q6: How does competitive strategy determine business processes and the structure of information systems?
Q7: How do information systems provide competitive advantages?Q8: 2023?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide4
Q1: How Does Organizational Strategy Determine Information Systems Structure?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide5
Q2: What Five Forces Determine Industry Structure?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide6
Examples of Five ForcesCopyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide7
Five Forces at GearUpCopyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide8
Q3: How Does Analysis of Industry Structure
Determine Competitive Strategy?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide9
GearUp’s Competitive Strategy
Low Cost/Focused
Do everything to keep costs down
Focus within sporting goods category
Focus on buyers interested in special, short-term sales
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide10
Ethics Guide: Yikes! Bikes
You are operations manager for Yikes! Bikes, a manufacturer of high-end mountain bicycles.
New owners plan to pursue lowest-cost vendor strategy by importing low-cost, lower quality bikes.
New owners are not being honest with employees about cutting jobs.Say you might be promoted to new general manager. Should you trust them?Q: Are owners actions illegal? Unethical?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide11
Q4: How Does Competitive Strategy
Determine Value Chain Structure?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide12
Value Chain Structure?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide13
Support Activities in the Value Chain
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
Support Activity
Description
Technology
R & D, New Techniques, Methods, Procedures
Procurement
Raw Materials
Human Resources
Training, Recruiting, Compensation
Firm Infrastructure
General Management, Finance, Accounting, Legal, Government AffairsSlide14
Q5: How Do Business Processes Generate Value?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide15
Improved Material Ordering Process
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide16
Q6: How Does Competitive Strategy Determine Business Processes and the Structure of Information Systems?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide17
Operations Value Chains for Bicycle Rental Companies: High Service Rentals
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide18
Business Process and Information Systems for High-Service Bike Rental
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide19
Using MIS InClass 3: Competitive Strategy Over the Web
Briefly visit each pair.
www.sportsauthority.com
vs. www.soccer.com
www.target.com
vs. www.sephora.comwww.woot.com
vs.
www.amazon.com
www.petco.com
vs.
www.healthyfoodforpets.com
www.llbean.com
vs.
www.rei.com
Select two pairs from the list. For each pair of companies, answer the questions on p
.
84.
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide20
Q7: How Do Information Systems Provide
Competitive Advantages?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide21
Competitive Advantage via Processes Implementation
Lock
in
customers
C
reate
high switching costsLock in
suppliers
Make it easy to connect to and work with your organization
Create entry
barriers
Make
it difficult and expensive for new competition
Create
better business
processes to establish alliances
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide22
How Does an Actual Company Use IS to Create Competitive Advantages?
ABC, Inc. created competitive advantage in shipping industry through:
Superior customer service
Ease of customer business use by minimizing data entry:
Drop-down lists, automatic fill-ins, contact lists for customers
Minimizing data-entry errors
Following slides show Web pages of ABC’s information system.
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide23
Two Roles for Information Systems Regarding ProductsCopyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide24
How Does an Actual Company Use IS to Create Competitive Advantages?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide25
Automatic Retrieval of Customer DataCopyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide26
ABC, Inc., Web Page to Specify Email Notification
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide27
ABC, Inc., Web Page to Print a Shipping Label
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide28
How Does This System Create a Competitive Advantage?
Enhances existing products
Differentiates products
Locks in customersRaises barriers to market entry
Increases profit margins by decreasing costs and decreasing errors
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide29
Q8: 2023?
Unlikely GearUp will exist
New opportunities
for IT-based organizations
R
educe
medical costs by supporting governmental functions, like Medicare and related programsWeb-based services
to track medical bills, Medicare and supplemental insurance payments, track unpaid
bills
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide30
Security Guide: Differentiating on Security!
Major data centers harden their sites; computer criminals turn to less strongly protected assets held by small organizations and individuals
Habit of effective security behavior easy way to gain a competitive advantage
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide31
Guide: Your Personal Competitive Advantage
Who will be your competitors when you seek a job
after graduating
from college?What will be your competitive advantage in the job market? What can you do before you graduate to develop your competitive advantage?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide32
Guide: Your Personal Competitive Advantage (cont’d)
How could these concepts help you get and keep a job?
Switching costs?
Differentiating products?Creating barriers?
Establishing alliances?
Reducing costs, increasing revenues?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide33
Case Study 3: Fulfillment by Amazon (FBA):
P
rimary product
offerings: Online retail store Computing infrastructure leasingOrder fulfillment servicesAmazon buys, takes ownership, physical possession, inventories good,
sells from
inventoryCopyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide34
Is FBA Right for GearUp?
Outsource to Amazon, thus avoiding cost of developing own processes, facilities, and order fulfillment information systems
.
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide35
FBA Fees for Products Like Sporting Goods as of May 2012
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice HallSlide36