/
Strategy and Information Strategy and Information

Strategy and Information - PowerPoint Presentation

min-jolicoeur
min-jolicoeur . @min-jolicoeur
Follow
355 views
Uploaded On 2018-09-21

Strategy and Information - PPT Presentation

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

publishing prentice pearson education prentice publishing education pearson 2014 hall copyright competitive strategy structure information determine systems www advantage

Share:

Link:

Embed:

Download Presentation from below link

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.


Presentation Transcript

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