Systems Chapter 3 We Cant Be Everything to Everybody Copyright 2017 Pearson Education Inc K nown for providing security monitoring Current focus on security contracts Mateo wants to focus on ID: 810637
Download 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 Information Systems
Chapter 3
Slide2“We Can't Be Everything to Everybody.”
Copyright © 2017 Pearson Education, Inc.
K
nown for providing
security
monitoring.
Current focus on security contracts.
Mateo wants to focus on
law enforcement agencies, search &
rescue,
federal government.
Good money
in agricultural surveying, industrial
inspection,
real estate videos, and wedding
videos. too.
Slide3Study QuestionsCopyright © 2017 Pearson Education, Inc.
Q1
: 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
:
2026?
Slide4Q1: How Does Organizational Strategy Determine Information Systems Structure?
Copyright © 2017 Pearson Education, Inc.
Strategy Determines Information Systems
Slide5Q2: What Five Forces Determine Industry Structure?
Copyright © 2017 Pearson Education, Inc.
Competitive Forces
• Competition from vendors
who manufacture substitutes.
• Competition from new
competitors.
• Competition from existing
rivals.
Bargaining Power Forces
• Bargaining power of
suppliers.
• Bargaining power of customers.
Slide6Use 5-forces Model to Identify Sources of Strong Competition
Copyright © 2017 Pearson Education, Inc.
Slide7Assessing the Five Forces at Falcon Security
Copyright © 2017 Pearson Education, Inc.
Slide8Q3: How Does Analysis of Industry Structure Determine Competitive Strategy?
Copyright © 2017 Pearson Education, Inc.
Porter's Four
Generic Competitive Strategies
Slide9Yikes! Bikes!
Copyright © 2017 Pearson Education, Inc.
Yikes! Bikes, a manufacturer of high-end mountain
bicycles.
You are
operations
manager.
New owners plan to pursue lowest-cost vendor strategy by importing low-cost,
low
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
the owner’s
actions illegal? Unethical?
Slide10Q4: How Does Competitive Strategy Determine Value Chain Structure?
Copyright © 2017 Pearson Education, Inc.
Linkages
Slide11Task Descriptions for Primary Activities of the Value Chain
Copyright © 2017 Pearson Education, Inc.
Slide12Q5: How Do Business Processes Generate Value?
Copyright © 2017 Pearson Education, Inc.
Three Examples of Business
Processes
Slide13Improved Material Ordering Process Using Integrated Databases
Copyright © 2017 Pearson Education, Inc.
Two Integrated Databases
Slide14Q6:How Does Competitive Strategy Determine Business
Processes and the Structure
of Information
Systems?
Copyright © 2017 Pearson Education, Inc.
Low-Cost Rental Operations Value Chain
Slide15High-Service Rental Value ChainCopyright © 2017 Pearson Education, Inc.
High-Cost Rental Operations Value Chain
Slide16Business Process and Information Systems forHigh-Service Bike Rental
Copyright © 2017 Pearson Education, Inc.
Slide17So What? Driving StrategyCopyright © 2017 Pearson Education, Inc.
Identify some implications of driverless vehicles.
What vulnerabilities could be exploited by equipping one of these vehicles with Internet access?
What are some logistical issues that could arise from a delivery vehicle without a human operator?
Slide18So What? Driving Strategy
Copyright © 2017 Pearson Education, Inc.
What
other complex tasks
exist might
prove feasible for automation?
How might the proliferation of driverless cars
affect the automotive
insurance industry
?
Do you
think
a driverless vehicle is something everyone would want,
even if s
old at
affordable price
?
Slide19Q7: How Do Information Systems Provide Competitive Advantages?
Copyright © 2017 Pearson Education, Inc.
Principles of Competitive
Advantage
Slide20How Does an Actual Company Use IS to CreateCompetitive Advantages?
Copyright © 2017 Pearson Education, Inc.
Enhances existing products.
Differentiates products.
Locks in customers.
Raises barriers to market entry.
Increases profit margins by decreasing costs and decreasing errors.
Slide21How Does an Actual Company Use IS to Create Competitive Advantages? (cont'd)
Copyright © 2017 Pearson Education, Inc.
Maintains customer account data
IS collects information for ABC (adds value
).
IS saves customers time by automatically filling in part of form (adds value for customer
).
Package & information delivery system
IS helps customer to select delivery address and generate shipping
labels.
What value does shipper get?
Slide22Two Roles for Information Systems Regarding Products
Copyright © 2017 Pearson Education, Inc.
Slide23Web Page to Select a Contact from the Customer’s Records
Copyright © 2017 Pearson Education, Inc.
Slide24ABC Web Page to Select a Contact from Customer’s Records
Copyright © 2017 Pearson Education, Inc.
Slide25Web Page to Specify Email Notification
Copyright © 2017 Pearson Education, Inc.
Slide26Web Page to Print Shipping Label
Copyright © 2017 Pearson Education, Inc.
Slide27Q8: 2026?Copyright © 2017 Pearson Education, Inc.
Pace of change and integration of new
technology
fast and increasing
.
Augmented reality devices, like Google Glass and Microsoft's HoloLens,
will
change
competitive landscape.
New businesses based on advances in self-driving
cars
, drones, 3D printing.
New products constructed in someone’s garage.Take advantage of opportunities new products create.
Slide28Security Guide: Hacking Smart Things
Copyright © 2017 Pearson Education, Inc.
Internet of Things (
IoT)
Internet-enabled
devices.
O
utfitting
every object with Internet access
hazardous
, even dangerous, proposition.
Unintended risks associated with incorporating this capability into
things.
Slide29Internet of ThreatsCopyright © 2017 Pearson Education, Inc.
W
hat
about securing
data
stored
on
Internet-enabled smart devices?
How
to protect 10, 20, or 30 different Internet-enabled devices in your
home?
Could hacker hijack
webcam in your living room or, actually hijack your car?What businesses and government agencies could benefit?
Slide30Internet of Threats (cont’d)
Copyright © 2017 Pearson Education, Inc.
What
some benefits
or risks f
or
businesses adopting new Internet-enabled
devices?
How about supply chain, customer service. What else?
Slide31Guide: Your Personal Competitive Advantage
Copyright © 2017 Pearson Education, Inc.
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 a
competitive advantage
?
Your
knowledge of IS,
might
facilitate cost savings that more than compensate for your salary.
Slide32Guide: Your Personal Competitive Advantage (cont'd)
Copyright © 2017 Pearson Education, Inc.
How
do these elements
of competitive
advantage apply to you personally
?
Switching costs?
Differentiating products?
Creating barriers?
Establishing alliances?
Reducing costs, increasing revenues
?
Slide33Active Review
Copyright © 2017 Pearson Education, Inc.
Q1
: 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
:
2026?
Slide34Case Study 3: The Amazon of Innovation
Copyright © 2017 Pearson Education, Inc.
Slide35Case Study 1: The Amazon of Innovation (cont'd)
Copyright © 2017 Pearson Education, Inc.
Amazon’s business
lines three
categories:
Online retailing
Own inventory
Associates program
Consignment
Order fulfillment
Cloud services
Copyright © 2015 Pearson Education, Inc.
Slide36Fulfillment Fees for Regular-sized Goods for a Company Like Falcon Security
Copyright © 2017 Pearson Education, Inc.
Slide37Copyright © 2017 Pearson Education, Inc.