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Chapter 3 - Information Systems, Organizations, and Strategy (Value chain…
Chapter 3 - Information Systems,
Organizations, and Strategy
Information systems can successfully impact
changes the relative costs of capital and information
the factor of prodution (as capital and labor)
the costs and quality of information
economics of information
Porter's competitive forces helps to
Provide a view of firm, competitors and environment
Shape fate of firm
Value chain model main benefits
clarify firm main activities
highlight activities where competitive strategies can be best applied
determinate how IS can improve operational efficiency
give hints how customer intimacy can be improved
can compare with industry best practices (benchmarking)
Information systems help businesses
Using synergies
Core competencies
Network-based strategies
Achieve competitive advantages
Challenges
Organizational resistance to change
IS influences the access to information
IS changes organizations' structure
Lead to failure of large projects
Behavioural organizations
Receive inputs from environment
Internal work
Routines (standard operating processes)
Business processes (collection of routines)
Firm (collection of business processes)
Delivers outputs to the environment
Organizations and IT involve
Politics
Culture
Environment
Organizational and behavioral impacts
IT flattened organizations
authority relies on knowledge and competence
Strategies approach can be divided in 4 main groups
Low-cost leadership
Product differentiation
Focus on market niche
Strengthen customer and supplier intimacy
Value web model
Collection of firms using synchronized IT to coordinate value chains to produce collectively
More customer driven
Less linear operation than value chain
Promote synergies
Business ecossystems