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Chapter 1 An overview of information systems (2) - Coggle Diagram
Chapter 1 An overview of information systems (2)
Types of information systems
Manufacturing
Manages manufacturing resources so that companies can reduce the cost of manufacturing, increase the product quality and make better decisions regarding inventory
Financial
Provides timely information to executive financial managers
Logistics
Reduces the cost of transporting materials, while safe and reliable delivery is achieved
Marketing
Improves marketing decisions
Human resource information systems
Provides information to decision makers which helps employees to perform their tasks more effectively
Strategies for gaining a competitive advantage
Overall cost leadereship
Winning market share by appealing to cost-sensitive buyers
Focus
Focus on a specific market share
Differentiation
Differentiate the product in some way
Successful if target market is not price sensitive
Porter's five forces model
Analyses an organization, its position in the marketplace and how information systems can be used to make an organization more competitive
Five forces are
Buyer power
Types of buying power:
-High when customers have many choices
-Low when customers have few choices
Limitation of buyers options:
-Loyalty points
-Discount
-Adjustments
Supplier power
Types of supplier power:
-High when customers have few options
-Low when customers have many options
Threat of substitute goods and services
Types of threats:
-High when customers have many substitute products
-Low when customers have few substitute products
Avoid client substitution:
-Client pays a fee when moving to an alternative product
-Unique qualities to your product
Threat of new entrants
Types of threats:
-Threat is high if the service / product can bee easily duplicated
-Threat is low if the service ' product is not easily duplicated
Rivalry amongst competitiors:
Types of rivalry:
-The more the competitors in a specific marker, the bigger the rivalry amongst businesses
-Rivalry is low if there are few competitors in the same market