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SIS CHAPTER 2 - Coggle Diagram
SIS CHAPTER 2
Factors of eras of information usage
Begin: driven by internal organization needs.
low exist transacting cost
provide support to managers by collecting & distribute information
redesign business process
2010 driven by social IT platforms & new capabilities
new evolution of applications, processes & strategic opportunities
involve ecosystems of partners rather list of suppliers.
Information resources valuable
Information resources + 5 Porter Model
1. threats of new entrants
erecting barriers to entry
Information resources also can be used to build
barriers that discourage competitors from entering an industry (controlled access to limited distribution channels.
2, bargaining power of buyers
used to build switching costs that make it less
attractive for customers to purchase from competitors
4. bargaining power of suppliers
Through the Internet, firms continue to provide information for free as they attempt to increase their share of
visitors to their Web sites and gather information about them
3. threat of substitute products
Internal innovations can cannibalize existing revenue streams for a firm.
5. industry competitors
creative use
of IS. Information provides advantages in such competition when added to an existing product.
Information resources + value chain
addresses the activities that create, deliver, and support a company’s product or service
category:
primary activities - directly to the value created in a product or service. (Inbound logistics, operations, outbound logistics, marketing sales, service)
secondary activities - possible for the primary activities to exist and remain coordinated (organization, hr, technology, purchasing)
stems for 2 sources:
low cost to perform activities
add value to product that buyer will pay more
Piccoli + Ive's (competitive barriers)
continue to innovate and to protect against resource imitation, substitution, or transfer.
Technical knowledge, especially that relates to the firm’s operation
4 barriers:
it project (competitors build system to copy capabilities)
it resources & capabilities (lack of resources to copy capability)
complementary resource (create synergy with it that provide CA)
preemption (firm reach aim 1st)
should continue to seek ways in which IT can improve offerings or service to customers.
to build sustainability by looking into each of the four potential barriers.
Resource Based View model
to build sustainability by looking into each of the four potential barriers.
focus
: areas that add value to the firm. (resources that it can manage strategically.)
sustaining competitive advantage but through use of resources rather than by raising competitive barriers.
resources attain CA
(value, rarity - efficient, effective, or innovative.)
resources sustain CA
(low sustainability, low mobility, low imitability - Technical knowledge)
Social Capital theory + network effect
sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by an individual or social unit
3 ways derived network value:
Structural - focus pattern of relationships in the network-who is connected to whom.
Relational - looks at the nature of relationships among members in the network
Cognitive - : looks at the way people think about things in the network, in particular whether they have a shared language, system of meanings or interpretation show the connected people think.
importance of strategic alliances
strategic advantage.
IS can be the platform upon which a strategic alliance functions.
Linking value chains through SCM
is another way firms build an IT-facilitated strategic alliance.
types:
Co-opetition (best outcome)
- companies cooperate and compete at the same time with companies in their value net.
2.
Value net
- company, its competitors, complementors, customers, suppliers, and the interactions among all of them.
Complementor
- company whose product or service is used in conjunction with a particular product or service to make a more useful set for the customer.
risks of information resources
Awakening a sleeping giant
(large competitor with deeper pockets may be nudged into implementing IS with even better features)
Demonstrating bad timing
(customers are not ready to use the technology designed to gain strategic advantage)
Implementing IS poorly
Failing to deliver what users what
(systems that don’t meet the firm’s target market)
Web-based alternative removes advantages
(losing any advantage obtained by an information resource that later becomes available as a service on the web)
Running afoul of the law
(promote litigation)