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C3: Achieving Competitive Advantage with Information Systems, Benjamin -…
C3: Achieving Competitive Advantage with Information Systems
Porter’s Competitive Forces Model
Traditional competitors
New market entrants
Substitute products and services
Customers
Suppliers
Information System Strategies for Dealing with Competitive Forces (Four Basic Competitive Strategies)
Low-cost leadership
Product differentiation
Focus on market niche
Strengthen customer and supplier intimacy
Business Value Chain Model
Primary activities
Support activities
Benchmarking
Best proctices
Value Web
Collection of independent firms that use information technology to coordinate their value chains to produce a product collectively
Value webs are flexible and adapt to changes in supply and demand
Synergies, Core Competencies, and Network Based Strategies.
Synergies
When output of some business units can be used as inputs to other units
Lower costs and generate profits
Enabled by information systems that ties together disparate units so they act as whole
When two firms can pool markets and expertise
Core competencies
Relies on knowledge gained over years of experience as well as knowledge research
Any information system that encourages the sharing of knowledge across business units enhances competency
Activities for which firm is world-class leader
Network-Based Strategies
Network economics
Virtual company
Disruptive Technologies
Technologies with disruptive impact on industries and businesses
First movers of disruptive technologies may fail to see potential, allowing second movers to reap rewards (fast followers)
The Internet and Globalization
The Internet drastically reduces costs of operating globally
Globalization benefits
Scale economies and resource cost reduction
Higher utilization rates, fixed capital costs, and lower cost per unit of production
Speeding time to market
Global Business Organization Systems Configurations
Global Business and System Strategies
Domestic exporters
Multinationals
Franchisers
Transnationals
Global System Configuration
Centralized systems
Duplicated systems
Decentralized systems
Networked systems
Quality
Producer perspective
Customer perspective
Total quality management (TQM)
Six sigma
How Information Systems Improve Quality
Reduce cycle time and simplify production
Benchmark
Use customer demands to improve products and services
Improve design quality and precision
Improve production precision and tighten production tolerances
Business Process Management (BPM)?
Aims to continuously improve processes
Uses variety of tools and methodologies to understand existing processes
and design and optimize new processes
Steps
Identify processes for change
Analyze existing processes
Design new process
Implement new process
Continuous measurement
Business Process Reengineering
A radical form of fast change
Not continuous improvement, but elimination of old processes, replacement with new processes, in a brief time period
Can produce dramatic gains in productivity
Can produce more organizational resistance to change
Benjamin