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Chapter 2 : IT In The Organization - Coggle Diagram
Chapter 2 : IT In The Organization
Innovation
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the creation of better or more effective products, processes, services, technologies, or ideas that are accepted by markets, governments, and society.
In the organizational context, innovation maybe linked to positive changes in efficiency, productivity, quality, competitiveness, market share, and others.
Continuous
e-Wallet
an example of an innovation of digital service
do not have to bring cash and can conduct transactions at any time using smartphone with selected retailers
easy to use
safe and secure
Source of Innovation
Employee
Those who already master the skills and techniques, has enthusiasm to innovate and curiosity to improve from the previous version
Customer
idea of innovation may come from customer, they have demand and desire to improve the product, know what they want to meet their demands
Competitior
A change in market or industry structure (outsider) is also a major opportunity for innovation. Every business has competition and there will be competitors offering alternative and substitute products and services
Direct Competitors
Indirect Competitior
Future Competitor
Competitive Advantage
firm's cost structure
product offerings
distribution network
customer support
Attributes of Competitive Advantage
Access to natural resources
Access to highly trained resources
Access to highly trained and skilled personnel human
new technologies
Research & Development (R&D)
extend from early exploration of a domain to specific commercial implementations
Porter's Competitive Model
Threat of New Entrants
: New firms that may enter a company market
Bargaining Power of Suppliers
The ability suppliers of the inputs of a product or service to affect a firm’s competitive position.
Threat of Substitute Products or Services
Providers of equivalent or superior alternative products
Bargaining Power of Buyers
The ability of buyers to use their market power to affect a firm’s competitive position
Industry Competitors
Current competitors for the same product
Strategic Towards Competitive Advatage
A company achieves strategic advantage by using strategy to maximize its strengths, resulting in a competitive advantage
Reduce costs
Raise barriers to market entrants
Establish high switching costs
Create new products or services
Differentiate products or services
Enhance products or services
Establish alliances
Lock in suppliers or buyers
Value Chain
The succession of activities of a business that add marginal value to a firm’s product or service
Value Chain Analysis Can:
Increase competitiveness
Reduce costs
Improve market share
Primary Activities
Primary activities are necessary elements for producing the products and offering services
The activities that directly touch or influence the production of a product or service.
Support Activities
Support activities assist businesses to become successful in the marketplace
The activities that have an indirect contribution to the product and thus the value that the business creates
Functional area in business organization
Customer service
Logistic / Distribution
Human resource
Administration
Marketing
R&D
ICT
Production