🗊Презентация Chapter 3. Achieving competitive advantage with information systems

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Chapter 3. Achieving competitive advantage with information systems, слайд №1
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Problem: Intense competition, difficult strategic decisions in arena of telecommunications Problem: Intense competition, difficult strategic decisions in arena of telecommunications Solution: Verizon sells version of iPhone (once exclusive to AT&T); AT&T purchases T-Mobile USA, Microsoft purchases Skype
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Problem: Intense competition, difficult strategic decisions in arena of telecommunications Problem: Intense competition, difficult strategic decisions in arena of telecommunications Solution: Verizon sells version of iPhone (once exclusive to AT&T); AT&T purchases T-Mobile USA, Microsoft purchases Skype

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Cutting-edge technologies like the iPhone and fiber-optic networks offer Verizon and AT&T opportunities to gain an edge Cutting-edge technologies like the iPhone and fiber-optic networks offer Verizon and AT&T opportunities to gain an edge Illustrates digital technology’s role in gaining and maintaining a competitive advantage Illustrates how difficult it is to sustain competitive advantage, especially in an arena of quickly changing technologies
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Cutting-edge technologies like the iPhone and fiber-optic networks offer Verizon and AT&T opportunities to gain an edge Cutting-edge technologies like the iPhone and fiber-optic networks offer Verizon and AT&T opportunities to gain an edge Illustrates digital technology’s role in gaining and maintaining a competitive advantage Illustrates how difficult it is to sustain competitive advantage, especially in an arena of quickly changing technologies

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Basic strategy: Align IT with business objectives Basic strategy: Align IT with business objectives 75 percent of businesses fail to align their IT with their business objectives, leading to lower profitability To align IT: Identify business goals and strategies Break strategic goals into concrete activities and processes Identify metrics for measuring progress Determine how IT can help achieve business goals Measure actual performance
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Basic strategy: Align IT with business objectives Basic strategy: Align IT with business objectives 75 percent of businesses fail to align their IT with their business objectives, leading to lower profitability To align IT: Identify business goals and strategies Break strategic goals into concrete activities and processes Identify metrics for measuring progress Determine how IT can help achieve business goals Measure actual performance

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Low-cost leadership Low-cost leadership Use information systems to achieve the lowest operational costs and the lowest prices E.g., Walmart Inventory replenishment system sends orders to suppliers when purchase recorded at cash register Minimizes inventory at warehouses, operating costs Efficient customer response system
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Low-cost leadership Low-cost leadership Use information systems to achieve the lowest operational costs and the lowest prices E.g., Walmart Inventory replenishment system sends orders to suppliers when purchase recorded at cash register Minimizes inventory at warehouses, operating costs Efficient customer response system

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Product differentiation Product differentiation Use information systems to enable new products and services, or greatly change the customer convenience in using your existing products and services E.g., Google’s continuous innovations, Apple’s iPhone Use information systems to customize, personalize products to fit specifications of individual consumers E.g., Nike’s iD program for customized sneakers
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Product differentiation Product differentiation Use information systems to enable new products and services, or greatly change the customer convenience in using your existing products and services E.g., Google’s continuous innovations, Apple’s iPhone Use information systems to customize, personalize products to fit specifications of individual consumers E.g., Nike’s iD program for customized sneakers

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Focus on market niche Focus on market niche Use information systems to enable specific market focus, and serve narrow target market better than competitors Analyzes customer buying habits, preferences Advertising pitches to smaller and smaller target markets E.g., Hilton Hotel’s OnQ System Analyzes data collected on guests to determine preferences and guest’s profitability
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Focus on market niche Focus on market niche Use information systems to enable specific market focus, and serve narrow target market better than competitors Analyzes customer buying habits, preferences Advertising pitches to smaller and smaller target markets E.g., Hilton Hotel’s OnQ System Analyzes data collected on guests to determine preferences and guest’s profitability

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Strengthen customer and supplier intimacy Strengthen customer and supplier intimacy Strong linkages to customers and suppliers increase switching costs and loyalty Toyota: uses IS to facilitate direct access from suppliers to production schedules Permits suppliers to decide how and when to ship supplies to plants, allowing more lead time in producing goods. Amazon: keeps track of user preferences for purchases, and recommends titles purchased by others
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Strengthen customer and supplier intimacy Strengthen customer and supplier intimacy Strong linkages to customers and suppliers increase switching costs and loyalty Toyota: uses IS to facilitate direct access from suppliers to production schedules Permits suppliers to decide how and when to ship supplies to plants, allowing more lead time in producing goods. Amazon: keeps track of user preferences for purchases, and recommends titles purchased by others

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Read the Interactive Session and then discuss the following questions: Read the Interactive Session and then discuss the following questions: Analyze Starbucks using the competitive forces and value chain models. What is Starbucks’ business strategy? Assess the role played by technology in this business strategy. How much has technology helped Starbucks compete? Explain your answer.
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Read the Interactive Session and then discuss the following questions: Read the Interactive Session and then discuss the following questions: Analyze Starbucks using the competitive forces and value chain models. What is Starbucks’ business strategy? Assess the role played by technology in this business strategy. How much has technology helped Starbucks compete? Explain your answer.

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Some companies pursue several strategies at same time Some companies pursue several strategies at same time Walmart, Apple, Amazon Successfully using IS to achieve competitive advantage requires precise coordination of technology, organizations, and people
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Some companies pursue several strategies at same time Some companies pursue several strategies at same time Walmart, Apple, Amazon Successfully using IS to achieve competitive advantage requires precise coordination of technology, organizations, and people

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Technology alone is often not enough to make companies more efficient, competitive, or quality oriented Technology alone is often not enough to make companies more efficient, competitive, or quality oriented Organizational changes are often necessary, from minor changes in work habits to redesigning entire business processes BPM: Business Process Management Aims to continuously improve processes Uses variety of tools and methodologies to: Understand existing processes Design and optimize new processes
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Technology alone is often not enough to make companies more efficient, competitive, or quality oriented Technology alone is often not enough to make companies more efficient, competitive, or quality oriented Organizational changes are often necessary, from minor changes in work habits to redesigning entire business processes BPM: Business Process Management Aims to continuously improve processes Uses variety of tools and methodologies to: Understand existing processes Design and optimize new processes

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Steps in BPM Steps in BPM Identify processes for change Analyze existing processes Design new process Implement new process Continuous measurement
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Steps in BPM Steps in BPM Identify processes for change Analyze existing processes Design new process Implement new process Continuous measurement

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