信息战略和经济（英文版）

1、Introduction to Information Strategy and Economics1AgendalIntroduction- What you will learn- Course structure- Teaching style- Grading policy- Pointers for successlStrategy- Value chain- Competitive advantage- Porters five forces model- Class participation- Assignments- Final Exam2TeaserlWe are seei

2、ng a growing tendency for companies to sell products in bundles to customers. e.g. Microsoft Office which is a bundle of Word, Powerpoint etc which used to be primarily sold separately in the past. What factors make bundling more attractive?3TeaserslA leading manufacturer of printers spent additiona

3、l money to slow down its printers. Intel spent extra effort (and money) on each chip to disable certain processors to slow it down. Wasnt faster supposed to be better? Then why are these companies degrading their products?4More teaserslOn p2p networks like Kazaa, empty and big files having attractiv

4、e names like “Lord of the rings” are frequently available. There were some rumors that it was the RIAA which was involved in posting these files. What is the rationale for people to make this allegation against RIAA.?5What you will learn lThis course will help you:Understand the relationships betwee

5、n Economics, Strategy, and Competitive AdvantageExplore different ways that Information Technology (IT) and Electronic Commerce (EC) can be used to create Competitive AdvantageDescribe the economic principles that may enable firms to create profitable e-business strategiesEvaluate options for levera

6、ging technology to create sustainable e-business strategies6Course structureLecture 1Introduction, IS strategyLecture 2Pricing, VersioningLecture 3Network effect, Lock-inLecture 4Contextual Marketing, PrivacyLecture 5Innovations, StandardsLecture 6IntermediariesB2BLecture 7Auctions, piracyFinal Exam

7、In Class7Teaching StyleLectureArticles,Text bookCase StudyFundamentalsApplicationPreparationmaterial8The 3 Ps (your role)lPreparation- Articles, textbook chapter, caselParticipation- Contribution to discussion in classlPerformance- Assignments and final exam9GradingClass Participation(Lectures 2-7)2

8、0%Assignments(2)35%Final Exam45%Distribution of grade for class will approximately follow school guidelinesA: 35-40%, B: 45-60%, C:5-10%, F- if required10Class participationlDos (examples) - Bringing work related relevant experience- Analysis of an article/case being discussed- Citing anecdotal evid

9、ence of the concept being discussed- SWOT analysislDonts (examples)- Restate facts straight from the case/article- Being discourteous to other students when they are making a point11Class participationlPoints: 0-4lQuality of point made not number of times spokenlRecorded right after class (online ac

10、cess)lSix sessions (Lectures 2-7).lTop five scores will be considered (5 4 = 20)12AssignmentslIndividuallTwol17.5 points each (17.5 2 = 35)lBased on case studieslTimely completion13Final examlWill cover:- Lecture- Textbook chapters assigned- Articles and cases assignedlIn class exam lFormat: TBD14Po

11、inters for successlBe prepared- Read and analyze cases and other reading assignments before class- Finish assignments on time- Be punctuallParticipate in class discussionlProvide Feedback15FeedbacklImportant to structure future lectures.lDid the lecture satisfy teaching objectives?lRate the lecture

12、in terms of claritylCommentlhttp:/teaching.ust.hk/ismt510 16AgendalIntroduction- What you will learn - Course structure - Teaching style - Grading policy - Pointers for success lStrategy- Strategic positioning- Sustainable advantage- Porters five forces model- Value configuration17Learning objective

13、slDistinguish between strategy and operational effectivenesslIdentify the six principles of strategic positioninglIdentify the strategic mistakes made by dotcomslExplain how a firms performance is determined and identify the different types of business modelslAnalyze an industry structure using Port

14、ers five forces modellExplain how a sustainable adv. can be achievedlIdentify the different types of value configurations18Detailed planlStrategylDeterminants of performancelSustainable advantage- how to achieve itlPorters five forces modellValue Configuration - Strategic vs. operational effectivene

15、ss- Key issues in strategic positioning- Mistakes made by dot-coms- Value chain- Value shop- Value network - Business models and types- Impact of Internet19What is Strategy?lStrategy is a comprehensive master plan stating how the corporation will achieve its mission and objectives. lStrategy is the

16、creation of a unique and valuable position, involving a different set of activities (Porter).lStrategies can exist at multiple levels - Corporate, Business unit, Functional area 20What is Strategic ManagementlStrategic management is the set of managerial decisions and actions that determine the long

17、-run performance of a corporation. It includes:Environmental scanning Strategy formulation (i.e., long-range planning)Strategy implementationEvaluation and controlSource: Essentials of Strategic Management, J.D. Hunger & T.L. Wheelen (2001)21Strategy vs. operational effectivenesslEach firm is in

18、 involved in several activities e.g. manufacturing, marketing, sellinglOE is about performing each activity better than rivals- Japanese automakers in 80slStrategy: Perform different activities or similar activities differently- Southwest vs. other airlines22Operational effectivenessRelative CostQua

19、lityProduction frontierHighLowHighLowAB23Strategic positioninglVariety-based positioning- Jiffy LubelNeed-based positioning- IkealAccess based positioning- Carmike24Key issueslMaking tradeoff- NeutrogenalFit between activities: harder for a rival to match an array of interlocked than to imitate a si

20、ngle activitiy- SouthwestlGrowth trap- Maytag25The Six principlesStrategic PositioningRight goalValuepropositionDistinctiveValue chainTradeoffFitContinuity26The Dotcom follieslNot delivering real value (performance)- click through rates, unique visitors instead of profits- concentrating on advertisi

21、ng as revenue sourcelFinger in all pies- rushing into everything instead of making tradeoffslInability to maintain control over proprietary assets- outsourcing leading to competitive convergencelCompeting on price27 Business Model Components & linkages DynamicsEnvironment Competitive MacroPerfor

22、manceChange Properties UnderpinningsDeterminants of Performance28What is a Business Model?l“the method of doing business by which a company can sustain itself ”Michael Rappa, Professor, NC State, Raleighl“the method by which a firm builds and uses its resources to offer its customers better value th

23、an its competitors, and in the process make money” - Afuah & Tucci 29TypeBasic IdeaExamplesCommissionFees levied on transactionsE*-trade, PricelineAdvertisingEnd-user subsidizedYahooMarkupValue added in salesAmazonProductionValue added in productionMicrosoftReferralFees for referring customersAu

24、tobytelSubscriptionFees for unlimited useAOLFee-for-serviceFees for metered serviceASPsTypes of Business Models30Examples of Business Models lWeill & Vitale define 8 “atomic” business models:direct-to customercontent providerfull-service providervirtual communitywhole of enterprisevalue net inte

25、gratorshared infrastructurediverse intermediaries (portals, agents, auctions, aggregators) 31Internet as a transformer of business modelslPropertieslMediating technology (interconnection, B2B, C2C etc)lUniversality (geographical boundaries removed)lNetwork externalities (Metcalfes law)lDistribution

26、channel (Napster, online software distribution)lInformation asymmetry shrinker (buying cars)lInfinite virtual capacity (Moores law applicable to internet)lTransaction cost reducer (search cost, collecting info. on products)lReduces barriers of entry (cost of setting up a website)32Impact of Internet

27、 on 5CslCoordination (inefficiencies removed worth $200 billion)lCommerce (enables B2B, C2C)lCommunity (user groups ratings and feedback)lContent (news, stock quotes, games)lCommunication (e-mail, web-phones, real time video)33 Business ModelEnvironmentPerformance5 CsCoordinationCommerceCommunityCon

28、tentCommunicationChangeImpact of Internet on 5CsInternet Properties Mediating technology Universality Network externality Distribution Channel Transaction cost reducer.34Where we arelStrategylDeterminants of performancelSustainable advantage- how to achieve itlPorters five forces modellValue Configu

29、ration - Strategic vs. operational effectiveness- Key issues in strategic positioning- Mistakes made by dot-coms- Value chain- Value shop- Value network - Business models and types- Impact of Internet35A Brief History of IT for Competitive AdvantagelThe potential of IT for creating strategic advanta

30、ge was recognized in early 1980slEarly work led by Harvard Business School strategy professor Michael Porter:Competitive Strategy, 1980Competitive Advantage, 1985lW. McFarlan, “IT Changes the Way You Compete,” Harvard Bus. Review, 1984lEarly case studies of innovative use of IT: American Airlines SA

31、BRE, Otis Elevators, etc.36How do we define and achieve competitive advantage?Competitive advantage means: l“Being able to earn a ROI (return on investment) that is persistently above the average for a given industry.”l(not just a temporary advantage or high ROI)- Crowston & Treacy, “Assessing t

32、he Impact of IT on Enterprise Level Performance” 1986.How do firms achieve competitive advantage?37Sustainable AdvantagelThe strategic “positioning” school of strategy (Porter) - Select the right “position” in an “attractive” industry- Perform different activities or similar activities differentlyl

33、Means of achieving:- Benefits of size in targeted markets - Access advantage- Exercising options-Economies of scale-Economies of scope -Experience-Inputs-Markets- Patents- Antitrust38How Can You Deploy IT to Create a Competitive AdvantageIdentify novel uses of IT that are consistent with and support

34、 your strategylThese novel uses of IT may:Reinforce your cost leadership positionAllow you to provide product/service differentiation to your customers (or suppliers)lStrive to “lock-in” your customers (or buyers) through innovative uses of IT Use the “create-capture-keep” strategy (Clemons)What fac

35、tors can enhance customer “lock-in” or “switching costs?39Why is Michael Porter important?lFirst strategy writer to analyze why information and IT can be critical to competitive advantageCompetitive Strategy 1980; Competitive Advantage, 1985; Competitive Advantage of Nations, 1992lWhat contributions

36、 is Porter best known for?Five forces modellWhat makes an industry “attractive” to compete in?2 x 2 matrix of core strategieslWhat are possible strategies for achieving advantage? The value chain: How can we analyze the core activities that firms perform?40Porters five forces modellUsed to analyze i

37、ndustry or marketlPotential profitability or attractivenesslOptions to affect competitive positionlApplied to particular companies, market segments, industries or regionslBased on microeconomic principles- supply and demand, substitutes41Porters “Five Forces Model” (as applied to discount retail ind

38、ustry)42Strategic Implications of Five Forces AnalysislA given industry is unattractive when:Rivalry is strongBarriers to entry are lowCompetition from substitutes is strongSuppliers and customers have strong bargaining power (relative to you)43More Strategic Implications of Five Forces AnalysislA g

39、iven industry is ideal when:Rivalry is moderateBarriers to entry are highGood substitutes dont existSuppliers and customers are in a weak bargaining position (relative to you)Do these industries exist?44What strategies lead to competitive advantage? Competitive ObjectiveTarget Market SegmentLow Pric

40、eProduct or Service DifferentiationBroad market Narrow market 45How to Apply Porter for Making StrategyFocus on “attractive” industries to compete inlTarget industries with attractive “structural properties” and exit from industries with poor structural propertieslList all the players in an industrylIdentify and analyze buyers and supplierslSelect one of the four strategieslEnsure that activities are consi