信息资源管理_ch06Ination Systems for Competitive Advantage.ppt

1、Information Systems for Competitive Advantage,Information Management Chapter 6,This chapter focuses on how information systems (IS) support competitive strategy and how information systems can create competitive advantages.,Chapter Preview,Q1How does organizational strategy determine information sys

2、tems structure? Q2What five forces determine industry structure? Q3What is the competitive strategy? Q4How does competitive strategy determine value chain structure? Q5How do business processes generate value? Q6How does competitive strategy determine business processes and the structure of informat

3、ion systems? Q7How do information systems provide competitive advantages?,Study Questions,Organization goals and objectives are determined by competitive strategy. Competitive strategy determines information system structure, features, and functions.,How Does Organizational Strategy Determine Inform

4、ation Systems Structure?,Fig 3-1 Organizational Strategy Determines Information Systems,Organizational Strategy Determines Information Systems,Q1How does organizational strategy determine information systems structure? Q2What five forces determine industry structure? Q3What is the competitive strate

5、gy? Q4How does competitive strategy determine value chain structure? Q5How do business processes generate value? Q6How does competitive strategy determine business processes and the structure of information systems? Q7How do information systems provide competitive advantages?,Study Questions,Five co

6、mpetitive forces determine industry profitability: bargaining power of customers, threat of substitutions, bargaining power of suppliers, threat of new entrants, rivalry among existing firms.,Five Forces Model,Intensity of each force determines characteristics of the industry, how profitable it is,

7、and how sustainable that profitability will be. Assessing an industry structure based on five questions: How much bargaining power do customers have? How much of a threat do substitution products or services pose? How much bargaining power do suppliers have? How great is the threat of new competitor

8、s entering the marketplace? How great is the rivalry among existing firms?,Five Forces Model,Porters Five Forces Model of Industry Structure,Q1How does organizational strategy determine information systems structure? Q2What five forces determine industry structure? Q3What is the competitive strategy

9、? Q4How does competitive strategy determine value chain structure? Q5How do business processes generate value? Q6How does competitive strategy determine business processes and the structure of information systems? Q7How do information systems provide competitive advantages?,Study Questions,Firms eng

10、age in one of four competitive strategies: Cost leader across a wide industry Differentiate its products across a wide industry Cost leader in a focused industry segment Differentiate its product in a focused industry segment,Porters Competitive Strategy Model,To be effective, organization goals, ob

11、jectives, culture, and activities must be consistent with organization strategy.,Porters Four Competitive Strategies,Q1How does organizational strategy determine information systems structure? Q2What five forces determine industry structure? Q3What is the competitive strategy? Q4How does competitive

12、 strategy determine value chain structure? Q5How do business processes generate value? Q6How does competitive strategy determine business processes and the structure of information systems? Q7How do information systems provide competitive advantages?,Study Questions,Competitive strategy implemented

13、by creating value Valueamount of money a customer is willing to pay for a resource, product, or service Margindifference between value an activity generates and cost of activity Value chaina network of value-creating activities Primary activities Support activities,Value Chain,Bicycle Makers Value C

14、hain,Inbound logisticsreceiving, handling raw materials and other inputs Value in parts, time required to contact vendors, maintaining relationships with vendors, ordering parts, receiving shipment, and so forth Operationstransform or assemble materials into finished products Outbound logisticsdeliv

15、er finished products to customers Marketing and salescreate marketing strategies and sell products or services to customers Servicesafter-sale customer support,Primary Activities in the Value Chain,Summary of Value Chain Primary Activities,Contribute indirectly to production, sale, and service of pr

16、oduct Procurementfinding vendors, setting up contractual arrangements, and negotiating prices Technology developmentresearch and development, developing new techniques, methods, and procedures Human resourcesrecruiting, compensation, evaluation, and training of full-time and part-time employees Firm

17、 infrastructuregeneral management, finance, accounting, legal, and government affairs,Support Activities in the Value Chain,Linkages are the interactions across the value activities. Ex: Manufacturing systems use linkages to reduce inventory costs, sales forecasts to plan production; production plan

18、 to determine raw materials needs; material needs to schedule purchases. End result is just-in-time inventory, which reduces inventory sizes and costs. Business process design Organizations should not automate or improve existing functional systems. Rather, they should create new, more efficient bus

19、iness processes that integrate activities of all departments involved in a value chain.,Value Chain Linkages,Q1How does organizational strategy determine information systems structure? Q2What five forces determine industry structure? Q3What is the competitive strategy? Q4How does competitive strateg

20、y determine value chain structure? Q5How do business processes generate value? Q6How does competitive strategy determine business processes and the structure of information systems? Q7How do information systems provide competitive advantages?,Study Questions,Business processnetwork of activities tha

21、t generate value by transforming inputs into outputs. Cost of a business process is cost of inputs plus the cost of activities. Margin of the business process equals the value of the outputs minus the cost. Activity transforms input resources into output resources. Resources flow between or among ac

22、tivities. Facilities store resources; some facilities, such as inventories, store physical items.,How Do Business Processes Generate Value?,An Alternate Process for Bicycle Manufacturer,Notice that activities get data resources from databases and put data into databases Business processes vary in co

23、st and effectiveness. In fact, the streamlining of business processes to increase margin (add value, reduce costs, or both) is key to competitive advantage. Example of using a linkage across business processes to improve process margin: Querying both databases allows purchasing department to make de

24、cisions on raw materials quantities and customer demand. By using this data, purchasing can reduce size of raw materials inventory, reducing production costs and thus adding margin to the value chain.,Compare Two Business Processes For Bicycle Manufacturer,Improved Material Ordering Process,Key to a

25、 companys competitive advantage is to increase the margin of its products by adding value, reducing costs, or both. Business process redesign helps a business streamline its activities in order to increase its margins. Most difficult part of process redesign is associated with employee resistance.,B

26、usiness Process Summary,Q1How does organizational strategy determine information systems structure? Q2What five forces determine industry structure? Q3What is the competitive strategy? Q4How does competitive strategy determine value chain structure? Q5How do business processes generate value? Q6How

27、does competitive strategy determine business processes and the structure of information systems? Q7How do information systems provide competitive advantages?,Study Questions,Operations Value Chainsfor Bicycle Rental Companies,High-Service Business Bike Rental,Organizations analyze their industry and

28、 choose a competitive strategy. Given that strategy, they design business processes that span value-generating activities. Those processes determine scope and requirements of each organizations information systems.,summary,Q1How does organizational strategy determine information systems structure? Q

29、2What five forces determine industry structure? Q3How does analysis of industry structure determine competitive strategy? Q4How does competitive strategy determine value chain structure? Q5How do business processes generate value? Q6How does competitive strategy determine business processes and the

30、structure of information systems? Q7How do information systems provide competitive advantages?,Study Questions,Competitive Techniques,Competitive advantage via products: Creating new products or services, Enhancing existing products or services, Differentiating their products and services from those

31、 of their competitors. Information systems can help create a competitive advantage by being part of the product or by providing support to the product.,Two Ways to Respond to the Five Competitive Forces,Information Systems Create Competitive Advantages as Product or Support,Lock in customers via hig

32、h switching costsmake it too expensive for customer to switch to a competitor. Lock in suppliersbe easy to connect to and work with Create entry barriersmake it difficult and expensive for new competition to enter the market. Establish alliances with other organizationsestablish standards, promote p

33、roduct awareness and needs, develop market size, reduce purchasing costs, and provide other benefits Reduce costsenables reducing prices and/or to increasing profitability. Increased profitability means more cash to fund further infrastructure development and greater competitive advantage.,Gaining C

34、ompetitive Advantage by Using Business Processes,ABC, Inc, an actual company, created a competitive advantage in shipping industry by: Superior customer service Making it easy for customers to business with minimizing data entry: Drop-down lists, automatic fill-ins, contact lists for customers Minim

35、izing data-entry errors Following slide shows some of the Web pages of ABCs information system.,How Does an Actual Company Use IS to Create Competitive Advantages?,ABC, Inc Web Page to Select Recipient from Customer Records,ABC, Inc Web Page to Select Contact from Customer Records,Figure 3-17,Prepar

36、ation of Shipping Labels,ABCs information system helps the company create a competitive advantage: Enhances its existing servicesmaking it easy for the customer to use its system, and reducing errors. Differentiates its service from its competitors who dont have a similar service to provide to custo

37、mers. Provides new services for customers that competitors dont provide. Locks in customers into its system based on the benefits they receive from it. Raises barriers to market entry Reduces costs,How Does This System Create a Competitive Advantage?,Q1How does organizational strategy determine info

38、rmation systems structure? Q2What five forces determine industry structure? Q3How does analysis of industry structure determine competitive strategy? Q4How does competitive strategy determine value chain structure? Q5How do business processes generate value? Q6How does competitive strategy determine

39、 business processes and the structure of information systems? Q7How do information systems provide competitive advantages?,Review,Digital divide segregates “haves” and “have-nots” Using the Internet is a matter of access to knowledge Advantages accrue to those who have easy access Digital divide bet

40、ween those who have Internet access and those who dont Divide deepens education, income, social differences Internet access might be available at public places, but: Not everyone served Not as convenient as home access,Guide: Digital divide,Intellectual capital resides on Internet readily available Benefits for businesses Chea