Experiencing MIS 8th by m kronenke chapter 03

Study QuestionsQ1: How does organizational strategy determine information systems structure?. Q3: How does analysis of industry structure determine competitive strategy?. Q4: How does co

Strategy and Information Systems

Chapter 3

“And We’ve Got a Lot of Process and Systems

Work to Do.”

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

• Differentiates itself by having a large inventory of parts.

• Competitive strategy is threatened by 3D printing.

• Jason wants to respond by manufacturing some parts.

• Never been a manufacturer.

• Drew to explore possibilities and challenges associated with 3D printing.

Study Questions

Q1: How does organizational strategy determine information systems structure?

Q2: What five forces determine industry structure?

Q3: How does analysis of industry structure determine competitive strategy?

Q4: How does competitive strategy determine value chain structure?

Q5: How do business processes generate value?

Q6: How does competitive strategy determine business processes and the

structure of information systems?

Q7: How do information systems provide competitive advantages?

Q1: How Does Organizational Strategy Determine

Information Systems Structure?

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

Strategy Determines Information Systems

Q2: What Five Forces Determine Industry

Structure?

Competitive Forces

• Competition from vendors who manufacture substitutes.

• Competition from new competitors.

• Competition from existing rivals.

Bargaining Power Forces

• Bargaining power of suppliers.

Use 5-forces Model to Identify Sources of

Strong Competition

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

Assessing

the Five

Forces at

AllRoad

Q3: How Does Analysis of Industry Structure

Determine Competitive Strategy?

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

Porter's Four

Competitive

Strategies

low-• New owners are not being honest with employees about cutting jobs.

• Say you might be promoted to new general manager Should you trust

them?

Q: Are the owner’s actions illegal? Unethical?

Q4: How Does Competitive Strategy Determine

Value Chain Structure?

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

Linkages

Task Descriptions for Primary Activities of the

Value Chain

Improved Material Ordering Process Using

Integrated Databases.

Queries

both

databases

Q6: How Does Competitive Strategy Determine Business

Processes and the Structure of Information Systems?

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

Low-Cost Rental Value Chain

High-Service Rental Value Chain

Business Process and Information Systems for

High-Service Bike Rental

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

So What? What Strategy Do You Support?

1 Never propose an idea to anyone in your company that

is not consistent with its competitive strategy.

2 Information systems development must mirror

organization’s strategy.

 What about you, personally?

• If you naturally like to save costs, a cost leader can

be the place for you.

Q7: How Do Information Systems Provide

Competitive Advantages?

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

How Does This System Create a Competitive

Advantage?

• Enhances existing products

• Differentiates products

• Locks in customers

• Raises barriers to market entry

• Increases profit margins by decreasing costs and decreasing errors

How Does an Actual Company Use IS to Create

Competitive Advantages? (cont'd.)

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

• Maintains customer account data

– IS collects information for ABC (adds value).

– IS saves customers time by automatically filling in part of form

(adds value for customer).

• Package & information delivery system

– IS helps customer to select delivery address and generate

shipping labels.

– What value does shipper get?

Two Roles for Information Systems Regarding

Products

ABC Web Page to Select Recipient from

Customer’s Records

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

ABC Web Page to Select a Contact from

Customer’s Records

ABC Web Page to Specify Email Notification

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

ABC Web Page to Print Shipping Label

Q8: 2025?

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

• Speed of business accelerating

• New businesses based on advances in self-driving cars, drones, Google glass, 3D printing

• Pace of change and integration of new technology will be fast and increasing

Security Guide: Differentiating on Security

• Major data centers harden their sites

– Computer criminals turn to less protected assets

of smaller organizations and individuals

• Reputation of effective security can be way to gain a competitive advantage

Guide: Your Personal Competitive Advantage

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

• Who will be your competitors when you seek a job

after graduating from college?

• What will be your competitive advantage in the job

market?

• What can you do before you graduate to develop a

competitive advantage?

Guide: Your Personal Competitive Advantage

Active Review

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c

Q1: How does organizational strategy determine information systems structure?

Q2: What five forces determine industry structure?

Q3: How does analysis of industry structure determine competitive strategy?

Q4: How does competitive strategy determine value chain structure?

Q5: How do business processes generate value?

Q6: How does competitive strategy determine business processes and the

structure of information systems?

Q7: How do information systems provide competitive advantages?

Q8: 2025?

Case Study 3: The Amazon of Innovation

Case Study 1: The Amazon of Innovation (cont'd)

Amazon’s business lines three categories:

Fulfillment Fees for Regular-sized Goods for a

Company Like AllRoad

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c