Experiencing MIS 9th by m kronenke chapter 03

Q1: How does organizational strategy determine information systems structure?. Q3: How does analysis of industry structure determine competitive strategy?. Q4: How does competitive strat

Strategy and Information Systems

Chapter 3

“We Can't Be Everything to Everybody.”

Study Questions

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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: 2026?

Q1: How Does Organizational Strategy Determine Information Systems Structure?

Strategy Determines Information Systems

Q2: What Five Forces Determine Industry Structure?

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Competitive Forces

• Competition from vendors who manufacture substitutes

• Competition from new competitors

• Competition from existing rivals

Bargaining Power Forces

• Bargaining power of suppliers

• Bargaining power of customers

Use 5-forces Model to Identify Sources of Strong Competition

Q3: How Does Analysis of Industry Structure Determine Competitive Strategy?

Porter's Four Generic

Competitive Strategies

Yikes! Bikes!

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• Yikes! Bikes, a manufacturer of high-end mountain bicycles.

• You are operations manager.

• New owners plan to pursue lowest-cost vendor strategy by importing low-cost, low quality bikes.

• 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?

Linkages

Task Descriptions for Primary Activities of the Value Chain

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Q5: How Do Business Processes Generate Value?

Three Examples

of Business

Processes

Q6:How Does Competitive Strategy Determine Business Processes and the Structure of Information Systems?

Low-Cost Rental Operations Value Chain

Business Process and Information Systems for

High-Service Bike Rental

So What? Driving Strategy

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So What? Driving Strategy

How Does an Actual Company Use IS to Create

Competitive Advantages?

How Does an Actual Company Use IS to Create Competitive Advantages? (cont'd)

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– IS collects information for ABC (adds value).

– IS saves customers time by automatically filling in part of form (adds value for customer).

– IS helps customer to select delivery address and generate shipping labels.

– What value does shipper get?

Two Roles for Information Systems Regarding Products

Web Page to Select a Contact from the Customer’s Records

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ABC Web Page to Select a Contact from Customer’s Records

Web Page to Specify Email Notification

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Web Page to Print Shipping Label

Q8: 2026?

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Security Guide: Hacking Smart Things

• Internet of Things (IoT)

Internet of Threats

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Internet of Threats (cont’d)

Guide: Your Personal Competitive Advantage

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Guide: Your Personal Competitive Advantage (cont'd)

How do these elements of competitive advantage apply to you personally?

Active Review

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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: 2026?

Case Study 3: The Amazon of Innovation

Fulfillment Fees for Regular-sized Goods for a Company Like Falcon Security