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CHAPTER 2

Information Systems and the Modern

Organization Cont..

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Thomas Friedmans Ten Flatteners

Fall of the Berlin Wall

Netscape goes public

Development of work-flow software

Hongjiong Shi/Age Fotostock America, Inc.

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Friedmans Ten Flatteners (continued)

Outsourcing

Offshoring

Uploading

Call center in ndia Stockroker !tra/Age Fotostock America, Inc.

"inodia/Age Fotostock America, Inc.

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Friedmans Ten Flatteners (continued)

!uppl" chaining

nsourcing

nforming

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Friedmans Ten Flatteners (continued)

#he !teroids

Computing

Charles Babbage$s Difference

%ngine &'())* +odern data center

z# difeng/Sh#tterstock

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The Steroids (continued)

nstant messaging and file sharing

,oice over nternet rotocol

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The Steroids (continued)

,ideoconferencing

Computer .raphics

Wireless #echnologies

Source: PRNews Foto/Polycom, Inc./NewsCom

$Source: Marianna "ay Massey/%#ma &ress.'

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Technology Pressures

#echnological nnovation and Obsolescence

nformation Overload

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Technological Innoation and !"solescence(continued)

nnovation/ #elegraph

Obsolescence/ on" %0press

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Technological Innoation and !"solescence(continued)

nnovation/ Ford +odel #

Obsolescence/

1orse and Bugg"

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In#ormation !erload

$Source: Maria R.T. Deseo/Photo!it"

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Societal$Political$%egal Pressures

!ocial 2esponsibilit"

.overnment 2egulation and Deregulation

rotection 3gainst #errorist 3ttacks%thical ssues

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Social Res&onsi"ility

One (a)to) )er Chi*

d initiati+e

reen I- See CS videoon dis)osa* of e0aste

1e sites that

ena*e generosity

So#rce2 Frederic (#cano/Stone/ettyImages, Inc.

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!rgani'ational Res&onses

!trategic !"stems

Customer Focus

+ake-to-Order and mass customi4ation !ee 2eebok

!ee Bod"metrics video

%-business and %-commerce

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2.4 Com&etitie Adantage and

Strategic In#ormation Systems

Competitive 3dvantage

!trategic nformation !"stems

&hotodisc/etty Images, Inc.

z# difeng/Sh#tterstock

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Porters Com&etitie Forces odel

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Porters Com&etitie Forces odel

#hreat of entr" of new competitors is hi#h

0hen it is easy to enter a market and low

0hen significant arriers to entry e!ist.

A barrier to entr" is a )rod#ct or ser+icefeat#re that c#stomers e!)ect from

organizations in a certain ind#stry.

For most organizations, the Internet

increasesthe threat that ne0 com)etitors 0i**

enter a market.

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Porters Com&etitie Forces odel

-he bargaining power of suppliers is hi#h

0hen #yers ha+e fe0 choices and low0hen

#yers ha+e many choices.

nternet impact is mi0ed. #yers can finda*ternati+e s#))*iers and com)are )rices

more easi*y, red#cing )o0er of s#))*iers.

On the other hand, as com)anies #se the

Internet to integrate their s#))*y chains,

s#))*iers can *ock in c#stomers.

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Porters Com&etitie Forces odel

-he bargaining power of bu"ers is hi#h

0hen #yers ha+e many choices and low

0hen #yers ha+e fe0 choices.

Internet increases #yers3 access toinformation, increasing bu"er power.

Internet red#ces switching costs, 0hich are

the costs, in money and time, to #y

e*se0here. -his a*so increases #yer )o0er.

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Porters Com&etitie Forces odel

-he threat of substitute products or

services is hi#h0hen there are many

s#stit#tes for an organization3s )rod#cts or

ser+ices and low0here there are fe0s#stit#tes.

nformation-based industries are in the

greatest dangerfrom this threat $e.g., m#sic,

ooks, soft0are'. -he Internet can con+eydigita* information 4#ick*y and efficient*y.

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Porters Com&etitie Forces odel

-herivalr" among firms in an industr" is

hi#h0hen there is fierce com)etition and low

0hen there is not.

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Porters alue Chain odel

-his mode* identifies s)ecific acti+ities 0here

organizations can #se com)etiti+e strategies

for greatest im)act.

rimar" activities

!upport activities

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Porters alue Chain odel

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Strategies #or Com&etitie Adantage

Cost 5eadership

Differentiation

nnovation

Operational %ffectiveness

Customer-orientation

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Strategies #or Com&etitie Adantage

Figure )67

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2.5*usiness + In#ormation

Technology Alignment

-oh 5heng Ho/Age Fotostock America,Inc

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Cha&ter Closing Case

6 -he &ro*em

6 -he So*#tion

6 -he 7es#*ts