Management Information Management Information Systems Systems Organizational Strategy, Information Systems, and Competitive Advantage Chapter 3
Management Information SystemsManagement Information Systems
Organizational Strategy, Information Systems, and Competitive Advantage
Chapter 3
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This Could Happen to You
Marketing Director needs to write memo to her bossExplain how blog would provide a competitive
advantage
Will be used to justify expense to his manager
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Study Questions
Q1. How does organizational strategy determine information systems structure?
Q2. What five forces determine industry structure?
Q3. What is competitive strategy?
Q4. What is a value chain?
Q5. How do value chains determine business processes?
Q6. How do information systems provide competitive advantages?
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Q1. Organizational Strategy
Determines organization’s goal and objectives
Developed from organizational structure
Creates the value chain for organization
Establishes the structure, features, and functions of information systems
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組織策略決定了資訊系統
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Q2. What Five Forces Determine Industry Structure?
Porter’s five competitive forces:Bargaining power of customers
Threat of substitution
Bargaining power of suppliers
Threat of new entrants
Rivalry among existing firms
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Porter’s Five Forces
Figure 3-2
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Example of Five Forces
Figure 3-3
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Q3. What Is Competitive Strategy?
Organization’s response to structure of its industry
Porter identified four competitive strategies:Cost leadership across industry
Cost leadership focused on particular industry segment
Differentiation across industry
Differentiation focused on particular industry segment
Porter says goals, objectives, culture, and activities must be consistent with strategy
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波特的四個競爭策略
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Q5. What is a Value Chain?
Network of value-creating activities
Primary activities
Support activities
Linkages
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Generic Value Chain Model
Figure 3-5
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Primary Activities
Five activitiesInbound logistics
Operations
Outbound logistics
Marketing and sales
Service
Stages accumulate costs and add value to productNet result is total margin of chain
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價值鏈裡的主要活動
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Support Activities
Four activitiesFirm infrastructure
Human resources
Technological development
Procurement
Contribute indirectly to production, sale, and service
Add value and costsProduce margin that is difficult to calculate
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Linkages
Interactions across value activities
Sources of efficiencies
Readily supported by information systems
Reduce inventory costs
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Q5. Business Processes
Network of activities, resources, facilities, and information
Accomplish a business function
Implement value chains or portions of value chains
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價值鏈如何決定企業流程及資訊系統?
企業流程就是把整個或部分價值鏈具體實作出來的方法所以每個價值鏈裡都會有一或多個企業流程
「最低價」的店家會以最少、最基本的流程來支援它的價值鏈;「高品質」的店家會以較費工夫的企業流程(加以資訊系統的支援)來處理,好讓公司的服務和另一家店差異化
但就如波特所說,這些流程及系統一定要能附加足夠的價值來超過所需的成本不然的話,公司的利潤會是負值
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自行車出租店的部分作業價值鏈
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Business Process Design
Porter’s idea Create integrated, cross-departmental business
systems
Do not automate or improve existing systems
Instead, create new processes Integrate activities of all departments
Across entire value chain
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Organizational Strategy Determines Information Systems
Figure 3-1
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競爭優勢準則一覽表
Q6 資訊系統如何給公司帶來競爭優勢?
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Competitive Advantage via Products
Organizations gain a competitive advantage by:Creating new products or services
Enhancing existing products or services
Differentiating their products or services
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資訊系統在產品上的兩個職分
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Competitive Advantage via Business Processes (1)
Organizations can gain a competitive advantage by implementing business systemsLocking in customers
High switching costs
Locking in suppliers Making it easy to connect to and work with organization
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Competitive Advantage via Business Processes (2)
Create entry barriers Making it expensive for new competition to enter market
Establish alliances Establish standards
Promote product awareness
Reducing costs Increased profitability
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ABC’s Information System
Uses information systems to maintain customer account dataCollects information for ABC
Saves customers time by automatically filling in part of form
Package and information delivery systemCustomer can select delivery address and generate
shipping labels
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從客戶紀錄裡點選收件人的 ABC公司網頁
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從客戶紀錄裡點選聯絡人的 ABC公司網頁
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設定電子郵件通知的 ABC公司網頁
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列印運輸標籤的 ABC公司網頁
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ABC’s Information System Created a Competitive Advantage
Information systems create advantage by:Enhancing existing products
Differentiating products
Locking in customers
Raising barriers to entry
Delivering net savings
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Ethics Guide (1)
Searching the Internet is a matter of knowledge and access
Digital divide between those who have access and those who don’tDivide continues to deepen
Internet access available at public places Not everyone served
Not as convenient
Advantages accrue to those with access
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Ethics Guide (2)
Intellectual capital resides on Internet
Savings for businesses Product support
Warehousing
Mailings
Digital divide segregates haves and have-nots
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Ethics Guide (3)
Do organizations have a responsibility to address this matter?
If most have access, do we have to supply the few without printed materials?
Is it the government’s responsibility to supply Internet service?
How can any economy compete with an Internet-based economy in the global arena?
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Applying Knowledge of Industry Structure (1)
Knowledge of industry structure gives background and perspective
Makes it easier to talk with management
Enables Dee to:Understand the organization’s competitive advantage
Translate strategy into her project
Build a better blog
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Applying Knowledge of Industry Structure (2)
Dee’s memo should incorporate:List of competitive advantage factors
Help sales team differentiate themselves
Lock in customers
Raise barriers to market entry